Case Study on East Meets West: Business Joint Ventures Essay

* Why would a joint venture eccentricner from a aforethought(ip) economy perplex difficulty understanding that the consumer is king or faery?AnswerEvery economy has its own characteristics as both proficient and bad as well. In any economy, at that place atomic number 18 rules and regulations streng consequently in the manner to help the citizens and so that the wrinklees gouge get equal revenue from their customers. As we see in todays world, we stick out see that only the plain-spoken economies be getting through the planetary competition and sustaining in the bulky run of multitasking trading operations. As in a planned economy like Soviet Union, Marxism-Lenism had some limitations too. Usually there are non many competitors and whosoever the businesses are the procedures are controlled directly by the govt.The businesses started to think that customers pull up stakes waste to buy whatever they offer because they have not much of alternative choices. Maybe that can be satisfactory for their boorish provided not sustainable for any other country in this world. On an open economy, businesses understand, they have to satisfy the customers only and customers have a set of choices and alternatives available in the market. If their business cant offer something much superior or different, there revenues leave suffer. Thats why, because of the understanding of the business, they treat their customer as kings or queens. * Could a slim business owner tolerate a business deal that had microscopical probability of being profitable within the first 10 old age?AnswerSmall business owner doesnt mean the enterpriser doesnt have any other businesses or way of earning. notwithstanding if the business is only the way, of course no one will be able to tolerate this kind of business deal. Usually these kinds of deals are inevitable in industries like real estate, long term investment firms and so on There are not much information here slightly a planned economy right here and we cant see how much they appreciated the FDIs is in their land. But in an open economy like most of the economies of this world, there have to be revenues actually. The businesses will have to fix their costs and maintain their operations running at any cause. At least their have to be sales becoming to maintain both the variable and fixed costs of the business, If there are not much of meshing, the business wont have to pay much tax rate but if there are loans and financial debts, they will have to pay a certain percentage of their profits and if the forecasted profits are not enough to pay, eventually they wont get any kind financial help from any financial institution.As 10 years is a long time to establish strike off equity to the customers in an open economy, any one of the ventures can be impatient and break the deal. At any cost, maybe not for both years, or 3 years, the profit must come then enough to occupy the market and satisfy the contractors. Usually, for the first years of a business firm, they invest in getting brad equity and climb up customer loyalty and also in understanding the consumer fashion in their current operations. But this is brand management in their long term investment.But eventually, in joint ventures any one of the parties are sustainable and able to run their operations and known to be at least a provider of a certain group of customers. winnings may not come to be a point in these areas of generation but when the venture is formed and ready to serve the market, after calculating the time to build a level a brand equity and CRM, they must obtain profit to run their business enthusiasm. stock-still of there are big business owners. I suspect if they will be able to deal with such improbability. * Why have fewer Americans been willing to enter into joint ventures with Soviet partners today?AnswerAs the situation provided is due to the environment in mid-1991, there are certain points to consider. We know that, in mid-1991, the recession of US was ended. Thus many companies who was facing a huge amount of loss got their heads up and start their operations again. In the 1990s, Gorbachevs policy of perestroika offered the people little in substantive, near-term sparing improvement, and his policies of demokratizatsiia resulted in rapidly raising their expectations while lessening the regimes controls over society. As a result, in mid-1991 the Soviet Union appeared to be a disintegrating federation with a collapsing economy and a despairing, confused society. In August 1991, Bush and Gorbachev signed the Strategic Arms Reduction Treaty, which necessary the United States and the Soviet Union to cut their nuclear weapons within sevensome years so that each side would have only 4,900 ballistic missile nuclear warheads as part of a total of 6,000 warheads. The two countries had been engaged in the Strategic Arms Reduction Talks (START) since 1982.In another collabo rative effort, the Soviet Union voted with the United States and an international partnership of nations to oppose the invasion of Kuwait by Iraq, a nation that had been the liquidator of substantial amounts of Soviet military advice, equipment, and weapons. There has been a lot of changes in USA and Soviet Union constitutions on that time, maybe the destruction of weapons and an chirk up of being able to dominate each others economy, they came conclude to get to business relationships.Both of them were two of the most powerful part of the world and maybe one of them was trying to dominate the other but these are political overlooks. The business point of view strategizes the collapse of socialism in Soviet Union and because to the law changes in the field of business policy, there could be alliance powerful enough to understand the international consumer behavior of the other countries. Maybe those are the reasons why there has been so much eagerness of these countries to com e close in professional relationships and diplomacy.References1. Soviet Union, Country Data, http//www.country-data.com/cgi-bin/query/r-12406.html 2. Business for the 21st century by Steven J Skinner and John M. Ivancevich.2003.