Why joint venture?
Highest market portion in milk pulverization. can supply engineering and reputable trade name name. Already trade name acknowledgment in Pakistan. therefore familiar with market.

Drawbacks?
High royalties to established trade name.
Large transnational venture might rule Milkpak.

Pro’s Nestle
Base in dairy merchandises.
Started out with infant expression.
Plants in 60 states. already concern in Pakistan.
Looking to carry through long-run ends.
Want decentalisation. give JV ain individuality and duty. This was can
better adapt to foreign market. Provide R & A ; D and proficient aid to stand in.
Turning involvement in Pakistan market.
Informal channel of communicating.

Con’s Nestle
Want bulk ownership in JV and want royalties.

How to do cons pros?
Majority ownership Nestle means that MP bears the least hazard. Because MP has proficient troubles in puting up a Greenfield MP needs Nestle and Nestle needs royalties for its engineering. But this is one of the few demands. The JV will acquire its ain direction and gets a batch of duty. This makes it easier to accommodate to the Pakistan market. This is besides the trust Nestle puts in MP. since Nestle will bear most of the hazard due to the bulk ownership. Nestle besides has the highest market portion for milk pulverization. which can be used to derive a good repute.

In short
Nestle bears hazard. puts MP in charge of the subordinate. gives technological and R & A ; D support. which is what MP is looking for. but needs royalties in return. Familiar with milk pulverization and infant expression.