Strategic Management:

Strategic Partnerships

Joint Ventures (JVs)

Sharing Capital, Technology, Human Resources, Risks and Rewards


Vadim Kotelnikov personal logo Vadim Kotelnikov, Founder, Business e-Coach


Benefits of Joint Ventures

Joint Ventures Due Diligence Business Plan Business Valuation Negotiation Tips Market Research Joint Venture Venture Acquisitions Synergy Ten3 Business e-Coach: why, what, and how Joint Venture Mergers and Acquisitions JOINT VENTURE vs ACQUISITION

Three Possible JV Governance Arrangements4

  1. Full equality: the parents decide policy and operating matters together

  2. Policy equality: the parents must concur on JV policy terms, while one takes the lead in operating matters

  3. Lead parent arrangement: one parent has the lead on policy as well as operating questions... More

Developing Joint Ventures

Common Reasons for Joint Venture Difficulties



Strategic Business Partnerships

Forming a Successful Joint Venture

10 Key Features of Effective Partnerships

Strategic Alliances

Structuring a Strategic Alliance: 10 Questions To Answer

Mergers & Acquisitions

Getting People Issues Right in Mergers and Acquisitions

Building Trust Between Organizations


Master of Business Synergies (MBS)


Harnessing the Power of Diversity

Synergize Diversities



Conduct During Negotiations

Model Agreements and Contracts

A preliminary MoU Between Joint Venture Partners

Joint Venture Agreement: a Checklist


Intellectual Property Management

Licensing of IPR


Managing Cross-Cultural Differences

Business Self-Education Country Profiles

Australia    China    India    Russia

Life Philosophies: East vs. West

Culture Dimension Scores of 10 Selected Countries

Cross-Cultural Differences: China and United States

Competitive Advantage: US versus Japan

Why Joint Ventures?

As there are good business and accounting reasons to create a joint venture (JV) with a company that has complementary capabilities and  resources, such as distribution channels, technology, or finance, joint ventures are becoming an increasingly common way for companies to form strategic alliances. In a joint venture, two or more "parent" companies agree to share and synergize capital, technology, human resources, risks and rewards in a formation of a new entity under shared control.



Success Stories Best Business Practices Diamond Associates

"Collaborate," advises Georgann Occhipinti, President of Diamond Associates. "I periodically collaborate with another consulting firm as a way of developing my own. The group is comprised of other consultants and business owners with very diverse backgrounds. We work together a few times a year with specific clients and are able to immediately function as a very effective team. It is a selfless experience in which egos are never an issue and each of us can rely on any other to lend support, solutions, and the latest industry knowledge. Simply put, this continues to be the best team that I have ever worked with, regardless of the member configuration or work content. I always look forward to working with this team, and it always exceeds my expectations. We all engage in complete collaboration from start to finish."

Most Common Causes of Joint Venture Failure

Research indicates that 50 to 70% of all joint ventures fail. Not many CEOs of joint ventures characterized their venture as "very successful".

Cultural and ideological differences top the list. Insufficient planning is also one of the most prevalent reasons for failed joint ventures... More

Choosing a JV Governing Structure

There are three possible JV governance arrangement: full equality; policy equality, and lead parent arrangement... More

Human Resources Strategy

While joint ventures are driven by business needs and are implemented in accordance with a business plan or strategy which is generally stated in financial terms, it is the responsibility of the human resources function to translate the business plan into "people" terms.1... More

Preparing for a Successful JV: HR Action Steps

As  Konosuke Matsushita the legendary founder of Panasonic, put it, "Business is people. Business success is achieved by getting each and every person in the organization to be more successful in the job they do.

The Tree of Business Success

Here are human resources (HR) action steps to prepare for a successful joint venture... More

Prepare a Business Plan

To maximize the chances of success, the prospective joint venture partners should first jointly prepare and agree on a business plan - even before signing the joint venture agreement.

Wise Agreement

It will enable each party to judge the other's expectations, level of interest, management style and experience. "It is best to include as much details as possible with regard to strategies, policies and methods so that the expectations and preferences of the parties are highlighted and sorted out. The partners should particularly focus on areas where they depend on each other, such as transfer pricing, technology transfer, market restrictions and R&D."3

The business plan should also include the exit strategies, the terms of dissolution of the joint venture, mechanisms to resolve disagreements between the JV partners, contingency plans and the a process to make changes in the business plan in response to the market changes and customer feedback.

How To Overcome Resistance to Change: 10 Tips

It is important to involve the key managerial and operating personnel in development of the business plan as they will best understand the details that need to be negotiated.

Negotiation DOs and DON'Ts

Preparing a Joint Venture Agreement

"Good fences make good neighbors." ~ Robert Frost

A good agreement is critical to success of your venture. Once the business plan is finalized, preparing the joint venture agreement becomes much easier. Using a joint venture check-list will also help you prepare a sound joint venture agreement.

Venture Management

Management of the venture-building process is fundamentally different  from corporate management that is focused on delivering the annual operating plan. Management of a new high-growth business is build around a  customer-driven idea or a technology. It requires entrepreneurial mindset and skills.

6+6 Drivers for Entrepreneurship

How To Discover Opportunities

Being first to the market is the top priority for the venture manager. Your core competence, the ability to move quickly from idea to market, is a key enabler of success... More

Operating an International Joint Venture

Operating a joint venture with a foreign partner requires time, resources, and cross-cultural skills. Cultural intelligence and strategic thinking can be the prescription to avoiding errors in cross-cultural projects.

As your joint venture has to compete in its market for people, customers and capital, its human resource, pricing, service, financial and other policies must be tuned to that market. "The resources you place under the control of JV should be only those that are unique to it needs. To minimize costs, all else should be drawn from your firms or bought from outside."4 It is often tempting to take short cuts because of resources constraints and the need for speed. Nevertheless, if you wish to minimize the risks inherent in an international joint venture, you must manage the processes with great care.




  1. Joint Ventures / Partnerships, Hewitt

  2. Joint Ventures: Minimizing Risk and Maximizing Success, Hewitt

  3. Close Connections, Ranjit Shastri

  4. Trusted Partners, Jordan D. Lewis

  5. Joint Ventures Revealed, PlugInForProfit

  6. Alliances and Acquisitions Increasingly Important For Fast-Growth Companies, PWC

  7. Mastering Alliance Strategy, James D. Bamford et al.

  8. Strategic Alliances: Three Ways to Make Them Work (Memo to the Ceo), Steve Steinhilber