Joint Venture Entry Mode

Topics: Economy of Australia, Australian dollar, Capital Pages: 6 (2054 words) Published: September 10, 2013
Content Page
1. Executive summary.................................................................................3 2. Introduction.............................................................................................4 3. Analysis...................................................................................................5 4.1 Illustration of a joint venture..............................................................5 4.2 Company analysis..............................................................................5 4.3 Context analysis.................................................................................6 4.4 Scale analysis.................................................................................... 4. Conclusion............................................................................................... 5. Reference List..........................................................................................

Executive summary
This report is just about to forecast the suitable entry mode for the CapitaLand Limited which is based in Singapore to explore business in Australia’s market and to prove suitable choice of entry mode with support of company analysis, Context analysis and Scale analysis. All these analysis play an important role for this report. As in company analysis, choosing the appropriate entry mode is supported by researching the company’s data and constitutions of its main products or services. According to the data given, it is compulsory for CapitaLand to make an agreement or incorporate with a host country firm (Australia) which is the country that has a wide range of resources and raw materials. In the context analysis, it is highlighted the cultural differences between foreign and local firm and show how the joint venture entry mode will help to tackle between these differences. Furthermore, a joint venture can be explained as neither a company nor partnership in Australia and as a result it has a choice of separate tax treatments. Moreover, in Australia, joint venture could give advantages to CapitaLand by identifying customer bases and creating distribution bases during the housing prices have increased rapidly. Joint venture mode of entry is also justified by Scale of analysis: scale of entry, risk level, returns level, control level and level of integration. It is suggested that CapitaLand will establish a joint venture with a local firm in Australia and will also manage to master the business environment and culture because of failing this attempts could lead the company to bankruptcy.

Introduction
CapitaLand, one of the biggest real estate companies in Asia, is headquartered and listed in Singapore as its fund management of real estate are especially focused on core market of China and Singapore itself. The company's real estate portfolios are basically divided into Homes, Offices, Shopping Malls, Residences and Mixed Developments. CapitaLand also possesses assets with one of the largest real estate fund management in Asia. The company leverages its powerful base of asset, real estate domain of knowledge, product design arrangement, architecture and development capabilities, effective capital management strategies and broad market network to expand their brand by promoting its products and services in its markets. The CapitaLand includes different listed entities namely; Australand, CapitalMalls Asia, CapitaCommercial Trust, Ascott Residence Trust, CapitaRetail China Trust, CapitaMalls Malaysia Trust, Quill Capita Trust. The mission of the company is to establish a world-class recognized company with international presence that creates sustainable shareholder value, to distribute qualified products and services and to captivate and expand the quality of human capital, as in spirit of credo " Building for People to Build People ". Presently, in Singapore, the famous landmarks of CapitaLand can be seen such as Plaza...

References: 1. http://www.capitaland.com/home
2. http://madaan.com/jointventures.html
3. http://www.claytonutz.com/docs/DBIA_English.pdf
4. http://www.1000ventures.com/business_guide/jv_main.html
5. http://www.mallesons.com/publications/marketAlerts/2005/Documents/8222123w.htm
6. The Joint Venture, Gilbert Visconti, First Trade edition, May 9, 2003. 
7. Joint Venture; Legal and business perspectives, Barry JReiter and Melanie A Shishler, Dec 1999.
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