Page 8 - The Regent Digest Volume 12 Issue 40

Joint Joint new app. Each of you brings something important to the
A
joint venture (JV) is like when two or more friends
team up to do a big project together. Imagine
you and a couple of friends want to create a cool

Ventures Ventures team: one might have the money to buy the software,

another might know how to code, and the third might be
great at designing.

What They Are and If the app becomes super popular, everyone gets a piece

Why You Should Care! of the success. But if it doesn’t do well, everyone shares
the losses too.

A joint venture can be set up in different ways, like form-
An Article Written by Maryam Mahdi and Ameena Mukhtar | Year 10 Congo
ing a partnership, creating a new company just for the
project, or setting up a special team within your existing
companies. It’s all about combining strengths to achieve
something big together.
Here are some examples of joint ventures:

Hulu (Media Streaming): Hulu is a joint venture among

several major media companies, including The Walt
Disney Company, 21st Century Fox (now part of Disney),
Comcast, and AT&T.

Maryam Mahdi | Year 10 Senegal
Star Alliance (Aviation): Star Alliance is the world’s larg-
est global airline alliance, featuring 26 member airlines.

McDonald’s Japan (Fast Food): McDonald’s Japan is
a joint venture between McDonald’s Corporation and a
local Japanese partner.

Joint ventures offer advantages such as pooling re-
sources, risk sharing, accessing new markets, and
achieving cost efficiencies through shared expenses.

However, joint ventures also pose challenges like
From the conflicts of interest, complex decision-making, prof-

BUSINESS & ACCOUNTING it-sharing disputes, and dependency on partners’
performance and commitment. These risks must be
managed to ensure the venture’s success.
FACULTY Ameena Mukhtar | Year 10 Congo

THE REGENT SECONDARY SCHOOL 8 8 THE REGENT SECONDARY SCHOOL 9