Business Project: Joint Venture Risks and Benefits

Desklib provides past papers and solved assignments for students. This project analyzes joint venture risks and benefits using a real-world case study.

Managing a Successful Business Project
“Topic: The risks and benefits of a joint venture strategy, a case study of Square Root, USA joint
venturing with Pacific Computers, UK”
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Abstract
At the research project different facts as well as features of joint venture strategy had been
evaluated at certain extension. The possible risks as well as benefits of joint venture strategy had
been evaluated. The literature review section had been adhering of possible risks as well as
benefits of joint venture. Additionally, quantitative approach had been considered for making
proper outcome of the exact research. Furthermore, research objectives had been linked with
research outcomes for improving the quality aspects of the research. Lastly, subsequent
recommendations had been made so that recent organisations can effectively utilise joint venture
strategy.
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Table of Contents
Task 1...............................................................................................................................................4
Brief explanation of proposed topic............................................................................................4
Aim and objective of proposed research.....................................................................................4
Scope and Limitation of the project.............................................................................................4
Resource and cost consideration..................................................................................................5
Work breakdown structure and Gantt chart.................................................................................7
Risk register.................................................................................................................................8
Task 2.............................................................................................................................................10
Chapter 1 Introduction...............................................................................................................10
Aim and objective of proposed research project.......................................................................10
Background of the research.......................................................................................................10
Rationale of the research...........................................................................................................11
Chapter 2 Literature Review......................................................................................................12
Chapter 3 Methodology.............................................................................................................16
Chapter 4: Results......................................................................................................................19
Chapter 5: Conclusion and Recommendation...........................................................................23
Chapter 6: Reflections...............................................................................................................25
Reference List................................................................................................................................26
Appendices....................................................................................................................................29
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Task 1
Brief explanation of proposed topic
The research project has been constructed for assessing the overall risks and benefits of joint
venture as a market entry strategy for different organisations. It has been evidenced that
organisations are opted to increase their profit generation by increasing their market share
through entering into a new market sector (Fisch and Schmeisser, 2018). Recent changes of
policies and procedure due to globalisation can be pointed out as the reason behind this. Joint
venture as a format of market entry strategy is quite effective in some instances; however in
some instances it is quite stressful also. At the project, research has been done from the
perspective of the joint venturing strategy between Square Root and Pacific Computers.
Aim and objective of proposed research
Aim of the proposed research is as follows: “To make a qualitative research approach for
measuring the associated risks and benefits of joint venture strategy as the market expansion
tool”.
Associated objective for successful completion of the research project has been illustrated below:
 To capture the general essence behind joint venture as a separate market entry strategy
 To make qualitative research approach for analysing diverse benefits of joint venture
 To evaluate the current risks that are closely attached with joint venturing strategy
 To recommend possible ways that can minimise potential risk of joint venture market
entry strategy
Scope and Limitation of the project
Scope
There are two different forms of scopes that can get directly associated with managing any form
of business project. These are included scope and excluded scope. Description of each scope has
been illustrated below:
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Every other research project mostly has two different formats of scopes, which are characterised
as included scope and excluded scope. Both included as well as excluded scope for completing
the research project has been delivered below:
Included scope- Included scopes are such aspects of a research project that has been
incorporated at that research project. As an instance, the study follows qualitative research
approach, which is the include scope of the research study.
Excluded scope- Excluded scopes are such prospects of a research project that has not been
included at an exact research study despite the fact that incorporation of those prospects can
increase project quality. In context to the exact research, quantitative approach, survey process
and thematic analysis can be pointed out as the excluded scopes.
Research Limitation
Limitation of completing the research is comprised with time and resource prospects. The
researcher does not have enough human resource, which is why he/she faced trouble while
meeting up with project deadline. Moreover, time was also a constraint that puts up limitation
towards improving quality aspects of the research. Prior to the deadline, project manager had to
multitask at some moment, which is not adequate for making quality research project.
Resource and cost consideration
Different types of resources can be identified as the most significant aspects of completing any
research project in a subsequent manner. With the help of different types of resources, it is
adequately possible any project manager to complete the research project while maintaining
quality as well as deadline. Effective allocation of resources has to be considered for making a
high quality research project within given deadline. Diverse format of resources that can get
associated with the research project has been described below:
Category of different resources Different components of resources
Financial resources Basic components of financial resources
adhere of monetary support that is needed for
submitting the project within given deadline.
Respective colleges can provide financial
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resources towards the project manager.
Moreover, friends and families of the
respective project manager can also be
categorised as the component of financial
resources. Additionally, taking loan from bank
or other financial institutes might also act as
subsequent financial resource.
Human resources The project management team is the most
important human resource that is associated
with any research project. The CEOs of the
selected organisations and the project manager
himself/herself are also essential components
of human resource.
Material related resources Telephone, desktop or laptop and stable
internet connection can be illustrated as the
main components of material related resources
at greater extension.
Table 1: Resource of the project
(Source: Created by the learner)
Cost of successfully completing of the research project has been described below:
Different activities Total time for
completing the
activity (in days)
Estimated cost of the
activity (in €)
Entire cost for the
activity(€)
Initiation of effective
project aim and
objectives
6 27 162
Allocation of
different resources
4 12 48
Construction of 9 13 117
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literature review
section
Identification of
relevant
methodology
5 16 80
Gathering research
data for further
analysis
18 6 108
Construction of
effective research
outcomes by
producing
conclusion and
recommendation
6 8 48
Final documentation
of the project
3 5 15
Total Cost: €578
Table 2: Cost of the project
(Source: Created by the learner)
Work breakdown structure and Gantt chart
Activity List Start Date Duration End Date
Development of adequate research aim and
objectives 14.1.19 3 17.1.19
Allocation of adequate resources 17.1.19 2 19.1.19
Construction of literature review 19.1.19 7 26.1.19
Making proper research methodology for
implementing data collection procedures 26.1.19 5 31.1.19
Collection of primary data 31.1.19 7 7.2.19
Analysis of gathered data 7.2.19 4 11.2.19
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Formulation of proper conclusion and
recommendation 11.2.19 2 13.2.19
Project documentation and final submission 13.2.19 1 14.2.19
Table 3: Work breakdown structure
(Source: Created by the learner)
Development of adequate research aim and objectives
Allocation of adequate resources
Construction of literature review
Making proper research methodology for implementing data
collection procedures
Collection of primary data
Analysis of gathered data
Formulation of proper conclusion and recommendation
Project documentation and final submission
14.1.19 24.1.19 3.2.19 13.2.19 23.2.19
Figure 1: Gantt chart
(Source: Created by the learner)
Risk register
Differentiated
risk drivers
Occurrence
possibility
Risk
nature
Impact of the
factual risk
Risk associated
with project
outcome
Measurement
techniques for
minimising
risk
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Insufficient
resource
identification
Medium High Progression of
the project
might get
stopped
Aim and
objective might
take a conflicted
format that might
reform the entire
study
Effective
planning
procedure can
minimise the
risk
Risk of
collecting data
from
unauthentic
sources
Medium High Project outcome
might get
conflicted due
to gathering
data from
unauthentic
sources
There might be
not being any
link among
predicted
research outcome
and gathered
outcome.
Data sources
have to be
managed
properly for
mitigating the
risk.
Risk from
inadequate
project team
management
Low High Project
submission
deadline cannot
be maintained
The risk at most
cases lead
towards
inadequate
performance of
project team that
will lead towards
having
misleading
research
outcome.
The project
manager should
become more
active towards
introducing
effective
communication
channel among
team members.
It will
definitely
reduce the
associated risk.
Table 4: Risk register
(Source: Created by the learner)
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Task 2
Chapter 1 Introduction
Aim and objective of proposed research project
Aim of the proposed study is “To make a qualitative research approach for measuring the
associated risks and benefits of joint venture strategy as the market expansion tool”.
Objectives of the proposed research are:
 To capture the general essence behind joint venture as a separate market entry strategy
 To make qualitative research approach for analysing diverse benefits of joint venture
 To evaluate the current risks that are closely attached with joint venturing strategy
 To recommend possible ways that can minimise potential risk of joint venture market
entry strategy
Background of the research
It has been closely observed that recent organisations are purposefully trying to improve their
overall market share in order to achieve a larger profit level. Globalisation can be pointed out as
the key reason why organisations are opted to expand their target market at different parts of the
study. There are a range of different methods that is being emphasised by recent organisations
for penetrating new market sector (Carnovale et al., 2016). Joint venture at most cases acts as an
extensive strategy for recent small business sectors since it provides these business sector the
possibility of assessing larger amount of resources. Therefore, different prospects related with
joint venture strategy can be pointed out as quite essential for recent business enhancement.
Hence, analysis of different facts and procedures of joint venture has been considered as the key
tasks that will be conducted at the completion of the study. The research will be done from the
perspective of two organisations named Square Root and Pacific Computers.
Square root is a USA based software organisation located at Austin TX. They are currently
concentrated upon being a leading retail and automotive brand of the world market. It provides
collaborative as well as analytical solutions for improving performance of different stores by
tailoring insights. In recent context, it has been observed that the organisation has 43 employees
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(square-root.com, 2019). The organisation has increased $1.7 million at their sales revenue. The
organisation was founded back at 2006 and Chris Taylor is the present CEO of the organisation
(greatplacetowork.com, 2019).
On the other hand, Pacific Computer is a UK based IT based organisation that is located at
Basingstoke. It is one of the leading organisations in terms of intelligent AV innovation and
installation (pacific.co.uk, 2019). It provides services like networking, computer equipment as
well as the installation process of different solutions towards independent business sectors across
UK. They have 30 employees at UK. It is listed as private limited organisation and it was
founded back at 1996 (companieshouse.gov.uk, 2019). The research will be based into the joint
venture program between Square Root and Pacific Computer where Square Root is opted to enter
at UK market.
Rationale of the research
Despite the fact that joint venture provides lots of opportunity towards recent business
operations, it has some significant issues that cannot be minimised by simple procedure. As an
instance, it has been observed that organisations might set off from their actual organisational
goals and objectives while operated within a joint venture strategy. It is still an issue since setting
off from organisational objectives and being concentrated towards only in joint venture strategy
might conflict the job description of employees (Killing, 2017). It can bring a saturated situation
that might lead towards high employee turnover. Therefore, the current study of analysing
possible risks and benefits of joint venture strategy is quite adequate at finding solutions for such
issues.
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Chapter 2 Literature Review
Introduction
Literature review as a subsequent part of entire business project is majorly connected with
collecting and analysing secondary resources for getting expected research outcome. In the
section, data will be collected from various resources such as formerly published newspaper,
articles, journals, books and many more. Findings of literature review section will be
simultaneously represented with the data findings chapter for representing proper research
outcome.
Basic ideology of joint venture strategy
As per the consideration of Piaskowska et al. (2017), joint venture can easily be confirmed as a
subsequent format of business agreement for accomplishing a business goal without facing major
risk. Joint venture related tasks might be the introduction of a new business idea or even an
entirely new business project. Moreover, Miller and Weinberg (2017) argued that each partner of
a joint venture business is equally responsible for associated business loss, profit generation and
other costs. However, it is needed to consider that joint venture is actually a separate entity that
does not get aligned with actual business objectives of each participant.
Joint venture can be formed on any form of legal structure such as partnerships, corporation,
LLCs (limited liability companies) and many others. Connelly et al. (2018) described that
despite the main purpose of JV is linked with research and development of, it might also form
some continuing purpose that is beneficial for both partners. Joint venture at most cases provide
the opportunity of combining small and large business enterprises for dealing with several small,
big or medium projects. As opined by Nippa and Reuer (2019), the agreements between business
partners has to be clearly represented for setting out the obligations and rights while conducting a
JV strategy. Moreover, litigation has to be avoided in any format of joint venture strategy.
Therefore, proper drafting is required.
Different strategies of successful joint venture
According to Sands et al. (2017), despite the fact that joint venture is useful at many prospects of
business operations, it has to be performed strategically otherwise the objective behind joint
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