Corning Case Study

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1.0 Background: Investigate a joint venture with an Indonesia firm decision Corning Glass Works (CGW) was considering whether to expand their operations to Indonesia, a developing country populated by generally well-educated and hard-working people, but a very poor nation even when compared to other developing countries. James Houghton, the vice chairman of the company was interested in discovering, aside from the business case of expanding to Indonesia, how the company could develop a program that could be relatively standardized for use in other developing nations. The External Business Development Group (EBDG), with the help of leading international experts of Corning examined the opportunity to establish a $ 26 million proposal to establish a joint venture dinnerware project in Indonesia. There is a crucial decision to make a joint venture investment in Indonesia, a developing country. As a manager to evaluate the project proposed by EBDG, this report is structured as follows: 1) Comparing\Analyzing the motives of each main participants and Identify any of the fundamental different will cause a problem when joint venture is form 2) Examine the financial and operational risk mitigation address in the proposal 3) What are the other potential risk 4) Recommendation and conclusion Corning’s Objective There is clearly, Corning is interest to expand and growth it business to developing country by setting up EDDG, and have taken more than a year to fully evaluate the Indonesian proposal demonstrates Corning’s deliberate and considered moves. Corning‘s objectives of this new investment are as follow: 1) Expand business by looking new and large investment opportunities in new countries 2) As learning point for future investment in new countries especially developing countries 3) To diversify away from the “ mature “ market in

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