Thursday, 23 June 2011
Monday, 30 May 2011
What Is Joint Venture?
A joint venture, or abbreviated as JV and sometimes called joint adventure, is a tactical union flanked by two or more parties to embark on a financial activity together. This alliance agrees to create a new entity together by both contributing equity and they then share in the revenues, expenses, and control of the enterprise.
The venture can be for one specific project only, or a continuing business relationship such as the Sony Ericsson joint venture.
Organizations can also form joint ventures, for example, a child welfare organization in the Midwest initiated a joint venture whose mission is to develop and service client tracking software for human service organizations. The five partners all sit on the joint venture corporation's board, and together have been able to provide the community with a much-needed resource.
Joint ventures are more common in the oil and gas industry, and often are dealt within corporations on the national and local levels. A joint venture I always seen as something good in this kind of business industry and a very good alternative in this sector as local companies can complement their skills and technology sets while it offers the foreign company a geographical presence.
As there are good business and accounting reasons to create a joint venture (JV) with a company that has complementary capabilities and resources, such as distribution channels, technology, or finance, joint ventures are becoming an increasingly common way for companies to form strategic alliances.
There are so many reasons why companies form joint venture, listed below are some of them.
One of the most common internal reasons why most companies join joint ventures is the spreading of cost and risks, sometimes companies who are into new projects looks for another company who is willing to undertake the same project with them. This way, companies are able to spread out the cost and the risk of failing.
Joint venture is also a good way to improve financial access or resources, like for example your company can make a deal with non-profit organizations who can be exempted from taxes, so that your project will have lesser cost and much more financial gaining.
You can also be partners with bank or other companies that has a much higher earning than your company.
Economic scale is also one good advantage of having a joint venture, when you have a small company but have a very broad idea or have something new that will surely attract large mass of sales, and your company cannot afford to stabilize such project you can go for some company who are larger when it comes to economic scale.
Being partners with other company and joining in a joint venture also give you access to new technologies and customers. It also gives you the much coveted access to innovative managerial practices.
Joining joint ventures can also influence structural evolution of the industry. It is also a good way or pre-empting competition, like if you have a competitor and you on the same financial field and he has good strategies that work as well as your, forming a good joint venture with this company can boom into a much bigger company, meaning bigger sales and more money.
Joint venture is also a good response to blurring industry boundaries. Joining two companies can also lead to a creation of stronger competitive units. Joint venture can speed up market and improve agility of the company when it comes to business terms.
When a creation company like what other companies are doing an would like to adopt it on a much more legal way, joint venture is good thing to do. Joint ventures help transfer technology of one company to the other.
If your company would also like to transfer skills from other companies you can also look into joint ventures.
Diversification is also a great reason why some company goes into joint ventures, this helps them stabilize their company growth and also make them available to different forms and types of business industry.
Other countries may require foreign companies to form a joint venture with their local firms in order to enter a certain market. This requirement often forces technology transfer and managerial control to the domestic partner of the joint venture.
Sunday, 29 May 2011
Einstein's Riddle
Variations of this riddle appear on the net from time to time. It is sometimes attributed to Albert Einstein and it is claimed that 98% of the people are incapable of solving it. Some commentators suggest that Einstein created such puzzles not to test out intelligence but to get rid of all the students who wanted him as an advisor. It is not likely that there is any truth to these stories. Where ever this comes from, it is a nice riddle.
Let us assume that there are five houses of different colors next to each other on the same road. In each house lives a man of a different nationality. Every man has his favorite drink, his favorite brand of cigarettes, and keeps pets of a particular kind.
The Englishman lives in the red house.
The Swede keeps dogs.
The Dane drinks tea.
The green house is just to the left of the white one.
The owner of the green house drinks coffee.
The Pall Mall smoker keeps birds.
The owner of the yellow house smokes Dunhills.
The man in the center house drinks milk.
The Norwegian lives in the first house.
The Blend smoker has a neighbor who keeps cats.
The man who smokes Blue Masters drinks bier.
The man who keeps horses lives next to the Dunhill smoker.
The German smokes Prince.
The Norwegian lives next to the blue house.
The Blend smoker has a neighbor who drinks water.
The question to be answered is: Who keeps fish?
Wednesday, 25 May 2011
Initiative
I wanted to share with you something that I discovered while I was watching an excellent video online. I learned about the concept of initiative and taking action and how simple it can be to catapult yourself past immobility. Having said this, keep in mind that initiative is as essential to success as a hub is essential to a wheel. And initiative is precisely taking action when we know it ought to be done but no one is asking for it to be done. Most of the time, when we elect to put aside some action that needs to be taken, we are anticipating that our effort may not give us exactly what we desire from it. Whether our desire is instant gratification or simply a journey of smooth sailing we often anticipate one or both of these things will evade us and we are caught up in immobility due to fear. When we accept that our efforts will at some point deliver to us that which we are working toward, we can more easily surpass any fear that stumps us.
Taking action that results in achievement truly does require us to gradually overcome the bumps and tough spots along the way, but by continually putting forth effort in this manner, we can achieve numerous things that are very much worth the work.
I'd like to share with you a powerful example of how initiative can propel a person into high achievement. Two men who initially came to know one another while in high school, were each doing their own thing in their adult lives, but they did manage to keep in contact. One day the two men decided that since they recognized a need in the computer industry they would take it upon themselves to write a simplified version of the programming language called BASIC. For two months they worked on the rewriting of BASIC, and then contacted contacted the computer engineer who designed the computer that used the language. The simplified version worked, and the engineer was so impressed with the work that the two men were given a contract with the production company. Soon they were adapting other programming languages for the computer and by that summer they formed a company they called Microsoft.
Without initiative, a person will remain caught up in a life of less than average quality. With initiative, comes great reward.
Ambitions
I aim to become the president of my country. I have the object of becoming the greatest scientist. I will one day be the richest person in the world. I aim to and so goes the list of ambitions of people. Nobody remembers that the final goal for each one of us is going back to earth. Let us talk more about ambitions.
Are ambitions good or bad? This is difficult to answer, isn't it? To be an ambitious person must be very good. With ambitions a person strives to achieve a great feat. Few of us have very big ambitions and few very small. It all depends on our contentment. What will make us feel happy? What will make us feel worthy, and what will make us feel powerful? It's all about what we want from life. If you want money at any cost, you will compromise with all other values and try to make more money. But if your ambition is to become an honest person and live a God fearing life, no amount of money can attract you to do any wrongs.
Ambitions therefore depend upon our character, culture, mental makeup, outlook, values and so on. Till our ambitions don't trouble others it is ok. If by achieving our goals, we make others happy, that is still better. But if our ambitions hurt others, we must revisit our thinking and redefine our ambitions.
