CASE STUDY

Case Study: An East European Joint Venture

Case Study: An East European Joint Venture

Introduction

Introduction to joint ventures

The aim of every company is to attain the fast level of profitability as well as the fast level of growth. In order to attain the objectives, the companies adopt various strategies to enhance their approaches and access. Such strategies allow the companies to attain their ultimate goals and objectives. The joint venture is also one of the strategies that are used by many companies in order to expand their business and to attain expansions in large number of markets and to attain the objectives of profitability (Diane J., 1995, pp. 114). In joint ventures, the agreement among the companies is developed in which the business operations and the purchase of the assets are done with the consent of two companies or among the number of companies involved in the joint venture. The joint venture provides various benefits as it assists the companies in having the brand recognition and it also assist in fulfilling the requirements of the capital. In joint venture all the including companies have the power to take the decisions and the companies involved in the joint ventures share the revenues, profits as well as the losses that are generated from the business operations. Most of the companies make the purchase of the shares of other companies in order to assist each other with the financial and capital requirements (Peter, J. D., Marion, Festing, A. D. E., 2008, pp. 207). The joint venture, however, limits the guarantee among the partners that holds the shares of the companies. Most of the companies have achieved their names by initially making joint ventures with the companies and then purchasing the company with which it has initially made the joint venture. The joint ventures affect the cultures of the business company, therefore, the companies have to develop and implement such strategies that can deal with the changing business cultures. The joint ventures also require the careful consideration for the employee relationships because the changing business cultures have direct impact upon the employees and sometimes this leads to the negative behavior and performances of the employees (Zhu, Ying, and Warner, M., 2000, pp. 120).

There are various companies all around the world that have attained the marked success and growth because of the joint ventures and alliances with other well recognized companies. The following section aims at discussing the brief interview about the company of whom the case study will be discussed in the later section.

Introduction to case study - Eden Breweries

The company, Eden Breweries, is also one of such companies that have achieved marked success in the international markets because of the joint ventures strategy. The Eden is having its marked name in the beverages industry in the European market and in the international market. The analysis of the case study of the Eden Breweries has shown that the company has attained the growth in the business by attaining the majority shares of the Pancevo ...