Risks and Benefits of Joint Venture in International Market

RESEARCH REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Aim:.............................................................................................................................................2
Objectives:...................................................................................................................................2
Research Questions:.....................................................................................................................2
LITERACTURE REVIEW.............................................................................................................2
Theme:1 Identify the trends of globalisation in context of entry strategies................................2
Theme:2 Determine the benefits of joint venture entering into international market.................3
Theme:3 Articulate the risks associated with joint venture in international business
environment.................................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................4
Research Method.........................................................................................................................4
Research approach.......................................................................................................................5
Research Design..........................................................................................................................5
Research Philosophy....................................................................................................................5
Data collection Method................................................................................................................5
Sampling......................................................................................................................................6
Data Analysis...............................................................................................................................6
Ethical Considerations.................................................................................................................6
RESULTS........................................................................................................................................7
1. Importance of globalization for an organization in order to grow and develop......................7
2. Major challenges faced by Adam's Restaurant while entering into international market.......8
3. Key trends of joint ventures.....................................................................................................9
4. Benefits of joint venture while entering into international market........................................10
5. Risk associated with joint ventures........................................................................................11
CONCLUSION AND RECOMMENDATIONS..........................................................................12
Conclusion.................................................................................................................................12
Recommendations......................................................................................................................14
REFLECTION...............................................................................................................................14
REFERENCES..............................................................................................................................16

APPENDIX....................................................................................................................................17

INTRODUCTION
Globalization is a process of integration and interaction among companies, governments and
people of various countries. This type of process is driven by investment, information technology
and international trade. With increase in competition for enterprise brought on by globalization
and also opening of national borders, companies continues to look for competitive advantages in
global marketplace. A Joint venture can be divided into multiple businesses from different
countries as a partnership while the primary purpose is to maintain on-going business
capabilities. Globalization has increased the more popularity among joint venture at local,
international and regional level. There are common key trends of Joint ventures such as deadlock
breakers, dispute resolution, funding obligation and decision-making.
The nature of problem has been discussed in report for identifying benefits through
globalization that directly affects on the business performance and efficiency. “Adam’s
restaurant” has made a joint venture with other restaurant at china market for purpose of business
expansion. There are various challenges faced by organization when they want to established
their business in the new markets. It may be identified the risk related resources, equipment,
financial. In this way, it is very difficult for restaurant to main position in global world. The
international of Adam’s restaurant is mainly deals with several risk and control the economic
instability and political conflict. In some situation, it become complicated to establish the
position into new marketplace. The report is mainly focus on the different risks and benefits that
will associate with joint venture to enter into international marketplace. It will discuss about the
concept of globalization that will develop an opportunity for hospitality industry to increase
productivity and profitability in marketplace.
Background of study
In the background study, it must identify the weakness and strength of “Adam’s restaurant”
which help for understanding overall business functionality and change their procedures
according to trend of current market. The restaurant is operating their business in UK which
provide variety of food option for customer in local areas. It has been increased the popularity of
“restaurant” business at national level so that they have made plan to enter into international
level through partnership with Ultraviolet restaurant.
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Significance of study
The purpose of study is to identify the risks and benefits associated with joint venture to
enter into international market. research project will help to develop own capabilities for gaining
more knowledge related topic. in this way, it can identify important points that acquire data or
information where how Adam’s restaurant has enhanced the business into international market
through support of joint venture.
Aim:
 To identify the risks and benefits associated with joint venture to enter into international
market using Adam's Restaurant as a case study”.
Objectives:
 To identify the trends of globalisation in context of entry strategies.
 To determine the benefits of joint venture entering into international market.
 To articulate the risks associated with joint venture in international business environment.
Research Questions:
 How can identify the trends of globalisation in context of entry strategies?
 What are benefits of joint venture entering into international market?
 What are risks associated with joint venture in international business environment?
LITERACTURE REVIEW
Theme:1 Identify the trends of globalisation in context of entry strategies
According to Turcan, Boujarzadeh and Dholakia (2020), Globalization has impacted on the
communities and people across global world and always influenced towards sustainability
development. The advancement of technology has raised while change the goods, services,
labour and capital. In past decade, globalization has changed overall economies condition,
natural environment and societies.
As per Quinlan, Babin and Griffin (2019) There are several major trends in globalization
that consists of scientific, governance, information technology, demographics and economic
interdependence in context of entry strategies. These are trends that influence the organizational
business for increasing efficiency and performance in global marketplace. the trends cannot be
separated but interdependent. There are various factors integrated with trend in globalization
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which directly affects on the growth of population. In additional, an advancement of technology
can influence organization to use latest technique or method in business operations and
functions. Information technology allow for several global transaction related commercial
purpose which take place at commerce. It became highly involves complex compliance,
coordination, communication of international market.
As per Li, Hernandez and Gwon (2019) opinion to understand the concept of trend in
globalization which is important to identify the competitors, those who are increasing their
international financial capabilities and abilities. The developing nations will see highest
economic growth and development as they become closer to living standards of people. If
organization is growing rapidly in market so as require to maintain the economic system, culture,
environment and financial stability that influence for increasing profitability. It only possible to
assume trends in globalization that always support for enhancing business opportunities.
Escriva-Muñoz-de-Prat and Villó (2019) argue that many organizations will be used
Global entry strategy in term of globalization. Exporting is important which help for sending
goods produced in one country to another. In this way, it helps to enter in international market by
using Global entry strategy. A joint venture is a type of entry strategies that help for developing
partnership between foreign firm
It provides the better quality of product and services to customer. Most of companies that
employee such strategy which are often to invest into emerging markets. The enterprise that must
follow the entry strategies which often included local manufacture to export key resources into
large business in other nations.
Theme:2 Determine the benefits of joint venture entering into international market.
According to Scott (2019), Joint venture helps for commercial business where it will
combine with one or more organization by using essential resources. In this way, it will gain the
more strategic edge and tactical in global marketplace. The organizations often enter into market
through Joint venture where they are mainly focused on the specific project. The advantage of
Joint venture is to develop strong business position which may achieve productivity and
profitability in marketplace. It is beneficial for organization to enter into emerging market with
the help of joint venture, supports for business to handle business loss and profit They also
shared by different participant members.
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