Issue Date: 
Monday, February 15, 2016

5 reasons why Joint Ventures fail

Joint ventures are collaborative arrangements where two or more businesses decide to collaborate for a common purpose such as bidding for a tender.

There are many examples of successful Joint Ventures, such as  Sony-Ericsson, Virgin Mobile India Limited, Nokia (Siemens AG and Nokia Corp), Cadbury Schweppes PLC Carlyle Group Joint Venture and Chery Jaguar Land Rover Automotive Company. They  are all well-known and are very lucrative. But having a Joint Venture does not guarantee success.

There are many reasons why Joint Ventures fail and five of the most common reasons are:

  1. Lack of a proper Joint Venture Agreement. The importance of a proper JV Agreement cannot be emphasized enough. Ensure that you have a proper contract in place that covers the entire foundation of your JV.
  2. Lack of finance. If one of the parties to the Joint Venture is struggling financially it can be the downfall. The simple reason is that the struggling partner will drain the Joint Venture, not allowing the it to build up capital for challenging times or future expansions.
  3. Control issues. In any relationship you will always find that someone needs to be the leader or the decision maker. A Joint Venture is the same – somebody needs to be in control. Ensure that the correct leadership is appointed.
  4. Compatibility. Sometimes in the rush of securing a tender a business owner will go into a Joint Venture with another business owner who does not have the same values and ethics. This is a dangerous mistake. Remember that you have established a certain way of doing business and that you have invested a lot in building the ethics in your business. Ensure that the Joint Venture partner that you sign up with is compatible with your policies of running a business.
  5. Unrealistic expectations. Ensure that all role players are on the same page when it comes to the Joint Venture’s successes. There must be clear indicators on the chances of winning a tender and also the expected profits to be made after the awarding of a tender and the completion of the tender. All the parties involved must be briefed on the expected profits so that there are no unrealistic expectations from any of the parties involved.

If you tend to these five critical areas in your Joint Venture the chance for it to succeed will increase immensely.

Learn to earn

www.how2tender.com

Title Closing Date Tender No.
Silver electric surgical oscillating orthopaedic medical bone saw (maxi drive) with accessories 2018-08-01 11:00 ZNQ 144 / 2018 / 19
Service provider to service fire extinguishers and hose reels, the company must be CIDB 1ME grade or above. The kilometers from St. Apollinaris Hospital to the clinics (single trip to) is: Sokhela Clinic x 07 (+/- 45.5km); Malenge clinic x 07 (+/-27km); Sphamandla clinic x 07 (+/- 18km); Riverside clinic x 07 (+/- 18km); Kilmun clinic x 07 (+/- 27km); Qulashe clinic x 07 (+/- 52km). 2018-08-02 11:00 84/ 2018/ 2019NSI
Supply Kiwi complete vacuum delivery system with palm pump (50 set) 2018-07-30 11:00 433/ 17- 18
Supply 8 bay mobile filer (04 units) 2018-07-30 11:00 111/ 18- 19
Service provider to service floor cleaning machine and replace the switch, the kilometers from St. Apollinaris Hospital to the clinics (single trip to) is: Riverside clinic x 02 (+/- 18km); Sokhela clinic x 01 (+/- 45.5km); Sphamandla clinic x 01 (+/- 18km); Kilmun clinic x 02 x (+/- 27km); Qulashe clinic x 01 x (+/- 52km); Malenge clinic x 02 x (+/- 27km). 2018-08-02 11:00 86/ 2018/ 2019NSI
6 Units x Portable Vascular Access - Illumination System 2018-07-27 11:00 ZNQ 23- 2018/ 19
Desludging of septic tank, the kilometers from St. Apollinaris Hospital to the clinics (single trip to ) is: Malenge Clinic x 02 (+/- 27km); Riverside clinic x 01 (+/- 18km); Qulashe clinic x 01 (+/- 52km); Sphamandla clinic x 02 (+/- 18km); Sokhela clinic x 02 (+/- 45,5km); Kilmun clinic x 02 (+/- 27km) 2018-08-02 11:00 82/ 2018/ 2019NSI
Supply pop walking heels - large (10 000 units) 2018-07-30 11:00 427/ 17- 18
Appointment of a service provider to supply, install and migrate the existing server infrastructure to a virtual environment. 2018-08-10 11:00 SHRA/ RFB/ ADMIN/ 05/ 201819
Supply lockable stationery cupboard 6ft (24 units). 2018-07-30 11:00 136/ 17- 18
Service provider to clean Jojo tanks,the company must be CIDB grade 1ME or above,the kilometers from St. Apollinaris Hospital to the clinics (single trip to) is: Riverside clinic x 01 x 7500L (+/- 18km) Sokhela clinic x 04 x 5000L (+/- 45.5km) Sphamandla clinic x 08 x 5000L (+/- 18km) 2018-08-02 11:00 109/ 2018/ 2019NSI
Supply floor polisher machine R46 (16 units). 2018-07-30 11:00 136/ 17- 18
Service provider to service airconditioner at Kilmun clinic, the company must be CIDB 1ME or above x 06 unit 2018-08-02 11:00 111/ 2018/ 2019NSI
Supply combi steamer (01 unit) 2018-07-30 11:00 79/ 18- 19
Request for information: A Nursing College Administration System (NCAS) for the South African Military Health Service (SAMHS) nursing college 2018-08-10 11:00 RFI 1772/ 2018
Service provider to service airconditioners at St. Apollinaris Hospital, the company must be CIDB 1ME or above x 87 unit 2018-08-02 11:00 113/ 2018/ 2019NSI
Supply pasteo chairs maroon in colour (130 units) 2018-07-30 11:00 68/ 18- 19
Service to Threatre Aircondtioning And Plantrooms 2018-07-27 11:00 ZNQ 41- 2018/ 19
Provisioning, deployment and training of the Check Point firewall solution for the South African Police Service including support and maintenance for a period of 12 (twelve) months. 2018-08-10 11:00 RFB 1763/ 2018
Servicing of Genset -{720&960- Hour Service and Annual Electrical Service} at New Workshop and Kitchen Genset Plant as per Specification 2018-08-06 11:00 ZNQ 404/ 18- 19

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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