Impact of Joint Venture Between Botanical Cafe and Costa Coffee

Desklib provides past papers and solved assignments for students. This report analyzes the impact of a joint venture between Botanical Cafe and Costa Coffee.

Impact of benefit and risks of joint venture undertaking between Botanical Cafe
and Costa Coffee
1

Executive Summary
The significance of joint venture has impacted companies to undertake important decisions.
This has given rise to globalization that has contributed to the growth of the business.
However, with the understanding of the research, there are learning outcomes that affect the
growth of the business. Globalization has become very important for the research and has
also given rise to the understanding of the business research methods. Therefore, with the
comprehensive understanding of the research, the companies are able to develop in a smooth
and better manner. Therefore, it has stated the understanding of the business and learning
outcomes that are important for understanding of the business research.
2

Table of Contents
Introduction................................................................................................................................4
Task 1.........................................................................................................................................5
Task 2.......................................................................................................................................10
Conclusion................................................................................................................................26
Reference List..........................................................................................................................27
Appendix 1...............................................................................................................................29
Appendix 2...............................................................................................................................32
3

Introduction
Globalization has had its existence in making consistent trade with other countries for the
growth of lucrative gains and profit for the company. The UK companies have witnessed the
political occurrence of BREXIT, which has affected most of its business operations. This has
resulted in insignificant business gains and elements, which have affected the growth of the
business. However, it is important to estimate the understanding of the factors that are
capable of affecting the growth of the business. Therefore, there are companies that undertake
the use of the joint venture for the growth of the business. This will affect the business
operations of the company. The study will investigate into the joint venture operations of the
Botanical Cafe in Australia with Costa Cafe in the United Kingdom.
4

Task 1
A brief explanation of the proposed topic and why you have chosen it
The joint venture business is significant for the collaboration of two lucrative companies for
the growth in business. Therefore, the topic is of significance, as there are companies that
make the use of the joint venture strategy for the growth in their market gains. The companies
that partake of the joint venture initiate in it, as it is a new way to enter the market. This
requires partnership and requires partnership significant for the business and the companies.
Therefore, the study will investigate into the significance of the Botanical Cafe in Australia
with Costa Coffee in United Kingdom. The companies that incorporate the use of the joint
venture partnerships are able to cover significant aspects such as management and equity of
capital. With a better understanding on the legal and cross border trades, the company will be
able to gain better business operations and initiatives. However, joint venture businesses are
failures and lead to serious consequences in the growth of the business. Therefore, the study
will investigate and enquire into the approaches that are essential for the growth of the
research. With the use of these factors the business are able to speed up their process of the
research.
An aim and some objectives for your proposed research
Research Aim
The aim of the research is to formulate a comprehensive understanding on the benefit and the
risks associated with the joint venture after the political situation of BREXIT in the UK.
Research Objective
The following objectives of the research will be formulated below:
 To assess the significance of joint venture partnership between Botanical cafe in
Australia and Costa Coffee in UK
 To comprehend the positive and negative impact of joint ventures
 To investigate into the BREXIT and post BREXIT implications for business initiating
in joint venture market
 To understand the significance of the international joint venture in the market
A brief discussion of the scope and limitations of the project
5

It is very important to take into consideration the project scope and management associated
with the project. It outlines the various factors that would be taken into consideration for the
various factors associated with the growth of the project. Therefore, the project will take into
consideration the excluded scope and included scope. These will have an impact on
understanding and comprehending the factors and elements of the business.
Included Scope
The research corroborates the significance of the learning of globalization theories that are
used for the research. Therefore, the researcher has corroborated the significance of the
growth of the research. This i useful as it tends to the growth of the business research
methods. It also tends to the primary data collection. With the use of this method, the
researcher is able to formulate an understanding of the various activities of a research. This
sets a magnificent understanding for the researcher.
Excluded Scope
The research has not taken into account the elements that have an impact on the research
growth options. However, there has been no qualitative research analysis for the course of
work. This has had an impact on the growth option and consideration for the research.
Therefore, there is an underdevelopment in the research method that has contributed to the
understanding of the business learning outcome. However, there are various methods that
have been taken into consideration for the growth of the research.
Resources and cost considerations.
It is important to formulate a better understanding of the expenditure that is included in the
research formulation. Therefore, the necessary expenses will be underlined for the provision
of better strategic marketing. Therefore, the resources required will be underlined for the
growth of the research.
Activities Time Period Cost per hour (£) Total Expenditure
(£)
Identification of
Resource Inputs
32 20 640
Allocation of the
resources and
23 10 230
6

equipments
Data Collection
instruments
48 22 1056
Data analysis 52 24 1248
Assessment of the
data collection
instruments
48 10 480
Final file
documentation
24 10 240
Total = 3894
Table 1: Budget
(Source: Created by Learner)
A Gantt chart or work breakdown structure in order to provide timeframes and stages
for completion.
The gantt chart of the research plays an important part in the research. It states the
significance of the business. The time and outline taken for the particular research is 1 month.
The integration of the work breakdown structure will be provided for the understanding of the
business. This will influence and have an impact on the business consideration of the project.
Activities Start Date Duration End Date
Start Project 2/2/2019 1 2/3/2019
Selection of
Methods
2/9/2019 10 2/19/2019
Collection Data 2/14/2019 5 2/19/2019
Analysis of Data 2/21/2019 6 2/27/2019
conclusion and
commendations
2/26/2019 5 3/3/2019
Final Draft 3/1/2019 2 3/3/2019
Final Submission 3/4/2019 1 3/5/2019
Table 2: Work-breakdown structure
(Created by Learner)
7

Start Project
Selection of Methods
Collection Data
Analysis of Data
conclusion and commendations
Final Draft
Final Submission
2/2 2/7 2/12 2/17 2/22 2/27 3/4 3/9
Figure 1: Gantt chart
(Source: Created by Learner)
A risk register covering the main risks with the proposed research.
A risk register is an important part of the research as it initiates an understanding on the
elements important for the research. It also evaluates the significance of the high medium and
low risks that can impact and affect the growth of the business.
Description of
risk
Chance of
Occurrenc
e
Nature of
risk
Impact of risk Consequence Actions to
mitigate the
risks
Improper
Resources for
Research
Medium High The project
will lost its
meaning and
will not be
able to proceed
in a fruitful
manner
There could be a
misappropriation
of the business
research methods
There should
be a better and
organized
research
planning
No proper
compilation of
the data
Medium High The risks will
have an impact
on the growth
The research
could be mislead
and given
The project
manager will
be able to
8

of the business
and the
research
concept.
improper
information and
backing
formulate a
better
understanding
of the business.
No viable
data
instruments
and false
research
Low High The research
will be
affected as
there will be
improper aims
and objectives
The results will be
significant for the
understanding of
the research
methods
With the
understanding
of the business,
there are
important
activities
associated with
the research
General
Issues
Medium Medium This will affect
the
understanding
of the business
and learning
outcomes
There will be
false and
improper
understanding of
the business
research methods
This can be
mitigated by
the significant
understanding
of the areas of
the research
Table 3: Risk Register
(Source: Created by Learner)
9

Task 2
CHAPTER 1 Introduction
In most of the cases, it has been observed that different companies operating from different
nations look to develop their business in a collaborative manner. This is ideally known as
joint venture business. Most of the companies aspire to ensure that they are able to conduct
their business on a global platform and they combine their business with companies from a
completely different nation, however, they do not aim to conduct any kind of cross-border
transactions in their overall process of business operations. This has been noted as one of the
most important impact of globalisation that companies look to expand their business globally
and look to increase their overall profit generation in the market. Botanical Cafe of Australia
looks to combine their business with Costa Coffee of the United Kingdom. This section of the
project analyses the topic of research in a detailed manner and uses the outcomes for
enhancing the quality of the research.
It is clearly evident that joint venture businesses is useful in terms of ensuring that all the
business partners of the involved companies are able to function in the most appropriate
manner. They become liable to certain benefits such as financial stability and they gain more
number of suppliers in the market. As a result, it allows them to conduct their business in an
authentic manner and they are able to increase their workforce productivity. Besides this, it is
important for the joint venture companies to ensure that they do not overlook the
disadvantage associated with their business. There are times, when the organisation is unable
to perform in a productive manner. As a result, this has a negative impact of the
organisational productivity. The research is directed to understand the issues and limitations
associated with international joint venture and its impact on the overall functioning of the
organisation.
10

CHAPTER 2: Literature Review
Introduction
In order to complete the research in an authentic manner, it is important to have a well-
defined literature review that discusses the topic of the research in a precise manner. It helps
to understand the positive and negative impact of international joint venture in terms of
expanding the business on a global platform. The information has been gathered from
authentic journals and articles for completing the research in a successful manner.
International Joint Venture: Positive and Negative Impact
In the words of Beveridge (2017) this section analyses the important positive and negative
impact of international joint venture business on the growth and develop the two companies
that are functioning in a collaborative manner. It is evident that companies getting involved in
international joint venture businesses experience growth of their business structure with the
help of earning profit and increased productivity. In terms of this type of business venture,
the involved organisations have a certain set of agreement amongst themselves so that it eases
their process of business operation. This allows them to ensure that they are gaining huge
profits while conducting their business and increase their revenue generation in the
workplace.
In most of the cases, it has been observed that joint venture business enables companies to
function in a flexible manner and it eases the process in which companies are able to function
in a combined manner. This helps the companies involved in international joint venture to
ensure that they are having a proper idea of their market of operations and increasing their
market shares in the right manner. However, it is important to understand that companies
functioning joint venture businesses might face issues in terms of their business operations.
Due to the competition existing in the market of operation, companies are unable to meet
with their business objectives and they are unable to meet with the requirements of the
customers. As a result, it becomes difficult for them to operate in a desired manner and it has
a negative impact on their productivity. Therefore, it is important for the companies to ensure
that they are able to devise certain strategies and techniques that allows them to conduct their
business in an appropriate manner.
Impact of Globalisation on joint venture businesses
11

In the words of Adekola, (2016) globalisation is one of the most interesting aspects
businesses that allow companies to expand their business on the global platform and make
use of all the available resources for conducting their business in a proper and precise
manner. It helps the companies involved in collaborative business to ensure that they are
integrating their functions and working to the best of their abilities so that they are able to
increase their profit generation in the market. Globalisation has a positive impact on the
different types of international transaction existing between the involved countries.
As a result, it has a positive impact on the overall development of the country’s economy. In
this type of international joint venture businesses, companies mostly decide to make use of
their resources and raw materials in a joint manner. This helps them to reduce their overall
cost of operations and increases their profit generation in the market. The companies face
some serious competition in the market of operation, as a result, they function in accordance
to the requirements of the company and increase their market gains. Globalisation has a
positive impact in developing the relationship with the customers in the market. As a result,
customers are attracted to the services and products of the organisation.
Therefore, it is important for both the companies to understand the impact of globalisation on
the process of their business operations. This allows them to increase their sales in the market
and meet with the satisfaction level of the customers. With the intrusion of globalisation in
the business of the companies, they become more flexible to the changes and can easily adapt
to these changes in the workplace.
Risk associated with international joint venture business
As stated by Mohr, (2016) while entering the international market, it is important for them to
measure all the consequences that might arise during their business operation. As a result,
these issues create risks in the process of their business and it has an immense negative
impact on the overall functioning of the workplace. One of the major risks that is faced in the
business by the involved companies is that of differences in the cultural and ethnical
background of the employees. As a result, Kwok (2018) states there are clash of opinions
and it becomes difficult for the employees to work in accordance to the organisational
requirements. Besides this, the strategies developed by the companies mighty yield them
better business outcomes in the market; however, it makes them vulnerable to certain risks.
Therefore, it is important for the companies to ensure that develop strategies in the workplace
so that they are able to meet with the organisational requirements.
12