Managing a Successful Business Project - Argos Assignment

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MANAGING A SUCCESSFULBUSINESS PROJECT
TABLE OF CONTENTSCHAPTER-1 INTRODUCTION.....................................................................................................1CHAPTER 2: LITERATURE REVIEW.........................................................................................2CHAPTER 3 RESEARCH METHODOLOGY..............................................................................5CHAPTER 4 RESULTS..................................................................................................................8CHAPTER 5 CONCLUSION........................................................................................................15CHAPTER 6 REFLECTIONS.......................................................................................................17REFERENCES..............................................................................................................................19APPENDIX....................................................................................................................................20
CHAPTER-1 INTRODUCTIONBackgroundA cooperative entity is known as joint venture when more than two enterprise jointogether for carrying out a specific business project or activity. A joint venture could be formalor informal(Dumay and Cai, 2015). Venture can be for a long term or short term. Joint venturesgenerally come out with a separate enterprise by contributing assets and equity and upon amutual agreement for the management of the company. Joint ventures are formed by companieshaving similar goals and objectives. Joint venture help to share risk and to share resourcesusually when entering into new regions so that the burden does not fall on any single entity incase of failure.Aims and Objective“To determine the impact of Joint venture on Argos when entering in to Afghanistan”. A casestudy on ArgosObjectivesTo determine concept of Joint venture businessTo identify measures which should be under taken by Argos before considering jointventureTo evaluate the influence of Joint venture on the overall business operations of ArgosTo analyse possible benefits that can be derived by Argos through the execution ofjoint venture.Research AnalysisWhat is joint venture ?A business arrangement where two or more entities agree to come together pooling theirresources for accomplishing the defined objectives.What measures are to be taken by Argos before entering into a joint venture ?Ensure number of entities to enter into joint venture.Clarify scope like area of operations, products etc. and the control of JV.Capital contributions ownership agreements should be properly done(Kumar, 2019).What will be the influence of JV on overall business operations of Argos ?Argos will have to expand its business resources and operations for entering into a jointventure. Argos will have to double its efforts for a giving a backup to the new project.1
What can be the possible benefits to Argos if it enters into Joint Venture ?Argos will have a increased capacity as a result of Joint Venture.Argos will have access over new markets which may help in expanding its distributionnetwork.Resources will be shared and it will not have to bear the risk all alone.SignificanceIn today's world of globalisation every company wants to expand its business over thethe globe . Every enterprise wants to increase its market share expanding its business. Companiesnow have the option of expansion by entering into a joint Venture. Significance of the jointVenture is that it provides enterprise with new expertise and insights. It provides other entitywith resources if the entity is lacking resources and technology(Mackey and Gass, 2015). It canbe wound up after the completion of a task. One of the major importance is that the companiesdo not have to bear the risk all alone when entering into new dimensions of business.RationaleThe rationale behind this topic is that business is becoming the most important topic inthe recent times. Considering many ways, the one which could be considered as the most reliableand beneficial for the enterprise is the joint venture. The method has been researched by manyresearchers and there are various theories and procedures given by various authors andresearchers. It is also the area of interest of the research considering its growing importance inthe global world.CHAPTER 2: LITERATURE REVIEWConcept of joint ventureAccording toKilling (2017),Joint venture refers to a business arrangement wherein morethan one independent firms come together for the purpose of forming a legal independentundertaking, for a specific period of time and is dissolved when the objective of the business isachieved. The task and objective of a joint venture are pre decided and profits and losses for theinvestment are also pre decided, the task could be new project or it can be any other businessactivity.As perMiller and Weinberg (2017),joint venture can be described as a business which isbeing arranged by two or more parties by agreeing to pool each others resources in order to2
achieve a common task and objective. The new venture has its own entity which is separate fromthe participants of the venture and other interests of business. According toNippa and Reuer(2019),it can be said to a partnership in a informal sense of word which can take on any kind oflegal structure. It can be limited liability company, partnerships, corporations and other businessentities which can be used to form a joint venture.The most important and legal document for a joint venture is its agreement that includesall the partnership terms, rights and obligations with the purpose of the venture and objectives ortasks of the venture. It involves investments of the partners, day to day operational plan and theright on profits and responsibility of losses of the joint venture are being discussed in thisdocument. According toYeniyurt and Carnovale (2017),joint venture is a common way topartner up for entering into a global market for a company who wants to expand its distributionnetwork in foreign countries can use this method by entering into a joint venture agreement.Measures that should be undertaken by Argos while considering joint ventureAccording toScaringella and Burtschell, (2017),for entering into a joint venture there aremany things which are to be considered, and when it is about entering into a global marketthrough joint venture, a company must be more careful. The measures which are to beconsidered include choice of a partner, negotiation of basic understanding, drafting of terms inthe contract and decision-making on management control.As perCäker and Nyland, (2017),choice of the partner in joint venture play a vital rolefor the success. Argos need to evaluate the perfect partner for joint venture for entering intoglobal market. In searching of a good partner, Argos has to make sure in what all business theparter are involved in beyond the area of specific possible collaboration. The company shouldanalyse that the partner is capable to run the venture in the market or not, his approach andgoodwill in the market should by considered by Argos.While entering into a joint venture negotiation of basic understandings should beconsidered by Argos. A memorandum of understanding is to be created which includes generalterms of the venture with nature, scope, objective and location of the activities which are to becarried out by the new venture are to be considered.3
Drafting the terms of contract is as important as negotiation of basis understandings, asperCäker and Nyland (2017).Success in matching theinterest of the partners results in writingthe contract which depends on the thoroughness of preparatory work. Argos should make surethat the contract meets the individual partner's aim is a reflection of relative bargaining power.According toRefaat and Schmidt (2016),decisions on management control are to be predecided and should be in favour of both the ventures who are coming up together to form a jointventure. Argos can make sure that both the ventures must have equal right in decision making ofmanagement. To have local authorities in a global market is a advantage for Argos as the marketis much known by the local managers.Influence of joint venture on overall business operations of ArgosThere are various factors that will influence the joint venture on overall businessoperations of Argos, it includes inter partner relations, inter partner conflicts, control issues andcommitmentKabiraj and Sengupta (2018). With implication of joint venture, Argos will be ableto build inter partner relations, this will help the company as good relation in global market willhelp in increasing the distribution of products in much efficient manner by the partner.Joint venture can result in inter partner conflicts which are to be prevented by Argos forsurvival in global market, as more conflicts will affect the business directly which will result indecreasing the productivity and profitability of the company. It also generates control issues as apartner of joint venture is a local venture and it is a global market for Argos, which candifferentiate control of both the organisations which will result in facing control issues. Jointventure needs commitment from both the partners for achieving the objectives of the venturemore effectively and efficiently.Benefits of joint venture to ArgosAccording toScaringella and Burtschell, (2017),The major benefit of a joint venture isthat it helps a business to grow faster by increasing productivity which leads in generating moreprofits (Joint ventures and business partnership,2019)There are many benefits of a jointventure to Argos, which includes access to new markets, increased capacity, sharing of costs andrisks with a partner and access to greater resources which consist of specialised staff, technologyand finance.4
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