Case Study on East Meets West: Business Joint Ventures
* Why would a joint venture partner from a planned economy have difficulty understanding that the consumer is king or queen? Answer:
Every economy has its own characteristics as both good and bad as well. In any economy, there are rules and regulations fortified in the manner to help the citizens and so that the businesses can get enough revenue from their customers. As we see in today’s world, we can see that only the open economies are getting through the international competition and sustaining in the long run of multitasking operations. As in a planned economy like Soviet Union, Marxism-Lenism had some limitations too. Usually there are not many competitors and whosoever the businesses are; the procedures are controlled directly by the govt. The businesses started to think that customers will have to buy whatever they offer because they have not much of alternative choices. Maybe that can be alright for their country but not sustainable for any other country in this world. On an open economy, businesses understand, they have to satisfy the customers only and customers have a set of choices and alternatives available in the market. If their business can’t offer something much superior or different, there revenues will suffer. That’s why, because of the understanding of the business, they treat their customer as kings or queens. * Could a small business owner tolerate a business deal that had little probability of being profitable within the first 10 years? Answer:
Small business owner doesn’t mean the entrepreneur doesn’t have any other businesses or way of earning. But if the business is only the way, of course no one will be able to tolerate this kind of business deal. Usually these kinds of deals are inevitable in industries like real estate, long term investment firms etc. There are not much...