What is a joint venture? > 영어토론방

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A joint venture takes place when two parties come together to take on one project. In a joint venture, both parties are equally invested in the project in terms of money, time, and effort to build on the original concept. While joint ventures are generally small projects, major corporations also use this method in order to diversify. A joint venture can ensure the success of smaller projects for those that are just starting in the business world or for established corporations. Since the cost of starting new projects is generally high, a joint venture allows both parties to share the burden of the project, as well as the resulting profits.

A joint venture is not to be taken lightly. For a business person to embark on a joint venture, he or she needs to be committed and willing to work cooperatively with the other party involved. A person involved in a joint venture can no longer make all of the decisions for the business alone. For it to be truly a “joint venture,” there has to be 100% commitment from both sides.

When determining whether or not to embark on a joint venture, it is important to ensure both parties are a match with the projected client base. In a joint venture, each party must compliment the other in business. Sometimes, a misunderstanding or a lack of communication can destroy a joint venture. Therefore, it is necessary for both parties to be capable of communicating what they are able to offer to the project and what their expectations are.

Since money is involved in a joint venture, it is necessary to have a strategic plan in place. In short, both parties must be committed to focusing on the future of the partnership, rather than just the immediate returns. Ultimately, short term and long term successes are both important. In order to achieve this success, honesty, integrity, and communication within the joint venture are necessary.

Excerpt from Wise greek
Source: http://www.wisegeek.com/what-is-a-joint-venture.htm

NEW YORK (AP) - Soft-drink maker The Coca-Cola Co. and U.K. food and beverage maker Nestle said Tuesday they will refocus their joint venture solely on the total ready-to-drink tea category and solely outside the U.S.

Previously, the companies said their Beverage Partners Worldwide would develop coffee and non-black tea drinks. Now, Beverage Partners Worldwide will focus on tea and will also stop all U.S. activity.

All Beverage Partners' coffee initiatives will revert to Nestle on a market-by-market basis during a transition period ending by the end of 2008.

Coca-Cola and Nestle will be able to compete in the coffee market in any country after the agreement is closed.

Coca-Cola has entered into a master sublicense agreement with Nestle for the Nestea and Enviga brands in the U.S.

Coca-Cola and Nestle will both be able to develop or acquire additional tea brands to compete more aggressively in the U.S. tea segment, the companies said.

Beverage Partners Worldwide was created in 2001. Before that, Nestle and The Coca-Cola Co. cooperated in a joint venture called Coca-Cola and Nestle Refreshments.

Shares of Coca-Cola fell 15 cents on the New York Stock Exchange in afternoon trading to $47.99.

Excerpt from ABC money
source: http://www.abcmoney.co.uk/news/27200746503.htm