Risk and Benefits of a Joint Business Venture to Enter into Spain Markets: A Case Study of NAV People, UK

This study analyzes the risks and benefits of a joint business venture for entering into the Spain market with reference to a small company, The NAV People in United Kingdom. It explores the conceptual understanding of the business joint venture, possible benefits and risks of joint venture for The NAV People to enter in Spain market, and recommends business strategies to overcome with the risks of joint business venture to penetrate into Spain market.

Running head:RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
RISK AND BENEFITS OF A JOINT BUSINESS VENTURE TO ENTER INTO SPAIN
MARKETS: A CASE STUDY OF NAV PEOPLE, UK
[Name of the Student]
[Name of the University]

1RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
Table of Contents
Chapter 1: Introduction..............................................................................................................3
1.1 Background of the research study....................................................................................3
1.2 Problem Statement...........................................................................................................3
1.3 Project Aim and objectives..............................................................................................4
1.4 Justification for selecting the topic..................................................................................4
Chapter 2: Literature Review.....................................................................................................5
2.1 Introduction......................................................................................................................5
2.2 Benefits of Joint Venture for entering in Spain Market for The NAV People................5
2.3 Risks of Joint Venture for entering in Spain Market for the NAV People......................6
2.4 Strategies used to overcome with the joint business venture risks for entering in the
Spain Market..........................................................................................................................7
Chapter 3: Methodology............................................................................................................9
1.1 Primary Data Collection Method.................................................................................9
1.2 Sampling and Data Collection...................................................................................10
1.3 Primary Data Collection Instrument..........................................................................11
1.4 Ethical Considerations...............................................................................................11
Chapter 4: Results....................................................................................................................13
4.1 Introduction....................................................................................................................13
4.2 Qualitative Data Analysis..............................................................................................13
4.3 Summary........................................................................................................................16

2RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
Chapter 5- Conclusions and Recommendations......................................................................17
5.1 Conclusion......................................................................................................................17
5.2 Recommendations..........................................................................................................19
Chapter 6: Reflection...............................................................................................................20
References................................................................................................................................22
Appendix..................................................................................................................................23
1. Project Log Book..........................................................................................................23
2. Interview Transcript.........................................................................................................25
2.1 Interview Transcript 1................................................................................................25
2.2 Interview Transcript 2................................................................................................27
2.3 Interview Transcript 3................................................................................................29
2.4 Interview Transcript 4................................................................................................31
2.5 Interview Transcript 5................................................................................................33

3RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
Chapter 1: Introduction
1.1 Background of the research study
The research study is based on risks and benefits of the joint venture for entering into
the Spain market with reference to a small company, The NAV People in United Kingdom.
The selected company, The NAV People is a business and management consultant in
England and an experienced dealer of Microsoft Dynamics ERP software. The mission of the
company is to deliver greater software and excellent services to the customers. The company
is focused on developing their business functions by improving over their back office
functions like compliance and regulations. The study is analysing how the small company is
trying to enter in Spain market by using joint venture mode so that they can gain growth in
the business.
Caselli and Negri (2018) stated that joint venture is a term which is used to expand a
business in the international market for attaining business growth and expansion. Colombo,
D’Adda and Pirelli (2016) argued that joint venture has both benefits and risks. Owning a
partnership is presented a number of benefits such as sharing of risks, improvement over the
operational competencies and ability to collaborate with others. This partnership is also risks
of potential conflicts among the business partners, differ in culture, legal structure, technical
plus managerial competencies and lack of protection over their business assets.
1.2 Problem Statement
The problem of this study is that due to joint business venture for entering in the new
and international market, strategic alliances cause risks to the project. While entering in a
new market, it is difficult to conduct a market research of the country where the business is
tried to enter. There is an increase in capital investment and the researcher should understand

4RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
the marketing rules and regulations of Spain. While entering in international market of a
small business, there is also problem of increasing in competiveness.
1.3 Project Aim and objectives
The aim of this research study is to examine the risks as well as benefits caused due to
joint venture of The NAV People, UK to enter in Spain Market. Following are the list of
objectives based on which entire study is carried out such as:
 To explore conceptual understanding of the business joint venture
 To examine possible benefits of joint venture for The NAV People to enter in Spain
market
 To examine possible risks of joint venture for The NAV People to enter in Spain
market
 To recommend business strategies to overcome with the risks of joint business
venture to penetrate into Spain market
1.4 Justification for selecting the topic
This topic is justified for this research so that the reader can understand the concepts
of the joint business venture for entering into the international market. This research study
helps to collect information about possible risks as well as benefits which are caused for joint
venture for entering in a particular market. The literature gap is that the study is only limited
to the risks and benefits of the joint venture for entering in the international market. The
study is only limited to conducting interview of the joint venture managers and it is only
carried out based on a small company.

5RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
Chapter 2: Literature Review
2.1 Introduction
Cumming and Zahra(2016) stated that the joint venture is the business preparation in
which the organization is sharing ownership, business expenses, return of the cost
investments, profits and others. This purpose of this particular chapter is based on
establishing the academic knowledge based on the risks as well as benefits of the joint
venture to enter in the international market of Spain. With help of foundation, the researcher
is required to enhance the selected research topic in detailed way so that the reader can
understand the critical perspectives of the study. The application related to theories as well as
models of the risk allocation will add value to the literature study such that in other chapters,
it will use for better analysis of the research related outcomes. In order to gain a positive
business strategy, the business organization is expanding by joint business ventures with
other international and overseas organizations.
2.2 Benefits of Joint Venture for entering in Spain Market for The NAV People
Following are the benefits of the joint venture such as:
Risk Sharing:In case there is failed of the joint venture projects, and then one
company is not alone responsible to bear the failure cost. As the company is shared
partnerships with other company, therefore there is sharing of expenses which would support
the business losses (Gao, Wang and Che 2018).
Better Resources: The joint venture is formed with better human and non-human
resources such as experienced staff and technology(Yan and Luo2016). All the equipment as
well as capital required for the project plan is used now in the project plan.

6RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
New Insight and Expertise: Starting a joint venture among two of the companies
provide with an opportunity to achieve new insights as well as expertise (Shen and Wang
2018). In case of NAV People, the Spain market is now easier to understand provided with
the strategic partnerships.
Better Collaboration:Even both the partnered companies has a specific business
goals, therefore it can lead to create a better as well as long lasting business relationships and
collaboration among two of the companies (Dollar 2017). It helps to meet with the business
needs, achieve growth and expand the business in the international market.
2.3 Risks of Joint Venture for entering in Spain Market for the NAV People
Vaccarini, Spigarelli and Tavoletti(2016) pointed that the main risks of the joint
venture in Spain are conflicts of the internet among the two parties and dependence of partner
to make business related decisions. According to Ward and Zheng(2016), it is required to
adapt to different culture in Spain and market which is unknown to the NAV People company
as it is operated in UK and not familiar with the Spain market. There is also possibility of
integration as well as poor communication among the business partners so that it becomes
complex to discuss the business related issues and problems. Following are the risks of the
joint venture such as:
Difference in culture: There is a clash of cultures as well as management styles
among the business partners which is resulted in poor cooperation as well as integration.
People are from various beliefs, as well as preferences which can cause in a way that there
are difference suggestions of both the business partners (Miller and Weinberg 2017).
Lack of protection of business assets: As two different companies from two different
countries are working together, there is an imbalance of the expertise, capital investments as
well as business assets (Gómez-Miranda et al. 2015). It provides a negative impact on the

7RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
business growth caused due to joint venture. The risk of joint venture is that the structure is
offered no such liability protection to the involved business parties.When the assets of joint
venture are not covered with debts as well as obligations of the company, the business
partners should loss the personal assets to that point where the debt becomes to be satisfied.
Therefore, the company should loss assets as result of obligations of business.
Limited life: The joint venture is formed for limited period of time. The business
venture is come to an end when the company can fulfill purpose for which it is being formed
(Park Vertinsky and Becerra 2015). Death as well as withdrawal of the business partner is
caused automatic termination of the joint venture. The joint venture is being terminated
automatically when the terms are contained in the joint agreement is occurred.
2.4 Strategies used to overcome with the joint business venture risks for entering
in the Spain Market
In order to overcome with the joint venture risks, the business management should
take strategic decisions so that relationship among the two companies should be better. In
order to enter in Spain market, The NAV People should ensure that they know their future
partners based on the financial as well as operational situations. Pallares-Barbera (2017)
discussed that the company should decide on each of their business partner’s responsibilities
before they are sealing their agreement. It limits potential to misunderstand the business
partners in case when The NAV People should start their business with them. They should be
written of verbal agreement so that later there is no confusion among the business partners.
According to Cumming, Grilli and Murtinu (2017), the joint venture is flexible which a
context to the organizational requirements is. The agreement among the companies is detailed
terms as well as conditions with respect to the business activities which are taken place. In
this study, UK based small company, The NAV People has a joint venture for entering in the
international market such as Spain Market so as to achieve a market growth and expand their

8RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
business overseas. In this case, the NAV People should follow market rules and regulations
before entering in the joint venture with other company in Spain (Lasserre 2017). Before
entering in the international market, the company should set their financial as well as
operational goals.According to Dollar (2017), both the business companies should have clear
governance as well as management organizational structure those are helping them in their
decision making. Gil and Carrillo(2017) stated that it is required to set a clear business
model, align with the business objectives, structure the business governance and staffing the
joint venture are the business strategies which help to overcome with the risks of joint
venture. The NAV People should adapt those strategies should that they can get success after
entering in the Spain Market and can do a better business.

9RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
Chapter 3: Methodology
1.1 Primary Data Collection Method
In this particular research study, primary data collection method is used where the data is
collected based on the interview of the joint venture managers. It is collected by means of the
research project in mind and directly from the prsimary sources. As compared to other data
collection process such as secondary data collection collected through journal articles, blogs
and others, primary data collection method is expensive as well as time consuming (Kumar
2019). Based on the selected research topic, this data collection method would be suitable as
it will perform a market research of Spain to collect data based on their current market
position and business activities so that the NAV People should enter their market for joint
business partnerships. The primary data collection method is primary in nature and it is
related to the research problems which are identified in Chapter 1 for this particular research
study. The collected information will provide specific details that the researcher is wanted to
know as well as report a way that the benefits of specific situation is being analyzed. Through
the interview of the respondents, the data is collected from selected population or sample size
of 5 joint venture managers.
Main advantage of this primary data collection method is that the data are being collected
personally and it is directly related to the researcher’s study. Based on the qualitative
research, the primary data collection method is consisted sample size which is the population
selected to conduct the interview. Other advantage of this method is that the researcher is on
control of how as well as from where the data is to be collected (Silverman 2016). The
primary market research is a source of latest as well as up-to-date information as it is
collected directly from field into real time. The information are to be collected by the

10RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
researcher and it is not shared with others. The information remains hidden from current as
well as possible competitors.
The disadvantage of the primary data collection is that it is expensive to collect data as
well as it also takes long time to process the data collection as interview method is used to
collect data. Interview method is a time consuming process as it can set up, interview,
transcribe, analyse, take feedback as well as report the interview in written form. The way to
understand as well as transcribe the interview is different and therefore the interview result is
also different. As the researcher is in charge, therefore there is no back up of the responses, if
there are any mistakes after entering the responses; therefore it causes errors (Taylor, Bogdan
and DeVault 2015). It will difficult to analyze if there is anything for comparison. As
compared to secondary research, it is expensive as there is involvement of marketers as well
as expense to prepare and carry out the interview.
1.2 Sampling and Data Collection
The sampling method is a process to select the sample members from population. In
this particular study, purposive sampling method is selected. Through this sampling
technique, a limited number of people are selected those have expertise and knowledge
into the selected area being researched. The entire process of sampling is to be done based
on single step with each of subject designated self-sufficiently of other members of
population. It is the critical element of entire interview research design process. The
target population is joint venture managers of the selected company, NAV People from
which the sample is being carried out. The total sample population is group of people
those are taking part in the research investigation. People those are taking part in the
research study and providing their responses for the research are the research participants.
The sample size for this particular research study is 5. The data are to be collected by
means of interview method and the participants selected for this study are joint venture

11RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
managers of NAV People. There are total of7interview questions linked with the research
questions.
1.3 Primary Data Collection Instrument
In this research study, the selected questions for the interview are open ended
questions which are easier as well as quicker for the participants to answer particular
questions.The interview method is defined as the qualitative technique which is involved
to conduct intensive of the individual interviews with smaller number of participants for
exploring perspectives of the specific idea.The researcher has performed structured
interviews with series of questions that the interviewees are required to answer. The data
analysis is tending to straightforward as the researcher can evaluate as well as
dissimilarity of various answers presented to same questions.The answers of each of the
respondents are easier to code as well as analyze and also easier to compare the responses
of each individual respondents. All the selected questions are linked with the literature
study so that it can provide answers to the benefits and risks of joint venture for entering
in the international market. It is carried out to meet with research objectives as well as
aim of the study. The selected interview questions are related to literature review as it
researched about the benefits and risks of the joint venture which helps to understand the
reader related to if joint venture is required to enter into the international market.
1.4 Ethical Considerations
The entire research study is carried out based on the research guidelines. It is seen that
entire research study is carried out in such a way that it should complete on scheduled
time period and ensure that the data are to be collected to conduct the research with
accurate knowledge of the researcher. The data are collected in secured place so that it is
not accessed by any third party person. The entire questions are prepared based on the
research objectives and aim and there is no such question in the interview those can hurt

12RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
the emotions of the research participants. The questions are prepared as per the research
topic and the interviewers are provided honestly their response on all the questions so that
the researcher can get accurate project outcomes. There are proper research findings as
per entire analysis of collected data. It is also ensured that mental harassment is not given
to the interviewers so that the identities of interviewers are concealed as per the request of
the respondents.Based on those ethical considerations, the researcher is tried to maintain a
basic research ethics.

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Chapter 4: Results
4.1 Introduction
This particular section is discussing the data findings plus analysis of the collected
data in statistical form. The sample size is 5 and the target population is joint venture
managers of NAV People. This section comprises the data analysis with qualitative
description of selected research topic which is stated by the joint venture managers of NAV
People those are situated across UK. The qualitative section is involved with the joint venture
managers as sample as detailed joint in venture into the international market is done. The
qualitative research study is allowed a detailed analysis for the sub-topic which helps to
provide proper penetration of selected study.
4.2 Qualitative Data Analysis
1. Why does joint venture importance to enter in the international market?
The joint venture managers are opined that in order to do a joint venture with the
company, partnership agreement is done in written form. It can overcome with the issues
which are raised due to not using this type of document such as conflicts among the business
partners. As per the managers, joint venture is required to enter in Spain market as it can
combine with the resources as well as expertise of unrelated companies. In the point of view
of the joint venture managers, it is required to access new market as well as distribution
networks. It can increase in capacity, share the risk and cost with the business partners.
2. How joint venture can provide positive effect on better collaboration among the
business partners?
The joint venture managers are opined that the joint venture provides positive effect
on better collaboration among the business partners. Even both the partnered companies has a

14RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
specific business goals, therefore it can lead to create a better as well as long lasting business
relationships and collaboration among two of the companies. As per the joint venture
managers, joint venture provides benefit of shared risks spread among the participating
companies. Each of the company can contribute to portion of resources required for bringing
product and service to the market; make a financial burden for the research as well as
development. The size of the business is used joint ventures for strengthening long term
relations and collaborating. The joint venture provides positive effect on new insight and
expertise. Starting a joint venture among two of the companies provide with an opportunity to
achieve new insights as well as expertise. In case of NAV People, the Spain market is now
easier to understand provided with the strategic partnerships.
3. How joint venture can provide negative effect on the difference in the culture and
lack of protection of business assets?
As per the joint venture managers, joint venture can provide negative effect on the
difference in culture. There is a clash of cultures as well as management styles among the
business partners which is resulted in poor cooperation as well as integration. People are from
various beliefs, as well as preferences which can cause in a way that there are difference
suggestions of both the business partners. It is analyzed that the joint venture can provide
negative effect on lack of protection of the business assets. As two different companies from
two different countries are working together, there is an imbalance of the expertise, capital
investments as well as business assets.
4. Why do you think that governance structure is strategic way to overcome with joint
venture risks?
The joint venture managers opined that governance structure is strategic way to
overcome with joint venture risks. In order to overcome with the joint venture risks, the

15RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
business management should take strategic decisions so that relationship among the two
companies should be better. Each of the project governance structure should start with proper
planning and then before preceding it, there is review of the business strategies to review if
the joint venture is best to achieve the project aims. There should be aim for the flexible
relationship and regular review could improve ways the things can work.
5. How joint venture can introduce a product in the Spain international market?
The joint venture managers opined that joint venture can aid the company by means
of forming the strategic alliances which allow to achieve the competitive advantage
throughout access to the partner’s resources included market and technology. The
international joint venture is viewed as a vehicle to transfer the knowledge from the
international expertise to the local companies. Knowledge transfer can help to contribute to
performance modifications of the local companies.
6. In your point of view, which strategies are used to enter new foreign market?
As per the joint venture managers, franchising of the brand is required to enter into
the new international Spain market. It allows the business organization to open own braches
into the new market and the franchisees can pay a particular fee. Then, there is cutting of
profiles per year which can keep the rest. Based on point of view of some of the joint venture
managers, direct exporting is required as a strategy on list. It is simple to sell directly to the
market. As NAV People is wanted to sell to Spain, they can get the product in Spain stores as
well as observe how it does. The agents as well as distributors are involved in direct
exporting. The people are branch between the company and Spain stores.
7. Why is risk allocation in joint venture required?
The joint venture managers opined that there is objective of the risk allocation model
in the joint venture is decreasing total cost of the project risks into the project plan. By

16RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
allocation of the project risks throughout the risk allocation model, it is determined that there
is risk against lower prices by means of aspects of managing the stability. By allocating of the
risks through the model, entire cost of the project risks are decreased. There is decrease in
entire cost of risks which is a consequence of thorough analysis of the probable risks
throughout the feasibility phase of the project.
4.3 Summary
It is summarized that NAV People should analyze their products as well as services
before entering in Spain market. They should provide approach as well as competitive in the
market. Joint venture should help to reach the company goals and productivity.

17RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
Chapter 5- Conclusions and Recommendations
5.1 Conclusion
It is concluded that this chapter will explain competition into the international market
of Spain due to joint venture with NAV People. There are considerations of benefits as well
as risks to compete internationally which are making decisions about whether it is expanding
its business to overseas. The risks which are caused of joint venture make the business
complex with detailed analysis of possible risks. It is summarized that the joint venture can
enable NAV People to split the risks that the business is facing when required and required to
split the capital investment of their international ventures.
Linking with objective 1: To explore conceptual understanding of the business joint venture
From the entire research study on the joint venture, it is summarized that it is the best
method for the company to expand as well as gain profitable position into the international
market. The companies can able to combine for accomplishment of the project into the joint
venture. The joint venture can help the business to grow faster, increase into productivity, in
addition to generate greater profits. It can include to access in new markets as well as
distribution of networks. There is an increase into capacity plus share of risks as well as costs
with the business partner. Enter into the international market is a biggest decisions which are
to be taken as well as the literature review is being associated with providing an overview of
the project risks plus benefits those are caused due to joint venture so that NAV People
should enter into the market of Spain.
Linking with objective 2: To examine possible benefits of joint venture for The NAV People
to enter in Spain market

18RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
The joint venture will help to growth the business faster, increase into the business
productivity as well as generate of greater business profits. For NAV People, the joint venture
is conducted to enter in Spain market as it can provide benefits included access to the new
market as well as distribution of networks. The joint venture’s benefits is to access to new
international market so that the product can become attractive in the selected market as well
as distribution networks. It can share risks plus costs with the business partners. There is also
greater access to the project resources included specialized staffs and also technology. The
customer base of joint venture is used to market the business consultancy products of NAV
People into the other company so that they can enter in Spain market. It is concluded that it
offers partner’s services as well as products to the existing customers and joins forces to
purchase, research and also develop. It has limited lifespan and therefore it can limit
commitment of the business parties as well as exposure to the business organization.
Linking with objective 3: To examine possible risks of joint venture for The NAV People to
enter in Spain market
It is concluded from the literature study is that partnering with the business is
complex, and joint venture is significant and if NAV People can form a relationships with the
business, then it is possible that resources are not matching with their business partners. Due
to risks into the joint venture, it is difficult to build a right business relationship and also
difficult to collaborate with the business partners. From the study, it is analyzed that
objectives of the joint venture is not clear as well as communication is not involved clearly.
The business partners have various objectives for joint venture as well as they have various
level of expertise and capital investments. The risks analyzed are different culture as well as
management styles which are resulted in poor integration as well as cooperation. The
business partners are not providing leadership as well as support in the earlier stages.

19RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
5.2 Recommendations
Following are the recommendations which are to be taken into considerations which
overcoming with the risks of the joint venture such as:
Risk Management Strategies: It is recommended that there is required to have risk
management strategies to identify, plan, assess and monitor the risks which are raised due to
joint venture among the business partners. All the likelihood and impact of possible joint
ventures are to be taken into consideration so that it helps to reduce as well as analyze the
risks into the business.
Governance Structure: The business partners should develop a proper governance
structure so that all the decisions are to be taken by the top management level such that the
decisions should be proper and will provide benefit to the business partners. It is conducted
throughout proper collaboration among two of the business partners. Both the business
organizations ought to have clear administration just as the executive’s authoritative structure
those are helping them in their basic leadership.
Global integration: It is analyzed that NAV people should take into considerations of
level of global integration plus local responsibilities of the business partners which are
required to target the marketplace of Spain. The global integration is being associated with
then financial plus operational goals so that they can meet with the business goals. It limits
potential to misconstrue the colleagues on the off chance that when NAV People should
begin their business with them. They ought to be composed of verbal understanding with the
goal that later there are no conflicts among the business partners. Prior to entering in the
global market, the organization should set their money related just as operational
objectives..From the results of the data analysis,

20RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
Chapter 6: Reflection
From the entire research process, I have leant how to conduct the research study using
various research methods. This paper is a re-submission, therefore this time I had performed
the work properly. In order to collect data based on selected research topic, there is analyzing
of the topic using primary data collection methods. I had performed aninterview where I
collected data from the joint venture managers of NAV People so that I can collect data on
the benefits as well as risks of joint venture to enter in Spain marketplace.In order to provide
answers to the research questions, I had taken help of my supervisor to conduct the study and
guide me at the time of data analysis. In this study, I critically analyzed the issues which are
raised and identified in the report. I focused on the critical analysis of selected research topic
and also discussion of the research elements to provide value to selected research topic. I
conducted entire study based on aim, objectives as well as purpose of this study.I had gone
through in-depth market analysis of the Spain market so that I can understand if joint venture
to enter the market will be helpful for the company or not. Based on the research topic, I
prepared interview questions so that I can get answers to them and can critically provide
answer to identified research questions. In order to answer the questions, I had gone through
the benefits of joint venture to enter in the international market and then gone through the
risks. Based on the identified risks, I researched on the strategies which will be useful to
overcome with those issues.
All the research questions were answered in the report based on the primary sources. I
used primary method to obtain data such that findings of this research study are discussed
critically. I conducted entire study based on the ethical considerations such that the data are to
be gathered and it is not shared with others. Through this entire study, I developed my

21RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
research skills as well as knowledge so that in future also I performed this type of research
using the skills which I gained from this study. I used accurate referencing style as per the
university into the literature review part as well as research methodology. I used the theories
into the literature review so that all the research questions were answered. Finally, in the
conclusion part, I linked the research topic with literature outcomes so that the selected topic
will be critically analyzed. Recommendations are also provided at the final stage so that it can
recover with the joint venture issues and NAV People should perform stronger business
partnerships to enter into the Spain marketplace. I suggested that there should be strong
governance structure into the market so that all the joint venture is carried out properly. I also
recommended taking proper decisions so that there are no possibility of any errors and
conflicts among the business partners. All those would help me to present a proper study to
the supervisor with all possible skills to be taken.

22RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
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Appendix
1. Project Log Book
Name: Please fill
Project Title: Risks and Benefits of Joint Venture to enter Spain market: A case study of NAV
People, UK
Date: Please fill
Update on weekly research and tasks achieved
The project plan is on track and in the scheduled deadlines.
There are changes in some of the activities which are causing delay, and therefore resources to
add in this stage.
Any risks and issues identified?
 Delay and complexity in obtaining views and permits
 Lack of acceptance by investigator of designing proposal
 Conflicts between designing team members

24RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
 Too optimistic evaluation of employees worldwide
 Inaccurate data from employees due to lack of clear guidelines
 Staffs do not have adequate understanding regarding the subject of design
 Acceptance of unrealistic deadlines in contract
 Underestimation of designing budget
Problems encountered
There are problems with the project schedule as well as cost as risks can cause increase in
project cost and delay to complete the project activities.
There is required to implement schedule management plan to overcome with the project issues.
New ideas and change of the project directions
There are changes into the project direction due to change in the project plan with additional
resources are included into the plan.

25RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
2. Interview Transcript
2.1 Interview Transcript 1
RISK AND BENEFITS OF A JOINT BUSINESS VENTURE TO ENTER INTO
SPAIN MARKETS
(K=Keith Wong, Aged 47, Joint Venture Manager, NAV People, I=Interviewer)
I: Hello Sir, I hope you have gone through the terms and ethical policies regarding the
interview?
K: Yes, I have gone through it and I agree with your terms. Please go ahead.
I: During your time as joint venture manager, why does joint venture importance to enter in
the international market?
K: Well to be honest, the organization has grown a lot since foundation. We always had
steady and healthy growth in our corporate performance over the years that continue till now.
We need a joint venture so that it combines with the resources as well as expertise of
unrelated companies.
I: How joint venture can provide positive effect on better collaboration among the business
partners?
K: Look, we always set our targets very high. I personally ensured we deliver the highest
quality products to our customers and in order to do that, I emphasized on joint venture which
provides benefit of shared risks spread among the participating companies.

26RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
I: How joint venture can provide negative effect on the difference in the culture and lack of
protection of business assets?
K: People are from various beliefs, as well as preferences which can cause in a way that there
are difference suggestions of both the business partners.
I: Why do you think that governance structure is strategic way to overcome with joint venture
risks?
K: Yes of course! Governance structure is strategic way to overcome with joint venture risks.
I: So, how joint venture can introduce a product in the Spain international market?
K: It can aid the company by means of forming the strategic alliances which allow to achieve
the competitive advantage.
I: In your point of view, which strategies are used to enter new foreign market?
K: Franchising of the brand
I: Why is risk allocation in joint venture required?
K: Yes, it is required to decrease total cost of the project risks into the project plan.
I: Well, thank you very much for your valuable time and feedback and we will end the
interview right here. Hope you have a great day!
K: Yes, it was nice talking to you. Good day to you too!

27RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
2.2 Interview Transcript 2
RISK AND BENEFITS OF A JOINT BUSINESS VENTURE TO ENTER INTO
SPAIN MARKETS
(G=Goh Choon Phong, Aged 55, Joint Venture Manager, I=Interviewer)
I: Hello Sir, I hope you have gone through the terms and ethical policies regarding the
interview?
G: Yes yes, I do go through them. It’s ok, you can go ahead.
I: Ok. Let us proceed with this interview.
G: Yes
I: During your time as joint venture manager, why does joint venture importance to enter in
the international market?
G: It is required to access new market as well as distribution networks
I: How joint venture can provide positive effect on better collaboration among the business
partners?
G: The size of the business is used joint ventures for strengthening long term relations and
collaborating.
I: How joint venture can provide negative effect on the difference in the culture and lack of
protection of business assets?

28RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
G: There is a clash of cultures as well as management styles among the business partners
which is resulted in poor cooperation as well as integration
I: Why do you think that governance structure is strategic way to overcome with joint venture
risks?
G: Each of the project governance structure should start with proper planning and then before
preceding it.
I: So, how joint venture can introduce a product in the Spain international market?
G: The international joint venture is viewed as a vehicle to transfer the knowledge from the
international expertise to the local companies.
I: In your point of view, which strategies are used to enter new foreign market?
G: Direct exporting is required as a strategy
I: Why is risk allocation in joint venture required?
G: Yes, it is determined that there is risk against lower prices by means of aspects of
managing the stability
I: Well, thank you very much for your valuable time and feedback and we will end the
interview right here. Hope you have a great day!
G: Thank you and good day! (Smiles)

29RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
2.3 Interview Transcript 3
RISK AND BENEFITS OF A JOINT BUSINESS VENTURE TO ENTER INTO
SPAIN MARKETS
(C=Chua Sock Koong, Aged 42, Joint Venture Manager, I=Interviewer)
I: Hello Madam, I hope you have gone through the terms and ethical policies regarding the
interview?
C: Oh yes I did. Now let’s do this interview fast as I have a meeting to attend later! (Laughs)
I: Ok. Let us proceed with this interview.
C: Yes, Please.
I: During your time as joint venture manager, why does joint venture importance to enter in
the international market?
C: It can increase in capacity, share the risk and cost with the business partners.
I: How joint venture can provide positive effect on better collaboration among the business
partners?
C: The joint venture provides positive effect on new insight and expertise.
I: How joint venture can provide negative effect on the difference in the culture and lack of
protection of business assets?

30RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
C: It is analyzed that the joint venture can provide negative effect on lack of protection of the
business assets.
I: Why do you think that governance structure is strategic way to overcome with joint venture
risks?
C: There should be aim for the flexible relationship and regular review could improve ways
the things can work.
I: So, how joint venture can introduce a product in the Spain international market?
C: Knowledge transfer can help to contribute to performance modifications of the local
companies.
I: In your point of view, which strategies are used to enter new foreign market?
C: Direct exporting is required as a strategy
I: Why is risk allocation in joint venture required?
C: There is decrease in entire cost of risks which is a consequence of thorough analysis of the
probable risks throughout the feasibility phase of the project.
I: Well, thank you very much for your valuable time and feedback and we will end the
interview right here. Hope you have a great day!
C: Yes, thank you very much too. Good day to you too!

31RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
2.4 Interview Transcript 4
RISK AND BENEFITS OF A JOINT BUSINESS VENTURE TO ENTER INTO
SPAIN MARKETS
(K=Kuok Khoon Hong, Aged 69, Joint Venture Manager, I=Interviewer)
I: Hello Sir, I hope you have gone through the terms and ethical policies regarding the
interview?
K: Yes, I am good with it. Let’s start with this!
I: During your time as joint venture manager, why does joint venture importance to enter in
the international market?
K: Combine with the resources as well as expertise of unrelated companies.
I: How joint venture can provide positive effect on better collaboration among the business
partners?
K: Starting a joint venture among two of the companies provide with an opportunity to
achieve new insights as well as expertise.
I: How joint venture can provide negative effect on the difference in the culture and lack of
protection of business assets?
K: There is an imbalance of the expertise, capital investments as well as business assets

32RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
I: Why do you think that governance structure is strategic way to overcome with joint venture
risks?
K: Yes, I think so.
I: So, how joint venture can introduce a product in the Spain international market?
K: Knowledge transfer can help to contribute to performance modifications of the local
companies.
I: In your point of view, which strategies are used to enter new foreign market?
K: Franchising of the brand
I: Why is risk allocation in joint venture required?
K: Decrease in the cost and manage the business stability.
I: Well, thank you very much for your valuable time and feedback and we will end the
interview right here. Hope you have a great day!
K: Good day!

33RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
2.5 Interview Transcript 5
RISK AND BENEFITS OF A JOINT BUSINESS VENTURE TO ENTER INTO
SPAIN MARKETS
(A=Anil Mathews, Aged 42, Joint Venture Manager, I=Interviewer)
I: Hello Sir, I hope you have gone through the terms and ethical policies regarding the
interview?
A: Yes I have read the document you sent. I am ok with it.
I: During your time as joint venture manager, why does joint venture importance to enter in
the international market?
A: It can increase in capacity, share the risk and cost with the business partners.
I: How joint venture can provide positive effect on better collaboration among the business
partners?
A: Each of the company can contribute to portion of resources required for bringing product
and service to the market; make a financial burden for the research as well as development.
I: How joint venture can provide negative effect on the difference in the culture and lack of
protection of business assets?
A: There is lack of capital investments as well as business assets

34RISK AND BENEFITS OF A JOINT BUSINESS VENTURE
I: Why do you think that governance structure is strategic way to overcome with joint venture
risks?
A: Yes, I think so.
I: So, how joint venture can introduce a product in the Spain international market?
A: Access to the partner’s resources included market and technology.
I: In your point of view, which strategies are used to enter new foreign market?
A: Franchising of the brand
I: Why is risk allocation in joint venture required?
A: Entire cost of the project risks are decreased
I: Well, thank you very much for your valuable time and feedback and we will end the
interview right here. Hope you have a great day!
A: Yes, thank you very much too. Good day to you too!