Mgt Essay Example | Topics and Well Written Essays - 250 words - 3

Mgt - Essay Example It is clear that, it cannot be business as usual due to the stagnation and global expansion is a brilliant idea. The business is big, since it operates a 35,000-square-foot factory with 75 employees and I believe that it has the capacity to realize global expansion. What is more viable? Should it consider a joint venture or hire a sales team of indigenous people in the countries that it enters? The dilemma is whether to employ a sales team of indigenous people in the countries it enters or to forge a joint venture. According to Emery (2011), â€Å"a joint venture is a strategic alliance between two or more entities to engage in a specific project.† Its difference with partnership is that the former is for a particular undertaking while the later is for a long- term business relationship. A joint venture is advantageous, for example it ensures sharing of resources, skills and risks. However, it has myriad of problems like: disparity in assets, expertise and investments of each entity, varied cultures and organizational management styles, and it requires thorough research and a long time to be able to establish and make operational (Emery, 2011). Though costly, hiring sales personnel of native people in the countries of diversification is a good idea since it helps in building a business empire that will benefit from centralized management. Forming a business dynasty will help in addressing the problems of sustainability and enhance reliable distribution