Globalisation: Risks and Benefits of a Joint Venture

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Globalisation: Risks and benefits of a
joint business venture to enter
international markets
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Table of Contents
Introduction...........................................................................................................................................3
Aim and objectives of the proposed research.......................................................................................4
Scope and limitation of the proposed research.....................................................................................4
Resources and cost considerations........................................................................................................4
Work Breakdown Structure...................................................................................................................5
Risk register...........................................................................................................................................7
Reference list.........................................................................................................................................9
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Introduction
Globalisation is considered as an essential concept that has successfully integrated the global
economy by leading interconnection of national economies. Globalisation has both risks and
benefits for the organisations that are relative in facilitating the global trade hence balancing
the profits (Hanson et al., 2016). Concerning joint venture as a concept is a common way to
combine as a great partnership. Certain risks since the relationships can be determined as a
significant area for the partnership venture in the international context. There are benefits of
joint ventures that ensure accessing new markets, increased capacity, sharing risks and costs
with partner, accessing greater resources, technology and finance and others.
Joint venture such as Vodafone and Telefónica has network sharing in 5G infrastructure that
has shown an impactful approach to the globalisation as a concept. They have joined to roll
out ‘future-proof’ for 5G network (Insider.co.uk, 2019). Along with the benefits, the joint
ventures have shown risks regarding time and efforts. The objectives might not be clear and
convinced to match for both the companies. The partnership can have different levels of
experience and investment into venture. In context of global scenario, joint ventures such as
Vodafone and Telefónica influenced the business outside the UK (Telefonica.com, 2019).
The study will focus on establishing the detailed analysis of globalisation with such risks and
benefits for joint ventures.
Justification
The topic is chosen because it is a relevant aspect to conduct a research on globalisation that
has shown different business approaches to succeed that holds the risk and benefits.
Vodafone and Telefónica is a joint venture business that idealised the concept of better
approach as a combined business in the global market hence showing the impact of
globalisation and internationalisation (Razzaq et al., 2018). It is an effective concern to
execute the components of globalisation while solving the issues and risks of globalisation. In
order to enter international market, Vodafone and Telefónica have merged to act and perform
the 5G network with analysing the participation of joint venture (Telefonica.com, 2019).
Globalisation is effective to evolve the performance in international context to develop the
current analysis and market in telecommunication. Vodafone and Telefónica have been taken
to research as joint ventures that they are moving to merge for expanding in international
context. However, the companies face risks regarding loss of reputation, sufficient leadership,
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matching goals that arise while globalising. The research will shed light on effects and impact
of globalisation to identify the risk and benefit factors of joint venture business in order to go
global.
Aim and objectives of the proposed research
The aim of the research is to explore the effects of globalisation along with risks and benefits
of joint ventures like Vodafone and Telefónica while going global.
The objectives of the research are:
 To analyse the benefits of joint ventures such as Vodafone and Telefónica in order to
go global
 To identify the risk factors of joint ventures in international context
 To evaluate impact of globalisation over Vodafone and Telefónica as joint venture
business
 To recommend strategies to Vodafone and Telefónica in expanding internationally
Scope and limitation of the proposed research
Scope:
The project is based on various effects of globalisation regarding joint ventures in order to go
global. Vodafone and Telefónica have set into an international aspect covering the variation
benefits of globalisation. The scope of research includes the sharing of knowledge and
information that shed light on different impacts of globalisation on joint venture businesses.
Limitation:
This research project is based on explaining the impact of globalisation along with risks and
benefits. The project will be able to focus on both benefits and risk factors of globalisation.
There is limitation that research discussed on several risk factors only. The project cannot
recover all the areas of globalisation with strategic implementation.
Resources and cost considerations
Resources:
Resources for developing the projects are financial resources, human resources and
material resources (Amine et al., 2015). To conduct the research a specific amount of
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financial support is needed. Around £3180 will be needed to complete the research study. In
order to complete the study, project people are needed so that every task can be distributed
among the people and completed timely. Material resources such as computers, papers, pen,
internet connection, printers, books and online book accesses are considered to research
completion.
Cost:
Activities Time Cost per
hour (£)
Total Cost
(£)
Conducting research on the research hypothesis 50 23 1150
Researching from several resources and online
books
20 20 400
Technical supports such as computers, digital
backups
35 28 980
Human resources and backups 20 25 500
Conducting research and get help for support 15 10 150
TOTAL £ 3180
Table 1: Cost analysis
(Source: Created by Author)
Work Breakdown Structure
Number Activities Commencement
Date
Duration Conclusion
Date
1.0 Commencing the project
01-07-19 30 31-07-19
1.1 Making sure that resources are
available for the project
01-07-19 7 08-07-19
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1.2 Researching in small scale
08-07-19 10 18-07-19
1.3 Conduct primary research
18-07-19 8 26-07-19
1.4 Investigate the project
26-07-19 5 31-07-19
2.0 Project Accomplishment
31-07-19 12 12-08-19
2.1 Gathering adequate permit
31-07-19 4 04-08-19
2.2 Concluding the project
04-08-19 5 09-08-19
2.3 Project agreement
09-08-19 3 12-08-19
Table 2: WBS
(Source: Created by Author)
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Gantt Chart
Commencing the project
Assuring the resources
Researching in small scale
Conduct primary research
Investigate the project
Project Accomplishment
Gathering adequate permit
Concluding the project
Project agreement
01-07-19 11-07-19 21-07-19 31-07-19 10-08-19
Figure 1: Gantt chart
(Source: Created by the Learner)
Risk register
Week
s
Risks figured Size of
risk
Effect of
risk
Affect of risks on
the deliverables of
the project
Mitigating the
risks
1. Reprehensible
communication
Moderate High The dependability
of the research
project is affected
due to poor
communication
The participants
of the project
have to approach
on a continuous
improvement
2. Absence of the
participants for
primary survey
High High The possibility and
outcome of the
project is
hampered.
The participants
participating in
the survey and
interview must be
in large number.
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3. Data security Low Moderate The data that is
obtained is not so
inaccurate.
The data should
be secured under
Data Protect Act
effectively.
4. Data loss Moderate High Incomplete research Data should be
saved in multiple
places and folders
in computers.
5. Health risk Low Moderate Participants can be
injured and would
not be able to
perform the task.
First-aid and
emergency
medicines should
be kept while
surveying.
Table 3: Risk plan
(Source: Created by Author)
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Reference list
Amine, L.S., Cavusgil, S.T. and Yaprak, A., 2015. The Growth of International Joint
Ventures. In Proceedings of the 1986 Academy of Marketing Science (AMS) Annual
Conference(pp. 78-83). Springer, Cham.
Hanson, D., Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management:
Competitiveness and globalisation. Cengage AU.
Insider.co.uk (2019). Telecoms giants in 5G infrastructure joint venture. [online]
businessInsider. Available at: https://www.insider.co.uk/news/vodafone-telefonica-joint-
venture-5g-13894840 [Accessed 11 Jul. 2019].
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.
Telefonica.com. (2019). Telefónica and Vodafone to strengthen their network partnership in
the UK with 5G sharing | News Detail | News | Press Office | Telefónica. [online] Available
at: https://www.telefonica.com/en/web/press-office/-/telefonica-and-vodafone-to-strengthen-
their-network-partnership-in-the-uk-with-5g-sharing [Accessed 11 Jul. 2019].
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