Case 2 Hana, A Joint Venture Between Health Snacks and Toka Foods

A Joint Venture between Health Snacks And Toka Foods
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A Joint Venture between Health Snacks And Toka Foods
Different businesses often come together to form a joint venture to make it easy for them to operate in the competitive market. On the other hand, competition can be reduced in the market when organizations come together to function as a joint venture. In this case, the organization with the same interest can decide to come up with a single business and agree on the percentage of ownership as well. It is important to note that joining an international market can be challenging considering the market rigidities that a foreign organization can face because of not being conversant with such a market. In this regard, Health snacks and Toka foods have a common goal in the industry hence their decision to come up with a joint venture. This paper entails a summary of the business and why they faced challenges and how the parties could resolve this.
Summary of Hana Venture
When two organizations come together in the form of partnership with the aim of operating a single business, it is important for them to come up with a single business name. Healthy snacks and Toka foods decided to embrace the name Hana as this was a new venture in the market. The two organizations signed a deal, where they divided duties to each other. This decision was reached at because each company was best at something hence the division of activities would enable them to perform well in the market. For example, since Toka foods were initially based in Japan, they were in charge of marketing and networking because they were well conversant with the market. On the other hand, a joint venture had to be run by a board of directors from both parties to ensure that the interest of the two mergers was well represented. In this case, it could be easier to discuss on how to share the profits and managing the organization. They both agreed that the proceeds from the business could be shared equally. However, after sometimes, the Japanese felt that they deserved to run the business as their U.S. partners followed their instructions. This led to further problems since the Japanese intimidated their partners since they undermined the capability in impaction on the organizational operations. The Health snack president was willing to resolve their differences with Toka foods officials, but this ...