The Preparatory Steps For a Joint Venture

Are you planning to venture into a foreign country but are short of adequate funds?

One of the tried and tested ways of venturing into new, unfamiliar markets is through joint venture (JV) with a local business partner. Having marketable products, technical know-how and the finance are not enough for getting a toehold in a new market. The knowledge about the characteristics of the particular markets and contacts and networking with local dealers and retailers are equally essential in making your presence felt.

A joint venture with a local business partner gives you the added edge of penetrating new markets. The partner is likely to bring to the table on-the-ground knowledge about your customers, and valuable insights about pricing, distribution, packaging and ROI apart from a well-established distribution and marketing network.

Since a huge amount money and risk is involved in a joint venture, it requires a right set of effective planning and execution to ensure the success of joint venture. Apart from huge investment and capital, a successful joint venture stands on honesty, integrity, mutual understanding and communication between the partners. 

 

Dow Corning, Sony Ericsson, MillerCoors, Norampac, Penske Truck Leasing, and Owens-Corning are some of the successful joint ventures that can be referred as the case studies.

The Groundwork for the Joint Venture 

Before entering into a joint venture you should be very clear about your objectives and complete business model. You should have a clear picture about the investment amount, finance options and debts. Be very sure about your target audience and products you are offering through a joint venture. 

Collect complete knowledge about the foreign policies of that country and way they can be beneficial for you. Compile a detailed list of your competitors and discuss strategies with your partner to counter them.

You should also have the complete details of offered site, including output projections, transport and warehousing, testing and quality control, by-products and waste; supply, utility, and transport requirements along with estimated technology transfer costs. (source: Wikipedia)

Seek Services of a CEO Peer Groups

You can valuable suggestions about entering into a joint venture at a CEO peer group. At a CEO club, you get to meet the business leaders from non-competitive business domains. You can benefit from their experiences and knowledge in a CEO conference.

We have discussed the preparatory steps for a joint venture in this blog. We will discuss the other aspects of a joint venture in our next blog.

Tips for the CEO to Resolve Conflicts in a Team

“Knowledge of other people's beliefs and ways of thinking must be used to build bridges, not to create conflicts.”

—    Kjell Magne Bondevik

Conflicts are always the uninvited guests in a workplace. Their existence is inevitable in an atmosphere where a number of people with different backgrounds, interests, preferences, aspirations, and likes, work for a common goal.

Though it is difficult to avoid conflicts, the ability to recognize a conflict in the initial stage marks the true character of a great leader. Since conflicts are malignant in nature, it is very important for the management to quickly identify the root cause of conflict and find an effective resolution to it.

Here are some tips to resolve conflicts:

Prevention is the Cure

You should be alert enough to identify the conflict at a very early stage. Normally, conflicts at a workplace arise due to some misunderstandings between coworkers or real biases of the seniors. Therefore, treating all employees equally and implementing a fully transparent appraisal system can prevent several conflicts.

  

A Well-Defined Job Distribution

Jealousy is one of the main reasons of conflicts. A leader should have a proper job distribution system in place. The system should be unbiased, scientific and transparent that takes into account the abilities, skill set attitude, performance graph, productivity level and discipline of the employee.

Do Not Play a Favorite’s Game

A leader should always exhibit an unbiased approach towards his all employees.

You should avoid favoring a particular employee while handling a conflict. Begin the conversation by highlighting the positive points and let them discuss each other’s qualities. 

Most of the conflicts develop as a result of some misunderstanding. Let your employees state their issues in front of each other and try to come on to a solution acceptable to both sides.

Promote a Friendly Work Atmosphere  

Share a friendly relationship with your team members. Be approachable so that they do not hesitate to discuss their problems with you. Organize monthly meetings and encourage your subordinates to speak their heart out.

You should also call your juniors for one-to-one sessions where they can share their professional as well as personal problems.    

Create a Learning Opportunity Out of Conflict Situations

Smart leaders can find their ways beyond the dead ends.

Dealing with a disagreement underlines an inherent potential for personality development. While you resolve a conflict, present it as a case study for rest of your team members. You should try and find effective ways to prevent same instances in the future.        

Organize Group Outings and Adventure Sports

Participating in group activities builds team spirit and transforms enemies into partners. 

Most of the conflicts get resolved automatically when two parties work united to achieve a common goal. Sports have proved their effectiveness in resolving conflicts to a great deal. 

Seek Expert Guidance at CEO Peer Groups 

     

If you are looking for expert guidance, join a nearby CEO Club. CEO Clubs play an instrumental role in helping CEOs understand their role better and facing challenges successfully. You can also ask your peers at your CEO conference to suggest you ways to culminate conflicts within your organization.