A conglomerate merger is a merger between firms that are involved in totally unrelated business activities. There are two types of conglomerate mergers: pure and mixed. Pure conglomerate mergers involve firms with nothing in common, while mixed conglomerate mergers involve firms that are looking for product extensions or market extensions.…
Salta Company installs a manufacturing machine in its factory at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the units of production method:…
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.…
5. One drawback of switching from a partnership to the corporate form of organization is the following:…
Disadvantages of a Joint Venture. 2013. Disadvantages of a Joint Venture. [ONLINE] Available at: http://www.seanmcpheat.com/marketing/joint-ventures/disadvantages-joint-venture. [Accessed 03 April 2013].…
Joint venture physician practices over-treat patients and reap economic rewards in the process. These types of practices are very different from the traditional group practices described in the text. Physicians partnered in traditional large group practices provide comparable services, usually practicing within the same specialty, such as Dermatology or Orthopedics. As Getzen (2010) explains, "One reason for physicians to work together in group practices is to obtain economies of scale from sharing office space, equipment, and information systems." (Getzen, 2010).The goal of these physicians groups are to increase revenue through sharing the expenses associated with ancillary help. The traditional group practice structure appears to uphold…
However, when considering the security of a partnership, the disadvantages raise concerns about how safe an option a partnership is;…
The con of the JIT relationship is that problems would occur if the company has sudden breaks to service and the supply. This may lead to labor strikes, and then eventually a failed business.…
Attaining global competence when entering into international joint ventures, in order to be successful, is dependent on developing a strategic approach to Human Resource Management (HRM) that ties to Business Strategies and to the overall Organization’s mission, vision, goals and objectives. Through problem analysis of this case, this paper will show evidence that international initiatives must be tailored to implement HR policies and practices that will complement the workforce taking in consideration sensitivity issues internal and external to the home-country, cultural awareness and differences in standards such as education and diversity. It will be stated that remedies that would bring about organizational cohesion would include the development of an appropriate orientation program; ensuring that management takes advantage of Human Resources expertise in program delivery such as training and compensation; and to have an effective monitoring system in place that will enable the organization to become better at identifying and managing change. These adopted strategies have a purpose and a plan in moving this company from just being good to great.…
esearch indicates that almost 70% of all joint ventures fail. Joint ventures (or JVs)—whereby two or more parties combine their resources in a joint business undertaking—can be a great way for start-up and established companies alike to obtain needed money or expertise, introduce new products or services to an existing market or bring existing products and services to a new market. So why do these relationships have such an alarmingly high failure rate? And what can you do to increase the likelihood that your next JV will be a success? Most JVs are doomed to failure from their inception for one or more of the following reasons: 1. Bad Ideas. In the classic JV situation, companies form a joint venture because neither of them, alone, has adequate resources (generally money, personnel, technology or expertise) to undertake the venture on its own. Increasingly, however, JVs are motivated less by resource sharing than by risk sharing. Companies use JVs to pursue products, services and markets that they have chosen not to pursue on their own because the projects are deemed too risky. Unfortunately, “risky” is often code for not worthwhile or uncommercial. If a project is not worth undertaking alone (assuming the company has the resources to do so), it may not be worth undertaking. 2. Insufficient Planning. One of the most prevalent reasons for failed joint ventures is a lack of sufficient planning. Joint venture “plans” consisting of nothing more than a statement of each party’s intended contributions to the JV and their respective share of the profits seldom work. The parties have nothing to shape their expectations or to govern their disputes. Parties of the joint venture should agree to a comprehensive written plan upfront including provisions for each of the following:…
The headings of the clauses in this agreement are for the purpose of convenience and reference only and shall not be used in the interpretation of this agreement.…
In a liquidating distribution, a partnership need not distribute all of its property to all of its partners.…
Imagine that you are meeting with your superiors to discuss entering a foreign market. Your boss has asked you to analyse a joint venture prospect. Why might you tell your boss that the joint venture is not a good idea?…
Dilger Corporation (referred to hereinafter as "Dilger") and Rall Consulting (referred to hereinafter as "Rall") are pleased to submit their intent to form a joint venture (referred to hereinafter as "Initial Venture"). The Initial Venture between Dilger and Rall (referred to hereinafter as the "Parties") shall be referred to herein as the Transaction and the date of the consummation of the Transaction shall be referred to as the Closing.…
Every economy has its own characteristics as both good and bad as well. In any economy, there are rules and regulations fortified in the manner to help the citizens and so that the businesses can get enough revenue from their customers. As we see in today’s world, we can see that only the open economies are getting through the international competition and sustaining in the long run of multitasking operations. As in a planned economy like Soviet Union, Marxism-Lenism had some limitations too. Usually there are not many competitors and whosoever the businesses are; the procedures are controlled directly by the govt. The businesses started to think that customers will have to buy whatever they offer because they have not much of alternative choices. Maybe that can be alright for their country but not sustainable for any other country in this world. On an open economy, businesses understand, they have to satisfy the customers only and customers have a set of choices and alternatives available in the market. If their business can’t offer something much superior or different, there revenues will suffer. That’s why, because of the understanding of the business, they treat their customer as kings or queens.…