Cumbersome cumbersome lost flexibility lost chapter

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Unformatted text preview: ocal knowledge Local – Cumbersome Cumbersome – Lost flexibility Lost Chapter 11 - 13 Management Contract Company supplies another with managerial expertise for a specific period of time Advantages + Few assets risked Few + Nations finance projects Nations + Develops local workforce Develops Disadvantages – – Personnel at risk Personnel Create competitor Create Chapter 11 - 14 Turnkey Project Company designs, constructs, and tests a production facility for a client + Firms specialize in core Firms Advantages Disadvantages competency competency + Nations obtain infrastructure Nations projects projects – Politicized process Politicized – Create competitor Create Chapter 11 - 15 Wholly Owned Subsidiary Facility entirely owned and controlled by a single parent company Advantages + + Day-to-day control Day-to-day Coordinate subsidiaries Coordinate Disadvantages – Expensive – High risk Chapter 11 - 16 Joint Venture Separate company created and jointly owned by two or more Separate independent entities to achieve a common business objective Forward • Backward • Buyback • Multistage Forward Advantages • Reduce risk level • Penetrate markets • Access channels • Protect interests Disadvantages • • Partner conflict Lose control Chapter 11 -...
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