Business > CASE STUDY > Case Notes & Answer for Alpes S.A. A joint Venture proposal (A) (All)

Case Notes & Answer for Alpes S.A. A joint Venture proposal (A)

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The main issue is that the vice president, Dennis Shaughnessy, for Corporate Development and general counsel for Charles River Laboratories (CRL) is ready to give a proposal to the board of directors ... of CRL on the joint venture of CRL withthe companyALPES S.A, a family owned company operating in the Mexican market.The purpose of this joint venture will be to create a state of art specific pathogen-free (SPF) egg farm and will require CRL to invest $2 million. This investment will help CRL to exploit the opportunities to improve its growth and to increase its share in SPAFAS market of the USA. The proposal of the joint venture in the Mexican market has raised concerns about whether CRL should go for the venture or not. There are many issues which have developed these issues.Some concerns pointed out that ALPES may solely depend upon the capital of CRL and was not making its own investment. Some people are concerned about investing in a country like Mexico with an unstable currency,uncertain market conditions, corruption issues, economic instability and law and order situation.Lastly, CRL had never conducted its business successfully in Mexico and for this venture CRL may also become unsuccessful. [Show More]

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