Thank you for the opportunity to help you with your question!
Indonesia like many other countries
restricts total ownership of foreign investments. The government allows foreign
ownership of not more than 49%. Marula Ice Tea seeks to go into a joint venture
with one of the leading chain restaurants within Java Island in order to gain
faster penetration. The venture would allow the restaurant to produce and sell all
Marula Ice Tea product catalog. Through a joint venture, the new ice tea products
would get maximum exposure to the market. This would aid in understanding the
market better, minimizing any possible risk of market failure. The joint
venture would be revised at a 5 year interval, with all decisions to be made conforming
to the objective goals of the company (Ohmae & Kenichi, 1989)
Please let me know if you need any clarification. I'm always happy to answer your questions.
Nov 29th, 2015
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