FINANCIAL CONSTRAINTS

Financial Constraints and Impact Analysis



Financial Constraints and Impact Analysis

Physical Therapy Clinic Project Constraints

Strategic Control

Strategic control concerns selected areas that are strategically vital to the parent. Strategic control is crucial to venture success as Perceived by the parent because it can better protect contributed core competencies and more efficiently apply key assets and skills, even with a relatively small share of equity or overall control. At times, it may be more useful for a parent firm to adopt strategic control over key resources and activities than aim for overall control. The exercise of effective and efficient control measures should focus on those dimensions perceives as strategic and critical. Strategic control over areas has to depend upon can increase bargaining power and leverage options, when investing in a complex, dynamic environment, the exercise of strategic control over critical areas is even more critical to the attainment of expected economic benefits. Strategic control may then be effective in protesting strategic assets, maintaining bargaining power, and reducing vulnerability to contextual changes. Operational Control

Operational control condemns managerial functions such as marketing, finance, human resource management, and production. Operational control can shape venture operations and management because re utilization of management functions is an important element of administrative or bureaucratic control. Through the establishment of a comprehensive system of rules and procedures for directing operations or behavior of divisions, functions, and individuals, bureaucratic control standardizes behavior and makes outcomes predictable, one of the major goals of IJv control. The importance of operational control may differ among various MNEs. This kind of control will be more important to those companies that have greater participation, with respect to either intensity or diversity, in the host market. In other words, when required local responsiveness is high, operational control appears to be more important. Because it is based on managerial functions, operational control can also be applied to the realization of specific operational goals.

Structural Control

Structural control concerns organizational structure and managerial systems. In fact, the ability of a partner to replicate its way of managing the joint venture reflects its level of control over the partnership. A parent firm's structural controls can be enhanced by transplanting its corporate culture, principles, and management styles to the venture. To achieve this goal, the parent company can use its bargaining power or dominant equity position to manipulate the venture's managerial systems and organizational principles, train senior staff of the venture, and make the organizational structure of the venture fit with the parent's stake.

Strategic Options available for Funding

Capital is the essence for the success of ventures. Ventures need to use capital to run the business, such as product purchases, shop rent, to make profit, and even need more capital if engaged in a large number of commercial projects. Capital is enterprises' blood, driving force behind economic activities of enterprises and sustained impetus (Livingston, 2007). Therefore, effectively raising capital is an important factor for the enterprise creation, survival and development. However, as the main body involved in a dynamic environment, enterprises will encounter more varieties of financing instruments ...