Analysis of Risks and Benefits in Daimler-Hyundai's UK Joint Venture

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RESEARCH PROJECT
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Table of Contents
CHAPTER 1: INTRODUCTION.............................................................................................................................. 3
AIMS AND OBJECTIVE........................................................................................................................................ 4
CHAPTER 2 LITERATURE REVIEW................................................................................................................... 5
CHAPTER 3 METHODOLOGY................................................................................................................................ 8
CHAPTER 4 RESULTS............................................................................................................................................ 11
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS......................................................................17
5.1 CONCLUSION................................................................................................................................................ 17
5.2 RECOMMENDATIONS...............................................................................................................................19
CHAPTER 6: REFLECTION.................................................................................................................................. 20
REFERENCES............................................................................................................................................................ 21
APPENDIX................................................................................................................................................................... 24
PROJECT LOG-BOOK TEMPLATE................................................................................................................ 24
PRIMARY RESEARCH QUESTIONNAIRE..................................................................................................25
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CHAPTER 1: INTRODUCTION
In May 2004, a joint statement released in the press that depicts the two companies namely
Daimler Chrysler and Hyundai Motors agree to have their partnership as it has brought
about $400 million in 2000 (Brinkerhoff and Brinkerhoff, 2011). However, it has
reportedly increasing and reached to $1 billion in present conditions. Hyundai being the
biggest and most successful car makers in the South Korea has focused to enter into the
international market of the UK. They would work as Daimler- Hyundai Truck Corporation,
a joint venture established to produce high tech middle range trucks and buses in the UK
market.
The major issue of expansion of the business in the UK is the taxation and liabilities of the
joint ventures. This has infused on the capital with the medium and positive synergy from
their competitors (Yan and Luo, 2016). The joint venture between Daimler Chrysler and
Hyundai motors has created the pool resources together with the space of creating an
innovative design in which they are expertise.
Daimler Chrysler is a public type automotive organization which was founded in the year
1926. The merger of the Daimler with the Hyundai has gained a large fame with the
profitable products and services. This can account on the car production by safeguarding
the long term competitiveness of the companies. While Hyundai Motors are also public
oriented organizations through which the world’s largest integrated automobile
manufacturing facilities can be accompanied. The Hyundai’s were the topmost in vehicle
manufacturing with the subsidiary of 32.8% in their luxurious range (Jensen and Johnston,
2011). The company was developed in the year 1947. There are certain advantages and
disadvantages to the resources and expertise can also be related to them. The certain
benefit of the joint venture includes the access to the new market which is highly included
in the study. This can also manage to share the risk and cost of the liability with a partner
and access the source of the specialized staff with the technology and finance.
The use of the joint venture can help in providing the exposure to the business with the
flexibility and popularity for the business in an operating range (Zetzsche et al., 2018). The
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focused risks for the business are determined by the complexities and relationship to the
objectives of the research. The automobile sector provides the better analysis to the risk
and benefits of the joint ventures and they are reliable on the subjective resources for
fulfilling their potential needs. Thus, the opportunities provided to the partners and
broadening their markets prospects can benefit the joint ventures. Further, the liabilities
that are shared can present the equal risk to the partners and making them easier to get the
better access to diversified resource (Killing, 2013). The lack of clarity regarding the
obligations and taxation towards the organization can be analyzed in the study.
AIMS AND OBJECTIVE
The aim of the study is to understand the risks and benefits of a joint Venture business
company Daimler–Hyundai Truck to enter collaboratively in the international markets of
the UK.
 To understand the risk and benefits of the joint ventures business in the UK
 To determine the factors that lead to the risk for companies in the entering to
international market
 To analyze the importance of the joint ventures in the economic growth of the UK
The key objectives of the study have suitably met with the deliverables for the study in
predicted manner (Killing, 2013).
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CHAPTER 2 LITERATURE REVIEW
Yan and Luo (2016) has particularly portrayed about the particular challenge that the joint
venture can faced. Secondly, it has also focused on the key areas of the research such as
motives for the joint venture and structural selection and venture stability and
performance. The cooperative alliances that have shared the ownership of capital
resources can manage to have most complex type of the arrangements for the inter-firm
with the shared equity. The international joint ventures are broadly demonstrated as the
joint ventures that involve the countries of different locations to be cooperative with the
national and cultural boundaries. This can direct on the overwhelming nature of the
international partners for the local country (Yan and Luo, 2016). For example- the case of
the multinational partner in the Hong Kong and other joint ventures which may be more
complex to nationality and background of the places. The Xerox Shenzhen is a joint venture
company which is formed between the Xerox China Ltd. and Fuji Xerox has mark with the
Japanese joint venture holdings. This can subjectively meet with the advantages of the
government policies towards the status of the international joint venture enterprises.
According Idris and Seng Tey (2011), the strategic importance of the joint ventures (IJVs)
has helped in expanding the geographical participation of the critical economies. This can
scale up to the critical mass, reduce risks and learn new skills and technologies. This can
also develop the countries in order to impose the foreign ownership restrictions. The
survival of the Joint ventures is ensured with the increased competitiveness in the global
arena. The key requirement to the innovation shares the knowledge of strategic fit into the
innovative performances. The motives behind the proposed case have affected the
performance with the motive of strategic choices which will either improve or hamper
through organizational performance (Idris and Seng Tey, 2011). The purpose of developing
the marketing strategies can meet with improvement in the efficiency for acquiring the
knowledge and ability for the business of the Malaysia. This can implicit on the motives
behind establishing the knowledge and local cultures and demographics for the firms to
establish in the International markets.
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According to Jensen and Johnston (2011) the focus on the risk due to political factors
caused to the joint ventures has been examined in the study. The political regimes and
economic performance are affected due to the lack of management of the resources and
upholding to the contract. This can project on the incentives and natural resource wealth
across the sectors. This can renege on the contracts with the governments in the natural
way. This can help in attaining benefits but on the other hand it will renege on contracts
with the theoretical model predicts on a positive association and resource between the
wealth and expropriation of the work (Jensen and Johnston, 2011). The lack of the tax
incentives to the firms at the workplace can affect the dataset that are managed to the
higher level of the political risks. This can naturally direct on the economies with the partial
compensation of the increased data with the shared resources. This can compensate to the
increase level of the political risk and benefits the corporate in terms of tax incentives.
According to Zetzsche et al (2018) the transformation of the potential ledger technology in
the financial sector can enormously attract the concept of demonstration in order to meet
the liabilities of unparalleled transparency and unbreakable security for the business. The
impact of the law cannot direct on the wishes away for the business. Therefore, the
constitution of the joint ventures with the liability can spread awareness of the information
regarding the distributed ledgers for the business to support the approaches to twenty first
century in the financial infrastructure must focus on the legal consequences. The risk of the
liability can affect the operational measures for the business. This can also set on the re-
personalization of the data stored in the enhanced level. The major legal risks derive from
the transparency can relate to the data privacy and insider of trading the market abuse.
The facilities can bring about the violation in the data privacy and user profiles violation.
There are some jurisdictions that help the data over the ledgers and penalties for insider
trading and market abuse (Zetzsche et al., 2018). However, it can highlight to another set of
the potential risks with the characteristics of the DLT. Other concern risk caused due to the
liability is the identity theft. This can require private divergence with the key itself to
become illicit towards the activities.
Rabbiosi and Santangelo (2013) directs on the strategic working of relevant resources that
are lies under the leverage knowledge based resources and capabilities with the ties across
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borders. International business and management research has help in integrating the
knowledge of the receiving units. One of the growing interest in the knowledge of the first
in the hierarchy of relevant resources meet with the relevant level of the knowledge based
capabilities across the borders. There are certain terms which can be innovating meet with
the beneficial effects on the performance of the receiving units. This can help the business
to be more generalized and remain competitive in the market (Rabbiosi and Santangelo,
2013). The key benefit to the business can be attained with the productivity and generate
profits for the business. This can help them in accessing the new markets with the
increased capacity and shared cost estimation with a partner. The access to the greater
resources can help in including the staff and technology through which borrow of funds or
looks can be managed with the investors in the business. The use of the joint ventures
partner’s customer base can help in accessing the market for the relevant product. Thus,
this can help in meeting the flexibility to the business with the operating range of the
transport and travel industries (Rabbiosi and Santangelo, 2013).
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CHAPTER 3 METHODOLOGY
The research was carried out at the different stages with the support of the designated
frame in the study. This can emerge to the relevant topics of the study. The descriptive
study is adopted with the instrument through the discussion of the various expertise in the
area of the energy efficiency and academics etc (Bryman, 2017). The research methodology
adopted the research work of the primary data which can be derived from only primary
method. However, some secondary data resources are books, work papers and scientific
articles along with the other resources for the quantitative research. This can tailored to
answer and satisfy the research questions.
The relevant information can instigate on the structured questions which are highly related
to the primary data with the significant range of the practices that are efficient with the
industries. The respondents that are respectively involved in the study are able to provide
the potential risk and benefits regarding the joint ventures. The expansion of the business
with respect to the firms can express their viewers and barriers energy efficiency in their
firms (Creswell and Clark, 2017). The structured questionnaire covers various aspects
through which the response time to the research can be managed. This was recorded on an
average with the range of the questionnaire that took about the half an hour for the
organized range of the resources. This can enumerate with the following topics.
The relations of the Daimler Chrysler and Hyundai can suggestively manage the odds with
each other on the goals of the research. This might be the best possible way to achieve the
goals. The research philosophy can apparently deal with the underlying and inherent
assumptions to the research (Gneezy, 2017). This can direct on the main ontological
framework in the form of the research process. The positivism concept can help in
presenting the reality existence of the organization being merged in the study. The practice
of the joint venture in the region and international expansion is subjectively consistent
with the meaning of the study presume by the participants in the same way. The inherent
differences in the practices are necessarily belief to be research through all research
contexts (Denzin, 2017).
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The inductive approach is characterised with the range of the specific general through
which the observations are started to analyse the risk and benefits of the joint ventures in
the research. This can collectively focus on the framework that initially informs the data
collection to be the effective tool for the business. The theories generated with the data
analysed can be found through the existing fit to the business (Hair Jr and Lukas, 2014).
There are different methods which can be used in the research to meet the benefit to the
research. The data collection stage can be bias with the concern phenomena. This can help
in examining the research to the positivist methodologies.
The quantitative approach for the study suggests on the statistical hold on the standards
and validity for the research. The number of the respondents and their social phenomena
includes the feelings and subjective viewpoints. The quantitative approach can direct on
the methods with the range of the respondents available for the study (Jorgensen, 2015).
The strategic actions can reportedly meet with the surveys as the part of the research. The
relationship between the expected ranges of the results can relatively manage with the
factors that are usually stored in the research. The expectations of the research can
probably meet with the limited number of the factors (Khan, 2014). The surveys tend to be
the quantitative research projects that involve the proportion of the representatives in
terms of the population. The surveys produce the quantitative data which can be analysed
empirically through the causative variables that is the respondents from the Daimler and
Hyundai to gain the different types of data.
The choices outlined in the research include the quantitative methodologies for the
research. This can focus on wider section to meet the research horizons. The research
design can help in influencing the prescription of the famous mergers working in the same
plan for expanding their business in the UK. This can reflect on the questionnaires in order
to have ascertaining generalizability (Leavy, 2015). The approach can support the
transformative structure through which the analytical and potential brand choice
framework can be attained. This can help in adopting the explanatory suited standards for
the research based on the research questions.
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The time horizon can present the two types of the research design whether it is
longitudinal or cross-sectional. Cross-sectional study is highly dependent of the designs
that are majorly meeting the surveys conducted in the research (McCusker and Gunaydin,
2015). The quantitative approaches have the significant importance of the trends that can
be changed over time. This can similarly meet up with comparison of the survey results in
the research.
The data collection is highly carried out through surveys and primary range of the data
from the first hand sources. This can introduce with the necessarily information which can
be undertaken with the statistical collection to the census constitute in the primary data.
The research is likely to be understood with the prism of being another analysis ( Morse,
2016). However, literatures conducted in the research to figure out the inherent nature of
the research through the dependency in the statistical surveys for the research.
The research design is the descriptive process which can be considered through the
framework of appropriate methodology being adopted with the way of respondents to the
selected number of the time. The quantitative framework has set the demographic
characteristics of the population of the UK which has been targeted to promote the
products of the Daimler and Hyundai together.
The sampling techniques of the appropriate sample size of 100 people are selected for the
wider study (Sahay, 2016). The number of the random samples can be analysed with the
significant skewing of the results from the random nature. This can result in more than
males to be the participants than females as the stratified sample is to ensure that the
representative of the population can be reflected through significant standpoint that will
occur to provide the significant results for the study.
The ethical issues are subjectively met with the research participants involved in the study.
The research participants are not harm in any ways and are subjectively prioritised in
terms of dignity (Scheurich, 2014). This can meet with the full consent that can be obtained
with the participants which are ensured at adequate level. The anonymity of the
individuals and organizations can be set with the fundamental deception or exaggeration of
the aims and objectives and other type of the communication in relation to the research.
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CHAPTER 4 RESULTS
Joint venture is a paradigm shift tool through which the international expansion of the firm
and resources can be access with the capabilities of each other business. This can scale up
to the strategic decisions with the perspective of the studies that are involved in the firm in
order to deal with the physical and manufacturing of the activities (Yang, 2012). The
partnership of the participants can certainly meet with the connections and successfully
managing the relationships at the social capital cost. This can encounter with the
managerial questions through which the results can be set out. This can often meet with
the contradictory measure of the performance.
The theoretical framework to the concept of internationalization of Joint Venture is applied
to the business of the Daimler and Hyundai. In order to gain their competitive position in
the market, it is necessary for them to gain the controversial and existing literatures that
are identical with the idiographic nature of the business with the research objectives. The
joint ventures can contribute to understand the contemporary situations of the
internationalization (Yao et al., 2012). Therefore, there are certain strategies framed by the
business networks in order to access the firms into a joint partnership working. The
creation of the positions with the companies may direct on having the design with the
work. However, it is pretty much evident with the entities of the development. Therefore,
the two important aspects for the business can be managed with the ventures and context
of dependency on the joint ventures with the focal involvement of the business (Yang,
2012).
There are certain types of the business which can term under the conditions through which
the business can possibly meet with the particular contract. The flexible range of the
complex problems can share in the company to manage the accountability of the
corporations (Beley and Bhatarkar, 2013). There are certain benefits and risks that are
accounted for the long term and short term relationship in the business to collaborate with
the short term projects. This can help in covering the part of the resources by limited by the
commitment and exposure to both parties.
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The key benefits and risk to the study has been projected with the help of the survey
conducted within the employees of the Daimler and Hyundai for the launch of the trucks in
the UK (Nam, 2011).
Who are participants involved in the research?
Employees of Daimler and Hyundai 95
Employees of Mitsubishi and Daimler 1
Employees of Hyundai and Land Rover 2
Others 2
Total 100
Employees of Daimler and Hyundai Employees of Mitsubishi and Daimler
Employees of Hyundai and Land Rover Others
Figure 1: Participants of Research
Source: Nam, 2011
The majority of the participants involved in the study are the employees of the Daimler and
Hyundai who are extensively facing the issues due to the internationalisation and merger
of the two multinational companies for the expansion in the UK (Moran et al., 2013).
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