Management Professionals
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Management Professionals, Inc.
UMUC
AMBA610/9041
8th May 2012
Professor Courtney Anderson
Joint Venture Strategy
PRO:
Moonglow Acres considering taking their business global will need to not only find other business partners, but they will also need to find a company that has a similar vision to ensure compatibility. According to Harrigan (1986), by merging strengths of other companies, “perhaps we can find new benefits from cooperation and improve on productivity” (p.ix). Since Moonglow Acres’ has established a reputation of working with organic and eco-friendly products, they will need to partner up with companies that replicate comparable processes.
Moonglow Acres, along with partner companies need to keep an open mind and develop a “new language of cooperation” in order to keep up with all the new up-and-coming technology and information (p.7, 1986). By joining together, each company is not only brining their ideas to the table and joining forces, they are also what Kogurt would refer to as “buying the right to expand in the future” (p.1, 1991). Each company is not necessarily losing financially when they join in on this type of strategy. By joining together, they can enhance each other’s strengths while minimizing weaknesses. Creating a new joint configuration, Moonglow and partner companies are creating the best structure that suits their business style and needs, while reducing the issues that may or may not arise in difficult inter-organizational relationships (p.343). This will only help the company become successful and allow for optimal growth over time.
CON:
Moonglow Acres and the other joining companies have a contractual agreement to work together. There is no one company that is higher level than the other; all companies are to be considered equal. One company will be unable to make “knee-jerking” decisions that affect the entire company, because they are contractually on one team and the liability falls on everyone...
UMUC
AMBA610/9041
8th May 2012
Professor Courtney Anderson
Joint Venture Strategy
PRO:
Moonglow Acres considering taking their business global will need to not only find other business partners, but they will also need to find a company that has a similar vision to ensure compatibility. According to Harrigan (1986), by merging strengths of other companies, “perhaps we can find new benefits from cooperation and improve on productivity” (p.ix). Since Moonglow Acres’ has established a reputation of working with organic and eco-friendly products, they will need to partner up with companies that replicate comparable processes.
Moonglow Acres, along with partner companies need to keep an open mind and develop a “new language of cooperation” in order to keep up with all the new up-and-coming technology and information (p.7, 1986). By joining together, each company is not only brining their ideas to the table and joining forces, they are also what Kogurt would refer to as “buying the right to expand in the future” (p.1, 1991). Each company is not necessarily losing financially when they join in on this type of strategy. By joining together, they can enhance each other’s strengths while minimizing weaknesses. Creating a new joint configuration, Moonglow and partner companies are creating the best structure that suits their business style and needs, while reducing the issues that may or may not arise in difficult inter-organizational relationships (p.343). This will only help the company become successful and allow for optimal growth over time.
CON:
Moonglow Acres and the other joining companies have a contractual agreement to work together. There is no one company that is higher level than the other; all companies are to be considered equal. One company will be unable to make “knee-jerking” decisions that affect the entire company, because they are contractually on one team and the liability falls on everyone...