Joint Venture
Key Issues____________________________________________________________________
Due to a variety of uncertainties ranging from the instability of Mexico’s economy, to a limited knowledge of the possible company to do business with, Charles River Laboratories have to assure to their stakeholders that a joint venture with ALPES is beneficial to the growth of the company.
Internal Analysis_______________________________________________________________
The internal analysis will partially determine how capable CRL is with their business resources moving forward within their industry. With a VRINE analysis, descriptions of what this company may endure internally will be discussed.
Value
There is a clear value for CRL in their industry. Under B&L, CRL is one of their most profitable divisions. They contribute around ten percent of B&L’s corporate net income. CRL was sold to B&L for 110 million dollars. This acquisition gave the CRL division a greater growth opportunity within an organization. CRL planned to have a growth of twelve to fifteen percent a year. CRL also acquired SPAFAS for six million dollars, which also added value to the B&L division. A large capital investment in SPAFAS increased production of SPF eggs in the United States.
Rarity
For CRL, resources were important and ALPES represented an opportunity for them. ALPES was the sole producer of SPF eggs in Mexico. A joint venture with ALPES would give CRL a market where basically no competition exists. To enhance this opportunity, CRL will need to contribute funds for the joint venture which would ultimately increase the SPF egg production capacity. Adding this production in Mexico would give competitive advantage. The high capital that B&L has in possession gives them a serious competitive advantage and adds a sense of rarity for smaller competitors.
Inimitability
CRL was established as a global market leader of the production of laboratory animals. These animal models were used for
Due to a variety of uncertainties ranging from the instability of Mexico’s economy, to a limited knowledge of the possible company to do business with, Charles River Laboratories have to assure to their stakeholders that a joint venture with ALPES is beneficial to the growth of the company.
Internal Analysis_______________________________________________________________
The internal analysis will partially determine how capable CRL is with their business resources moving forward within their industry. With a VRINE analysis, descriptions of what this company may endure internally will be discussed.
Value
There is a clear value for CRL in their industry. Under B&L, CRL is one of their most profitable divisions. They contribute around ten percent of B&L’s corporate net income. CRL was sold to B&L for 110 million dollars. This acquisition gave the CRL division a greater growth opportunity within an organization. CRL planned to have a growth of twelve to fifteen percent a year. CRL also acquired SPAFAS for six million dollars, which also added value to the B&L division. A large capital investment in SPAFAS increased production of SPF eggs in the United States.
Rarity
For CRL, resources were important and ALPES represented an opportunity for them. ALPES was the sole producer of SPF eggs in Mexico. A joint venture with ALPES would give CRL a market where basically no competition exists. To enhance this opportunity, CRL will need to contribute funds for the joint venture which would ultimately increase the SPF egg production capacity. Adding this production in Mexico would give competitive advantage. The high capital that B&L has in possession gives them a serious competitive advantage and adds a sense of rarity for smaller competitors.
Inimitability
CRL was established as a global market leader of the production of laboratory animals. These animal models were used for