FACULTY OF BUSINESS, ENVIRONMENT & SOCIETY
CASE 14.3 – EDGAR’S BUSINESS
SUBMITTED BY : SODHI PRABJOT STUDENT ID NUMBER : 30106256 LECTURER : DR. WONG WAI NAM EDGAR’S BUSINESS
What type of arrangement is Edgar using in his business dealings with the firms in Australia, Singapore and Dubai? Be complete with your answers.
Edgar sells its products to different parts of the world through a contractual agreement. Edgar has a strong association in Australia, Singapore and Dubai to sell its products on the market. Partnership means a relationship of two or more entities conducting business for mutual benefits and operates the business together. In partnership type in which multiple individuals, called general partners and are equally liable for its debts (BusinessDictionary, 2013). Other individuals called limited partners these are invest money but not directly involved in the management and are liable only to the extent of their investments. According to Article 4 of the Act defines a partnership between the partner has agreed to share the profits of a business carried on by all or part of them acting for all (GeminiGeek, 2013). There will be relatively transparent trade agreement in the case of Edgar where both parties benefit them in terms of turnover. The Company is governed by an agreement between the two companies that sell products Edgar. Companies in Australia, Singapore and Dubai act as a distributors to sell the Edgar products in these countries. After reading we assume that the Edgar have one big advantage that he do not want to give any taxes to government except personal tax. This partnership deed will also promote their products are sold by parties other than their partners to arrival. This will lead to a controlled environment where the sale of its patented products to customers.
Is the Chinese business proposal a joint venture? Why or Why not? Would you recommend that Edgar accept it? Why or Why not? Yes Chinese business proposal is a joint venture. Because the Edgar wants to start business in Asian countries so at that time china is the best way to set up the business easily. And after that spread business in other Asian countries namely Korea, Japan, Pakistan and India. Start business in these countries are very big scope for setting up the business. In China, foreign investors may establish a commercial presence in one of the following methods, all foreign owned enterprise (WFOE), Representative Office or through joint ventures (JV) (Eltoma, 2012). Do the business in china is the safest, easiest, least expensive method. Good relationship with Chinese colleagues and well establish distribution system. China helps in accelerate the speed of entering the other Asian countries (TermPaperWarehouse, 2011). The Chinese company allowing you to reduce costs, because it will help to setting a factory in China, without pocket expenses. The Chinese proposal is a good choice for Edgar the Asian market, a market with great potential. Under the terms of the agreement with Edgar 50% of profit for the companies that manufacture in China. I will definitely recommend that Edgar should go with a joint venture with a Chinese company, because Asian markets are worth the investment and reap good profits too. In my opinion, Edgar boarding enter the Asian market, after the well is located on the Asian continent. It may be withdrawn by the joint venture agreement, and start your own business and factories. Years during which the Chinese company will be able to market the company and its future possibilities that could be beneficial for a company in the long run to learn. Hence considering joint venture will be a good idea for Edgar to expand his business to all over the world....