Effects of Joint Venture for Morrison While Expanding their Business in China
27 Pages8007 Words282 Views
Added on 2020-10-05
Effects of Joint Venture for Morrison While Expanding their Business in China
Added on 2020-10-05
ShareRelated Documents
RESEARCH PROPOSAL
Table of ContentsTITLE .............................................................................................................................................1CHAPTER 1: INTRODUCTION ...................................................................................................1CHAPTER 2: LITERATURE REVIEW: .......................................................................................3CHAPTER -3 RESEARCH METHODOLOGY ............................................................................8CHAPTER 4: DATA ANALYSIS AND INTERPRETATION....................................................12CHAPTER 5: REFLECTION, CONCLUSION AND RECOMMENDATION...........................23REFERENCES .............................................................................................................................26
TITLE “To identify effects of Joint Venture for Morrison while expanding their business inChina for increasing sales”. CHAPTER 1: INTRODUCTION Research proposal that clearly defines a research questions or hypothesis, supported by aliterature review Market entry strategy is identify as an effective method in which an enterprise enters anew market. It is a planned distribution and deliver way of services or goods to a new targetmarket. In the export and import of services, it refers to the establishment, management andcreation of contracts in a international market or foreign country (De Villa, Rajwani and Lawton,2015). In this research proposal, chosen organisation is Morrison, they decide to expand theirbusiness operation in emerging market by using Joint venture. In this report main organisation isMorrison and it has been suggested that this company should make partnership with Marks &Spencer that is an existing firm in United Kingdom.It is an arrangement or agreement betweentow or more parties to work together for a specific motive or on a specific project. In the jointventure, different participants or players may have various shares, resulting in certain level ofloss or profit. Main purpose of conducting this research proposal is to identifying thesignificance of entry mode for an organisation while they decide to expand their business. Background of the researchMorrison is the largest supermarket chain in the United Kingdom. It was founded byWilliam Morrison in 1899 in Bradford, West Yorkshire, England. Company mainly specialize inselling of Clothing, Books, food and drinks, Magazines, CDs and DVDs. Along with this,company wants to expand their business operations in emerging market. For this, there aredifferent entry mode which will support an organization to successfully enlarge their business.Joint venture, Export, Foreign direct investment are known as main market entry strategy whichsupport an organization to expand their product, services and operation in that country. All theseare beneficial and useful but Morrison decide to use Joint venture (Hennart and Slangen, 2015).It is a type of cooperative arrangement or agreement between two or more independent partieswhich track to the establishment of an another entity are called as parent company. Joint ventures1
gives large capital fund and suitable for main projects. Such type of entry mode also support anenterprise to maximize their sales and profitability. Research aim: “To examine the effects of Joint venture on Morrison with the aim ofexpanding their business in China market for increasing sales”. A case study of Morrison.Research objectives: 1.To examine the concept of joint venture as an entry mode. 2.To find out main issues faced by Morrison while expanding their business operation inemerging market like China. 3.To investigate importance of joint venture for Morrison while expanding their business inChina market. 4.To recommended different ways through which Morrison can easily increase their salesand profit. Research questions:1.What are the concept of joint venture as an entry mode? 2.What are the main issues faced by Morrison while expanding their business operation inemerging market? 3.Why joint venture is importance for Morrison while expanding their business in Chinamarket? 4.What are the different ways through which Morrison can easily increase their sales andprofit? Rationale of the Research: Main reason behind selecting this topic is to identify significance of joint venture forMorrison while expanding their business in China market. It is one of the best and effective entrymode because this make large project and move key projects possible and feasible (Hernándezand Nieto, 2015). Such method have direct participation or involvement in the local market andhence gain a good understanding of how it work. This method also essential for the futuregrowth and success of company by providing large amount of capital. Joint venture is good forthe M&S because it help them to grow their business functions speedily. It is also essential forthe Marks and Spencer to increase their productivity and profitability level easily. Time Scale: 2
CHAPTER 2: LITERATURE REVIEW: It is identify as a scholarly paper, which cover the actual knowledge about substantivefindings, as well as methodological and theoretical contribution to a specific topic. In this sectionof research, different authors and writers are give their point of view about the research topic. Concept of joint venture as an entry modeAccording to Wolfe, (2018), joint venture is most of the popular or famous modes ofentry in which two or more entities combine resources in order to sell services or products.Different nations with tightly controlled and monitored economics, such as China. Although jointventure give international organizations with a partner knowledgeable or experienced in theinternational marketplace. Joint venture help a Morrison supermarket to expand their business inemerging marketplace without any difficulties. Joint venture is an approach of initiating an agreement in which two or more than twoparties work together to maximize utilization of resources to its fullest. It is an short termpartnership with specific time period which is set by the parties while signing the deal. Bothparties have equal responsibility which is related to loss or profits as it is divided according tothe deal signed. Venture could be in same industry company or with others, it depends upon thepreference of both the parties. According to Murray, ( 2018), Joint Venture is an enterprise oftwo or more than two business entities for the purpose of conducting any business activity. Mainpurpose of Joint Venture contracts to is to combine the strengths of both parties and remove theweakness by working together so to increase competitive advantage over others and besides thisit also helps to minimize the risk of getting failed in the market. For example, if a companywants to increase their market share in the new market then it can collaborate with othercompany to produce a unique product which can help both the parties to increase their customerbase in market. Business entities should clear their purpose, goals and limitations before enteringinto joint venture with new entity as it will decrease the chances of conflict in future. A jointventure agreement should be specific, measurable, attainable, achievable and time realistic (DeVilla, Rajwani and Lawton, 2015). There are two types of JV, In domestic joint venturecompanies collaborate with other entity which are operating their business in the samenationality. In international JV, foreign companies partnered with domestic company of othercountry to increase their market share and profitability. 3
Importance of Joint Venture for Morrison while expanding their business in China marketThere are various importance of Joint venture for Morrison while enlarging their businessin China market. The objective of JV is to increase market share and profitability of partnercompanies while working. Importance of Morrison is explained below,Access to new market:According to Murray, (2018) JV can help the business entity toenter into new market as all the rules and regulations is handled by local entity. IfMorrisons is entering into China which is a new market for the company then they have ahigh chances of improving their profitability through increasing the customer and marketbase. Other than that Morrisons can also increase their product portfolio and market sizein China. Advanced resources and technology:Company can only increase their product qualityor quantity if they are using the latest technology which could be the key factor forattaining competitive advantage (Hennart and Slangen, 2015). Entity which are enteringinto JV have their unique strengths which other company do not have. If the strengths andresources of both the companies are combine then it will help them produce a uniqueproduct. Local partner of china productivity will increase due to sharing of advancedresources by the global brand Morrisons. Morrisons can also use resources of local entitylike their knowledge of customer and market base, their buying behaviour etc andconsidered while making a new product. Enhance the credibility and brand image: If company is expanding their business intonew markets then brand awareness also improves with time. Company prefers to createpositive image in the mind of customer by doing CSR activities or advertising as it helpsthem to increase their sales. If Morrisons enters into the market of China and investing loton R&D and promoting the band and their products then chances of increase in brandequity is also high.Avoid barriers: The main benefit of JV is that it helps the foreign company to enter intonew market while all the legal issues are faced by the local partner (Hernández and Nieto,2015). If Morrisons is entering into china with local entity then they must be aware abouttheir country's rules and regulations which will help the Morrisons by reducing their costand time while fulfilling the rules and regulations. Chances of subsidiary by local4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Emerging Market - Joint Venturelg...
|34
|8931
|152
Market Entry Modes For International Businesseslg...
|8
|344
|284
Impact of brand positioning strategies on consumer's perceptionlg...
|19
|4152
|45
Importing Winter Jackets to Germany and Netherlands for Exporting Winter Jacketslg...
|4
|435
|496
Benefits and risks faced when entering international market as joint venturelg...
|34
|6452
|420
Approach for Managing International Businesslg...
|9
|3099
|378