Milkpak Limited – International Joint Venture
* Compare Nestle and Friesland as joint venture partners. Nestle
1986 – Consolidated sales were 38,050 million francs. Nestle had plants in 60 countries.
| 1986 – Net sales were 1087 million guilders. Its products were sold in 130 countries.
| Nestle is a more successful and establish firm as compared to Friesland.
| Nestlé’s product line was chocolate and confectionery, instant and roasted coffee, culinary products, frozen foods, and instant drinks.
| Friesland’s product line included condensed and powder milk and infant foods.
| Nestle has a very diverse product line which could help Milkpak in further developing their market beyond dairy products.
| Hallmark of Nestle was decentralization.
| Based upon Friesland’s history as a dairy cooperative, the company would promote its home country more.
| Nestle could provide Milkpak with the flexibility to respond to local market conditions and develop products suited to local tastes whereas Friesland, on the other hand, would always be more interested in finding markets for products produced in Holland than in developing the Pakistani dairy industry.
| Successful manufacturing operation, including a milk powder plant in India.
| Manufacturing facilities and dairies overseas, usually in partnership with a local company.
| Nestle gave Milkpak confidence that Nestle knew how to operate in a very similar environment whereas Friesland was attributed to be having limited experience in establishing production facilitation overseas which could be a major setback.
| Nestle took a long-term approach towards developing its operating companies.
| Friesland’s size might help it be more responsive to Milkpak’s concerns.
| Nestle aims to establish a reciprocal relationship with its companies where both the companies flourish. Friesland although small in size, could alleviate the ownership concerns of Milkpak, but still does not focus on long-term...
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