Exploring the Dynamics of Global Joint Ventures: A Case Study Approach

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Table of Contents
Chapter 1 Introduction...............................................................................................................1
Chapter 2 Literature Review......................................................................................................3
Chapter 3 Research Methodology..............................................................................................6
Chapter 4 Results.....................................................................................................................10
Data analysis........................................................................................................................10
Finding.................................................................................................................................14
Chapter 5 Conclusion and recommendations...........................................................................16
Chapter 6: Reflection...............................................................................................................19
References................................................................................................................................21

LIST OF TABLES
Table 1: Action plan of 28 days.................................................................................................7

Chapter 1 Introduction
This research project has discussed the concept of globalisation and its associated
opportunities and threats. The globalisation has liberalised the trading between the foreign
business organisations. The globalisation has impacted developing as well as developing
countries, through which business organisations have expanded their operational activities
and crossed the national boundaries to explore new markets. In this research, the driving
forces of globalisation are discussed that has expanded the flow of labour, technology and
money across different countries (Globalisation, 2019). The study in this research focuses on
the joint ventures that can be entered between the international partners to expand their
business activities at a global level. The benefits and risks involved in the joint ventures are
discussed in this research that is required to be considered by the organisations before
entering into such ventures.
Background of the Study
Joint venture businesses that have recently entered into the global emerging market is
experiencing various benefits and demerits of globalisation. The current research project has
analysed the impact of globalisation on the joint venture entered by the Tata Global
Beverages and Starbucks to explore the market of India. This research has highlighted
various factors that lead to the expansion of the international market and allowed the
organisations to operate their businesses at a wider level. However, the threats of
globalisation are increasing that creates inequality of trade earnings among the people. This
project is being concerned with the outcome of globalisation that affects the joint venture
businesses like Tata Starbucks Private Ltd (Hill et al., 2017).
Research aim and objectives
Aims:
The aim of this research is to identify the benefits and risks associated with the joint ventures
to enter into the international markets across the world. Moreover, the current research
project has identified the impact of globalisation on the human resource management strategy
of global joint venture businesses.
Objectives: to carry out the research, the following objectives are identified:
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• To analyse the globalisation affects, benefits and threats to different countries across the
world.
• To evaluate the risks and benefits of joint ventures that is entered by the organisation
across the international markets.
• To identify the opportunities of Globalisation to the international joint venture business
entered.
• To analyse the impact of globalisation on the workforce management strategies when the
joint ventures are entered to explore new international markets (Puig et al., 2014).
The rationale of the research
This research is required to be undertaken to understand the meaning and impact of
globalisation on the global business joint ventures. Increased competition and easy transfer of
people, and technological advancement allow the joint ventures to get success in their
projects implemented across the world. However, this exerts pressure on the domestic
organisations and impacts their sales. Hence, this research studies with the objective to
identify the risks and advantages of joint ventures entered at a global level.
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Chapter 2 Literature Review
Globalisation and its driving factors
As per the International Monetary Fund, globalisation is a practice that helps to integrate the
economies of different countries through the seamless flow of finance and trade. It can also
be referred to as the movement of labour, and technology across different parts of the world.
In addition to this, globalisation is also linked with various cross border culture, environment,
politics, and social dimensions.
According to Mowforth and Munt, (2015) formation of various international trade
organisations, like, World Bank, World trade organisations, etc. has formulated various rules
and regulations regarding international trade and facilitated positive global changes with the
help of deregulation economies and lowering the trade barriers. Moreover, to attract
investments from foreign countries that help to develop the domestic economy is driven by
liberalising economies of different countries. After 1970, highly industrialised countries want
to expand their market at the global level with the help of their joint business ventures and
banks. This helps them to globalise the business ventures and access various essential
resources from other parts of the world.
Wright, (2016) has opined that developed countries sought various methods to
internationalise their business market through the establishment of financial corporations, and
industrial development across the world. This helps them to gain more favourable
opportunities in respect of products, brands, and investment operations. In addition to this,
with the introduction and development of technological advancements, has driven global
integration worldwide.
Opportunities and Threats of Globalisation
According to Gunn, (2017) integration of global markets offer huge opportunities to the
countries to easily access labour, technology, capital flows and create a larger export market.
Liberalised environment across the world helps to integrate cross-cultural aspects by offering
multiple opportunities for education, tourism, and employment opportunities. With the help
of globalisation, populous countries like India, and China has eradicated the poverty aspects
in their country and lifts the living standards of millions of people. The most visible impact of
globalisation can be seen with the improved competition across the world. This creates an
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environment of remaining competitive in the global market by regularly improving the
quality of products and services. This also forces domestic organisations to raise their
standard of products and services to compete with multinational companies. Moreover,
globalisation has encouraged multinationals to establish their business in developing
countries that lead to high inflow of foreign direct investments.
As per Intriligator (2017), globalisation has made easier the immigration of labour from
developing countries to other parts of the world. It creates unemployment issues for native
residents. Moreover, globalisation has led to increased inequality between rich and poor
people, as the global income growth and progress is not dispersed well. Global trade wars are
the results of globalisation. For example, the US is running trade deficits in goods can be seen
with Japan, Mexico, and Canada. Hence, a tariff plan is introduced in the US in which 10%
tariff is put on aluminium, and 25% is on steel.
Globalisation and Human Resource Management (HRM)
As per Hanson (2016), the free movement of human resources and technology across
international boundaries can only be possible with the help of globalisation. In today’s global
environment, HR managers of joint ventures have wide opportunities to select the right
candidate for the job across the different parts of the world. This helps the joint venture
business, like Tata Starbucks Private Ltd. to get employees of diverse skills and talent in their
working environment. To employ a workforce from diversified culture, talent, and ethics may
include, language difference, vocabulary difference, different communication channel, etc.
Hence, it requires training programs to manage cultural based manpower in the organisation.
In addition to this, understanding of different employment laws is essential regarding
monetary and non-monetary benefits available to the international workforce.
Joint Ventures and its types
Yan, A. and Luo (2016), has suggested that joint ventures are the agreement between two or
more parties to combine their available resources for a specific goal of business undertaking.
Joint ventures are generally entered by the participants for a short period to implement a
specific project in which they share their responsibilities, costs, profits, and losses. For
example, the joint venture entered into between a technology firm and a manufacturing
organisation to diversify the products with the advancement of new technologies. Another
example of a joint venture is Tata Starbucks Private Ltd., in which Tata is the largest
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multinational manufacturer and distributor of tea with headquarter in India and Starbucks is
an American coffee organisation. Both have entered into a joint venture to increase the sale of
their products in the India market.
As per Sun and Lee, (2013), participants of joint ventures have the opportunities to opt
different types of joint ventures according to the goals, purpose, scale, etc. of establishing
joint ventures. Limited cooperation joint ventures are entered between the parties in which
they collaborate their business activities in a specific way. For example, small business
collaborates with the distribution organisation to sell its new products at the global level.
Separate joint ventures are entered with the establishment of a new organisation in which
both the partner shares their profit, loss, and responsibilities. Business Partnerships are the
result of a merger between the business of two organisations.
Benefits and risks of Joint ventures
Killing (2013), has opined that the main purpose of entering into a joint venture is to gain the
benefit of combine strength and risks can be minimised. Joint ventures help the participants
to explore new markets with the introduction of new products and services or making
improvement in the existing one. With the help of joint ventures organisations, like, Tata
Starbucks Private Ltd. can save their time and costs associated with the operational,
advertisement, and other marketing activities. Joint ventures between the business
corporations lead to the creation of global business links of the participants and referrals. An
important benefit of the joint venture is associated with the technology and advanced devices,
with the help of which parties can combat the competition in the global market.
According to Liesch (2014), along with the benefits of joint ventures, there are some risks
also involved in the joint venture business. Risks in joint ventures may arise when there are
unclear objectives for the establishment of joint ventures, or the objectives are not clearly
communicated to the subordinates. In addition to this, partners in global joint venture belong
from the different cultural environment and possess different expertise that may result in
conflicts among them. The early stages of joint ventures are crucial for the success of a
project; however, if the partners do not focus on effective leadership, then it may result in
failure of the project involved in the joint venture.
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Chapter 3 Research Methodology
Type of research:
There are two types of research that an investigator can use to conduct its research.
Qualitative research helps to identify the issues and insights into the problems. It also
facilitates the researcher to get new ideas for potential quantitative research. On the other
hand, quantitative research is conducted to generate data in a numerical form. It is generally
used to quantify the variables and get the outcome from a sample population. In the current
research, qualitative and quantitative research both the data are considered for the
investigation (Susan, 2011).
Sampling:
It is a statistical method used to select the observation of individuals, and accordingly
statistical inferences are drawn. There are different types of sampling that can be used by the
investigator. However, in the current scenario, the investigator has used the random sampling
method in which a sample size 30 is selected to analyse the observations. The respondents in
this research are investors, some researchers, and employees of the international joint
venture, Tata Starbucks private Ltd., who have agreed to involve in the research. Such
respondents have expert knowledge, tactics, and desired experience that helps to get the
reliable and correct outcome in this study. The sample size of 30 employees is selected
randomly by the researcher (Research Methodology, 2019). Under this research, various
questions asked from the respondents with the help of questionnaires regarding the risks and
benefits associated with the joint ventures businesses entering into the global market. The
opinions of respondents are analysed, and accordingly, conclusions are drawn.
Data collection methods:
The data under the research can be collected by two methods, which are primary data and
secondary data. Primary data are those data which are fresh and original. Such type of data is
collected by the researcher for the first time. On the other hand, secondary data is collected
some other individual, and all the statistical processes are already done on it. To collect
secondary data, the investigator can utilise the sources, like, publications of government,
books, newspapers, magazines, published records, etc. There are various methods of
collecting primary data which includes observation, interviews, questionnaires, surveys, etc.
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In this research primary data collection method is used by the researcher to identify the
advantages and risks involved in the joint ventures entered by the parties to explore the global
market. The suitable instrument for conducting the current research is questionnaire which
has helped the investigator to analyse the data effectively and reliably (Surbhi, 2018).
Questionnaire method is suitable in the case of big enquiries in which the questionnaire is
sent to the respondents for their response. Respondents understand the questions underlying
the questionnaire and write down the reply in it. This research has presented a graphical
representation that shows the views of respondents in an understandable form.
Research approach:
The research approach is categorised into two forms, which are inductive and deductive. The
inductive approach refers to the reasoning method in which explanations and theories are
developed through a series of hypothesis with the help of a pattern. The deductive approach is
used to understand the research topic with the help of the research hypothesis.
Research design:
It is the set of methodologies and procedures which are combined by the researcher in a
logical manner to manage the problems of research effectively. Research design helps the
researcher to identify the method to conduct reliable and accurate research with the help of a
particular methodology (Research Methodology, 2019).
Cost and resource planning:
In the current research project, the resources are organised and allocated effectively with the
help of a systematic resource plan. There are various resources utilised in this study optimally
to draw the conclusion, which includes, people, places, equipment, money, etc. It is assumed
that the cost of this research is $30000 which is allocated to different resources in an
appropriate manner. In addition to this, $500 is kept for contingency purpose. The estimated
time period within which the research work is completed is 4 weeks (28 days).
Table 1: Action plan of 28 days
Range of days
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Project
activities/ time
4-8 9-12 13-16 17-20 21-24 25-28
Research topic
Primary data
collection
method
Quantitative
approach of
data analysis
Development
of the research
questions
Secondary
collection of
data
Qualitative
approach data
analysis
Analysis and
results
Final results
Data
evaluation and
reviewing
Data analysis method:
The researcher has utilised the various other tools and techniques to analyse the data in the
current research effectively. Questionnaire method is selected to study the research in which a
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sample size of 30 respondents is taken to get their response. In addition to this, a graphical
representation of the views of respondents has helped the investigator to analyse the data
better and accordingly conclusions are drawn.
Ethical consideration:
In the current research, the researcher has considered all the ethical aspects to conduct the
research and to get the true and factual information (Ethical Considerations, 2019). The full
consent of the respondents to involve in the research is obtained by the researcher before
conducting the study. The data from the respondents is collected by mailing questionnaires to
them. They have answered the questions without any biases. The data collected from the
respondents are saved in the computer system and secured with reliable authentication
procedure. In addition to this, all the communication with respect to the research is done with
transparency and honesty.
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