Assessing Risks and Benefits of Joint Ventures in UK Firms

This report assesses the risks and benefits associated with joint ventures, specifically focusing on UK firms and using the collaboration between BMW and Toyota as a case study. The introduction provides background information, the rationale for the study, and outlines the aims, objectives, scope, and limitations. The report details the resources and cost considerations, along with a Gantt chart for project management. A key component is the risk assessment, identifying potential challenges such as unclear goals and management conflicts, and suggesting mitigating strategies. The objectives include investigating risk factors, determining benefits, identifying corrective measures, and providing recommendations for successful joint venture strategies. The report concludes with a comprehensive list of references including books and journals.

Risk and Benefits of Joint Venture

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Background..................................................................................................................................3
Rationale......................................................................................................................................3
Aims and objectives.....................................................................................................................3
Scope and limitation....................................................................................................................3
Resources and cost consideration................................................................................................4
Gantt chart...................................................................................................................................4
Risk assessment...........................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Topic- To assess the risk and the benefits associated with the joint venture in respect of
UK firms: A study on BMW and Toyota.
Background
Joint venture refers to the business arrangement where two or more firms agrees in
pooling their resources for accomplishing a particular task (Hwang, Zhao and Yu, 2016). The
present project plan is based on the joint venture in the UK firms and the risk & benefits attached
to it. Furthermore, the study will include the reason behind the chosen topic and the objectives
for making the study.
Rationale
In a contemporary world, joint venture has been counted as the most important strategy
that is been adopted by the companies in order to expand their business and in enjoying with
several benefits such as access to the newer markets with larger distribution networks, risk
sharing and increased capacity (Dheensa, S. and et.al., 2017). This in turn considered as research
issue because, there are various challenges or risk that are been faced by the firms in case if an
objective of venture is not clear and the cultural differences which in turn leads to poor
cooperation and integration. Hence, through thematic analysis research could shed light on the
benefits as well as drawbacks associated with the joint venture of Toyota and BMW.
Aims and objectives
Aim
To analyse the challenges and the benefits relating to joint venture in context of UK
companies: A case on BMW and Toyota
Objectives
 To investigate the risk factors associated with joint venture for the organizations
 To determine the benefits enjoyed by the firms resulting from the joint venture
 To identify the corrective measures in order to mitigate the risk regarding joint venture
 To provide appropriate recommendations in relation to the strategies that should be
adopted by the joint venture companies for gaining success
Scope and limitation
The research will include the assessment on the joint venture firms in the UK and it will
further highlights the parameters relating to the risk and gain that could be attained by the

concerned firms namely Toyota and BMW. Further, scope of the present study is too wide as
other firms which are planning about joint venture can employ this strategy. The major limitation
that are involved while conducting the research study is the time and the cost constraints as it’s a
time consuming task and requires a lot of funds in collecting the data from the primary and the
secondary sources (Razzaq and et.al., 2018). However, with proper use of funds along with
preparation of adequate timeline, scholar will be able to save its time and cost and in turn can
conduct the research optimally.
Resources and cost consideration
In order to allocate or assign the resources efficiently, an investigator will be using
appropriate research approaches, philosophy and the sources of data collection so that shortage
of resources cannot be occurred (Sadgrove, 2016). Further, resources that scholar requires for
conducting investigation includes money, laptop, primary and secondary data etc.
Cost involves the preparation of the budget that includes the details regarding the cost that
will be incurred in gathering the data and in conducting the study so that problems relating to
lack of funds can be overcome. For conducting present investigation scholar requires to incur
£250 respectively.
Gantt chart
Activiti
es/ week
1 2 3 4 5 6 7 8 9 10 11 12
Selectio
n of the
topic
Creating
aims
and
objectiv
es

Conduct
ing the
literatur
e review
Selectin
g
appropri
ate
research
methods
Collecti
ng data
Analysi
ng the
data
Discussi
on
Findings
and
conclusi
on
Recom
mendati
on
Alterati
ons in
accorda
nce to
the

require
ment of
client
Risk assessment
Risks Size of risk Mitigating strategy
Unclear
responsibilities
High This risk can be mitigated by defining the roles
and responsibility clearly and by developing
clarity of goals among the workers (Frieden
and Houry, 2016).
Management conflicts High By motivating and developing coordination
among the employees and managers.
Imbalance capital Moderate Maintaining adequate proportion of the capital
in order to avoid imbalance.
Lack of resources Low Ensuring proper planning of the resources by
applying systematic approach.
Possibility of failure Low Performing the task as per the standards and
strategies set reduces the chances of failure.

REFERENCES
Books and journals
Dheensa, S. and et.al 2017. A'joint venture'model of recontacting in clinical genomics:
challenges for responsible implementation. European journal of medical genetics. 60(7).
pp.403-409.
Frieden, T. R. and Houry, D., 2016. Reducing the risks of relief—the CDC opioid-prescribing
guideline. New England Journal of Medicine. 374(16). pp.1501-1504.
Hwang, B. G., Zhao, X. and Yu, G. S., 2016. Risk identification and allocation in underground
rail construction joint ventures: contractors’ perspective. Journal of Civil Engineering and
Management. 22(6). pp.758-767.
Razzaq, A. and et.al., 2018. Critical external risks in international joint ventures for construction
industry in Pakistan. International Journal of Civil Engineering. 16(2). pp.189-205.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.