Alpes S.A.: A Joint Venture Proposal (A)
(9 pages of text)
The senior vice-president for corporate development for Charles River Laboratories must prepare a presentation to the company's board of directors requesting up to a $2 million investment in a Mexican joint venture with a family-owned animal health company. However, the chief executive officer views the proposed joint venture as a potential distraction while his company continues to expand rapidly in the United States. He is also worried about the risks of investing in a country like Mexico and the plan to partner with a small, family-owned company. Moreover, the Mexican partner is unable to invest any cash in the joint venture, which would need to be fully funded by Charles River Laboratories. The supplement Alpes S.A.: A Joint Venture Proposal (B)
looks at what happened.
- To understand the process of negotiating and entering into international joint ventures.
- To recognize the issues involved when a multinational company proposes a joint venture with a smaller, family-owned firm.
- To appreciate the differences in corporate and national cultures that must be bridged to achieve a successful joint venture, including differences in corporate governance.
- To emphasize the importance of personal relationships in understanding the potential partners, their business and their country, in order to make a decision about entering the joint venture.
This case was developed for use in courses in organizational behavior, general management or international management. It is suitable for classes or seminars intending to illustrate issues and concepts related to the building of effective organizations, change leadership and managing international alliances. The international context of the case also makes it applicable to an elective course or seminar dealing with cross-cultural management or international management.
Agriculture, Forestry, Fishing and Hunting
Mexico/United States, Medium, 2005
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