marsita bt. omar (cp090101)

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Marsita binti Omar

CP090101

UNIVERSITI TUN HUSSEIN ONN MALAYSIA

86400 Parit Raja, Batu Pahat, Johor.

JOINT VENTURE



Joint venture is the participation of two ormore companies jointly in an enterprise in

which each party contributes assets, owns theentity to some degree and share risk.

All parties agree to share in the profits andlosses of the enterprise.

Help both companies share what may be thesubstantial cost of starting a new operation.



Joint venture allows foreign companies topenetrate the market and get experience in

other countriesA joint venture may be a corporation, limited

liability company or other legal structure,depending on a number of considerations

such as tax and tort liability.



- INTERNAL REASON

- COMPETITIVE GOALS

- STRATEGIC GOALS



INTERNAL REASON

Build on company's strengths

Spreading costs and risks

Improving access to financial resourcesEconomies of scale and advantages of size

Access to new technologies and customers

Access to innovative managerial practices



COMPETITIVE GOALS

Influencing structural evolution of the industry

Pre-empting competition

Defensive response to blurring industry boundariesCreation of stronger competitive units

Speed to market

Improved agility



STRATEGIC GOALS

Synergies

Transfer of technology/skills

Diversification



Set Clear Goals

Find a Partner

Plan the Venture

Manage the Relationship



conflict may arise

different culture and management style in poor integrationand co-operation

imbalance in level of expertise, investment or asset

brought into the venture by the different partnersproblems are likely to arise if the objective of the venture

are not 100% clear and communicated to everyone involved



January 29, 2010 21:31 PM

Malayan Flour Mills In Joint Venture With Toyota TsushoMalayan Flour Mills In Joint Venture With Toyota Tsusho

KUALA LUMPUR, Jan 29 (Bernama) -- Malayan Flour Mills Bhd (MFM) has formed a joint venture with Toyota Tsusho

Corporation and Toyota Tsusho (Singapore) Pte Ltd to carry out trading of raw materials for animal feed.

The joint venture announced today allows the newly established company, Premier Grain Sdn Bhd, to leverage onToyota Tsusho's global supply network to get more feed grains, said MFM managing director Teh Wee Chye.

Toyota Tsusho, a member of the Toyota Motor Group, is the largest trading company in Japan with businessesacross the industry involving raw materials, agriculture and high technology. MFM will own 51 per cent of the jointventure, with the remaining 49 per cent held by its Japanese partners.

"The joint venture will allow us to grow further in terms of economies of scale and with this, we can put moregrains in the pipeline via their global network already established," Teh said after signing ceremony here on Friday.

The feed grains will be used internally and be for sale in the Malaysian market, he said.The signing was witnessed by Deputy International Trade and Industry Minister Datuk Jacob Dungau Sagan. ToyotaTsusho is currently handling feed grains from Brazil, Argentina and Australia.

Teh said MFM was currently importing about 300,000 tonnes of feed grains such as corn and soy oil and hoped to

increase the amount to 500,000 tonnes via the tie-up. "The grain market in Malaysia is about three million tonnesannually. So, there is more room for us to secure a bigger market share," he said.

MFM is engaged in the milling and selling of wheat flour with its allied products. Other activities include processingand selling of poultry products, breeding and selling of day-old chicks and eggs, contract farming services,manufacturing and selling of animal feed and related raw materials, provision of transport management services,and investment holding.

"We see growth opportunities in the food business despite the economic meltdown and we are committed to invest

further in this sector. This joint venture will strengthen our commitment towards it," he said.-- BERNAMA



Joint venture between Malayan Flour Mills and ToyotaTsusho

establish company Premier Grain Sdn Bhd to carryout trading of raw materials for animal feed

MFM will get 51% of the joint venture and 49% heldby Toyota Tsusho

This joint venture will allow to grow further interms of economies



can put more grains in the pipeline viatheir global network already established

With this joint venture, it will be increase

the trade volumeIt can support between 300,000 tonnes &

500,000 tonnes of feed gain a year

With this joint venture, there is more

room to secure a bigger market share.



Each mode of entry have their advantage anddisadvantage

The firm must decide which mode of

entry they can use suitable with theirfirm.

the firm need to analyze to locate a goodcompany that can give benefit to their

firm before they do the joint venture.

marsita bt. omar (cp090101)

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