Question: The opening case explores the rationale behind the joint venture between Britain's JCB, a manufacturer of construction equipment, and Indian engineering conglomerate, Escorts. The two

The opening case explores the rationale behind the joint venture between Britain's JCB, a manufacturer of construction equipment, and Indian engineering conglomerate, Escorts. The two companies linked up to make backhoe loaders for the Indian market. The joint venture was a first for JCB and proved to be hugely successful. However, JCB felt the arrangement limited its expansion opportunities and eventually bought out its partner. Today, thanks to significant infrastructure investment in the country, JCB is a major player in both India and China. The company has continued to expand its presence in India and now relies on its factories in India to export to some 93 countries.

Discussion Questions

1. What did JCB learn from its experiences in India? Why did JCB, a company that had traditionally favored wholly owned operations, form a joint venture with Escorts? How did JCB's experience in India help it in its overall strategy?

2. What prompted JCB to buy out its partner? Do you feel JCB's concerns were valid? Why or why not

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 JCB learned several important lessons from its experiences in India The joint venture with Escorts allowed JCB to enter the Indian market more easil... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Introduction In 2010, New United Motor Manufacturing, Inc., a unique and highly successful joint venture between Americas General Motors and Japans Toyota, went out of business. NUMMI, as the...

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Googles ease of use and superior search results have propelled the search engine to its num- ber one status, ousting the early dominance of competitors such as WebCrawler and Infos- eek. Even later...

Chapter Opening Case: JCB in India You are about to read a short case depicting JCB's International expansion in India. Beginning with its joint venture with local conglomerate Escorts in 1979, JCB...

CLOSING CASE JCB in India In 1979, JCB, the large British manufacturer of construction equipment, entered into a joint venture with Escorts, an Indian engineering conglomerate, to manufacture backhoe...

In 1979, JCB, the large British manufacturer of construction equipment, entered into a joint venture with Escorts, an Indian engineering conglomerate, to manufacture backhoe loaders for sale in...

1a. JCB's joint venture in India with local conglomerate... JCB's joint venture in India with local conglomerate Escorts Multiple Choice is an example of foreign direct investment. required...

Why did JCB originally enter India via a joint venture with Escorts? What were the advantages of that joint venture? What were the limitations and risks? In 1999, JCB took a majority stake in its...

JCB in India In 1979, JCB, the large British manufacturer of construction equipment, entered into a joint venture with Escorts, an Indian engineering conglomerate, to manufacture backhoe loaders for...

Why do you think JCB not simply license its technology to Escorts? Please help explain with example and answer only one question. CLOSING CASE JCB in India In 1979, JCB, the large British...

You have been hired as a consultant for Peters Inc., manufacturer of computers. The company projects unit sales for a new quantic computer as follows: Year Unit Sales 1 100,000 2 120,000 3 130,000 4...

Suppose that a city has 90,000 dwelling units, of which 35,000 are houses, 45,000 are apartments, and 10,000 are condominiums. a You believe that the mean electricity usage is about twice as much for...

Question 5 : Consider the following error bound theorem t o approximate func - tions b y Taylor polynomials ( T a y l o r ' s Inequality ) I f f ( x ) - T n ( x ) = R n ( x ) , where T n i s the...

Our controller, Veronica Verrengia, is negotiating with our bamboo suppliers in China. We need the Softball Bat Divisions Master Budget for 2018 for our corporate strategic planning process, and we...

1) what has changed to the percentage of common-law families without children from 1981 to 2006? Speculate why you think this change has taken place. (*if you need to, you can google the definition...

The central limit theorem states that if n is large enough, the distribution of the sample means is approximately normally distributed regardless of the shape of the population. A. True B. False

Ace Industrial Supply sells its products at an average price of $10/unit. The products cost $5.50 /unit. Ace Industrial pays its suppliers for inventory deliveries at the time of delivery. Ace's...

Which of the following is NOT an element of financial statements set forth in the FASB's conceptual framework: Question 4 options: a) Understandability b) Assets c) Comprehensive income d) Gains

Marling Machine Works produces soft serve ice cream freezers. The freezers sell for $12,000, and variable costs total $8,200 per unit. Marling incurs $6,840,000 in fixed costs during the year. The...

Hannalinn Corporation operates three divisions-Archer, Barrett, and Corvell. Division managers are evaluated based on the division's return on investment, and historically, the Corvell division has...

Simpson Sensory Stylings manufactures two products: sunglasses and earphones. Information for each product is as follows. Required Prepare a segment margin income statement for Simpson Sensory...

McNemars test, developed in Exercise 54, can also be used when individuals are paired (matched) to yield n pairs and then one member of each pair is given treatment 1 and the other is given treatment...

Researchers sent 5000 resumes in response to job ads that appeared in the Boston Globe and Chicago Tribune. The resumes were identical except that 2500 of them had white sounding first names, such as...

Let be a random sample from a Poisson distribution with parameter m1, and let be a random sample from another Poisson distribution with parameter m2. We wish to test against one of the three standard...