Question

Compose a minimum 700-word analysis of the following modes of entry:

Turnkey Project

Licensing

Corporation

Franchising

Joint Venture

Answer 1

Turnkey Project

The term turn-key project (Turn-key delivery) describes a project ( or the delivery of such) in which the supplier or provider is responsible to the client for the entire result of the project and presents it to the client completely finished and ready to use. In fact, the client should be able “just to turn the key.” The supplier of a turn-key project is called the general contractor (or main supplier, direct supplier or main contractor).

Turn-key projects in practice: In a turn-key project, the supplier takes on complete responsibility for the adherence to delivery dates, the scope and the cost of the entire subject of delivery to the customer. The customer thus is not affect by any risks inside the project and the result of the project is covered by one agreement. Deliveries in the form of turn-key projects are used in many areas, e.g. in IT (turn-key implementation of information systems), engineering, large construction projects, civil engineering and a number of other areas. Turn-key project are usually very complex and may involve the development and design, the production and the delivery and set-up or installation of the project.

It is a project contract under which a firm agrees to fully design, construct and equip a manufacturing/ business/ service facility and turn the project over to the project owner/ Client when it is ready for operation.

A turnkey project is generally produced by a team of contractors and project leaders who have experience with the type of project that is being produced. These contractors will do everything needed for the project. A project idea is often handed over to them and they are expected to produce the project up to the standards set by the Project owner/Client.

The project manager or client will only have to do very minimal work. They can expect a turnkey project to be returned to them and fully operable when the project is ready.

Licensing

Written contract under which the owner of a copyright, know how, patent, servicemark, trademark, or other intellectual property, allows a licensee to use, make, or sell copies of the original. Such agreements usually limit the scope or field of the licensee, and specify whether the license is exclusive or non-exclusive, and whether the licensee will pay royalties or some other consideration in exchange. While licensing agreements are mainly used in commercialization of a technology, they are also used by franchisers to promote sales of goods and services.

There are few faster or more profitable ways to grow your business than by licensing patents, trademarks, copyrights, designs, and other intellectual property to others. Licensing lets you instantly tap the existing production, distribution and marketing systems that other companies may have spent decades building. In return, you get a percentage of the revenue from products or services sold under your license. Licensing fees typically amount to a small percentage of the sales price but can add up quickly.

Licensing is a billion-dollar retail market worldwide. But a license isn't a prescription for instant success. It gives you the borrowed interest of a name that is either unique or has some consumer acceptance, but it still takes good selling and marketing to succeed. A license is, in essence, a tool, and when used well, it's an extremely cost-effective marketing tool.

Corporation

Firm that meets certain legal requirements to be recognized as having a legal existence, as an entity separate and distinct from its owners. Corporations are owned by their stockholders (shareholders) who share in profits and losses generated through the firm's operations, and have three distinct characteristics (1) Legal existence: a firm can (like a person) buy, sell, own, enter into a contract, and sue other persons and firms, and be sued by them. It can do good and be rewarded, and can commit offence and be punished. (2) Limited liability: a firm and its owners are limited in their liability to the creditors and other obligors only up to the resources of the firm, unless the owners give personal-guaranties.

A corporation is created when it is incorporated by a group of shareholders who have ownership of the corporation, represented by their holding of common stock, in order to pursue a common objective. A corporation's objectives can be for profit or not, as is the case with charities. However, the vast majority of corporations are set up with the goal of providing a return for its shareholders. Shareholders, as owners of a percentage of the corporation, are only responsible for the payment of their shares to the company's treasury upon issuance.
A corporation can have a single shareholder or several. In the case of publicly traded corporations, there are often thousands of shareholders.
Corporations are created and regulated under corporate laws in their jurisdictions of residence. In the United States, the most common type of corporation is known as a "C Corporation."

Franchising

Franchising is one of three business strategies a company may use in capturing market share. The others are company owned units or a combination of company owned and franchised units.

Franchising is a business strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of current and future customers about how the company's products and services can help them. It is a method for distributing products and services that satisfy customer needs.

Franchising is a network of interdependent business relationships that allows a number of people to share : A brand identification, A successful method of doing business, A proven marketing and distribution system.

There are many misconceptions about franchising, but probably the most widely held is that you as a franchisee are "buying a franchise." In reality you are investing your assets in a system to utilize the brand name, operating system and ongoing support. You and everyone in the system are licensed to use the brand name and operating system.
The business relationship is a joint commitment by all franchisees to get and keep customers. Legally you are bound to get and keep them using the prescribed marketing and operating systems of the franchisor.
To be successful in franchising you must understand the business and legal ramifications of your relationship with the franchisor and all the franchisees. Your focus must be on working with other franchisees and company managers to market the brand, and fully use the operating system to get and keep customers.

Joint Venture

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it. However, the venture is its own entity, separate and apart from the participants' other business interests.

Any two businesses of any size can work together on a joint project, while still maintaining the rest of their business apart from each other. Some related articles that might give you additional ideas for possible joint ventures.

Most joint ventures are incorporated, although some, as in the oil and gas industry, are "unincorporated" joint ventures that mimic a corporate entity. With individuals, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are "co-venturers".

Overall, the JV process has a series of steps:

Defining the business strategy.
Determining whether a JV is the right vehicle. This requires comparing the JV option against acquisition, non-equity partnership, contractual alliance, or go-alone approaches. Generally JVs are most appropriate when 1) they are focused on combining complementary capabilities (e.g. products and market access), sharing risks, or 2) merging businesses where an outright M&A transaction isn't possible or where the premium involved in an acquisition can't be recovered via operating synergies and 3) when go-it-alone is too risky or too slow, and 4) simpler vehicles like contractual agreements aren't sufficient.
Screening partners.
Developing the JV deal concept.
Negotiating detailed terms and conditions.
Planning and launching the JV.
Evolving, or terminating, the JV