Joint+Ventures

I found the readings regarding joint ventures very interesting. It has been my experience that joint ventures, for the most part, typically do not work. The readings were pretty complete with the reasoning behind these failures. It is difficult to enter into an agreement where each side needs the other yet each also have differing reasons for entering into said agreement. For the most part I see joint ventures as an unworkable alliance where both sides expect to "win". The growth of business more often then not comes at the expense of a seperate entity. I believe the much more viable method is that of aquisition, although this can be frought with danger as well. A classic example of an aquisition gone bad would be Time Warner's aquisition of AOL. This business decision essentially cripled Time Warner.

The second reading dealing with business joint ventures in China appears to be somewhat dated. I have had the pleasure of dealing with a number of Chinese manufacturers and suppliers for quite some time and have found their business style and methodology very similar to that which I have experienced with my dealings with domestic suppliers. I believe the manufacturing situation (by this I mean the employee working conditions) as well as certain governmental regulations do pose some challenges. The managers and leadership teams of companies in both China and Taiwan have adapted to a much more "American" style of doing business from what I have found. As a general statement I do find the textbook makes some valid statements regarding cultural differences and difficulties which may arise but, I must admit, I find much in the book to be outdated and not entirely accurate at this time.