Discuss four common problems that cause joint ventures to fail (SMUnit 3 of 3-4)

SMUnit 3 OF 3-4
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Joint ventures are mutual agreements between parties that have the same objectives based on profitability, sales, and product or service innovations. They have become popular over the years despite the fact that most joint ventures are collapsing due to losses, bankruptcies or debts. Most of these ventures in the United States, United Kingdom and Canada have failed because of four common problems which will be discussed.
First and foremost, joint ventures may fail due to different corporate cultures. Cultural and ideological differences create misunderstanding and conflicts when it comes to policy making, drafting company by-laws and financial decisions (Trost, 2011). Secondly, failure is based on poor leadership skills especially if it involves more than two companies. In most scenarios, partners agree to take leadership roles but if there is a slight disagreement, all companies involved suffer losses, distrust and mismanagement (Trost, 2011). Moreover, poor planning strategies are also an obstacle to the joint venture success. In joint ventures, businesses want their individual company strategies to be implemented when it comes to capital contributions, and the sharing ratio of profits and losses. This rarely succeeded because each company wants to take part in profits but not in losses. Lastly, ventures can be culminated by disagreements involved in operational policies. This is a common tendency for different participating companies from different countries because each country has its own unique work ethics. One of the companies might delegate duties that will require company employees to work for 10 h...