Q

Study is about advantages & disadvantages of an international joint venture of Mazda Motor Corporation and Bermaz Motor

Home, - RISKS AND BENEFITS OF AN INTERNATIONAL JOINT VENTURE

Introduction 

In this particular dissertation researcher has explained the details risks and benefit of joint venture between two major motor companies namely, Mazda Motor Corporation and Bermaz Motor Sdn. This particular dissertation will help the researcher to find out the details effect and the risk associated in the joint venture between Mazda and Breams Company. The dissertations will analysis the cause effect and risk of the joint venture in between these two companies. The details cause and effects regarding of international joint venture and certain risks associated with it are discussed. 

Background of study:

The main reason behind the dissertation is to find different aspects of the joint venture between these two major companies. International merger and joint venture between great business units always plays a major role in changing economies. The joint venture always affects the total business cycle and business procedure. While doing any international business a major factor is the risks and other contingencies associated with it. When a certain business merger happen, the operational cycle and profit making position also changes. 

Background of the company:

This dissertation describes the two major automobile company’s one of Japan and another of Malaysia merging and starting their joint venture.

Mazda Motors Corporation is headquartered with Hiroshima Japan, established in the year 1920 (Source: mazda.com). Whereas Bermaz Motor Sdn is a renowned motor company head quartered in Malaysia founded in year 1988. The two major companies forayed into joint venture in the year 2012. The major stake holder of this joint venture is Mazda with 70% of the major stake in this joint venture. While Bermaz holds only 30% of the stake in this joint venture. After this joint venture both the company aiming to increase its sale up to 150000 units annually by the year 2015 (Mazda UK | Explore our full range of models & fantastic deals, 2015).                          

Rationale of study:

Rationale of study regarding this particular topic is to find the various issues and objectives regarding the joint venture and merger of the different organisation internationally. Such joint venture has some negative aspects also

What is issue?

The first issue is that in this complex business world such a venture creates sudden destabilisation in the business process. Such merger creates some new design and thoughts that help companies to make some new luxurious cars. The second issue is employee retention and work force loosing. Sudden merger of companies sometime affect the salary structure of employees in company. Third issue is that certain other companies like jaguar and Tata, Nissan Renault, Daimler-Benz and Chrysler Ag proves not so suitable.

Why it is the issue? 

This is the major issue now because as some previous issue merger that takes place creates major changes in financial position of automobile sector. While today market is dependent on consumer and their satisfaction such merger sometime creates fear in them. Such merger some time changes purchase decision of consumer.

Why it is the issue now?

This is a major issue now because both positive and negative decision effect revenue position of company. In this competitive world a right or wrong decision can alter the future revenue status of a company. Some merger turns to be very fruitful. As opined by Batista et al ( 2010) some merge in automobile market can create a risk in the business processing and their activities. 

Reaearch aim: 

The main aim of the research is to ascertain various risks and benefits of the international joint venture between major automobile companies like Mazda Motor Corporation and Bermaz motor Sdn. While doing such major merger and association there are some positive and negative factors involved. Researcher will highlight those factors here.

Research objectives:

• To understand benefits of international joint venture between Mazda Motor Corporation and Bermaz Motor Sdn

• To ascertain the risks involved in doing such international joint venture.

• To assess typical area of such international joint venture

• To know the changes in business pattern after such international joint venture. 

Research question:

Following is the research questions:

• What benefit does such international joint venture between Mazda Motor Corporation and Bermaz Motor Sdn?

• What kind of risks involved in such joint venture between Mazda Motor Corporation and Bermaz Motor Sdn?

• What is the typical area of such international joint venture?

• What kind of changes noticed after such association between Mazda Motor Corporation and Bermaz Motor Sdn?

Problem statement:

After thorough analysis researcher has found that there are certain risks involved in such international joint venture. The major problem is about profit distribution among the top level authority and employee retention. After such big association the employees sometime become sceptical about their organisation and stability it. Destabilisation in international sale and revenue position also proves to be major factor. Company find it hard to raise fresh capital from market due to public doubt and their concern about their companies.

Significance of the study:

The study signifies about the positive and negative outcome of international association of companies like Mazda Motor Corporation and Bermaz Motor Sdn. Bhd in Malaysia. Such joint business some time a healthy outcome like new brand new product and more technologically advance machines. But on the other hand there are some negative factors are there. Researcher has found that such merger sometime directly affect the revenue generation of a company, employee destabilisation. Some time the cost of running business also increases in massive way.

While doing international association some time the overhead cost and expense of company rise to a maximum limit due to several factors.

Summary:

Particularly this research work tries to signify the major effect take place in association of various automobile companies. Researcher tries to highlight the major issues regarding change in business position and cause of it. Both positive and negative factors have been analysed. A thorough idea can be obtained by analysing the research, how major association affect the business pattern of company like Mazda Motor Corporation and Bermaz Motor Sdn. Bhd in Malaysia.

Leave a comment


Captcha

Related :-