What are the options available for growth, Financial Management

What are the options available for growth

Joint venture

 A joint venture is when a separate company is formed, in which every member holds an equity stake. Area Energy is a joint venture between Exxon and Royal Dutch Shell.

-Synergy for example expertise of different parties

-Can reduces financial outlay for both parties

-Can reduce risk for instance can strengthen and fortify position for both parties

-Good entry route for overseas development for instance overcome government barriers about foreign competition.

 

-  Legal complexities and contractual disputes

-  Collaboration can often be overridden by 'self-interest'

-  Incompatibility of systems and culture to effectively work together

-  Problem shared often means profits are shared

Posted Date: 9/3/2013 1:22:51 AM | Location : United States







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