Country Report Indial

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  • Topic: India, Government of India, Lok Sabha
  • Pages : 12 (3498 words )
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  • Published : March 13, 2011
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Motives and objectives of Ford entering its collaborative venture with Volkswagen

Prior to the formation of the Autolatina JV, both VW and Ford had long been investors in Argentina and Brazil. Both companies had major vehicle-manufacturing subsidiaries in the two countries. Each of these subsidiaries, in turn, had a number of subsidiaries of its own, engaged in financing or in component manufacturing. By 1985, Ford and VW operations both had something in common: they were doing poorly financially in a bad economic environment.

What type of collaborative venture Ford entered with Volkswagen. Advantages and disadvantages for this jv from Ford perspective. In 1985, Ford and VW separately concluded that something dramatic had to be done to improve the situation, and they began informal discussions concerning a possible JV. The basic rationale for the JV was that, in the closed-to-import markets of Argentina and Brazil, Ford and VW could attain econoomies of scale and other efficiencies by combining their organizations, by using common components, and by eventually building Ford and VW vehicles off common platforms. VW platforms would be used for small cars and Ford platforms for mid-size cars. In mid 1986 Ford and VW signed a letter of intent; in May 1987 they signed the JVA. The Closing took place on July 1, 1987, and the Autolatina JV was born.

Advantages Disadvantages

You gain access to other Other JV Party gains
JV Party's knowledge and access to your knowledge
resources and resources

JV can result in There are administrative
economies of scale and inefficiencies inherent in
other efficiences JVs:

* Much time and resources to
set up

* Much time and resources to

* Conflicts in all JV Party/
JVCO deals (sales, purchases,
services, licenses, etc.)

* Corporate and national
cultural differences

All of these may prevent the JV from ever attaining its
contemplated efficiences.

JV can reduct cost of Because of the administrative
failure by sharing it inefficiencies, the risk of
with other JV Party failure may be higher with a

Owner of company may If seller's demand is only
demand JV as condition reason for your doing a JV,
of selling you shares it may indicate that seller is not bringing ongoing value

Host-country legal Host-country JV legal
requirement of a JV requirement may indicate
poor business environment +
xenophobic policies that can

Country Report India

1. Introduction
2. The Political System
3. The Economic System
4. The Legal System
5. Culture
6. Geography
7. Conclusion

1. Introduction
In recent decades, globalization plays an important role in integrating and emerging different countries’ economy and culture. For instance, the economic potential of BRIC (Brazil, Russia, India and China) is such that they may become the four most dominant economies by the year 2050. India is claimed to be the fastest growing country in Southeast Asia, even some people said that India will be the second China. In this project, we are going to analyze the opportunities and challenges of the business environment in India through the politics, economics, legal system, culture and geography.

2. The...
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