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Short-term and long-term intermediates

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After choosing the business entry strategy which is joint venture, next step would be to determine the long-term and short-term impact of joint venture. The requirement must be considered of both the organizations what they want from joint venture. Some of short-term intermediates are discussed below-:

  • Objectives of joint venture- The main objective of McCain is to establish their business in Philippines market with the help of potato corner company. Gain the experience of Asian market, making more and more customers, bearing the expense and losses, sharing the capital with each other to reduce the risk.
  • Less risk- joint venture will reduce the risk while entering the new emerging market in Philippines, because there is very less risk in joint venture as compared to other market entry strategies i.e. greenfield investment.
  • Economic control- after established the joint venture the main motive will be to gain market control, increase the market share in particular field, and attract more and more customers.
  • Uses of resources- McCain can gain the experience of doing business in Asia with the help of using the resources and technology of potato corner.
  • Financial contribution- How much money should be invested by each organization to established separate company in joint venture, and how profit or losses would be distribute in future.
  • Establish Business framework- The intellectual property that will be created by the joint venture, who will be control organization and who will take main strategic decision. Main thing is to protect the intellectual property, control on decision making, dividing the task and responsibilities. (FITT 6th edition (2013), international market entry strategies)
  • Long-term intermediates- After achieving the short-term intimidates next step is doing work on long-term perspective.
  • Increased capacity- After becoming a well-known brand, the next strategies of McCain would be expanding their business, like introduce new products in the market, open new branches in Philippines market, try to know about the taste of the consumer.
  • Build a relationship- while sharing each and everything with partner company, it will help to build long relationship between two companies and try to create long-term business goals.
  • Dissolution- End up of joint venture is very easy as compared to other agreements. Business, taste of customers and relations between business is changes times to time. After getting enough market share McCain company can choose the option of dissolution joint venture and they can start new separate business.

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