International Business and Joint Ventures

The assignment provided is a collection of references related to international business strategies and joint ventures. It includes various sources such as books, articles, and online resources that cover topics like multinational joint ventures in developing countries, international business strategy theory and practice, and globalisation strategies of Asian tobacco companies. The summary suggests that this document provides valuable information for students looking to understand the complexities of international business and entrepreneurship.

Research
Project

ABSTRACT
Globalisation help an organisation in expansion of its business activities such as
marketing, human resource, operations etc. For entering into international market, there are
different number of entry modes available such as joint venture, strategic alliance, exporting,
franchising, licensing etc. All these are essential but for expanding business activity in
international market, Joint venture is considered as best and effective strategy. For completing
current research, various activities like introduction, literature review, research methodology,
data collection, analysis, recommendation and conclusion have been discussed that will help in
making whole research more successful. Along with this, the part of literature review has been
don thorough secondary research method and research methodology is includes various methods
that will be applied by investigator to gather data and information. Furthermore, data analysis
and collection is based on research objectives that includes different questionnaire asked from
respondents to understand their view points. Apart from this, recommendation and conclusion
will include necessary areas for better improvement.

Table of Contents
ABSTRACT ....................................................................................................................................3
TITLE..............................................................................................................................................1
CHAPTER 1: INTRODUCTION ...................................................................................................1
CHAPTER 2: LITERATURE REVIEW.........................................................................................3
Globalisation...............................................................................................................................6
Other entry modes.......................................................................................................................7
CHAPTER 3: RESEARCH METHODDOLOGY..........................................................................7
CHAPTER 4: DATA COLLECTION AND INTERPRETATION .............................................10
CHAPTER 4: REFLECTION, CONCLUSION AND RECOMMENDATION...........................22
REFLECTION...............................................................................................................................22
RECOMMENDATION ................................................................................................................23
CONCLUSION .............................................................................................................................24
REFERENCES .............................................................................................................................25

TITLE
“Vodafone using joint venture as entry strategy into the Romania market and impact on
its profitability”
CHAPTER 1: INTRODUCTION
Background of the research
Joint venture is considered as a new business enterprise that is developed from two or
more companies in order to enhance their business performance and expand their operation at
new market place. Business organisations are now a days emphasising on enhancing their
business by expanding it at international marketplace. Globalisation refers as an effective process
used by multinational organisation for integrating and interacting among people, governments
and companies worldwide. It is the spread of technology, goods, information and jobs across
national cultures and boundaries. This defined as an essential process because it can increase the
standard of living in less developed nations by giving job opportunity, modernization and
enhanced access to products and services (Beamish, 2013). For this, they prefer to adopt various
kind of entry mode which makes it easier for them to enter into international market scale. Some
of the common and influential entry modes are Licensing- It is an official permission, permit
something. License can be granted through one party to another as a components of agreed
among those parties. It is a kind of transfer- related market strategy. It consists firm to granting
the permission to firm in other country to use intellectual property for defined period of time.
Franchising- It is form of business through which owner of service, method and product obtain
distribution by the affiliated dealers. Joint Venture It is cooperation enterprise entered in to
through two or more than business entity for purpose of particular project and some other
business activities. The main reason of joint venture is related to attaining the specific objectives.
Export: In this business organisation exports its products in another country for grabbing
attention of customers improvising its sales as well as profitability. All of these strategies are
highly effective and helps companies in increasing sales of products as they are able to approach
more number of customers. This directly places impact on the profitability of the company which
also contributes in improvement in market share. Along with this, Vodafone decide to expand
their business activity in Romania with Telekon Romania, joint venture is more effective and
useful strategy for them. There are different benefits for Vodafone for using joint venture such
1

as new insights and expertise, better resources, not require more time and cost etc. Thus, all these
are major benefits of joint venture which will support an organisation by improving its
profitability and growth at international market such as Romania.
A joint venture introduces as a business arrangement in which there is two and more than
that companies are agree to pool resources for the motive of achieving a particular task. Joint
venture is a best entry mode strategy, in which each participants is liable for losses, profits and
cost associated with it. Along with this, parties enter into joint venture agreement in order to pool
strengths and maximise competitive benefit while reducing risk (Abd-Karim and et. al., 2014).
An international joint venture occurs when two organisations based in two or more nations from
a partnership. An enterprise which needs to explore global trade without taking any
responsibilities or duties of cross boundary business transactions has better choice of forming a
joint venture with an international partner. For this report, Vodafone is a chosen
telecommunication organisation which was founded in 1982 by Nick Jeffery. Company wants to
expand their business activity by using joint venture with Telekon Romania. It is a
telecommunication company in Romania which was founded in 1930. Joint venture is most
essential strategy because it provides a better chance for an organisation to save time and money
in marketing, operation and advertising costs.
Research Aim
“Vodafone using joint venture as entry strategy into the Romanian market and impact on
its profitability”.
Research Objectives
 To review literature on joint venture and profitability.
 To carry out primary study on joint venture and profitability To recommend how Vodafone can use joint venture to increase profitability.
Research Questions Is joint venture the right strategy to increase profitability?
Rational of the research
The main purpose of this investigation is to analyse that whether joint venture is the right
strategy for Vodafone in order to increase their profitability at international market place. For
understanding effectiveness of this strategy, both the literature review as well as primary
methodology of data collection will going to be used so that desired information can be gathered
2

on the selected topic. Along with this, it will also help in acquiring feasible results on the study
too which will provide appropriate guidance to the company.
CHAPTER 2: LITERATURE REVIEW
A literature review refers as a comprehensive and detail information of previous study on
a specific topic. It is a most important part of research project which will support a researcher to
address all objectives and questions of research in more effective manner (Butković, Bošković
and Katavić, 2014). Main intent of literature review section is to investigate the conflict as well
as gaps in previous study. In this, different authors provide their view point about the topic which
will support an investigator to analyse important and issue of research.
Concept and Importance of Joint venture and profitability
According to the Johnston and Rudyak, (2017) it has been stated that joint venture
considered as the arrangement of business in which two or more than two different parties are
accept to pool their resources for aim of attaining particular objectives. Under this, each
participant is responsible for losses, costs and profits related with this. Venture is own entity that
is separated from other business interest of participants. It can be with firm of similar sector or
some other sector but with combination of both they will generate the competitive benefit as
comparison to other players at market place. In addition to this, joint venture cab be flexible that
can be in regards to needs of business. An arrangement among firms should have terms and
conditions in detailed with respect to activities which will be carried through them. In context
with Vodafone which is a UK based multinational telecommunication firm has decided to adopt
the joint venture as a strategy with the IBM in order to pursue solutions in variety of developing
technology industry. With this assistance, being a mobile phone network operator, through joint
venture strategy, Vodafone gain a number of opportunities to work in collaboration with IBM
and expand its business easily over market area of Romania, in following way –
New sights and expertise- Under this, starting joint venture in Romania gives better
opportunities to Vodafone business to gain the new insights as well as expertise. It is helpful for
company to understand the market and provide the short term partnership which have forged. As
it is also may provide support to business organization in opportunities to expand their business
activities with innovative ways. This will contribute in establishing positive and competitive
advantage from its rivals.
3

Intellectual property gains- For business, advanced technology is complex for business
in order to develop in- house. The companies enter in to the joint ventures with advanced
technologies for gain access to assets without having spent money and time to create assets for
themselves in- house. As Vodafone is a large size organisation and with better access to
financing that may be contribute working capital strength of the joint venture with company that
has limited financing capabilities but it gives key technology fort sales as well as development of
services or products.
Better resources: It is also an effective that forming a joint venture in Romania will
provide access to better resources like specialised staff and technology as well. In this regards,
all the equipment and capital is also helpful in providing better access to establishing their
competitive brand image at market place. Furthermore, better consumption of resources also
contribute in enhancing the positive brand image at global market place by operating their
business.
Barriers to competition- The main importance of joint venture is to avoid competition
and the costing pressure. With the help of collaborating with some other companies in Romania,
Vodafone can reduce erect barriers for rivals that can make this complex for them to penetrate
marketplace.
Synergy benefits- Under this, joint venture can provide similar kind of synergy
advantages which organisations look for in the mergers and acquisitions. It can be financial
synergy and operational synergy. The financial synergy minimizes cost of capital and on the
other hand in operational synergy, two organisations working together and enhance efficiency of
business operations.
In joint venture, as new company is to be formed to attain particular aim of partnership
such as temporary arrangement among two or more than two forms (MARKET ENTRY
STRATEGIES, 2018). Therefore, joint venture is beneficial as risk minimizing mechanism in the
new- market penetration, pooling of the resource for big project. It may be investing in new
business operations or include sharing the assets for combined advantages to both involved
parties. In addition to this, most common joint ventures consist use of assets in a proper and
effective manner. According to the Majocchi, Mayrhofer and Camps, (2013) Joint venture refers
to business arrangement under which two or more than two different parties agree to be pool
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resources for an objective of attaining particular activities in a better manner. In this regard,
adopting the joint venture for expanding business in Romania market, can impact directly on
profitability and growth of Vodafone both in negative and positive way, as described below -
Positive impact
Under this, starting joint venture gives opportunities to Vodafone for gaining new
insights as well as experience. In this regard, it is easy for this company to realize the short-term
partnership that you have beat. Forming joint venture with provide access to better resources for
an instance specialized staff members and technology. On the other, equipment’s as well as
capital which business needed for project can be used in a better manner.
Negative impact of Joint Venture
In this, there are many times when the flexibility is respected in joint venture when it
happens. So, Vodafone has to emphasis on joint ventures and single business which can go
through in process. Due to the different forms are working together there is a great imbalance of
assets investment as well as expertise. It can have negative effect on effectiveness of joint
venture. Under this, place of culture as well as management styles may result in the poor
integration and cooperation. People within respective organization have different taste
differences and bliss which can get in big time if they can check. Opportunity which is limited id
common for the joint venture contract to restrict the all outside activities of companies while
working on joint venture project. On the other hand, business needs to make sure that it should
understand getting into if it does not want to negative impact on its business.
According to Mary, (2018), forming a joint venture is one of the important and common
business strategy that used by company with the aim of attaining all the set goals and objectives
in specific consumer market. By entering into a joint venture includes two or more business
comes together in a contractual agreement to work together for a specified period of time. It
positively impacts on the organizational activities by increasing its profitability level. Mainly it is
also considered as an attractive option for business in which they share their resources and
responsibilities that may help them in enhancing the chances of attaining positive and higher
growth level. Along with this, it also increased flexibility among both companies through which
company easily enter into new market and established their competitive image as well. One the
other hand, sharing business risk is also considered as a benefit associated with joint venture.
With the help of this, company easily improve their profitability level at global market place.
5

Some ways through which negative impact of joint venture can be overcome
As per the point of view of Valerie Demont and Soumya Sharma (2016), it has been
analyzed that as organisations are rightly concerned on enhancing their performance within the
market place through rendering suitable products and services to the customers, so they are going
to adopt the concept of joint venture for expansion of business in other market. But apart from
various benefits, as it includes a number of risks therefore, companies like Vodafone need to
concern on reducing the same as well (How to Reduce International Joint Venture Risk. 2016).
Since, Vodafone is the large business organisation which operates in telecommunication phone
and supplies its services at global level for attainment of better company has decided to make
joint venture with IBM to expand business in Romania market. In this regard, respective
company needs to analyse factors that may cause joint venture business to fail. It includes lack of
common vision on exit or entry strategy, cultural difference, complex regulations and more. But
apart from these, the major factor that may cause the failure of Vodafone strategy i.e. expanding
business in Romania market by joint venture is complex business environment of this nation.
Therefore, it is essential to understand the external factors that help in developing better
strategies like make entry in business via IP licensing agreement, in order to facilitate the
exclusive use of joint venture.
PESTLE Analysis
PESTLE analysis is considered as an effective framework that helps in understanding
macro environment deeply so that its influence over the business can be profound. With
reference to the current given study, Pestle analysis has been conducted in order to understand
that whether Vodafone should enter into Romania with joint venture strategy or not for
enhancing their profitability. All factors of PESTLE are described in context of Vodafone as
below:
Political factors: The political state of Romania is acknowledged to be stable as it is
governed by the European Directives. This will aid the respective entity to expand by making use
of Joint Venture strategy to feasibly gain access to Romanian markets and facilitate increment of
sales and profitability.
Economic factors: The economic conditions of Romania are strong enough to support
the growth of Vodafone. The economy of this country is equipped with excellent infrastructural
facilities, communication, electricity supplies, logistics, delivery channels.
6

Social factors: Romania is home to a number of languages, traditions and practices. This
will aid Vodafone to carry out expansion in its confines and conduct business operations in an
effective manner.
Technological factors: Romania is a country that is equipped with latest and emerging
technological resources. These are effective enough to provide aid to Vodafone in making use of
Joint Venture to expand within Romania.
Legal factors: It is essential for Vodafone to abide by the legislations of IP Licensing
Agreement so as to effectively carry out expansion within the confines of Romania.
Environmental factor: Acting in the interest of nature or environment has become
essential for all the companies operating across the globe. This is so because customers have now
become aware and prefer organisation which adopt eco-friendly practices. Vodafone is required
to take this into account while expanding its operations in the new country.
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CHAPTER 3: RESEARCH METHODDOLOGY
Research methodology is more significant and essential process used by researcher to
collect right data and information of the study. There are different methods of primary and
secondary research, some of them are analysed as under:
Research philosophy: This area of research is basically classified into two parts such as
interpretivism and positivism. In the current investigation, researcher have used positivism
research philosophy has been used by investigator as it helps them in interpreting overall
information with appropriate reasons and logic gathered from all sources.
Research Approach: in this two approach of research namely, inductive and deductive.
Those approaches are known as the best method but according to the topic, deductive approach is
used. This is because, deductive research approach follows logic and reason which are developed
on the basis of existing theories and information. Usage of this approach helps them in
developing new hypothesis which is further tested with the help of research strategy so that risk
can be avoided.
Research Choice: For selecting research, there are basic two choices for researcher such a
qualitative and quantitative. Both type of research are important bur according to the study,
quantitative research is considered as the good choice for researcher (Gatejel, 2017). As it assist
a researcher to accumulate accurate and quality information about the topic. On the other side,
there is quantitative research which is not appropriate according to the topic. As it required
information in form of facts and numbers.
Time Horizon: It is most important part of research which will support to an investigator
to analyse starting and ending period of time for completion of each tasks or activities of study.
For this Gantt chart is consider most important bar chart which will also help a researcher to
complete research in more systematic and effective manner.
Research design: Descriptive, experimental and exploratory are introduces as a main
type of research design. All these types of research design are important because entire activities
of research is depend on them. According to the study, exploratory design is more essential
because it will assist a researcher in driving valid conclusion about the topic.
8

Sources of data: in this context, There two types of data sources which is primary and
secondary. Those are identify best sources for collecting information about the topic in accurate
and appropriate manner. In the primary research, questionnaire is more suitable source used by
researcher to gather reliable and valid data about the importance of joint venture for organisation
in expansion of their business activities (Harriss-White, Prakash and Mishra, 2013). On the other
side, secondary research is also effective for researcher because with the assist of this, they can
easily collect in-depth information about the topic. For accumulating secondary data, books,
magazines, journals, literature review and many other sources are used by researcher.
Data collection techniques: There are various techniques of data collection such as
observation, survey, questionnaire, observation etc. All of these are identify best techniques for
accumulating accurate data about the study. For identifying significance of joint venture for
expansion of business activities, questionnaire will be applied by researcher because it supports
them in collecting reliable and valid data about the study. Questionnaire is essential instrument in
which different questions will be made by researcher to asks some questions to respondents.
Questionnaire is defined as the process from which organisation and other firm can easily
developed influence to operate business on international level. It is considered as an integration
of market in global market which lead to enhanced the interconnectedness of the national
economies. It is main instrument for collecting the data in survey research. It is set of the
standard questions which follow fixed scheme in context to gather individual data and
information regarding particular topic. On questionnaire, different questions are mentioned
related to specific subject area.
Research sampling: in this context two type of sampling included that is probability and
non probability. Those are important sampling but according to the topic, non-probability
sampling will be used (Johnston and Rudyak, 2017). In this context, sampling is a part of non-
probability sampling which will be applied by researcher because it not require maximum time,
cost and resources of an organisation as compare to probability sampling. Therefore, with the
help of conveniences sampling, 40 respondents will be taken into consideration.
Data analysis techniques: Thematic analyse is consider best techniques of data analysis
used by researcher to analyse effective and actual information about the topic. In this context,
various themes will be made on each questions.
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Research Limitations: Time is consider main limitation for this project because for fulfil
each task of research, accurate time period is required by researcher. There is another limitation
related to research methodology which is Preparation of research aims and objectives, Poor and
Lack of previous studies in the research area, Sample size and Execution of data collection
method. All these type of limitation highly impact on investigator while collecting accurate data
about the research project (Killing, 2013).
Research reliability and validity: Questionnaire is consider as an important part of
research which will help a researcher by providing valid and reliable information related to the
study. Thus, it is more significant for researcher to complete each task in systematic and on time.
In this there are mainly two types of research such as primary and secondary. Those type
of research are useful for researcher because with the help of this, they can easily collect primary
and secondary data about the study. In this for collecting primary information this questionnaire
will be applied whereas for accumulating secondary data, books, magazines, journals etc. are
used by researcher. Both type of research as essential for collecting in-depth and reliable
information about the topic (Lee and Eckhardt, 2017). Research is effective approach to collect
the data and information by utilizing the essential and optional technique for information
accumulation. There are different methods require by researcher while conducting primary and
secondary data. Some methods are determined as under:
Cost- It is considered as one of the main method used by researcher to conduct primary
and secondary research in systematic manner. It is necessary factor that is generally faced
through researcher. In some cases, they don't have the enough cash and time to conduct all the
activities in an effective way. Thus, it is important that before performing the research activities,
investigator must have sufficient cash and time to ignore any sort of confusions.
Access: It is also considered as a best and effective method for conducting secondary and
primary research about the topic (Lee and Eckhardt, 2017). In case of primary and secondary
research, information will be access to participants about the understanding of research aims and
objectives. Entire information related to the topic, accessed in computer system and many other
software in long period of time.
Ethical issues- In this, conducting an investigation is not easy for a researcher. It is
necessary for an investigator is to conduct an investigation in an ethical manner. Thus, it is
essential that researcher should pursue all the moral contemplations while conducting an
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investigation in a better or ethical manner. Ethical issues mainly related with ethical principles
which is informed consent, anonymity and confidentiality. All these principles should be follow
by researcher because it will help them in conducting primary and secondary research in more
effective and systematic manner.
Gantt chart:
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CHAPTER 4: DATA COLLECTION AND INTERPRETATION
In order to analyse research findings, there are various type of data analyse methods such
as inductive, deductive, regression and thematic (Majocchi, Mayrhofer and Camps, 2013). All
these are most essential and effective methods but according to the topic, thematic analyse will
be used by researcher. In this, various themes as well as patterns will be created on each and
every questions. As it will assist an investigator to minutely analyse response from respondents.
Questionnaire
Name
Age:
Gender:
Email:
Address:
Q1) Are you aware about the concept of Joint Venture in terms of business?
a) Yes
b) No
Q2) Do you think that Joint venture technique is effective for the business growth of
Vodafone?
a) Yes
b) No
Q3) What are the importance of Joint venture for Vodafone to expand their business
activities with Telecom Romania?
a) Wider business opportunity
b) Effective customers reach
c) Easy business expansion
Q4) Which kind of impact does have the joint venture over the profitability of Vodafone?
a) Positive
b) Negative
c) Neutral
Q5) What are the major factors that pushes Vodafone to get emerge with Telecom
Romania?
14

a) Higher Customers Demand
b) Competition
c) Profitability
d) Suitability of Operations
Q6) What challenges are faced by Vodafone during the procedure of joint venture with
Telecom Romania?
a) Conflict of interest
b) No joint control of cash
c) Resources
d) Organisational vision
Q7) In which manner Telecom Romania supports the growth of Vodafone?
a) High Extent
b) Medium Extent
c) Low Extent
Q8) What potential ways are used by Vodafone to reduce the risk of joint venture?
a) Establish common purpose
b) Comprehensive joint venture contract
c) Ongoing communication among partners
Q9) Which is the best method for utilising the exclusive usage of joint-venture for
Vodafone?
a) IP Licensing Agreement
b) Due Diligence
c) Changes in organisational structure
Q11) Recommend some ways through which Vodafone can expand its business at global
level?
Data Sheet
Q1) Are you aware about the concept of Joint Venture in terms of
business?
Frequency
15

a) Yes 26
b) No 4
Q2) Do you think that Joint venture technique is effective for the
business growth of Vodafone?
Frequency
a) Yes 20
b) No 10
Q3) What are the importance of Joint venture for Vodafone to
expand their business activities with Telecom Romania?
Frequency
a) Wider business opportunity 12
b) Effective customers reach 10
c) Easy business expansion 8
Q4) Which kind of impact does have the joint venture over the
profitability of Vodafone?
Frequency
a) Positive 9
b) Negative 8
c) Neutral 13
Q5) What are the major factors that pushes Vodafone to get
emerge with Telecom Romania?
Frequency
a) Higher Customers Demand 10
b) Competition 6
c) Profitability 5
d) Suitability of Operations 9
Q6) What challenges are faced by Vodafone during the procedure
of joint venture with Telecom Romania?
Frequency
a) Conflict of interest 5
b) No joint control of cash 8
d) Organisational vision 17
Q7) In which manner Telecom Romania supports the growth of
Vodafone?
Frequency
a) High Extent 7
a) High Extent 6
16

b) Medium Extent 10
c) Low Extent 6
Q8) What potential ways are used by Vodafone to reduce the risk
of joint venture?
Frequency
a) Establish common purpose 18
b) Comprehensive joint venture contract 10
c) Ongoing communication among partners 2
Q9) Which is the best method for utilising the exclusive usage of
joint-venture for Vodafone?
Frequency
a) IP Licensing Agreement 12
b) Due Diligence 12
c) Changes in organisational structure 8
THEME 1: Aware about the concept of Joint Venture in terms of business
Q1) Are you aware about the concept of
Joint Venture in terms of business?
Frequency
a) Yes 26
b) No 4
17

a) Yes b) No
0
5
10
15
20
25
30 26
4
Frequency
Interpretation: From the above analysis it has been interpreted that joint venture is business
entity that developed through two or more than two parties which defined through shared
ownership this and share governance. There are 26 respondents which said that they are not
aware about the joint venture in context of business. On the other side there are 4 participants
which do not have any knowledge or Idea regarding joint venture.
THEME 2: Joint venture technique is effective for the business growth of Vodafone
Q2) Do you think that Joint venture
technique is effective for the business
growth of Vodafone?
Frequency
a) Yes 20
b) No 10
18

a) Yes b) No
0
2
4
6
8
10
12
14
16
18
20
20
10
Frequency
Interpretation: From the above mentioned analysis it has been interpreted that joint venture is
effective technique for development of Vodafone because there are two businesses working
together on attaining the specific objectives. There are 20 respondents and according to their
opinion joint venture technique is better for growth and profitability of Vodafone. On the other
hand, there are 10 respondents that which said that joint venture is not better or effective for
growth of business.
THEME 3: Importance of Joint venture for Vodafone to expand their business activities
Q3) What are the importance of Joint
venture for Vodafone to expand their
business activities with Telecom Romania?
Frequency
a) Wider business opportunity 12
b) Effective customers reach 10
c) Easy business expansion 8
19

a) Wider business opportunity
b) Effective customers reach
c) Easy business expansion
0
2
4
6
8
10
12
12
10
8
Frequency
Interpretation: Joint venture is beneficial for Vodafone in order to expand their business
activities in a better manner. There are various components which said that joint venture
provides the great opportunity to business and its business in another country. According to the
opinion of 10 respondents that by conducting the business at global. There are 10 respondents
which agree that joint venture can provide the benefits to firm and Vodafone can reach at the
customers in Romania Telecom in a better manner. Vodafone can easily reach to customers. It
will provide the competitive benefit to Vodafone at large market. There are 8 respondents
according to them the main importance of joint venture for Vodafone is too easy expansion of
business in Romania telecom sector.
THEME 4: Impact does have the joint venture over the profitability of Vodafone
Q4) Which kind of impact does have the
joint venture over the profitability of
Vodafone?
Frequency
a) Positive 9
b) Negative 8
c) Neutral 13
20

a) Positive b) Negative c) Neutral
0
2
4
6
8
10
12
14
9
8
13
Frequency
Interpretation: It has been integrated from the above given graph that there are 9 respondents
which said that joint venture develops the positive effect on profitability of Vodafone because if
Vodafone will joint venture with another company in Romania then it can easily expand its
business and target the new market. On the other hand, there are 8 respondents which said that
joint venture is not better or profitable for Vodafone business. According to 13 respondents joint
venture develop neutral impact on Profit level of Vodafone.
THEME 5: Major factors that pushes Vodafone to get emerge with Telecom Romania
Q5) What are the major factors that pushes
Vodafone to get emerge with Telecom
Romania?
Frequency
a) Higher Customers Demand 10
b) Competition 6
c) Profitability 5
d) Suitability of Operations 9
21

a) Higher Customers Demand
b) Competition
c) Profitability
d) Suitability of Operations
0
1
2
3
4
5
6
7
8
9
10
10
6
5
9
Frequency
Interpretation: There are many factors which pulse Vodafone to get emerges with the Telecom
Romania. According to opinion of 10 respondents that the main factor that Vodafone Company
to expand its business in telecom Romania sector is to increase demand of customers. On the
other hand, there are 6 respondents which said that competition is main factor that can help in
emerge Vodafone within Telecom Romania. There are 5 respondents which said that if Vodafone
will emerge with Romania Telecom then it can increase its profit level and gain the competitive
advantage. 9 respondents said that suitability of operation is a main factor that Vodafone
company to emerge with the telephone Romania.
THEME 6: Challenges are faced by Vodafone during the procedure of joint venture
Q6) What challenges are faced by Vodafone
during the procedure of joint venture with
Telecom Romania?
Frequency
a) Conflict of interest 5
b) No joint control of cash 8
d) Organisational vision 17
22

a) Conflict of interest
b) No joint control of cash
d) Organisational vision
0
2
4
6
8
10
12
14
16
18
5
8
17
Frequency
Interpretation: On the basis of opinion of five respondents the main challenges that faced
through Vodafone Company at the time of joint venture process is conflict of interest the interest
because both companies’ objectives are different from the each other. They want to work
according to their interest level without consulting with the each other. There are 8 respondents
and they said that the main issue that Vodafone can be face is not joint control of cash.
According to opinion of 17 respondents that organization vision is a main issue that can be attain
through company because the vision of Vodafone and Romania Telecom is different from each
other and they both want to attain their vision in a better and effective manner. It developed the
conflict among the two companies.
THEME 7: Manner Telecom Romania supports the growth of Vodafone
Q7) In which manner Telecom Romania
supports the growth of Vodafone?
Frequency
a) High Extent 14
b) Medium Extent 10
c) Low Extent 6
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a) High Extent b) Medium Extent c) Low Extent
0
2
4
6
8
10
12
14
14
10
6 Frequency
Interpretation: There are 14 respondents which said that Romanian Telecom supports
development of Vodafone company business at high extent. It is helpful for company to target
the new market and communicate with new customers. It will help in provide the benefits to
forms in context to profit level and development at large level. On the basis of 10 respondents
and according to their opinion that Telecom Romania support develop of Vodafone because in
Romania, there are many existing firm which already set up business. In this case, it is complex
for Vodafone Company to set up its business. According to 6 respondents, Telecom Romania
support development of Vodafone in low extent.
THEME 8: Ways are used by Vodafone to reduce the risk of joint venture
Q8) What potential ways are used by
Vodafone to reduce the risk of joint
venture?
Frequency
a) Establish common purpose 18
b) Comprehensive joint venture contract 10
c) Ongoing communication among partners 2
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a) Establish common purpose
b) Comprehensive joint venture contract
c) Ongoing communication among partners
0
2
4
6
8
10
12
14
16
18
18
10
2
Frequency
Interpretation: For conducting the business operation in a better manner it is necessary to both
companies which are joint venture to conduct their business operations in a mutual way. There
are 18 respondents and according to their opinion that both firm should develop a common
purpose and work for attaining in a specific period of time. It helps in developing coordination
and cooperation among both the companies and also creates better relationship between them.
There are 10 respondents and they said that the main way which Vodafone can use to reduce risk
of joint venture is comprehensive joint venture contract. On the contract all rules and regulations
regarding joint venture should we mention and it is necessary to both companies to follow them
accordingly. On the other hand, there are two respondents and according to their opinion that the
main way that company can use to minimise risk of joint venture is to develop ongoing
communication among partners.
THEME 9: Strategy for utilising the usage of joint-venture
Q9) Which is the best method for utilising
the exclusive usage of joint-venture for
Vodafone?
Frequency
a) IP Licensing Agreement 12
b) Due Diligence 12
c) Changes in organisational structure 8
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Interpretation: It has been interpreted from the above graph that for usage of joint venture
concept to expand business in Romania market, 12 out of 30 respondents suggested Vodafone
for making IP Licensing Agreement. This would help in using its own trademark for selling the
product and services in new marketplace. While other respondents that are 12, stated to concern
on due diligence for same. It may help in analyzing whether new partners are fit with right
ethical and governance background, so that chances of failure in joint venture business can be
reduced. Other than this, rest of 8 respondents are focused on changing organizational structure
so that threat for failure of joint venture due to different perception of owners can be minimized.
CHAPTER 4: REFLECTION, CONCLUSION AND RECOMMENDATION
Discussion
Vodafone is large scale organisation which deals in telecommunication industry.
Stakeholders of this company includes its directors and other senior level staff. The results of
above investigation are required to be communicated to Senior manager of Vodafone. The below
discussion and results will be communicated to this stakeholder by the mode of email as it is
considered as the safest and professional mode of communication.
As due to increase in globalisation, today, organisations got various options for
globalising their business like licensing, joint venture, franchising and more. Therefore, by
considering various opinions of researchers and stakeholders team, Vodafone is recommended
and suggested to adopt the joint venture method for its business expansion in Romania market.
This would help in gaining a number of advantages like insight of new market and expertise in
which it operates its business that support in influencing positive impact on the overall
performance of the company at Romania. By selecting this entry mode, Vodafone will face a
positive impact on its sales revenue and profitability margin. Through Literature Review and
primary study, it has been analysed that Joint venture is considered as an important aspect for
organization in expansion of business at new market. As it includes two or more than parties that
are comes together for running their business for common purpose. Along with this, it also helps
in sharing losses, cost and profits related with the company. Mainly, it is flexible in nature in
which both companies can easily enhance their productivity level at global market place.
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Intellectual property gains are also an importance that increase the innovative technology within
the company that contribute in enhancing working capital strength that protect them firm
financial issues at market place. Therefore, it has been analysed that choosing joint venture by
Vodafone is right strategy for increasing its profitability.
As per the analysis of the opinion of the authors it has been discussed that the key motive of
a business is to attaining higher growth and success at market place by expansion of business at
global level. Joint venture is considered to be the key strategic source of business which has
direct influence over the profitability of business. Vodafone is a large telecommunication service
provider which is concern over making joint venture with other businesses in terms of capturing
a wider market for the purpose of attaining higher profitability and growth. As per the opinion
described by the authors it has been discussed that joint venture has positive impact over the
profitability of business at higher level. The company has attained huge profit and wider
customers reach through the strategic source of joint venture.
Joint venture is one of the most necessary strategy that multinational organisations use to
enter in to the foreign market. In this, clear agreement is necessary part of develop the better
joint venture relationship. In joint venture, Vodafone can face some issues therefore, in order to
overcome from them, it needs to plan carefully. For this assistance, the partnership should be
start with the careful planning. Before proceed, Vodafone should review its strategy to see that
joint venture is better to attain set aims. Along with this, as communication refers to be a main
part of developing relationship. Company should assure that each person which involved
understand basics of joint venture agreement by consisting details such as human resource, goals,
financial contributions etc. Some other factors, where Vodafone needs to be concerned for
increasing the chance of getting success via joint venture concept, are given as below -
 At first it is recommended to Vodafone to adopt due diligence. This will help company in
understanding that whether their local partner is fit for their business or not ion terms of
government and ethical background.
 At next, it is suggested to them to follow trademark licensing while developing their
business in Romania. This will allow them in strengthening their customer base in
international marketplace.
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 Along with this, the company is also advised to adopt hybrid organisational structure as it
will allow both the indulged companies in acquiring functional and divisional structure.
This ultimately enhances chances of success.
REFLECTION
There are various methods used by researcher for collect accurate information or data
about the study. For this researcher, I have also applied different methods like primary as well as
secondary, research design, approaches, philosophies, qualitative and quantitative, etc. All these
were highly supported me when I have gathered information related to the study. For collecting
primary data, I was only used questionnaire because it provides me effective and reliable and
accurate information or data regarding the study. On the other side, books, journals, magazines,
articles were used by me to gather secondary or in-depth information about the topic. Along with
this, questionnaire was also used for this project which introduces as an effective technique of
primary research (Puig, González-Loureiro and Ghauri, 2014). It is most essential and accurate
technique applied by me to gather reliable, accurate, valid and appropriate data about the topic.
In order to selecting best methods for accumulating accurate information about the researcher, I
have faced many various issues like as formulation of research aims and objectives, applicable of
data collection method, Sample size, poor previous studies in the research area and scope of
discussions. All these are considered main issues which will impacted on mine while selecting
useful and best method of research. In order to overcome all these type of issue, I will take a step
such as applying Gantt chart which will help me in identification of starting and ending time for
finishing of each activities or tasks research activities. Along with this, interview is also
considered as an important and alternative method that could be used by me in gathering relevant
data and information from respondents. It would be beneficial for me in taking right decision at
the end of the research. With the assistance of this, positive and reliable outcomes can be easily
attained and make whole research more successful. In addition to this, for gathering required
information and data one of the method which can be used is observation method. It is the
method through which I can gather relevant information in order to conduct the research in an
effective manner. But on the other hand, while observing other I might be wrong sometimes
which affects the overall result of my resesrach in negative manner. Along with this, for
completing this research successfully I opt questionnaire method which helsp me in collecting
information within specific time period and it is in my budget.
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In addition of this, I also improved my skills and knowledge towards the concept of
globalisation and its impact on the business activities. Furthermore, project is related to the joint
venture in which I learnt more that support me in my upcoming research activities. With the
assistance of this, I will be able to attain the positive outcomes and make a successful research
project. In order to met the objectives or aim of this research, I have prepared various strategies
and policies according to the requirement. All these plans help me in order to attain the
objectives within specific time period.
RECOMMENDATION FOR ALTERNATIVE METHOD
For collecting certain and logical data about the topic, questionnaire is considered best
method. It is an important and useful approaches for accumulating accurate and reliable
information about this study. On the other hand, interview is considered best alternative research
methodology for this project. As it will also support an investigator to gather proper and accurate
data about the study. Interviews are most effective method for qualitative research (Tsamenyi,
Qureshi and Yazdifar, 2013). It will support an investigator in explaining, better understanding,
and exploring research subjects' opinions, experiences, phenomenon, behaviour etc. Questions in
interview methods are normally open-ended questions so that proper or in-depth information will
be gathered. Thus, it is also essential method but given report is mainly related with qualitative
research in which questionnaire is most suitable and appropriate method for gathering reliable as
well as valid data about the study. Therefore, questionnaire will be used for this project because
it is more suitable as compare to interview method.
CONCLUSION
From this report, it is mentioned information, it has been concluded, globalisation is most
essential process used by organisation to enter into emerging market through Joint Venture.
Information found in questionnaire, more than half of the population are aware about the
relationships between globalisation and joint venture. Thus, it is most essential entry mode
strategies which will support an organisation by saving its time, cost and resources. There are
different challenges faced by company during the procedure of joint venture with Telecom
Romania such as conflict of interest, No joint control of cash and Organisational vision. All these
are major issues which will highly impact on expansion of business activities in new country. In
order to overcome such issues different suggestion should be provided to an organisation such as
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Establishment of common purpose, Comprehensive joint venture contract and Ongoing
communication among partners. All of these suggestion will support an organisation to
overcome risk of joint venture and successfully expand their business activities in a specific
country.
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