Description
Read the “Transition at Whirlpool Tatramat: From Joint Venture to Acquisiton” (Attaches) case study in your textbook, and submit answers to all the questions that follow the case study
Explanation & Answer
Attached.
Running head: DISCUSSION
1
Discussion
Name
Institution
Date
DISCUSSION
2
Discussion
Question One
The Greenfield investment strategy is less efficient than a joint venture, as it will result in
higher operating costs and will take more time to execute. A key disadvantage of the Greenfield
investment option is the fact that a new facility will have to be built which will take a significant
amount of time to do successfully. Additionally, a new labor force will have to be hired, as there
are currently no employees. The absence of skilled workers means that the organization will
have to invest in employee training after hiring new employees. The absence of an established
brand also means the organization will have to operate in a new market and deal with the local
competition.
A joint venture on the other hand will significantly reduce the operating costs of the
business. Skilled employees are already in place, meaning the business will not have to carry out
any hiring or training. Additionally, there is already an existing...