Case 20: PEPSICO CHANGCHUN JOINT VENTURE Capital Expenditure Analysis Study Questions Q1. Use the information in the case to construct two sets of NPV and IRR analysis from joint venture view and Pepsico. Based on the results‚ what would be your decision on the proposed Changchun joint venture? Q2. Comment on the financial projections that PepsiCo used in its capital budgeting exercise‚ especially the NOPBT Cap‚ foreign exchange rate projection and the discount rate. Q3. What differences might
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E. Garza MGMT 4317 Mr. E. Adames‚ MPA October 21‚ 2014 Explain the advantages of Strategic Alliances and Joint Ventures A strategic alliance is a cooperative relationship among two or more firms to pursue a specific endeavor or set of objectives while remaining separate entities. These alliances may be either formal or informal which may involve a written contract. A joint venture is cooperative endeavor entered into by two or more business entities contributing equal equity to form a new legal
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observations are draw from the author’s personal experiences. The case is not intended to support a particular approach to management‚ nor is there a correct solution to the case analysis. Key issues include international strategic alliances and joint ventures‚ corporate response to trade liberalization‚ organizational and national culture‚ and cross-cultural management and negotiation. INTRODUCTION/SUMMARY During the NAFTA negotiations‚ many U.S. firms were concerned about the reduction of U
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Joint Ventures‚ Strategic Alliances‚ Collaborations and Merger and Acquisitions Questions | Q1. Why is a Joint Venture (JV) preferable to more general collaboration form of the Strategic Alliance? Q2. What are the relative merits and weaknesses of JVs and SAs? Q3. Why would company seek M&A as a market entry strategy? What are the advantages and disadvantages of M&A? why might a merger fail and what might be the outcome? Q4. What are the relative merits/ disadvantages of JVs‚ SAs‚ and
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GLOBAL JOURNAL OF BUSINESS RESEARCH ♦ VOLUME 3 ♦ NUMBER 2 ♦ 2009 AN EMPIRICAL STUDY OF WHOLLY-OWNED SUBSIDIARIES AND JOINT VENTURES FOR ENTRY INTO CHINA MARKETS Yung-Heng Lee‚ Northwestern Polytechnic University‚ USA Yann-Haur Huang‚ Northwestern Polytechnic University‚ USA Mei-Jane Chan‚ Northwestern Polytechnic University‚ USA ABSTRACT The aim of this study is to empirically investigate the effectiveness of The Eclectic Theory in explaining the entry mode choices of Taiwanese Electronic Components
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SPAFAS’s continual expansion in United States. Alternatives: 1. CRL invests $2 million to build a joint-venture with Alpes. Pros: Cons: It fills up CPL’s "strategic growth gap" It is a potential distraction for SPAFAS’s development in U.S. It facilitates SPAFAS’s expansion into international market There is "uncertain market and unstable currency" in Mexico Alpes has a long history of working with SPAFAS Alpes is a small‚ family-owned company‚ whose operating environment is not ideal. It is relatively
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Case Analysis- ALPES S.A.: A JOINT VENTURE PROPOSAL CONTENT Part One 1. Key Issue Charles Rivers Laboratories (CRL) is evaluating a joint venture proposal that a Mexican company creates a state-of-the-art specific pathogen-free (SPF) egg for the vaccine. If the proposal is approved‚ CRL is going to invest 2 million dollars to the Mexican company. However‚ CRL must consider the potential risks of cooperation. Part Two 2.Internal Analysis: VRINE ANALYSIS
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to forming a joint venture in China focused on 3G‚ or more specifically‚ TD-SCDMA (time division-synchronous code division multiple access) and W-CDMA. The joint venture will focus on research and development‚ manufacturing and sales of 3G network systems. The JV will begin offering its first TD-SCDMA and W-CDMA systems next year under China Puritan’s Potevio label. The TD-SCDMA standard is being billed as a Chinese alternative to 3G. In addition to 3G services‚ the venture also will offer
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………………………………………………………………….…... 3 2. General overview of international joint ventures ……………………………... 4 2.1 Main classification of joint ventures ……………………………………. 5 2.2 Structure of joint venture entity ………………………………………..… 5 3. Advantages and disadvantages of international joint ventures …………….. 6 3.1 Advantages of IJV ……………………………………………………….... 7 3.2 Disadvantages of IJV ……………………………………………………... 8 4. Planning an international joint venture ………………………………………... 8 4.1 Preliminary investigation …………………………………………………
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3.1. IJV local environment This section discusses in detail the effect of national culture and organization culture on the performance of Sino-foreign joint ventures‚ based on previous studies. 3.1.1. National culture Culture is regarded as a “system of shared values and beliefs” (Saloner‚ Shepard and Podolny 2001) that aims to solve problems that arise due to external adaption and internal adaptation of the organizations (Schein 1985). External adaptation is defining the strategy and main objectives
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