Difference between joint venture and strategic alliance pdf

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difference between joint venture and strategic alliance pdf

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Mergers, acquisitions, joint ventures and strategic alliances in agricultural cooperatives.

Joint venture refers to the business arrangement between the two or more than two parties in which the parties come together to pool their resources with the main motive of completing the specific task, whereas, the Strategic Alliance refers to the business arrangement between the two or more than two parties for completing the specific task by remaining independent. The joint venture is one of the forms of strategic alliance. It can be understood as a temporary partnership where two or more parties come together to undertake a specific venture. The basic difference between the Joint Venture vs. Strategic Alliance lies in the relationship that they share and the nature of the two entities. The joint venture is an arrangement between two or more parties. It occurs when two or more parties agree to enter into a contractual arrangement to carry out some specific business undertaking.

Joint ventures and strategic alliances

Alliances play a key role in a corporate growth strategy. They are an alternative to the organic option of building a new business from the ground up, or the inorganic option of making an acquisition. Even as partnerships and strategic business alliances are becoming more important to CEOs, the challenge of managing them is rising. Alliances, if done well, can lead to outperformance and competitive advantage. Nevertheless, these rewards can be accompanied by high risk. Constant vigilance and significant commitment from the senior leaders of each parent is necessary to maintain rigorous, professional end-to-end execution.

Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. Corpus ID: Mergers, acquisitions, joint ventures and strategic alliances in agricultural cooperatives. Hudson and C. Hudson , C. Herndon Published Business The research reports.

Joint ventures and alliances

A strategic alliance also see strategic partnership is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. The alliance is a cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer access to knowledge and expertise , economic specialization , [1] shared expenses and shared risk.

Strategic Alliance can be termed as an arrangement wherein two or more entities come together to undertake common interest. Such an arrangement is in vogue in the contemporary business environment. Indeed, it is a response to the vigorous forces of globalisation, change in technology, deregulation and so forth, due to which the environment is now more complex and competitive in nature. One of the forms of strategic alliance is a joint venture, which can be understood as the temporary partnership, in which two or more entities conjoin to undertake a specific venture. The basic difference between the joint venture and strategic alliance lies in their nature and relationship between the two entities.

Joint Venture vs Strategic Alliance

COMMENT 1

  • In the case of a joint venture, the existence of the contractual agreement is necessary, which specifies all the terms and conditions of the arrangement between the. Calandre C. - 26.03.2021 at 05:22

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