Veolia Waters Business Model in China for its Long-Term Success - Dissertation Example

Veolia Water henceforth was responsible for the management of the drinkable as well as wastewater of Changzhou city in China. The measures were thus adopted by the joint venture entity of Veolia Water for the better performance of the company to fulfill the demand for water in China. The business model of Veolia water over the span of five years starting from 2002 to 2007 especially has been a remarkable one. This has led to the success of the parent organizations concerning the operations carried out by Veolia Water in China. The performance of the company is a matter of great concern for it. This has resulted in the company's adaption to the Competence-Based Training of the employees, where the requirement of the employees will be first assessed, and thereafter training will be provided in the area concerned. To detect more parameters in water, the company has invested in high-end technologies which in the long run will benefit the company in providing adequate water supply in the country of China. The economic situation of China has attracted a lot of joint ventures and foreign investments to take place in the country. Through a joint venture with a foreign enterprise, the country has benefitted from financial capital being invested in the country. The job opportunities over the year have also increased to a great extent.
Through this case study, we can observe that Veolia Water has been successful enough in creating value by setting up joint ventures in an emerging economy like China. The company takes initiative in controlling the cost and the capital expenditure of the company along with the adoption of sustainable value appropriation policies. This has helped Veolia to effectively design and implement international joint venture strategies in an emerging economy like China. The management of Veolia Water developed against the international joint venture in China led to the emphasis on cross-cultural management whereby the company had to respect the values of the local authority and the culture of its place of operation. To keep pace with the cross-culture the company has implemented effective human resource management for the company which helps the company keep pace with the changing external requirements for the company. The joint venture has also benefitted Veolia Water in terms of availing cheap labor and the already available natural resources. With Veolia Water entering the market of China, the country gained in terms of diversified capital investment with the unprecedented opportunity to observe the nature of the competitive strategies in the form of a joint venture. Thus studying the advantages and the disadvantages of Veolia Water in the economy of China we can make a comparative analysis of its effects on the strategies of joint venture thus adopted by the company.
International joint ventures can be described as a fresh, autonomous business body created by two or more autonomous business organizations having different national origins. The underlying principle for the formation of joint ventures is to attain competitive benefits by amalgamating the strengths and unique characteristics of two or more dissimilar companies. The different stages involved in the process of joint venturing comprise partner selection, contracting, and structuring the new entity as well as management of the joint venture (Bilas et al, 2007).