Risks and Benefits of a Joint Business Venture to Enter International Markets

This paper reflects the risks and benefits of a Joint Business Venture to Enter International Market. The possible risks can cause massive threat for the business in future on the other hand the benefits can assist the company to obtain commercial success and competitive advantages at the same time.

Running head: RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
DO NOT DELETE THE COMMENTS
Risks and Benefits of a Joint Business Venture to Enter International Markets
Name of the student:
Name of the university:

1RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Executive Summary
This paper reflects the risks and benefits of a Joint Business Venture to Enter International
Market. The possible risks can cause massive threat for the business in future on the other
hand the benefits can assist the company to obtain commercial success and competitive
advantages at the same time. Two companies Flannels and Fenchurch (clothing) are
nominated to develop the joint venture that will be launched in the international market. Both
of these companies are clothing Flannels and Fenchurch JVstores located in United
Kingdom. Mixed data have been collected from the primary and secondary resources
followed by literature review and survey. The employees working in the Flannels and
Fenchurch JVindustry of United Kingdom are the participants to this survey. This paper
concludes with the findings and analysis.

2RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Table of Contents
CHAPTER I: Establish aims, objectives and timeframes for defining the risks and
benefits of a joint business venture to enter international markets............................................5
1.1 Introduction..............................................................................................................5
Objectives...............................................................................................................6
1.1.3 Statement of the problem..................................................................................7
1.2 Project plan to merge Flannel and Fenchurch clothing retail stores....................7
1.2.1 Project schedule, Cost/ Budget.....................................................................7
Figure 1: Gantt chart for the project.......................................................................9
Figure 2: Work Breakdown Structure for the project............................................9
1.2.2 Communication plan.....................................................................................9
1.2.3 Risk management plan................................................................................10
1.2.4 Resource management plan.........................................................................10
1.3 Purpose...............................................................................................................10
1.4 Significance of the study....................................................................................11
1.5 Research questions and/or hypotheses...............................................................11
CHAPTER II: small-scale research, information gathering and data collection to
generate knowledge to support the project...............................................................................12
2. Background..............................................................................................................12
2.1 Literature review................................................................................................12
CHAPTER III...............................................................................................................14

3RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
3. Methodology............................................................................................................14
3.1 Introduction........................................................................................................14
3.2 Population and sampling....................................................................................14
3.3 Instrumentation (include copy in appendix)......................................................15
3.4 Procedure and time frame..................................................................................15
3.5 Analysis plan......................................................................................................15
3.6 Validity and reliability.......................................................................................16
CHAPTER IV..............................................................................................................17
4. Results and Findings................................................................................................17
1. Gender......................................................................................................................17
CHAPTER V................................................................................................................24
5.1 Conclusions and Recommendations..................................................................24
5.1.1 PESTLLE Analysis.....................................................................................24
5.2 Summary of what you did and found.................................................................26
5.3 Discussion explanation of finding......................................................................27
5.4 Why do you think you found what you did?......................................................27
CHAPTER VI..............................................................................................................27
6. Evaluation of the Project..........................................................................................27
References....................................................................................................................29
Appendix......................................................................................................................34
1. Survey questionnaires..........................................................................................34

4RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE

5RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
CHAPTER I: Establish aims, objectives and timeframes for defining the
risks and benefits of a joint business venture to enter international
markets
1.1 Introduction
Joint venture is referred to as a business agreement where two or more than two parties can
be involved or agreed to pool their owned resources by accomplishing the project or company
objectives. Two companies Flannels and Fenchurch are nominated for this joint venture. The
joint venture will be launched in the international market to gain collaborative commercial
success and competitive advantages as well.
Flannels public retail company is a United Kingdom based retail chain of high end design
stores. The products manufactured by the company are extremely consumer focused and even
the qualities are also appreciable however due to lack of marketing strategies they are failing
to enter to the international market.
The other company that is going to take part in joint venture is Fenchurch. This distribution
and wholesaler company offers brands of skater clothing. Since last two to three years the
company is failing to offer quality and customer focused clothing products. The consistency
in net revenue of the company is being compromised these days. In order to resolve these
challenges Fenchurch is showing their willingness to collaborate with Flannels public retail
company. These companies are eager collaborate their product quality and marketing
strategies together to gain competitive advantages and commercial revenue at the same time.
Market globalization and worldwide project exploration is referred to as one of the most
crucial factors that helps the business organizations to obtain huge commercial revenues and

6RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
competitive advantages as well. Most of the business organizations are focused on exploring
and developing international source capabilities in terms of distributed good, products and
services. Fenchurch offers fancy summer and winter clothing on the other hand, Flannel
offers similar services in the international market.
It is determined that the recent economic downtown has started taking advantages from the
strategic business opportunities through the international alliances. While entering to an
international market, the risks and benefits that a joint venture faces are elaborated in this
paper. After identifying the problem statement a project plan is prepared considering cost,
resources and time. A small-scale survey is also conducted to gather data from different
resources. Apart from that a literature review has also been conducted to assist the research
question. Not only this but also significance of the study or to evaluate the benefits and risks
of joint venture to enter to the international market are all elaborated in this report.
Aims
International joint venture allows the business organizations to obtain a faster but less costly
access specifically in the competitive foreign marketplace. It has been determined that
business can obtain an international expansion through a joint venture.
The aim of this project is to identify the possible risks and benefits that a Flannels and
Fenchurch JV industry joint venture can face while entering to the international market. The
collaborative joint venture is willing to enter to the market of Australia and China.
Objectives
 To analyze the current status of international competition where Flannels and
Fenchurch are going to enter
 To identify the possible risks that a joint venture can face while entering to the
international market

7RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
 To identify all probable commercial, social and environmental benefits that a
joint venture face in an international market
1.1.3 Statement of the problem
It is determined that a joint venture can face several severe problems to enter to the
international market. In most cases joint ventures fail to represent cent percent clear and
concise project objectives due to lack of business associate’s involvement and the way they
do communicate.
 It restricts the international business flexibilities which results commercial sufferings.
 Each individual needs to take active participation throughout the project lifecycle.
 Though, equal capital investment is possible but it is extremely unlikely to expect
equal contribution in terms of roles, involvement and responsibilities sharing from all
involved Flannels and Fenchurch JV companies.
 In case of joint ventures many companies work all together which may imbalance the
assets, expertise and commercial investment as well. Therefore, the expected outcome
from the joint venture can negatively impact the business effectiveness.
1.2 Project plan to merge Flannel and Fenchurch clothing retail stores
1.2.1 Project schedule, Cost/ Budget
WBS Task Name Duration Start Finish Resource
Names Cost
0 Research plan
preparation 67 days Wed
3/20/19
Thu
6/20/19 $9,008.00
1 Research
initiation phase 13 days Wed
3/20/19 Fri 4/5/19 $1,744.00
1.1
Determining the
need for a research
on joint business
venture
2 days Wed
3/20/19
Thu
3/21/19 Research head $320.00
1.2 Focus on industry
research and
3 days Fri 3/22/19 Tue
3/26/19
market
surveyor
$336.00

8RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
development for new
product development
1.3
Possible market
sharing and research
distribution strategy
5 days Wed
3/27/19 Tue 4/2/19 Research head $800.00
1.4
Identification of
research goals and
aim
3 days Wed
4/3/19 Fri 4/5/19 market analyst $288.00
2 Research planning
phase 3 days Mon
4/8/19
Wed
4/10/19 $864.00
2.1 Defining research
mission 3 days Mon
4/8/19
Wed
4/10/19
Research head,
research team
member 2
$864.00
3
Research on the
joint venture
partners
22 days Thu
4/11/19
Fri
5/10/19 $2,816.00
3.1
Research of the
current status of the
nominated companies
5 days Thu
4/11/19
Wed
4/17/19 market analyst $480.00
3.2 Identification of
research participants 8 days Thu
4/18/19
Mon
4/29/19
market
surveyor $896.00
3.3
Understanding
the consumer’s and
employee values
9 days Tue
4/30/19 Fri 5/10/19 Research head $1,440.00
4 Research
execution phase 21 days Mon
5/13/19
Mon
6/10/19 $2,368.00
4.1 Conducting
survey 3 days Mon
5/13/19
Wed
5/15/19
research team
member1 $384.00
4.2 Primary data
collection 5 days Thu
5/16/19
Wed
5/22/19
research team
member 2 $640.00
4.3
Secondary data
collection with
literature review
6 days Thu
5/23/19
Thu
5/30/19
market
surveyor $672.00
4.4 Analyzing
research data 7 days Fri 5/31/19 Mon
6/10/19 market analyst $672.00
5 Research closure 8 days Tue
6/11/19
Thu
6/20/19 $1,216.00
5.1 Research team
signoff 2 days Tue
6/11/19
Wed
6/12/19
research team
member1 $256.00
5.2 Final draft
submission 6 days Thu
6/13/19
Thu
6/20/19 Research head $960.00

9RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Figure 1: Gantt chart for the project
(Source: Created by author)
Research plan
preparation
Research initiation phase
Determining the need
for a research on
joint business
venture
Focus on industry
research and
development for
new product
development
Possible market
sharing and research
distribution strategy
Identification of
research goals and
aim
Research planning phase
Defining research
mission
Research on the joint
venture partners
Research of the
current status of the
nominated companies
Identification of
research
participants
Understanding the
consumer’s and
employee values
Research execution
phase
Conducting survey
Primary data
collection
Secondary data
collection with
literature review
Analyzing research
data
Research closure
Research team
signoff
Final draft
submission
Figure 2: Work Breakdown Structure for the project
(Source: Created by author)
1.2.2 Communication plan
Person involved Purpose Frequency
Project manager and market To conduct discussion regarding the possible risks and Weekly

10RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
analyst both existing and newly entered competitor companies
Business analyst and decision
making committee
To understand the joint venture parameters,
promotional tools and business strategies
Monthly
Operation manager, project
manager and market analyst
To analyze the current business operation, market
competition and identify respective parameters
Weekly
1.2.3 Risk management plan
Risk id Description Impact Probability Score
R1 Lack of skills and knowledge Medium Possible High
R2 Selection of inappropriate project tools and technologies Significan
t
Likely Extreme
R3 Inaccurate resource, time and cost management High unlikely Moderate
R4 Inadequate interaction between the partner companies
and decision-making team members
High Rare Low
1.2.4 Resource management plan
In order to launch a joint venture in the competitive international market the resource
management steps those are to be considered include:
 Reward and recognition system
 Acquire team through staffing management and reward management plan
 Developing project team with team building activities
1.3 Purpose
The purpose of the research is to conjugate two companies Flennels and Fenchurch after
understanding their current market status. In order to enter to the international market of
Australia and China the companies require conjugating their qualities and marketing

11RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
strategies together. The main purpose is to understand the requirements why theses
companies are willing to collaborate together.
1.4 Significance of the study
Successful progress of the research project will identify probable risks and benefits associated
to joint venture along with business promotional activities and competitive market analysis
strategies to be followed in the international market. It is found that in some applications
Flennels is effective and in some other Fenchurch is efficient. The products quality of
Fenchurch is better than Flannels however the marketing approach used by Flannels is much
market efficient. This study focuses on the individual features of these two companies. Based
on that, the business will be merged together and launched in the international market.
1.5 Research questions and/or hypotheses
H0: Being launched in the international market of china and Australia is beneficial for
Flannels and Fenchurch Joint venture.
H1: Being launched in the international market of china and Australia is not
beneficial for Flannels and Fenchurch Joint venture.

12RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
CHAPTER II: small-scale research, information gathering and data
collection to generate knowledge to support the project
2. Background
According to Smolka et al (2018) joint venture is referred to as one of the very commonly
used ways utilizes to combine expertise and resources of two or more than two unrelated
companies. This kind of business partnership offers high commercial advantages however
some risks and uncertainty can also be associated to this. Entry of a joint market in an
international market can sometimes identified as a complex one. Zhang and Wen (2016)
stated that, joint venture gives opportunity to increase rate of productivity with improved
performance to access the international distribution market and new market as well.
2.1 Literature review
Successful international expansion offers promising business opportunities however how to
enter to the international market acts as a key for the business success. There are certain basic
approaches used to reach new foreign consumers. Each of the approach offers different
advantages and disadvantages to the joint ventures. According to Parameswar and Dhir
(2018), Joint Venture can be formed for different reasons and also can take different forms. A
common international structure always defines the domain where business analysts do agree
with the legal companies while share legal ownership. It helps to contribute needful resources
for successfully pursuing business opportunities altogether (Wu and Voss 2015). The
Flannels and Fenchurch JVbusiness owners can buy into local companies or may agree to
create new brands, shared companies and if any legal ownership and guidance is determined.
According to Beamish and Lupton (2016) Joint venture offers huge commercial business
opportunities as well. In joint venture the business partners provide immediate local

13RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
consumer base, distribution abilities required to reach the business objectives. Larimo, Le
Nguyen and Ali (2016) stated that in order to gain market credibility local and international
skilled and knowledgeable employees should be hired. In order to enter to the international
market joint venture is the only practical and permissible way.
Apart from this, for gaining market credibility to compete the international competitors, joint
venture is beneficial. It also provides higher and new manufacturing capabilities to the
business owners (Chetty, Ojala and Leppäaho 2015). The model of joint venture is sometimes
lesser risky than the outright acquisition because in these cases typically the investment rate
is either half or less. Even if the local condition changes then also it provides structural
flexibility. The companies which consider joint venture must consider many other factors in
terms of strategies, objectives, operational clarities, partner fit etc.
According to Stoian, Rialp and Dimitratos (2017) in order to take effective operational
decisions the joint venture owners must undertake realistic and commercial support.
Professional marketing strategies should be incorporated to identify the risks and mitigate
those with proper response strategies. In order to measure all operational activities the project
heads should keep a balance between the risks with control. The business owners can seek for
lowering the risks with taking enter to the international market. Rahman, Uddin and Lodorfos
(2017) stated that, business globalization provides all necessary internal, external resources
and capital investment. It gives access to new market as well as distribution network. It helps
to increase market capacity and share risks and cost with the international business partner.
Joint venture limits the commitment of both parties and business exposures. According to
Zhang and Pezeshkan (2016), successful implementation of joint venture can improve the
competitive position and, new market entries and increasing market share. Basically, in order
to speed up the international market currently must of the business owners are looking for
international partnership.

14RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
CHAPTER III: Recommendations
3. Methodology
3.1 Introduction
The research methodology helps the researcher to define the approaches which are
required to adopt and attain completed details of this research study. Selected research
philosophy is positivism which helps to achieve information based on selected topic and
evaluate it. Deductive approach is used which allows the researcher to conduct the study
based on the secondary sources which help to gain and collected data related to selected
topic. Application of primary data sources are used to get details of the selected topic to bring
analysis of the quality raw data.
3.2 Population and sampling
The population is being defined as the number of people those are involved and
affected by content of this research study. In this study, the employees of various Flannels
and Fenchurch JVindustries of UK were selected as population those were widespread in and
across of the nation, UK. This study was not able to consider each employee, therefore
smaller representation of population was considered as the sample.
The sampling techniques are simple random sampling where each member of
population has equal change and probability to be selected. It allows the sampling error to
calculate and reduce selection bias. Systematic sampling is a technique where the individuals
are selected at daily intervals from sampling frame. Among these two methods, in this study,
the sampling for the employees was selected as simple random probability sampling where
no such criteria were being selected. With help of the online survey questionnaires, the

15RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
employees were asked to participate in the survey. The total selected sample size of the
population is 20.
3.3 Instrumentation (include copy in appendix)
The research instruments are the tools which are developed by the researchers to
achieve stated objectives when carryout out this research study. The instrumentation was
designed as tool for collecting data for conducting data analysis. In this study, questionnaire
was included structured questions based on selected research title. In the Appendix, the lists
of questions were provided for collecting data.
3.4 Procedure and time frame
Task Activities Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Research initiation phase 
Research planning phase  
Research on the joint venture partners 
Research execution phase  
Research closure   
3.5 Analysis plan
The data analysis is referred to articulate how the data is analyzed from collected raw
data using primary data analysis method. The scientific research is replicable to provide the
reader a roadmap to manage the data and conduct the data analysis. The analysis plan for this
research study performed following steps such as:

16RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
1. The employees were selected as the research respondents and they were distributed
with survey questions based on selected research topic.
2. After collecting data based on responses, a pie chart was created to determine the
percentage of the responses against each question.
3. From each pie chart graph, the researcher analyzed the results and their findings from
them to check validity and reliability of raw data.
3.6 Validity and reliability
Validity and reliability of collected data measured bias. Reliability is referred as
extent to which the assessments are consistent. Another measure for reliability is measured
the internal consistency of the collected raw data. Validity measures instruments which can
represent degree to which scale measures what is to be expected to measure. Validity is about
genuineness of the research study which obtained from the findings of graph and reliability is
about repeatability of the research outcomes. Validity of collected data is determined if the
information are gathered is valid or not. The collected information is related to problem
which is investigated in the research study. Reliability is used to determine if the information
are being gathered is reliable or not. Accuracy determines if the information gathered is
accurate and the information is reliable sources.

17RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
CHAPTER IV
4. Results and Findings
In this present study, quantitative research method is used where the employees of
Flannels and Fenchurch JV industry is selected such that the researcher can understand the
risks and benefits of the joint business venture. The total numbers of respondents are 20.
1. Gender
Options Responses Total respondents % of responses
Male 12 20 60%
Female 8 20 40%
Figure 4.1: Gender
60%
40%
Male
Female

18RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Findings: From the chart, it is analyzed that 60% of the respondents are male and
40% of them are female. Therefore, male respondents are mostly involved in the study.
2. Age
Options Responses Total respondents % of responses
25- 29 years 4 20 20%
30-34 years 11 20 55%
More than 35
years
5 20 25%
Figure 4.2: Age group
Findings: From the chart, it is analyzed that 55% of the respondents are age group of
30-34 years. It is found that 20% are between 25-29 years and 25% of them are more than 35
years. Therefore, most of the respondents involved in this study are aged.
20%
55%
25%
25-29 years
30-34 years
More than 35 years

19RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
3. What are the benefits of entering in joint venture to achieve international
market?
Options Responses Total respondents % of responses
Increase productivity 9 20 45%
Greater profits 4 20 20%
Access to greater
resources
3 20 15%
Access to new market
and distribution
networks
4 20 20%
Figure 4.3: Benefits of entering in joint venture
45%
20%
15%
20%
Increase productivity
Greater profits
Access to greater resources
Access to new market and
distribution networks

20RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Findings: From the chart, it is analyzed that 45% of the respondents agreed that the
most key significant benefit of entering in joint venture is increase productivity. Joint venture
enables growth without having to borrow the funds and look for the outside investors. The
joint venture partners use with customer database for marketing the product and offering
partner’s services and products to existing customers. The joint venture is a business strategy
which is used for the companies to seek and achieve common goals to reach the customer
markets. The joint venture is a benefit which can make attractive options for the businesses.
4. What are the risks of entering in joint venture to achieve international
market?
Options Responses Total respondents % of responses
Vague business
objectives
4 20 20%
Restriction of
flexibility
5 20 25%
Greater imbalance 3 20 15%
Clash of the cultures 8 20 40%

21RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Figure 4.4: Risks of entering in joint venture
Findings: From the chart, it is analyzed 40% of the respondents are agreed that the
risk of joint venture is clash of the cultures. As various business companies are working
together, there is greater imbalance of the business expertise, assets as well as investments. It
provides a negative impact on effectiveness of the business joint venture. It is found that 25%
agreed that flexibility restricted into joint venture. 20% responded for vague objectives as it
does not provide 100% meetings with business objectives.
5. What are the key significant elements need to include in joint venture for
successful collaboration?
Options Responses Total respondents % of responses
Obligations of the business
partners
6 20 30%
% of profits and losses
shared between the
partners
8 20 40%
Outline of process for 2 20 10%
20%
25%
15%
40% Vague business objectives
Restriction of flexibility
Greater imbalance
Clash of the cultures

22RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
decision making
Share in capital invested
by the partner
4 20 20%

23RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Figure 4.5: Key significant elements need to include in joint venture
Findings: From the chart, it is analyzed 40% of the respondents agreed that the most
significant elements need to include in joint venture for successful collaboration is percentage
of profits and losses shared between the partners. It provides new investment opportunities
for the business partners broaden the market prospects.
6. What is most key significant joint venture in your point of view for gaining
international market?
Options Responses Total respondents % of responses
Limited co-operation 2 20 10%
Separate joint venture
business
4 20 20%
Business partnerships 14 20 70%
30%
40%
10%
20%
Obligations of the business
partners
% of profits and losses shared
between the partners
Outline of process for decision
making
Share in capital invested by the
partner

24RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Figure 4.6: Type of joint venture business
Findings: From the chart, it is analyzed 70% of the respondents agreed that business
partnerships are mostly used joint venture business type for achieving the international
business markets. Under this type of joint venture, there is merger between two of the
businesses which will lead to increase in business productivity and flexibility. It helps to
monitor the performance towards the organizational goals. There is establishment of the
business performance indicators for measuring the profitability of the business.
10%
20%
70%
Limited co-operation
Separate joint venture business
Business partnerships

25RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
CHAPTER V
5.1 Conclusions and Recommendations
From the overall discussion it can be concluded that, paradigm shift to economic
scope as well as customization is focused on the core competencies of business. The
marketing strategies and the high quality clothing products of Flannels and Fenchurch will
become successful in the international market of China and Australia. The research detail on
international joint venture is concentrated heavily on most of the large companies and
multinational enterprises. This study has successfully analyzed the concept of international
market entry of joint venture. The current competitors existing in Australia and China will get
high level competition if collaboratively theses two companies enter to as a joint venture.
Joint venture risk is a completely complex phenomenon that sometimes restricts the
partnership strength, financial relationship, directive and non directive operations. The
possible risks line high competition, lack of governmental support, lack of international
marketing strategies of joint venture in the international market are identified in this research
and also risk response strategies for those risks are elaborated in this paper. The
recommendations specifically for this topic are elaborated in the below section though a
PESTLE analysis is conducted to understand the current status of international competition.
5.1.1 PESTLLE Analysis
Political factor: Australia and China international market is defined as a
constitutional monarchy that runs due to sufficient manipulation of the parliamentary support.
These countries are fair and stable country that possess and offers plenty numbers of
operational and functional opportunities. Joint Venture influences the inner workings with

26RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
proactive political support and political stability from the UK government. It also splits the
local and national administration of joint venture while entering to international market.
Economic factor: With a supporting economic position relatively stronger than the
other countries the joint ventures are winning effective benefits and commercial success as
well. Due to economic support most of the joint ventures are allowing the small markets to
become profitable. The increasing district investment is also minimizing the associate
economic factors as a whole.
Social factor: The social factors are deceptively much crucial that offers free public
services to the owners of the joint ventures. It also offers cosmopolitan environment to the
business owners and current associates.
Technical factors: The technical factors which manipulates the benefits and risk joint
venture are as follows:
 Quality amount innovation skills
 IT and science expertise
 Plenty numbers of internal competition along with simulation growth
 Plenty law with intellectual properties
Legal factors: Before entering to the international market the legal factors those are
analyzed eventually by the business owners are environmental laws and guidelines,
employment in the country to evaluate how these are both positively and negatively
impacting the business execution sector and international business strategies. The owners
have also evolved legal protection opportunities adopted to protect IP. The rest of the factors
those have been considered include health and safety norms and confidential data protection
law.

27RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Environmental factors: Climatic agreement, environmental norms, fast emerging
norms, renewable technology are the factors considered for evaluating the joint venture and
identify the associated risks and benefits.
Implementation of open communication: In order to enter to the international market
the partner business owners are required to use open communication. Open communication
will provide an independent platform to the business associates to share needful information
with others.
Implementation of advanced technical support: For reducing the international
competitiveness from new business entries the joint venture owners are required to
implement advanced technical support throughout.
Quality promotional activities: The owner of the joint venture should adopt social
media support and establish contract to advertising agencies to promote their newly
developed products and offered services.
Training and development program: The business owners should analyze
professional training and development program for the employees to make sure that all of
them are having sufficient technical, non technical and business strategic skills.
5.2 Summary of what you did and found
In order to collect and analyze information mixed data collection approach is followed
which means that both primary and secondary sources are used to gather information. Only
Joint Venture (JV) can improve an organization’s commercial revenue and competitive
advantages of both Flannels and Fenchurch at the same time. It is found that, JV (Flannels
and Fenchurch) will increase the company productivity with a greater profit. The employees
will get opportunity to access greater resources along with new market and distribution
network. The survey response shows that, Joint Venture can improve the productivity and the

28RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
clash of culture will also be resolved. Business partnership is the only way of improvement in
the international market.
5.3 Discussion explanation of finding
In United Kingdom (UK) joint venture are becoming much common. Most of the
medium sized organizations are focusing on joint venture because single company cannot
easily enter in international market in this era of high competition. Potential partnership can
offer high value revenues and competitive advantages to the business owners.
5.4 Why do you think you found what you did?
At the initiation phase it is found that, there are many benefits and risks associated to
joint venture to enter international market. Mixed data collection approach is followed. The
secondary data are gathered from secondary a resource which reflects that the productivity,
commercial revenue all will increase in case of joint venture and in international market it
will give high competition. On the other hand, the response gathered from the survey also
reflects that what has been thought is done successfully.
CHAPTER VI: Reflect on the value gained from conducting the project
6. Evaluation of the Project
In order to indentify the risks and benefits of joint business (Flannels and Fenchurch
JV) when it enters in the international market, different tools and techniques are required. For
gathering data both secondary and primary sources are considered. Secondary sources in
terms of blog, articles, journals and books are taken to gather information on the other hand a
primary survey has also been conducted to collect feedback from other Flannels and

29RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Fenchurch JVindustry employees and some of current users and consumers as well. For
successfully evaluating the project a PESTLE (external market analysis) analysis is
conducted to evaluate the current political, economical, social, technical, legal and
environmental market of United Kingdom. The owners of the joint venture (Flannels and
Fenchurch clothing) have also evaluated the current status of the competitors and new entries.
In order to increase the legal, commercial and economical support it is very crucial to identify
and analyze the dependency and factual circumstances. Successful conjugation of Flannels
and Fenchurch’s marketing strategies and quality clothing products would help to the Joint
Venture to enter in the international market of Australia and China.
The Joint liability, flexibility and response from the business partners are the other
requirements associated to joint venture profit. If all the factors are properly managed and
maintained while promoting the joint venture in the international market of United Kingdom
team cooperation, support, joint industrial presence and presence of joint subsidiary are very
essential.

30RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
References
Ahi, A., Baronchelli, G., Kuivalainen, O. and Piantoni, M., 2017. International Market Entry:
How Do Small and Medium-Sized Enterprises Make Decisions?. Journal of International
Marketing, 25(1), pp.1-21.
Beamish, P.W. and Lupton, N.C., 2016. Cooperative strategies in international business and
management: Reflections on the past 50 years and future directions. Journal of World
Business, 51(1), pp.163-175.
Beamish, P.W. and Lupton, N.C., 2016. Cooperative strategies in international business and
management: Reflections on the past 50 years and future directions. Journal of World
Business, 51(1), pp.163-175.
Chetty, S., Ojala, A. and Leppäaho, T., 2015. Effectuation and foreign market entry of
entrepreneurial firms. European Journal of Marketing, 49(9/10), pp.1436-1459.
Cuypers, I.R., Ertug, G., Reuer, J.J. and Bensaou, B., 2017. Board representation in
international joint ventures. Strategic Management Journal, 38(4), pp.920-938.
Dimitratos, P., Johnson, J.E., Plakoyiannaki, E. and Young, S., 2016. SME
internationalization: How does the opportunity-based international entrepreneurial culture
matter?. International Business Review, 25(6), pp.1211-1222.
Dunning, J.H., 2015. The eclectic paradigm of international production: a restatement and
some possible extensions. In The Eclectic Paradigm (pp. 50-84). Palgrave Macmillan,
London.

31RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Hutzschenreuter, T., Kleindienst, I. and Lange, S., 2016. The concept of distance in
international business research: A review and research agenda. International Journal of
Management Reviews, 18(2), pp.160-179.
Jiang, K., Keller, W., Qiu, L.D. and Ridley, W., 2018. International joint ventures and
internal vs. external technology transfer: Evidence from China (No. w24455). National
Bureau of Economic Research.
Jiang, K., Keller, W., Qiu, L.D. and Ridley, W., 2018. International joint ventures and
internal vs. external technology transfer: Evidence from China (No. w24455). National
Bureau of Economic Research.
Larimo, J., Le Nguyen, H. and Ali, T., 2016. Performance measurement choices in
international joint ventures: What factors drive them?. Journal of Business Research, 69(2),
pp.877-887.
Larimo, J.A. and Nguyen, H.L., 2015. International joint venture strategies and performance
in the Baltic States. Baltic Journal of Management, 10(1), pp.52-72.
Leonidou, L.C., Katsikeas, C.S., Samiee, S. and Aykol, B., 2018. International marketing
research: A state-of-the-art review and the way forward. In Advances in Global
Marketing(pp. 3-33). Springer, Cham.
Leonidou, L.C., Leonidou, C.N., Fotiadis, T.A. and Aykol, B., 2015. Dynamic capabilities
driving an eco-based advantage and performance in global hotel chains: The moderating
effect of international strategy. Tourism Management, 50, pp.268-280.
Li, C. and Parboteeah, K.P., 2015. The effect of culture on the responsiveness of firms to
mimetic forces: Imitative foreign joint venture entries into China, 1985–2003. Journal of
World Business, 50(3), pp.465-476.

32RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Li, M.H., Cui, L. and Lu, J., 2018. Varieties in state capitalism: Outward FDI strategies of
central and local state-owned enterprises from emerging economy countries. In State-Owned
Multinationals (pp. 175-210). Palgrave Macmillan, Cham.
López-Duarte, C., González-Loureiro, M., Vidal-Suárez, M.M. and González-Díaz, B., 2016.
International strategic alliances and national culture: Mapping the field and developing a
research agenda. Journal of World Business, 51(4), pp.511-524.
Ma, Z., Yu, M., Gao, C., Zhou, J. and Yang, Z., 2015. Institutional constraints of product
innovation in China: Evidence from international joint ventures. Journal of Business
Research, 68(5), pp.949-956.
Meyer, K.E. and Wang, Y., 2015. Transaction cost perspectives on alliances and joint
ventures: Explanatory power and empirical limitations. Handbook on International Alliance
and Network Research, pp.87-136.
Mohr, A., Wang, C. and Fastoso, F., 2016. The contingent effect of state participation on the
dissolution of international joint ventures: A resource dependence approach. Journal of
International Business Studies, 47(4), pp.408-426.
Parameswar, N. and Dhir, S., 2018. Technology Transfer and Innovation in Global
International Joint Ventures—Emerging Markets’ Perspective. In Global Value Chains,
Flexibility and Sustainability (pp. 77-87). Springer, Singapore.
Pham, T.S.H., Monkhouse, L.L. and Barnes, B.R., 2017. The influence of relational
capability and marketing capabilities on the export performance of emerging market
firms. International Marketing Review, 34(5), pp.606-628.
Rahman, M., Uddin, M. and Lodorfos, G., 2017. Barriers to enter in foreign markets:
evidence from SMEs in emerging market. International Marketing Review, 34(1), pp.68-86.

33RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Razzaq, A., Thaheem, M.J., Maqsoom, A. and Gabriel, H.F., 2018. Critical external risks in
international joint ventures for construction industry in Pakistan. International Journal of
Civil Engineering, 16(2), pp.189-205.
Shu, C., Jin, J.L. and Zhou, K.Z., 2017. A contingent view of partner coopetition in
international joint ventures. Journal of International Marketing, 25(3), pp.42-60.
Smolka, K.M., Verheul, I., Burmeister–Lamp, K. and Heugens, P.P., 2018. Get it Together!
Synergistic Effects of Causal and Effectual Decision–Making Logics on Venture
Performance. Entrepreneurship Theory and Practice, 42(4), pp.571-604.
Stoian, M.C., Rialp, J. and Dimitratos, P., 2017. SME networks and international
performance: Unveiling the significance of foreign market entry mode. Journal of Small
Business Management, 55(1), pp.128-148.
Tong, T.W., Reuer, J.J., Tyler, B.B. and Zhang, S., 2015. Host country executives'
assessments of international joint ventures and divestitures: An experimental
approach. Strategic Management Journal, 36(2), pp.254-275.
Watson IV, G.F., Weaven, S., Perkins, H., Sardana, D. and Palmatier, R.W., 2018.
International market entry strategies: Relational, digital, and hybrid approaches. Journal of
International Marketing, 26(1), pp.30-60.
Weiller, C., Shang, A., Neely, A. and Shi, Y., 2015. Competing and co-existing business
models for electric vehicles: lessons from international case studies. Cambridge Service
Alliance, Cambridge, UK, Tech. Rep.
Wu, A. and Voss, H., 2015. When does absorptive capacity matter for international
performance of firms? Evidence from China. International Business Review, 24(2), pp.344-
351.

34RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Yan, A. and Luo, Y., 2016. International Joint Ventures: Theory and Practice: Theory and
Practice. Routledge.
Zhang, J. and Pezeshkan, A., 2016. Host country network, industry experience, and
international alliance formation: Evidence from the venture capital industry. Journal of World
Business, 51(2), pp.264-277.
Zhang, X. and Wen, J., 2016. The impacts of economic importance difference of a joint
venture (JV) held by partners and partners' size difference on the extraction of rivalrous and
non-rivalrous private benefits in a JV. International Review of Financial Analysis, 48, pp.46-
54.

35RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Appendix
1. Survey questionnaires
1. Gender
 Male
 Female
2. Age group
 25- 29 years
 30-34 years
 More than 35 years
3. What are the benefits of entering in joint venture to achieve international market?
 Increase productivity
 Greater profits
 Access to greater resources
 Access to new market and distribution networks
4. What are the risks of entering in joint venture to achieve international market?
 Vague business objectives
 Restriction of flexibility
 Greater imbalance
 Clash of the cultures
5. What are the key significant elements need to include in joint venture for successful
collaboration?

36RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
 Obligations of the business partners
 % of profits and losses shared between the partners
 Outline of process for decision making
 Share in capital invested by the partner
6. What is most key significant joint venture in your point of view for gaining
international market?
 Limited co-operation
 Separate joint venture business
 Business partnerships