The Body Shop's African Expansion: A Joint Venture Case Study Analysis

Desklib provides past papers and solved assignments. This case study analyzes The Body Shop UK's joint venture in Africa.

MANAGING A SUCCESSFUL BUSINESS PROJECT
Case Study: The benefits and risks that The Body Shop UK would face in venturing with
African Botanics in Africa
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Executive Summary
In this specific project, the risks and benefits those are closely associated with joint venturing is
going to be assessed in a prefabricated manner. In addition to that, core objective of this specific
project is to assess the significance of joint venturing in accordance with the risks that are
associated with joint venture. All of these have been done from the perspective of The Body
Shop, Uk and African Botanics at certain extension. In addition to that, the way of minimizing
the challenges of joint ventures is also going to be assessed in a prefabricated manner. Lastly,
quantitative data collection method will be used for gathering relevant data regarding this
specific project at greater extension.
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Table of Contents
Task 1...............................................................................................................................................4
Task 2.............................................................................................................................................11
Reference List................................................................................................................................31
Appendix........................................................................................................................................32
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Task 1
A brief explanation of the proposed topic and why you have chosen it
An aim and some objectives for your proposed research
Aim of the project
The key aim of this project is identifying the benefits and risks of an organization that can be
faced during venturing with another company in new location. In this business project, a case
study has been provided where, an organization named, The Body Shop UK has decided to
make joint venture with African Botanics, an Africa organization in Africa. Therefore, the main
aim of this business project is to identify the exhaustive benefits and drawbacks of The Body
Shop UK the joint venturing in this particular case.
Setting objectives
 Every business project has its own objectives. Like all other business projects, this
project also has many objectives that are as follows;
 To analyse the significance of joint venturing in a new location with a foreign company
 To analyse and identify issues that can be faced by the companies during this kind of
joint venturing
 To make proper recommendation for improving the overall organizational performance
and productivity
A brief discussion of the scope and limitations of the project
Scope
Included scope
The benefits and risks that The Body Shop UK would face in venturing with African Botanics in
Africa is the included scope of this business project.
Excluded scope
All the drawbacks of joint venturing will be excluded in this business project.
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Limitations of this business project
In this project a number of limitations can be found that are as follows:
Lack of proper funds is one of the key limitations of this project
Time is another important consideration. This project has limited time to conduct its all
activities, which is another regarded as another limitation
The entire project has emphasized on primary data collection method only instead of using the
secondary data collection method as well. Therefore, not using the secondary data collection
method is one o the major limitations of this project.
Resources and cost considerations
Proper resources are required for conducting all the project activities in a more effective manner.
In order to complete this business project, adequate amount of capital as well as proper
workforce are such required. These two factors are regarded as extremely important for carrying
out the project tasks.
Cost consideration
Cost analysis is another great consideration in a business project. Cost analysis table for this
project has been provided below:
Project activities Time span
(Hours)
Required cost per every
hour (£)
Total
(£)
Collection of proper data and
information
506 10 5060
Appropriate data analysis 400 10 4000
Finding issues within the project 560 11 6160
Making appropriate remedies 460 12 5520
Business project’s completion 48 15 720
Total: £ 21,460
Table 1: Cost analysis table
5

(Created by learner)
A Gantt chart or work breakdown structure in order to provide timeframes and stages for
completion
Activity
Start
Date
Duratio
n
End
Date
Proper selection of research topic 2/1/2019 7 2/8/2019
Making appropriate aims and objectives 2/8/2019 5
2/13/201
9
Literature review 2/13/2019 9
2/22/201
9
Understanding and implementing the most useful
methodology 2/22/2019 7 3/1/2019
Collection of the related data 3/1/2019 8 3/9/2019
Analysis of collected data and information 3/9/2019 7
3/16/201
9
Making proper conclusion the recommendations for this
project 3/16/2019 5
3/21/201
9
Documenting 3/21/2019 6
3/27/201
9
Submission of the final report 3/27/2019 2
3/29/201
9
Table 3: Work Break down Structure
(Source: Created by learner)
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Proper selection of research topic
Making appropiate aims and obejctives
Literature review
Understanding and implemneting the most useful methodlogy
Collection of the related data
Analysis of colelcted data and information
Making proper conclusion the recommendations for this project
Documenting
Submission of the final report
2/2 2/12 2/22 3/4 3/14 3/24 4/3
Figure 1: Gantt chart
(Source: Created by learner)
A Risk Register covering the main risks with the proposed research
In every business project, risk is a common factor. However, analysing the actual risks within the
organization is such important, which can be resulted in successful completion of the business
project. In this business project, a verity of risks can be found that are as follows:
Risk assessment
Serial no Risks Type of risks Influence
degree
Influence of
the risk over
the project
Responsible
persons
1. Operation
risks
Low Medium In every
project,
accident can
be happened
Project
manager and
the
operational
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during
conducting
various
operations.
This kind of
accidents can
hamper
certain work
flow and
employees
may not
perform as
per their
capability,
which
alternatively
hampers
different
activities of
the project.
manager have
the
responsibility
of operating
all the
business
activities
avoiding any
accidents
2. Financial
instability
Medium High High amount
of capital is
such required
in order to
conduct any
kind of
business
project. Due
to lack of
adequate
amount of
Project
manager and
fiancé
department of
the project
have the
responsibility
of
undertaking
all the
business
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capital, a
project may
lead towards
blunder and
the entire
project can
be stopped as
well.
activities
within their
financial
capabilities
3. Improper
data and
information
Low Medium Due to
improper data
and
information,
the outcomes
of ay
business
project may
not meet the
expectation
level.
Team
members
4. Lack of
cooperation
and team
working skill
Low Medium Due to lack
of
cooperation
and team
working skill,
a project may
take more
time to
occlude its
final
decision.
Additionally,
HR manager
and project
manager
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the overall
performance
also can be
reduced.
Table 2: Risk assessment table
(Source: Created by learner)
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Task 2
Chapter 1: Introduction
Project Overview
In this study, the risks and benefits which will be encountered by The Body Shop UK at the time
when expanding and venturing along with African Botanics within Africa in the context of
Globalisation. Here problems and issues, which arise in the international market when
performing globalisation, will be discussed. This project can be divided into several categories.
Firstly, a literature review will be performed so that all the scholarly opinions on the subject of
business expansion into an international market through globalisation is evaluated. Following the
primary research methodology will be detailed here in the methodology section. After which an
analysis of the findings, which are made, will be determined in the result section. Subsequently,
recommendations on the above stated subject along with reflection shall be stated.
Aim of the Project
The aim of the project will be to elaborate on the implications of performing a joint venture in
the context of Globalisation.
Objectives of the Project
To expand the business reach on international scale
To help create cultural diversity within the enterprise
To expand the product portfolio through market research
To attain at least 10% higher revenue in the annual report
Problem Statement
When performing a joint venture issues structural differences, which will be present within the
two enterprises, arise. Apart from that risks such as brand establishment in a new country.
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Chapter 2: Literature Review
Introduction
Joint Ventures are created by two or more organizations and organizations work in relation and
merge with each other. The international joint ventures involves different countries and they
operation across cultural boundaries. In general, in a joint venture business, one business partner
comes from a foreign country and the other business partner is from the local country. This leads
to cultural complexity. However, it can also be beneficial for both the partner organizations. The
companies can form strategic alliances and they can get access to capital, technologies, people
and local markets. However, various challenges might also be faced by partner organizations
such as conflict of interest and lack of experience.
Requirements for expanding into new markets
In accordance to Yan and Luo, (2016) firms often choose to venture into new markets by
forming strategic alliances. They easily get access to overseas market. Moreover, it is necessary
for firms to understand consumer behaviour particularly while venturing into a completely new
market because of cultural complexities. Secondly, by expanding into new markets, firms get the
opportunity for risk sharing. If an investment feels like financially burdensome, firms use this
motive to share their financial risks. Moreover, the process of globalization occurs whenever a
host country welcomes a foreign firm. The local company can share their political risks with the
multinational company. Whenever a business becomes incapable of generating profits in own
country or when political risks are evident and firms cannot produce more products in own
country, it tends to tap into outside resources.
The benefits of Joint venture
The joint venture strategy can help new businesses to grow faster. Moreover, the productivity
and profits of the firm increases whenever firms get access to new or emerging markets. The
companies can also share costs and associated risks. Moreover, specialised training can be made
available to staff. The rate of employment might also increase as soon as new markets start to
develop in the local area. The company get the advantage of borrowing funds and outside
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