Premium Essay

A Study of Australian-Indian Joint Ventures

In: Business and Management

Submitted By glenn0122
Words 8566
Pages 35
This article was downloaded by: [Monash University] On: 27 September 2010 Access details: Access Details: [subscription number 922191555] Publisher Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 3741 Mortimer Street, London W1T 3JH, UK

The International Journal of Human Resource Management

Publication details, including instructions for authors and subscription information: http://www.informaworld.com/smpp/title~content=t713702518

The role of human resource management in international joint ventures: a study of Australian-Indian joint ventures
Sharif N. As-Saber; Peter J. Dowling; Peter W. Liesch

To cite this Article As-Saber, Sharif N. , Dowling, Peter J. and Liesch, Peter W.(1998) 'The role of human resource

management in international joint ventures: a study of Australian-Indian joint ventures', The International Journal of Human Resource Management, 9: 5, 751 — 766 To link to this Article: DOI: 10.1080/095851998340775 URL: http://dx.doi.org/10.1080/095851998340775

PLEASE SCROLL DOWN FOR ARTICLE
Full terms and conditions of use: http://www.informaworld.com/terms-and-conditions-of-access.pdf This article may be used for research, teaching and private study purposes. Any substantial or systematic reproduction, re-distribution, re-selling, loan or sub-licensing, systematic supply or distribution in any form to anyone is expressly forbidden. The publisher does not give any warranty express or implied or make any representation that the contents will be complete or accurate or up to date. The accuracy of any instructions, formulae and drug doses should be independently verified with primary sources. The publisher shall not be liable for any loss, actions, claims, proceedings, demand or costs or damages whatsoever or howsoever caused arising directly or indirectly in connection with…...

Similar Documents

Premium Essay

General Electric's Joint Ventures Case Study

...General Electric’s Joint Ventures Sarah Henning Marian University - International Business (BUA-310) Abstract This paper will examine GE’s international business and look at their preferred entry modes into foreign countries. It will examine the pros and cons of acquisitions, Greenfield ventures, and joint ventures. The paper will look at GE transition from one entry method to another. General Electric’s Joint Ventures General Electric used to prefer acquisitions or Greenfield venture as an entry mode rather than joint ventures. While joint ventures offer firms the opportunity to share costs and risks it also gives joint control to both partners. Joint ventures have many significant disadvantages. General Electric when entering into a joint venture risks giving control of its technology to its partners. They also would not have as tight of control over their subsidiaries that it might need to realize experience curve or locations economics. Finally shared ownership arrangements can lead to conflicts and battles for control between the investing firms if their goal and objective change over time, or if they take different views to what the venture’s strategy should be. GE has found that as much as it would like majority ownership, or even a 50/50 split, sometimes it has to settle for a minority stake to gain access to a foreign market. (Hill, 2006, p. 441) There are three major benefits to......

Words: 1109 - Pages: 5

Premium Essay

Joint Venture

...A joint venture is a special type of strategic alliance in that a new business entity is created that is legally separate and distinct from its parents. A primary advantage of a joint venture is that the venture can have a broader purpose, scope, and duration compared to other types of strategic alliances. Moreover, joint ventures tend to be more stable than non-joint venture strategic alliances. Joint ventures in which there is shared management or that are managed by one parent may have difficulties because there may be a tendency to try to please management from the founding companies rather than focusing on what is best for the joint venture. In contrast, non-joint venture strategic alliances are useful because they allow participants to focus on a particular project, yet do so without creating a new entity. Furthermore, non-joint venture strategic alliances can help firms overcome short-term hurdles. The basic benefits partners are likely to gain from their strategic alliances are ease of market entry, shared risk, shared knowledge and expertise, and synergy and competitive advantage. Strategic alliances can ease market entry because they allow firms to overcome barriers such as entrenched competition and hostile government regulations and/or reduce the cost of entry. Strategic alliances can also enable firms to reduce or control exposure to risk. Firms can gain knowledge and expertise via strategic alliances, as well as synergy and competitive advantage. ......

Words: 312 - Pages: 2

Free Essay

Joint Venture

...Since 2007 the global recession has been remarkable for all entrepreneurs, and gradually had to go looking for alternative ways to take their businesses forward. The following paper will analyze the basics that can help or hurt a company in order to become internationally succesfull, and also remark the keys to business survival with the aim of expanding its presence in emerging markets.  exporting  licensing  joint venture  equity stake/acquisition EXPORTING Pros:  In developing countries it is necessary to reach an international level of quality, to upgrade machinery, raw materials and processes, based on imports needed for export.  In countries with higher manufacturing costs, probably out cheaper to import than produce, thus becoming resellers, from manufacturers to retailers.  In countries with free trade treaties gradual reduction of import taxes to zero, lower the cost of international purchases. Cons:  Buy in another country reduces income country where the entrepreneur. Symptoms of economic problems as higher imports than exports, reduce sources of employment, output and cause national currency is exchanged for foreign currency.  Imports are always implicit risk of increase in the price of foreign currency. Businesses tied to increased foreign currency for imports which are their main source of income, should contract hedging or futures brokerage firms in order to protect themselves.  Imports, in high degree, dependent on the entrepreneur...

Words: 925 - Pages: 4

Premium Essay

Joint Venture

...Joint Venture The globalization strategy our team is going to explore for Moonglow is Joint venture. We are going to discuss the pros and cons to a joint venture along with some environmental factors that Moonglow needs to consider before deciding on a location. We are also going to explore different organization structures and give a recommendation on how to restructure Moonglow to succeed in the global market. Lastly, we will describe ways Moonglow can expand internationally while maintaining its eco-friendly practices and continue producing organic products. According to Jones (2011) a joint ventures is a “strategic alliance among two or more organizations that agree to establish and share the ownership jointly of a new business” (p. 342). Joint ventures are formal and bounded by a legal agreement with all parties’ rights and responsibilities spelled out. Joint ventures are considered one of the best methods for entering into foreign markets. As with any business venture, there are pros and cons that need to be considered (Jones, 2011). Many foreign markets have the potential to be closed to outside companies. Joint ventures make entering into closed markets easier. The pros to entering into a joint venture are access to limited capital resources, transfer of technology, bypass of legal restrictions, access to raw material, knowledge of regulatory climate, and investment incentives (Hall, 1984). In a joint venture, Moonglow will......

Words: 2524 - Pages: 11

Premium Essay

Walmart/Bharti Joint Venture

...of competition: Being though that India is ranked first on the list of the world’s most attractive retail destination amongst 30 distinguished markets there are obvious threats of competition throughout the entire retail industry there. The Indian retail industry being valued at $320 million in 2010 and expected to rise to about $637 billion in 2015 thus will attract influence and entice many retail businesses. The retail industry India is so pivotal that it accounts up to 14% of the country’s national gross domestic product and provides jobs for nearly 10% of the entire country and is expected to rise at prompt rates. Before the rapid rate in India’s population there were plenty of competition within the Indian retail sector, but not between major licensed retail corporations but amongst small mom and pop stores, mobile carts and pavement vendors which are known as the unorganized retail sector, which in earlier yeas accounted for nearly 98% of the country’s retail market. With India’s population 1billion plan and the GDP growth estimate at 7.5% in upcoming years all sorts of different opportunity for all mass merchants and food retailers to expand their businesses locally and nationally were up for grasp. It was apparent the Indian retail sector was on its way to becoming worth billions of dollars, so the country saw many different companies beginning to funnel into the retail sector with hopes of taking advantage of all the positive changes in the region. As more......

Words: 3075 - Pages: 13

Premium Essay

Joint Venture - Sikorsky and Tata

...Abstract Skirosky and Tata joint venture to build S-92 cabins in India on a Greenfield facility is a business decision which can prove to be profitable for the United States and India based companies. There are pros and cons to the approach but can be quite profitable for both firms. A brief overview of both organizations is given, with their approach to the joint venture. An outline of possible challenges each organization could face along with followed with some recommendation as to how to overcome the challenges the companies may face. Sikorsky and TATA Joint Venture The Sikorsky Manufacturing Corporation was established in 1925 in Long Island New York by Igor Sikorsky a native of Russia who immigrated to the United States and restarted his aviation career after successfully designing a four engine craft. The company’s later became The Sikorsky Aviation Corporation. In 1929 after Sikorsky purchased land in Connecticut the company became a division of United Technologies Corporations. Sikorsky Aviation manufacture and designs fixed-wing aircrafts, military and commercial helicopter’s, spare parts and maintenance, repair and overhaul services for helicopters and fixed-wing aircraft; and civil helicopter operations (Skirosky.com, 2012). Sikorsky helicopters are used by all branches of the army, along with military services and commercial operators in 40 nations (Sikorsky.com, 2012). Sikorsky is the prime contractor in the U.S. Army’s......

Words: 1875 - Pages: 8

Premium Essay

Joint Venture

...A joint venture is a partnership or alliance among two or more businesses or organizations based on shared expertise or resources to achieve a particular goal.1 There are many good business reasons to participate in a joint venture partnering with a business that has complementary abilities and resources, such as finance, distribution channels, or technology, makes good sense. These are just some of the reasons partnerships formed by joint venture are becoming increasingly popular. A joint venture is also considered a strategic alliance between two or more individuals or entities to engage in a specific project or undertaking. Partnerships and joint ventures can be similar but in fact can have significantly different implications for those involved. A partnership usually involves a continuing, long-term business relationship, whereas a joint venture is based on a single business project. Parties enter joint ventures to gain individual benefits, usually a share of the project objective. This may be to develop a product or intellectual property rather than joint or collective profits, as is the case with a general or limited partnership. A joint venture isn’t like a general partnership; it’s not a separate legal entity. Revenues, expenses and asset ownership usually flow through the joint venture to the participants, since the joint venture itself has no legal status. Once the joint venture has met its goals the entity ceases to exist. Being a part of a joint venture has......

Words: 1514 - Pages: 7

Premium Essay

Joint Ventures

...MANESAR PLANT Area: 6oo Acres Manufacturing Capacity: 5,50,000 Vehicle annually Cars Manufacturing:  A-star, Swift, Swift Dzire, Ritz andSX4  6. MARUTI SUZUKI INDIA LTD. Maruti Suzuki is India and Nepal’s leading automobile manufacturing company and the market leader in the car segment both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government and 54.2% by Suzuki of Japan. The BJP led government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007 Govt. of India sold its complete share to Indian financial institutions. The Govt. of India no longer has stake in Maruti Udyog.  7. JOINT VENTURE Relationship between the Government of India under the United Front (India) coalition and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian media till Suzuki Motor Corporation gained the controlling stake. The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and further to 50% in 1992. In 1982 both the venture partners had entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director will have a tenure of five years.  8. CARS Manufactured locally 800 (Launched 1983), Omni (Launched 1984), Gypsy (launched 1985), WagonR (Launched 2000), Alto (Launched 2000), Swift (Launched 2005) Estilo (Launched 2009), SX4 (Launched 2007) Swift......

Words: 10019 - Pages: 41

Premium Essay

Joint Venture

...A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares. In European law, the term 'joint-venture' (or joint undertaking) is an elusive legal concept, better defined under the rules of company law. In France, the term 'joint venture' is variously translated as 'association d'entreprises', 'entreprise conjointe', 'coentreprise' and 'entreprise commune'. But generally, the term societe anonyme loosely covers all foreign collaborations. In Germany,'joint venture' is better represented as a 'combination of companies' (Konzern)[1] On the other hand, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are "co-venturers". The venture can be for one specific project only - when the JV is referred to more correctly as a consortium (as the building of the Channel Tunnel) - or a continuing business relationship. The consortium JV (also known as a cooperative agreement) is formed where one party seeks technological expertise or technical service arrangements, franchise and brand use agreements, management contracts, rental......

Words: 7550 - Pages: 31

Premium Essay

International Joint Venture

...International Joint Venture System Complexity and Human Resource Management* Randall Schuler Rutgers University and GSBA Zurich Ibraiz Tarique Pace University Chapter to appear in I. Björkman and Günter Stahl (eds.), Handbook of Research in IHRM. (London: Edward Elgar Publishing, 2005) * The authors wish to thank S. Jackson, M. Moelleney, B. Kugler, G. Bachtold, W. Harry, J. Ettlie, D. Osborn, Y. Gong, and I Björkman for their suggestions and commentary in the development of this chapter. © Randall S. Schuler and Ibraiz R. Tarique. 1 International Joint Venture System Complexity and Human Resource Management An increasing number of organizations are entering new global markets as they seek to develop and sustain a competitive advantage in today’s highly competitive global environment (Taylor, 2004; Ernst & Halevy, 2004). To accomplish this international expansion, organizations can and do use many different market entry strategies (Narula & Duysters, 2004; Briscoe & Schuler, 2004; Beamish & Kachra, 2003; Newburry & Zeira, 1998; Child & Faulkner, 1998). Prior research has shown that cross-border alliances, particularly international joint ventures (IJVs) are perhaps the most popular means of international expansion (Ernst & Halevy, 2004; Briscoe & Schuler, 2004; Schuler, Jackson, & Luo, 2004). Despite their popularity, however, IJVs are difficult to develop, organize, and manage. Research has shown that a majority of IJVs fall short of their stated goals leading...

Words: 7917 - Pages: 32

Premium Essay

Joint Venture in Russia

...Problems The matrix structure proved to be too complex for ABB.Internal decision making was poor. Project coordination needed improvement. In response, in 1998, the CEO changed ABB to a sector-based organization. Management was based on six sectors of ABB’s business. This new management structure, however, was ineffective as well.In 2000, ABB’s operating cash flow dropped more than 35 percent. The INFO Institut reported that this reductionin cash flow was “primarily due to an expansion of current assets, which could reflect unsatisfactory capital management and management problems.” In July 2001,ABB announced it would cut 12,000 jobs. For the fiscal year 2001, ABB reported its first-ever loss (of $691 million)since it began in 1988.A case study of ABB completed by the IBS Center for Management Research reported: “Analysts felt that poor strategic decisions taken by the top management of ABB and HR-related problems arising due to frequent changes in the organization structure were some of the reasons for the poor financial performance of ABB.” Customer-Centric Management In January 2001, ABB announced that it would alter its management structure to focus on its customers. It divided its customers into four main “End-User Fields”: • Utilities • Process Industries • Manufacturing and Consumer Industries • Oil, Gas, and Petrochemicals Please see the nearby graph from INFO Institut.In October 2002, ABB combined all but the Oil, Gas, and Petrochemical End-User Field into......

Words: 1305 - Pages: 6

Premium Essay

Joint Venture

...idea of joint ventures in the universal vitality division and builds up a joint endeavor model, as a business advancement and evaluation device. The joint endeavor model displays an orderly strategy that depends on present day business brainpower to evaluate a potential business wander by utilizing an adjusted score card method to screen potential accomplices, in view of their mechanical and budgetary center abilities. The model can be utilized by business improvement administrators to saddle the capability of joint dares to make monetary development and reasonable business extension. Besides, associations with nearby organizations can help to moderate econo-political hazard, and encourage purchase in from the national governments that are ordinarily the essential partners in the vitality area wanders (specifically or in a roundabout way). The specific instance of Eskom Enterprises (Pty) Ltd, a completely claimed auxiliary of Eskom, is highlighted. Table of Contents 1. BACKGROUND 4 2. INTRODUCTION 4 3. PROBLEM STATEMENT 5 4. CRITICAL ANALYSIS OF A JOINT VENTURE STRATEGY 5 4.1 What are joint ventures? 5 4.2 The elements of business strategy 6 4.3 Partnership capabilities: a value-added perspective 7 5. ALIGNING THE TECHNO-FINANCIAL STRATEGIES OF PARTNERS 8 5.1 Technology strategy 9 5.2 Financial strategy 10 5.3 The need for a strategic fit between partners 11 6. THE JOINT VENTURE MODEL (JVM). 12 6.1 RECOMMENDATION FOR THE FIRM OF JOINT......

Words: 3204 - Pages: 13

Premium Essay

Joint Venture Agreements

...Eli Lilly in India Case Study BUS 545 – Global Business Management May 31, 2015 Andrew Juarez Professor Barnett   Executive Summary This report provides an analysis and evaluation of the case study “Eli Lilly in India”. The general overview of the case study is the discussion of the Joint Venture agreements between two parties. Eli Lilly a reputable pharmaceutical company entered the Indian market in a joint venture agreement with Ranbaxy. The joint venture between both parties was initially a positive move, they both had an increased market share, and were driving earnings, and the relationship between both companies was positive without negative circumstances. Thus, the issue problem arose when the partnership was at an impasse, both of the companies had different perspectives on the future of the joint venture, while Ranbaxy Laboratories Limited felt that generics would be most suitable for the future development of the company, Eli Lilly and Company were focused on growth and innovation. They had both made their mark within the growing Indian economy, though other firms began to flood the market. The decision had to be made whether Eli Lilly would continue to use Ranbaxy as an intermediate or would it be better for them to rethink the joint venture as they were seeking something that Ranbaxy wasn’t, stable growth in the global business environment. The company background, the current situation and any competitive issues. Eli Lilly & company works to......

Words: 1097 - Pages: 5

Free Essay

Joint Venture

...en Chine : la représentation, la Joint Venture (JV) et les sociétés à capitaux 100% étrangers (WFOE) c'est-à-dire la filiale 100%. Parmi elles, la Joint Venture a longtemps été la première forme d'investissement autorisée et le mode d'opération favorisé par les entreprises étrangères en Chine car il est souvent le seul à être permis. Les joint ventures dans la création de sociétés en Chine Aujourd'hui, il existe en Chine un enthousiasme sans précédent pour les joint ventures. Même s'il ne faut pas nier l'existence d'un ralentissement de la croissance du nombre de nouvelles sociétés de ce type, il y a toujours des entreprises étrangères cherchant à s'installer en Chine. Selon M. Yao Shenhong, ancien porte-parole du ministère chinois du Commerce, ce pays a absorbé davantage d'investissements directs étrangers en 2013 que l'année précédente, dépassant les 85 milliards d'euros. Par contre, il faut prendre conscience qu'aujourd'hui, les mésaventures de certains groupes commencent à faire douter de la pertinence de cette organisation juridique. En ce qui concerne la main d'œuvre, c'est aussi un souci majeur posé par la création de joint ventures, les entreprises étrangères acceptant souvent une main d'œuvre mal qualifiée de la part de leur partenaire. Il faut alors fournir une série de formations coûteuses et longues afin qu'ils soient qualifiés pour leur poste. Pourquoi avoir recours à une joint venture ? Malgré tout, le mode joint-venture possède encore des......

Words: 678 - Pages: 3

Free Essay

Joint Venture

...Sunshine powers joint venture in India 1- Because BP company is using the solar power which is not harming the environment by the smokes that pollute the weather. Yes I think it is taking sufficient measures toward developing new forms of fuel as they have the capability to manufacture solar cells, assemble solar modules and balance solar power systems. 2- India is a good location for developing solar power products due to several reasons, First it has the suitable weather that is needed for producing such energy in an effective way , Also the availability of the skilled work force and the Engineers as there are over 600 workers who are employed at three manufacturing centers and eight offices that the BP company owns in India, it provides its products for all of India. Another good country is Sri lanka, it is rich with the sources needed for producing solar power products, also there are high skilled workers with low wages and suitable regulations and rules. 3- I think the pros are motivating the economic activities and increasing the flow of money, reducing the unemployment and encouraging domestic companies to be more efficient. And the cons are having an inflation and some domestic companies may suffer from the competition. They might only perform in their home country, yes I think it is a wise to allow them to operate independently because they may have good strategies and management plans that help in increasing the profit as each branch is related to different......

Words: 347 - Pages: 2