Risks and Benefits of Joint Ventures: Adam's Restaurant Case Study

This research report examines the impact of globalization on Adam's Restaurant, focusing on its joint venture strategy for international market entry. The report delves into the trends of globalization, identifying key entry strategies and the benefits of joint ventures, such as enhanced market presence and shared resources. It also articulates the risks associated with joint ventures, including cultural mismatches and political instability, using Adam's Restaurant as a case study. The methodology includes a literature review, outlining research questions and objectives, and a discussion of the research approach, design, and philosophy. The results section highlights the importance of globalization, challenges faced, and key trends of joint ventures. The report concludes with recommendations and reflections, providing insights into the complexities of international business expansion and the strategic considerations for successful joint ventures, contributing to the understanding of globalization's impact on the hospitality industry. It provides a detailed analysis of the restaurant's expansion into the international market and the associated challenges and opportunities.

RESEARCH REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Aim:.............................................................................................................................................2
Objectives:...................................................................................................................................2
Research Questions:.....................................................................................................................2
LITERACTURE REVIEW.............................................................................................................2
Theme:1 Identify the trends of globalisation in context of entry strategies................................2
Theme:2 Determine the benefits of joint venture entering into international market.................3
Theme:3 Articulate the risks associated with joint venture in international business
environment.................................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................4
Research Method.........................................................................................................................4
Research approach.......................................................................................................................5
Research Design..........................................................................................................................5
Research Philosophy....................................................................................................................5
Data collection Method................................................................................................................5
Sampling......................................................................................................................................6
Data Analysis...............................................................................................................................6
Ethical Considerations.................................................................................................................6
RESULTS........................................................................................................................................7
1. Importance of globalization for an organization in order to grow and develop......................7
2. Major challenges faced by Adam's Restaurant while entering into international market.......8
3. Key trends of joint ventures.....................................................................................................9
4. Benefits of joint venture while entering into international market........................................10
5. Risk associated with joint ventures........................................................................................11
CONCLUSION AND RECOMMENDATIONS..........................................................................12
Conclusion.................................................................................................................................12
Recommendations......................................................................................................................14
REFLECTION...............................................................................................................................14
REFERENCES..............................................................................................................................16

APPENDIX....................................................................................................................................17

INTRODUCTION
Globalization is a process of integration and interaction among companies, governments and
people of various countries. This type of process is driven by investment, information technology
and international trade. With increase in competition for enterprise brought on by globalization
and also opening of national borders, companies continues to look for competitive advantages in
global marketplace. A Joint venture can be divided into multiple businesses from different
countries as a partnership while the primary purpose is to maintain on-going business
capabilities. Globalization has increased the more popularity among joint venture at local,
international and regional level. There are common key trends of Joint ventures such as deadlock
breakers, dispute resolution, funding obligation and decision-making.
The nature of problem has been discussed in report for identifying benefits through
globalization that directly affects on the business performance and efficiency. “Adam’s
restaurant” has made a joint venture with other restaurant at china market for purpose of business
expansion. There are various challenges faced by organization when they want to established
their business in the new markets. It may be identified the risk related resources, equipment,
financial. In this way, it is very difficult for restaurant to main position in global world. The
international of Adam’s restaurant is mainly deals with several risk and control the economic
instability and political conflict. In some situation, it become complicated to establish the
position into new marketplace. The report is mainly focus on the different risks and benefits that
will associate with joint venture to enter into international marketplace. It will discuss about the
concept of globalization that will develop an opportunity for hospitality industry to increase
productivity and profitability in marketplace.
Background of study
In the background study, it must identify the weakness and strength of “Adam’s restaurant”
which help for understanding overall business functionality and change their procedures
according to trend of current market. The restaurant is operating their business in UK which
provide variety of food option for customer in local areas. It has been increased the popularity of
“restaurant” business at national level so that they have made plan to enter into international
level through partnership with Ultraviolet restaurant.
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Significance of study
The purpose of study is to identify the risks and benefits associated with joint venture to
enter into international market. research project will help to develop own capabilities for gaining
more knowledge related topic. in this way, it can identify important points that acquire data or
information where how Adam’s restaurant has enhanced the business into international market
through support of joint venture.
Aim:
 To identify the risks and benefits associated with joint venture to enter into international
market using Adam's Restaurant as a case study”.
Objectives:
 To identify the trends of globalisation in context of entry strategies.
 To determine the benefits of joint venture entering into international market.
 To articulate the risks associated with joint venture in international business environment.
Research Questions:
 How can identify the trends of globalisation in context of entry strategies?
 What are benefits of joint venture entering into international market?
 What are risks associated with joint venture in international business environment?
LITERACTURE REVIEW
Theme:1 Identify the trends of globalisation in context of entry strategies
According to Turcan, Boujarzadeh and Dholakia (2020), Globalization has impacted on the
communities and people across global world and always influenced towards sustainability
development. The advancement of technology has raised while change the goods, services,
labour and capital. In past decade, globalization has changed overall economies condition,
natural environment and societies.
As per Quinlan, Babin and Griffin (2019) There are several major trends in globalization
that consists of scientific, governance, information technology, demographics and economic
interdependence in context of entry strategies. These are trends that influence the organizational
business for increasing efficiency and performance in global marketplace. the trends cannot be
separated but interdependent. There are various factors integrated with trend in globalization
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which directly affects on the growth of population. In additional, an advancement of technology
can influence organization to use latest technique or method in business operations and
functions. Information technology allow for several global transaction related commercial
purpose which take place at commerce. It became highly involves complex compliance,
coordination, communication of international market.
As per Li, Hernandez and Gwon (2019) opinion to understand the concept of trend in
globalization which is important to identify the competitors, those who are increasing their
international financial capabilities and abilities. The developing nations will see highest
economic growth and development as they become closer to living standards of people. If
organization is growing rapidly in market so as require to maintain the economic system, culture,
environment and financial stability that influence for increasing profitability. It only possible to
assume trends in globalization that always support for enhancing business opportunities.
Escriva-Muñoz-de-Prat and Villó (2019) argue that many organizations will be used
Global entry strategy in term of globalization. Exporting is important which help for sending
goods produced in one country to another. In this way, it helps to enter in international market by
using Global entry strategy. A joint venture is a type of entry strategies that help for developing
partnership between foreign firm
It provides the better quality of product and services to customer. Most of companies that
employee such strategy which are often to invest into emerging markets. The enterprise that must
follow the entry strategies which often included local manufacture to export key resources into
large business in other nations.
Theme:2 Determine the benefits of joint venture entering into international market.
According to Scott (2019), Joint venture helps for commercial business where it will
combine with one or more organization by using essential resources. In this way, it will gain the
more strategic edge and tactical in global marketplace. The organizations often enter into market
through Joint venture where they are mainly focused on the specific project. The advantage of
Joint venture is to develop strong business position which may achieve productivity and
profitability in marketplace. It is beneficial for organization to enter into emerging market with
the help of joint venture, supports for business to handle business loss and profit They also
shared by different participant members.
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Bilotkach and Hüschelrath, (2019), Said that A joint venture may enable organizations to
enter into international market in quickly manner. It should follow all type of rules, regulations
and logistics that are undertaken case by other people joint venture help for big organization that
will provide the financial benefits. in this way, it easily expanding business all over the world.
Joint venture will be acquired the extensive channels that provide benefits for diversifying the
more revenue generations. It is the best ways to resolve issues and provide benefits to meet
expectation of business organizations for long-term growth or development.
According to Scott (2019) On the other hand, it has examined that Joint venture provide
benefits for organization that often in mergers and acquisition in terms of financial synergy
which lower cost of capital and operational synergy. In this way, it is increasing business
operational efficiency and performance in global marketplace.
Sometimes, Joint venture has undertaken the agreement between one or more
organizations should have considered specific terms as well as condition in respect with
activities. this type of contract-based agreement between two organization helps to find out
original scope of work in the emerging markets.
Theme:3 Articulate the risks associated with joint venture in international business environment
As per Nambisan, Zahra and Luo (2019), There are several risks associated with Joint
venture in the international enterprise environment. A set of new partners that may have different
goals of joint venture but these objectives may threaten success where it has not cleared the
proper arrangement. Sometimes, the participants is properly involved within communication. So,
as it has developed the issues between Joint venture and other company. Cultural mis-match is
another type of risk that associated with two organization as a partnership. It has increased the
poor integration, threating. Sometimes, it also imbalance the level of expertise and assets
brought into venture by several parties. They may increase problem and conflict between two
companies.
As per Crabtree and et. al. (2019), it can be identified the various type of risk that
associated with Joint venture. It is also related with the government intervention in enterprise
operations of organization either indirectly and directly. Political risk factor which directly
affects on the business profit rate of joint venture in terms immigration restrictions, fund
repatriation procedures and policies. In the organization, it will associate the internal risks in the
business operation through partnership between two business. in this way, it directly affecting
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on the internal enterprise functionality . sometimes, it may involve technical abilities, size of
companies and experience.
RESEARCH METHODOLOGY
It is based on the activities that perform different operation for result or outcome. (Bresler
and Stake, 2017). it is considered as an initial foundation which help for gathering a large
amount of information.
Research Method
It is a systematic plan for collecting a large amount of data or information. Through
research method, it has gained more knowledge about research topic. The research method can
be categorised into different types: Qualitative research method and Quantitative research
method.
The investigator has chosen quantitative research method for collecting a large amount of
data, which may be related to the mathematical instruction. It is based on the Mathematical
calculation that generate accurate result.
Research approach
It is considered as a scientific plan and process that useful for understanding about the
assumption to analyse the data, which may be applied within research project (Quinlan, Babin
and Griffin, 2019). It help to identify research problem at the time of data collection. It can be
divided into different groups: Deductive, Abductive and inductive research approach.
The investigator has chosen inductive approach that start with observation by using non-
numerical values. In order to explain overall idea about research topic.
Research Design
It is a type of fundamental concept that researcher must consider as an approach for
identifying problem and fix them by using suitable research method. The research design can be
categorised into two types such as Conclusive and exploratory research design.
The Researcher has chosen exploratory design which applied within research case study
for identifying result or outcome. It helps for scholar to reach on particular information about
research topic and also useful in decision-making.
Research Philosophy
It is based on the belief about the best way in which information should be gathered
related to the research project (Humphries, 2017). It became easier for investigator to develop
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assumptions, nature of study and knowledge. The research philosophy deals with the knowledge
for improving own idea on case study. There are common philosophies included such as
pragmatism, interpretivism, positivism and realism.
The Researcher has chosen Interpretivism that help for providing factual knowledge
which may gain through observation and survey. This type of philosophy is based on the
qualitative.
Data collection Method
It is a method for finding and collecting data related to research project. It can be
analysed about the existing theories which may define actual concept exits within case study.
There are two data collection method: Primary data collection and secondary data collection.
The scholar has chosen primary data collection method with the help of survey. The data
collection method help for identifying suitable data related to research study where researcher
easily evaluate the outcome. The advantage of primary data collection is that when it helps for
collecting data or information from authenticate sources in proper manner.
Sampling
It is based on the principle that help for choosing an appropriate member within large
population (af Wåhlberg, 2017). There are large number of populations and select particular
roles within research project. The investigator has chosen simple random sampling technique for
selecting participant member within case study. The sample size is 30 customers.
Data Analysis
In terms of qualitative method, Data analysis mainly involves interpretation of numerical
values. Therefore, it attempts to find out rationale as behind findings. Researcher has chosen
questionnaire that will be analysed using statistical method
Ethical Considerations
Ethical consideration is important aspects for maintain the dignity of each participants, in the
research project, it should be required to protect or secure important data related research topic.
It always respects for participants, those who were performed their significant roles and
responsibilities (Humphries, 2017). In order to identify the ethical issues in the dissertation.
 The use of discriminatory and other type of unacceptable language increases so much
confliction among members at the time of interviews or survey. So as implement equality
rules for every participant for maintaining dignity of other people.
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 The leakage of data or information related research project which may increase risk of
data loss. In this way, it should be required for participants to maintain security and
privacy.
 The Ethical problem arise related misleading information that needed to avoided biased
way of data findings.
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RESULTS
1. Importance of globalization for an organization in order to grow and develop.
Question 1: Do you think Globalization is important for an organization in order to develop and
grow?
Options Respondents Frequency (%)
Strongly Agree 15 50 %
Agree 11 36.66 %
Neutral 2 6.66 %
Disagree 1 3.33 %
Strongly disagree 1 3.33 %
Total 30
Mean 6
Mode 1
Median 2
Std. Dev. 6.55
0
2
4
6
8
10
12
14
16 Strongly Agree
Agree
Neutral
Disagree
Strongly
disagree
Figure 1 Importance of Globalization
Interpretation: From the above graph it has been interpreted that fifty percent of people strongly
agree with the question that globalization is important for organizations for their business growth
and development. 11 of the customers agrees to the question, however there were 2 customers
who gave a neutral answer and two of them disagreed to the question. So, from this it has been
analysed that globalization is important for development and growth of an organization this is
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mainly because globalization provides an organization an exposure to international market,
global customers and also provides it an opportunity to enter within the market.
2. Major challenges faced by Adam's Restaurant while entering into international market.
Question 2: What are the major challenges faced by Adam's Restaurant in order to enter into
global market?
Options Respondents Frequency (%)
Resources 13 43.33 %
Financial risk 10 33.33 %
Equipment’s 6 20 %
All of them 1 3.33 %
Total 30
Mean 7.5
Mode Not available
Median 8
Std. Dev. 5.19
0
2
4
6
8
10
12
14
Resources
Financial risk
Equipment’s
Others
Figure 2 Challenges faced by organizations while entering into global market
Interpretation: From the above graph, it has been interpreted that there are various challenges
that are faced by organizations while entering into international market, 30 out of 13 respondents
said most of the organizations faced challenges in terms of resources, 10 answered financial risk,
6 of them answered that equipment’s are one of the main challenges and only one of them said
that an organization can face all of these challenges together. So, from this it has been analysed
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