14 Analyse the disadvantages of a Joint Venture. [6]

[Maham fatima]

[KN]Both businesses may have different corporate cultures
[AN]this can lead to weak coordination resulting in ineffective communication
[AN]hence,this may lead to conflicts and poor decision making

[KN]They may blame each other in case of failure
[AN]this can damage reputation of a business
[AN] hence other businesses may be less likely to set a joint venture with such a business hence growth may be restricted

[Hussain Asghar]

KN]Both businesses may have different corporate cultures
[AN]this can lead to weak coordination resulting in ineffective communication
[AN]hence,this may lead to conflicts and poor decision making

[KN] Shared profits.
[AN] When profits will be shared b/w the businesses this may result in low financial reward received to each business.
[AN+] Thus this can lead to low motivation as they could have gotten a chunk of share if they operated separately and independently.

[Abbas17]

(KN) Profits have to be shared
(AN) due to this meaning that if a project is successful the profit has to be divided amongst the owners which will lead to them getting less of the percentage from the total profit earned,
(AN+) hence due to this they will earn less profits usually, than if they were a sole trader in their own business.

(KN) several people in charge of the business
(AN) due to this disagreements over important matters/decisions may occur,
(AN+) hence alot of time will be wasted due to this, and the business may even end up making the wrong decision if not understood thoroughly, taking it into consideration ultimately leading towards business's downfall.

[Areena]

KN]The corporate cultures of the two companies might differ,
[An] which could result in poor coordination and ineffective communication
[An+], which could then cause conflicts and poor decision-making.


[KN] Profit sharing. [AN] If profits are split between the companies, each company may receive a smaller financial reward.
[An+]Because they could have received a portion of the share had they operated separately and independently, this could consequently result in low motivation.

[khadija nasir]

[kn] may have separate goals/objectives for the business's development
[an] this can cause conflicts
[an+] leading to wastage of resources and time slowing growth

[kn] no space for mistakes
[an] as slight mistakes may lead to the entire organizations brand image at stake
[an+] may tarnish the reputation altogether

[Huma Junaid]

[KN] delusion of control
[AN] different parties may have different agendas
[AN+]complicated decision making

[KN]Complexity in Management
[AN]ensuring effective communication among partners can be challenging,
[AN+] leading to inefficiencies.