Joint ventures

Joint ventures refer to commercial companies created and operated for the benefit of the co-owners; usually two or more separate companies that from the venture.

A joint venture is an entity created when two or more firms pool a portion of their resources to create a separate, jointly owned organization. An example is Beverage Partners Worldwide, which is a joint venture between Coca-Cola and Nestle that was created in 2001. The joint venture markets ready-to drink chilled teas based on green tea and black tea in more than 40 countries worldwide.

A common reason to form a joint venture is to gain access to a foreign market. In this cases, the joint venture typically consists of the firm trying to reach a foreign market and one or more local partners.

Share it:  Cite

More from this Section

  • Plans
    Plans are documents that outline how goals are going to be met. They usually include resource ...
  • Changed agent
    Organizational changes often need someone to act as a catalyst and assume the responsibility ...
  • General environment
    The general environment includes the broad economic, political/legal, sociocultural, demographic, ...
  • Strategic control
    Management efforts to track a strategy as it is being implemented, detect problems or ...
  • Active listening
    Active listening which is listening for full meaning without making premature judgments ...