International operations have become an important part of overall business strategy in recent years, and the commencement of activities in foreign markets has become a natural milestone for any growing business. Globalization has radically changed the way companies conduct business. But dealing with international markets is tricky. Companies must be ready to overcome differences in legal and regulatory regimes, cultural norms, languages and currency issues. Confronted with soaring business risks and fierce global competition, companies are discovering that the best hope for staying ahead is by joining forces with other companies.
Each foreign market offers unique opportunities and risks, and many companies naturally look to strategic relationships with one or more partners for assistance in entering new markets. One of the most popular forms of strategic relationship is a joint venture. In an era of globalization, organizations are using joint ventures to consolidate their market position and gain competitive advantage. An understanding of the advantages and disadvantages of this type of structure in relation to the company’s business goals is therefore essential.
This programme provides a useful guideline to understand and manage the dynamics of joint ventures. The four areas of strategy, structure, culture and human resources are addressed along with a special section on negotiations tactics deployed in establishing joint ventures. In addition, the importance of sense making, trust and commitment will be highlighted. This course covers the formation, structure, operations, control and management of joint ventures and includes a special segment on why international joint ventures perform unsatisfactorily, why they run into trouble, and what can partners and managers do to maximise the chances of success.
The programme will stress the importance of balancing management control and ownership and the appropriate roles to be played by the venture partners. It would explain the concept of management control and how joint venture partners can have a hold on the pulse of the venture even when the management is done by the other partner or a third party. It will identify the most effective management structure to adopt to ensure that shareholders get the best value from the venture. It will highlight the dangers of selecting the wrong laws to govern the venture and the importance of managing joint venture risks. The programme will also provide guidance on how to resolve disputes between venture partners and the appropriate exit strategy and procedures to apply should the venture turn sour.
The programme will consist of lectures, discussions and group work. The programme will use a range of case studies of top multinational companies which can offer valuable insights into how joint ventures work and function and why they sometimes fail.
Who Should Attend?
Members of the Management Team, General managers and Senior Managers who are responsible for managing and operating global business