The fundamental difference between a licensing agreement and a joint venture

 

1. What is the fundamental difference between a licensing agreement and a joint venture as related to the Disney theme parks?

2. Why did the Walt Disney Company opt for a licensing agreement for Tokyo 
Disneyland?

Sample Solution

The fundamental difference between a licensing agreement and a joint venture

In the late 1970s, the Walt Disney Company made the decision to begin expanding internationally. Tokyo Disney was to be the first Disney theme park built outside of the United States. Tokyo Disneyland was started as a result of a licensing agreement between Walt Disney of the US and Oriental Land Corporation of Japan. A licensing agreement is a legal contract between two parties, known as the licensor and the licensee. One of the most important elements of a licensing agreement covers the financial arrangement between the two parties. A joint venture is a business agreement in which the parties agrees to develop, for a finite time, a new entity and new assets by contributing shared equity. With joint ventures, there can be a dominant partner and participation of the public.

aracterstics of Indonesia Workplace: In Indonesian workplace relationship between superiors and employees are of paternal and maternal nature. Employees believe on their managers and superiors so much that they think whatever they do will be good. They are too much satisfied with the working conditions, co-workers, supervisors and superiors. They hesitate to communicate bad news to the superiors, so the communication is very less in the Indonesia workplace (Wulandari, Pia & John 2011). But in the western workplace, relationship and work is kept aside, targets are communicated to the employees. Employers expect that employees should share their problems with them and also come to the employers for further improvements in the business. Communication should be open from both sides. Due to large number of industries in Indonesia, cases of accidents at the workplace also has increased due to the wrong level of the machines, now Indonesian firms and Governments are arranging the machines according to the male and female posture levels. They are doing so for the well-being, health and comfort of the employees (Sutalaksana & Widyanti 2016). Indonesia has ranked fourth in the consumption of the cigarettes and as it has bad effects on the health of the people, So the WHO Framework Convention on Tobacco Control has taken initiatives for the safeguard of the people by banning this in the workplace and public places and in transportation. This is done by passing various laws.(Byron et al. 2013)
Social Stratification: In nineteen centuries, people was divided into various status system on the basis of races in Java. But in twentieth century, due to the economic changes and upgrading of western education the status pattern largely altered. Now discarding racial distinctions, education created the new status system like class of intellectual and non-intellectuals. These new classes challenged the European superior descents and also threatened the nobility status of Indonesian group. People are also stratified on the basis of religion like Islam, Arab Saudi and Kafir (White man). In previous years the people born in the Indonesia tried to hide their nationality but now have higher rank than Indonesian European and Indonesian Chinese. In present, people of European and Dutch nationality are not able to get good jobs and compete in Indonesia because of loss of status but some totok European and Americans are able to get good job if they not come in the category of labour market. Whether Peasants come in the large majority of Indonesia but actually merchant, intellectual and non-intellectuals come in the higher status system in the Indonesia (Wertheim 1955). JBR (Jakarta Bandung region) has largest urban population that is about 26.5% of the total population and has new infrastructure due to largest investment by dom

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