Deck's Romanian Joint Venture
Deck is a U.S.-based multinational supplier to the automotive industry. It is a part of a joint venture in Romania, which, in October 2006, needs to be expanded to fulfill the growing needs of Renault-Dacia and its highly successful new world car, the Logan. But the question of the joint venture’s expansion has revealed that the JV does not meet many of Deck’s global manufacturing and business practice criteria. It is now being aggressively pushed by the customer to expand its investment in a small, local market, which may not yield sufficient financial results to justify the investment.
This case has been used in both MBA and Executive Education programs to focus on the more “gritty” aspects of doing business in a variety of emerging market countries. It is particularly powerful in combining elements of emerging market strategy, global supplier relationships, financial expectations of joint venture and wholly owned country subsidiaries, in addition to the context of demanding global customers and country/cultural differences in the conduct of business.