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Joint Venture Between Oliberté and Aldo

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Vannesa Molina

on 17 August 2014

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Transcript of Joint Venture Between Oliberté and Aldo

Steps in the Joint Venture Between
Oliberté and Aldo.

Scope Details
Supply Chain Locations
Planning
Recommendations
Focus on Communication.

Cultural Mapping.

Terms and Conditions of Agreement.
Project Description

Oliberté
is a Canadian company, based in Oakville that manufactures shoes in Ethiopia. They believe in the creation of fair jobs to make high quality shoes with lifetime warranty, using materials that are good to the environment. Oliberté is the first footwear manufacturing company to earn this accreditation.

ALDO
is the right partner for Oliberté, this Canadian company based in Montreal, has more than 40 years of successful experience in the shoes business and count with 1,750 stores in 80 countries. It is also known for being a good corporate citizen, supporting various philanthropic causes.

Our firm,
Chevere Consulting Services
, was hired to manage the Joint Venture between Oliberté and ALDO. Chevere is an international firm that has large experience managing international mergers, acquisitions and joint ventures with 40 employees located in 4 different countries: Canada, United States, Brazil, and the UK.

Partnership
: Oliberté and Aldo.

Role of Chevere
: Objective Project Management.

Major Deliverable
: Joint Venture Agreement sign off.




Chevere services involve financial, legal, and supply chain advice.
Services will be invoiced on a FP basis. Travel and living expenses will be billed on a reimbursable basis.
The project requires 12 months to complete.
Staff training will be provided by Oliberté.
Marketing will be managed by a separate project coordinated by Aldo.
Assumptions
Constraints
Team members are located in different countries.
Complexity of team structure.
Different cultures.
Major portion of the contract will be invoiced on a FP basis.
Legal: Terms and conditions.
Few suppliers.
Quality Standards.
Raw Materials:

Leather
: cow and goat leather from Ethiopian tanneries.

Rubber
: sourced from Liberia, Ethiopia, South Africa, and Kenya.


Machinery
: the rubber making machines and sole molds are sourced from South Africa.

Fabric
: tags and insole labels are manufactured in Mauritius.
Other Inputs:
Assembly
: The new line of leather boots will be produced in Oliberté’s factory in Addis Ababa, Ethiopia.

Distribution
: Initially, the boots are intended to be distributed to the main Aldo’s stores in Canada, United States and United Kingdom. These countries have large number of consumers that are environmental and socially conscious.
Process and
Distribution
Project Team
Composition:
Staff from 3 Companies.
Distributed in 3 Countries.
Virtual.
Multicultural.


Contributions:
Funding: 75% from Aldo.
Labor: Oliberté, and new employees hired for the JV.
Intellectual Capital: Oliberté, Aldo, and Chevere.
Theories
Hofstede.
(Countries):
Power Distance: Canada and UK low score, Ethiopia high score.
Individualism Vs. Collectivism: Canada and UK are individualist. Ethiopian culture is collectivist.
Masculinity: 3 countries are success driven.

Perry’s Scheme of Intellectual and Ethical Development
. (Partners):
Dualism
Relativism: Aldo.
Commitment to Relativism: Oliberté.

Diffusion of Innovations
. (Potential customers):
In the US, Canada, and the UK.
Innovators
Early Adapters
Risks were identified, analyzed, and ranked. Each risk has a contingency plan.
Risks
Risk Register
Budget
Communication
Services
: based on consultants bill rates per hr.
Expenses:
reimbursable.


Keerthi Penumutchu
Qingtao Shen
Peter Kiamos
Vannesa Molina

August 6, 2014.
Joint Venture
Full transcript