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Joint Ventures
Hello again,
I wrote recently about opening English language schools abroad. Of course the difficulties cannot be underestimated: language, local laws and regulations, cultural differences. In fact, it is probably true ...
...to say that the regions that seem to have the most fruitful future markets are those that also present the biggest operation challenges.
One solution might be the joint venture structure. An existing organisation, perhaps in the UK, in Australia, the USA, Canada, might look for a complementary partner organisation in the target country. The joint venture is a partnership in which the parent companies share capital, technology, professional and technical know-how, human resources, risks and rewards by forming a new entity under shared control.
The actual distribution of ownership is usually the choice of the partners but some countries may have laws governing the amount of equity a foreign company may have in such a venture. Clearly the crucial early stages involve becoming familiar with the local conditions for setting up and running a joint venture.
The choice of partner/s is also of vital importance. Not only does the host-country partner need to offer all the right channels for market access but they need to be trustworthy. However, if the joint venture can be set up it offers distinct advantages for all concerned. The foreign partner will have a much smoother entry into the target country as far as familiarity with laws and customs is concerned. The local partner will also be able to handle all those aspects of the business that need to be done in the local language. The local partner can benefit from new capital and professional expertise from the foreign partner. To quote a description of one joint venture: Pro Didactica (formerly Open World House) was opened as a joint venture between the Soros Foundation-Moldova's national Soros English Language Program (SELP) and the Soros Professional English Language Teachers (SPELT). The school received its funding from SF-Moldova's SELP budget while SPELT rendered recruiting services and supplied the school with highly qualified American EFL teachers. Another example is Delter-Telfort Business Institute, the largest Canada-China joint venture English language and business colleges with locations in Beijing, Shanghai and Chengdu.
Back soon,
Brenda.
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Comments
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fouad haidar-ahmad Says:
February 1, 2007 01:55 PMDear Dr. Hall,
I thought you could have not noticed my e-mail regarding joint ventures. As a first step, could I send you my professional CV?
Fouad
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Brenda Townsend Hall Says:
February 2, 2007 11:44 AMHello Fouad,
I wish you well with your plans. Perhaps somebody reading your comment will be able to respond to you. I am not personally in a position to help you launch a joint venture but I wish you every success.
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Shyam Morjaria Says:
June 8, 2007 06:20 PMHello!
I have a proposal to sell a well run establish school with profit making in India. The school is situated near Delhi, capital of India. The school has 1823 pupils on the roll at present woth all amenities such as, buildings, play fields,sports academies, pre nursery, primary and secondary buildings, with administration block as well. I am looking for someone with schooling interest to either acquire the entire school or enter in to a joint venture proposition. The school is an English medium school with CBSE curriculumn as a base of studies. Please let me know the views.
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Manjori Ahmed Says:
July 3, 2008 07:28 AMI need to speak to someone about starting a JV school in Bangalore, India, The process,timeline etc- will be honoured if i get a response mail
Manjori
FOUAD M. HAIDAR-AHMAD Says:
January 27, 2007 03:05 PM
Dear Dr. Hall,
I hope it is still my good and your good lot to meet at the intersectional point you highlighted in your Jan. 17, 2007 letter which I received through Mr. Jacob Peebles regarding joint venture schools worldwide.
I will be honored if you just trigger the action for the notion you commented on because you were right about the necessity to check on both the regulations of a country and the credibility of the partner before initiating any joint venture. In case you are interested in going for such an international step, then I would like to mention three things at least now:
1. I have a great interest to go for such a joint venture in the middle east at a wide scale to propagate the use of English.
2. I already have a strong resume which can support both our professinalism and moral integrity through outstanding references in the USA.
3. I look forward to spreading a chain of Arabic schools in the USA as well.
I like to hear from you and I am certain that we are going to find a well defined base to launch a human project for a better human future.
Sincerely yours,
Fouad M. Haidar-Ahmad