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Problems in Joint Ventures. The client, Arcellor-Mittal wants to start a joint venture with an international firm Bharti Steels of India. As a business consultant, I have to show the possible ways of overcoming the cultural constraints in the deal.

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Problems in Joint Ventures 1. Executive Summary Due to the globalization, the joint ventures are the best ways to expand the business to different geographical locations across the globe. All the resources of two or more organizations will be shared among them so that they will collectively contribute to the overall output of the joint venture. The culture of joint venture is not of this age but the same is existent from the start of the industrialization. The companies have tied up with other companies to expand their business portfolio and the expertise in the earlier stages but the different work cultures that are followed in these companies have hindered the progress of the ventured companies. The ventures may be in the domestic level or international level and hence the ventures will consider the cultural differences among the people and the work to reduce the impact of these variations on the overall business performance of the venture companies. This document will highlight the problems that are faced by the organizations in making the joint ventures. Due to the different approaches that are followed in the operations, work cultures and the human resources, the joint ventures will always face a problem in integrating the operations of the companies. The Trompenaars and Hampden-Turner cultural theory was used to analyze the problems that are faced by the companies in making joint ventures. ...read more.


Few employees are not even cooperating with the other employees as well as the managers as they think that they are the senior people. This is hindering the output progress of the organization. Communitarianism vs. individualism The employees are in the mood of individualism as they are not adapted to the company's new work culture. The employees of the joint venture are not cooperating with the other batch of people. This is due to the lack of communication and good relationship among them. Though the management is treating the employees equally based upon their talent, the employees have not come out of the mind of the individualism. Analyzing vs. Integrating The joint venture has given utmost priority to build relationships among the employees as well as the managers through the integration. Since the joint venture has the employees of both the organizations, the integration is needed to make the employees to interact with each other and thus maintain good relations with them. But this will take time as their cultural backgrounds are different and hence they are unable to mingle with each other. Inner-directed vs. Outer-directed The employees in the organization are encouraged to make use of the real time experience to implement the best possible solutions in case of dilemma. However, the managers as well as the employees are implementing their own decisions in the work place and thus this is degrading the performance of the organization. ...read more.


The company can go for the better technical implementation so as to reduce the pollution levels and thus improve the productivity. The employees should be given right choice to work in their interested fields so that they will perform their full performance. The managers should be given strict rules such that they should not encourage few employees based upon their race, religion or culture. The employees should be treated equally based upon their talent and performance. The company employees are in the mood of individualism and hence the collectivism should be motivated among the employees for the increased cooperation in the work place as well as the personal life. Employees should practice universalism to improve the efficiency of the processes in case of any defects. All the employees should be treated with equality and the seniority should be taken out of the company's work culture. 6. Forecasts and outcomes The equality among the employees will reduce the individualism and thus enable the employees to work for the better productivity of the company. The collectivism will improve the knowledge transfer among the employees without any cultural barriers. The main motivational factor for the employees is the recognition in the organization. Due to the implementation of the collectivism and the universalism, the employees are treated as single and they will be given priority in the work place. The sequential processes will be replaced by the synchronized parallel processes so as to increase the productivity of the organization in the time span of next one year. ...read more.

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