Analyzing Risks and Benefits of a Joint Business Venture for ASOS

This project analyzes the risks and benefits of a joint business venture, specifically focusing on ASOS's potential entry into the Australian market through a partnership with Camilla and Marc. The project begins with an introduction, aims, objectives, scope, limitations, and cost analysis. It then explores various modes of international market entry, the risks associated with joint ventures, and the advantages for ASOS. The methodology includes a questionnaire and log book to gather data. The results section presents findings on ASOS's readiness for a joint venture, alternative market entry methods, the benefits of the venture, and identified risks. The conclusion and recommendations suggest licensing and franchising as additional entry strategies. The project also includes a reflection and references to support the analysis. The findings provide insights into the potential challenges and opportunities for ASOS in the Australian market, offering valuable information for business development and international expansion strategies. The project uses a Gantt chart and risk register to provide timeframes and stages for the project wind-up.

Managing a Successful
Business Project

Table of Contents
1. Introduction about topic...........................................................................................................3
2. Aims and objectives.................................................................................................................3
3. Scope and limitations of project..............................................................................................4
4. Cost and resources...................................................................................................................4
5. Gantt chart to provide time frames and stages for wind-up.....................................................4
6. Risk register covering main risks with proposed research.......................................................6
CHAPTER 1- Introduction..............................................................................................................7
CHAPTER 2- Literature Review.....................................................................................................9
Different modes of entering into international market................................................................9
Risk related with joint business venture......................................................................................9
Benefits and advantage of joint business venture for ASOS as enter into Australian market...10
Recommendations as to overcome risk of joint business venture.............................................10
CHAPTER 3 - Methodology.........................................................................................................11
CHAPTER 4- RESULTS.................................................................................................................1
CHAPTER 5- Conclusion and Recommendations..........................................................................9
CHAPTER 6- REFLECTION..........................................................................................................1
REFERENCES................................................................................................................................2
Questionnaire...................................................................................................................................1
Log Book.........................................................................................................................................3

Topic: To identify the risks and benefits of a joint business venture to enter international
markets.
1. Introduction about topic
Joint venture is the business arrangement or agreement between two or more companies
in which both parties agree to pool its resources for the intention of accomplishing the particular
task and increase profitability and productivity. It represented as contractual agreement between
two companies that aims is to undertaken business. ASOS is British cosmetic retailer and online
fashion company (Perkins, Morck and Yeung, 2014). They want to enter into new international
market for example Australian market with the help of joint business venture. In other words, JV
is business entity made by two organizations, usually characterized by shared returns and risks,
shared ownership and governance. In this process there are many methods include in it which
help to entered into new market successful and associated with range of risks and benefits that
impact on overall businesses financial performance and other activities.
The main reason behind choosing this topic is to measure the modes of entering into
international market and also define the benefits and risks connected with JV that might be
influence business and its capital expansion process.
2. Aims and objectives
Aim-
To identify risks and benefits of a joint business venture to enter Australia: A study on
ASOS Plc joint business ventures with Camilla and Marc.
Objectives-
 To analyse the various modes of entry into international market.
 To determine the risks of joint business venture.
 To evaluate the benefits of joint business venture to enter into international markets
 To recommend ways to overcome the risk associated with joint venture
Research questions-
 What are the different modes of entering into international market?
 What are the risk related with joint business venture?
 What is the benefits and advantageous of joint business venture for ASOS enter
Australian market?
 Recommendations as to overcome or reduce risk of joint business venture.

3. Scope and limitations of project
The project cover all the risks and benefits of joint business venture that provide way to
company as they want to enter within international markets or Australia.
Limitations-
Inappropriate data analysis, lack of data collection, wrong interpretation and less number
of participants.
4. Cost and resources
Cost-
Cost is calculated within project for required resources based on pay rates, totals for cost
and fixed costs that is assigned to tasks.
Resources-
Resources is required and essential to carry out the project and accomplish tasks. It can
be, people, funding or anything else capable to needed for completing the project actions.
Resources Cost
Equipment 100
Skilled labour 120
Research 80
Technology 100
Total Cost 400
5. Gantt chart to provide time frames and stages for wind-up
Activity 5th
Feb
2019
3. to
4
Week
5 to
6
Week
7 to 8
Week
9 to
10
Week
11 to
12
Week
13 to
14
Week
15 to
16
Week
17 to
18
Week
1st
May
2019
Identify
research topic
Review of
Literature

Drafting
Methodologies
Complete
Proposal
Designing
questionnaire
Collection of
data
Analysing data
and
interpretation
Discussion and
Conclusion
Submitting

6. Risk register covering main risks with proposed research
Risk Register is the best tool for documenting project risks and activity to manage each
and every risks. It is very important to successful company and its management of risk because it
helps to identify risks or causes logged on register and actions against risk taken to reduce it. It is
the tool in which project management and risk management of ASOS company mention previous
risk and identify the better action as taken to respond them. Strategic risk, operational risk,
financial risk, compliance risk and other risks are included in risk register that help to prevent
them in the future.

CHAPTER 1- Introduction
Joint venture, the commercial organization undertaken together by two or more firms
which otherwise hold its distinct identities (Hitt and Xu, 2016). It defined as two basic purpose
for example, ongoing purpose and singular propose. In Joint business Venture companies
transfer their assets, resources and equity to make it business more successful and progressive.
Sometimes, business companies come together and establish new entity altogether for their Joint
venture. It is the legal procedure followed by companies for example ASOS to enter into
Australian market via joint business venture with Camilla and Marc, it is an Australian
women's fashion label. JV is quite different from the merger in sense that there is no conveyance
of ownership in business deal. It is the partnership in informal sense of word, take on legal
structure. Partnerships, corporations and limited liability organizations used to form Joint
venture. Production is the main purpose of JV, it can also form for continuing specific purpose. It
is the best way to combine smaller and large firms together to take on several big or deals, little
and projects (Thompson, Strickland and Gamble, 2015). JV agreements sets out all the business
partners obligations and rights. Initial contribution of joint business venture, rights to profits, day
to day operations and responsibility for losses within entity of JV is all set out in this legal
document. The most common use of Joint venture procedure is to partner up with local company
within Australia to enter in the foreign market.
Limited co-operation, business partnerships and separate joint venture business are the
three types of Joint venture that is beneficial for company enter into international market. It's up
to management what kinds of JV they want to chose as suitable for them. Business expansion,
moving into new markets and development of new goods or services are the main reasons behind
forming the JV. Joint venture is usually non transferable and cannot include creation or
innovation of the new company unless one is filed for such as the LLC. The company
relationship in JV typically last anywhere in world form 5 to 7 years. Profit at low cost, start up
push, shared expenses, risk and benefits and flexible nature are the advantages of Joint venture
(Pukall and Calabrò, 2014). But there are many disadvantages of JV such as Restricted
flexibility, rapport formation, assets and claims and equal involvement in profit is impossible.
Joint venture provide many benefits to company or specific industry associated with risks that
affect overall expansion procedure as well as financial performance of entity. It helps
organizations project grow faster, generate additional revenue and profits and also increase

productivity than previous. To expand existing business in new market any firms must pay taxes
which is important for them as to enter into international market. The portion of their profit is
claimed on that person's individual tax returns, partners pay taxes for business progress.

CHAPTER 2- Literature Review
Different modes of entering into international market
As per the view of Dybå and Dingsøyr, (2015) there are many ways to enter into the
international market such as Franchising and Licensing this strategy allows the another person or
the business thought the risk on behalf of the company. In these agreements business based on
overseas pays the royalty or commission for using the name of brand, process of manufacturing
the product, trademark or another intellectual property. At the same Licensee and franchise
assumes the associated risk and bear the losses and share the some proportion of revenue and
profits. It givers the passive source of income having the low investment in international market.
Joint venture also provides the good platform and it is one of the most preferred way for the
business to enter in international market suitable for those who did not mind in sharing their
brand, knowledge and expertise. Company who wants to explore in overseas can form the joint
venture with the local business in the international location and these both the parties share the
risk and rewards that is associated with the joint venture. In fact in joint venture political risk is
low as there is having the presence of local partner and that partner possesses the knowledge of
local and business environment. As per the opinion of Dutta and Bose, (2015) Foreign Direct
Investment is considered as one of the great mode to enter in overseas market by doing the
substantial investment in international countries. This strategy involves the merger and
acquisition, green field investment etc. this strategy is feasible at the time when the demand,
potential growth and the size of the market justify the investment. This will leverage the labour
at low cost with the cheap material and many other things that reduce the cost of manufacturing
and gains the competitive advantage from the competitors.
Risk related with joint business venture
As per the opinion of Polonsky and Waller, (2018) every business is having their own benefits at
the same risks are also associated with the business. In joint venture the major risk involved are
there is lacking in the clarity related to the obligations and the responsibility for each partner.
Partners are having the different levels of expertise, investments and assets into the venture.
There is always having the chances of clashes in the management style as both the partners are
having the different style of management and the techniques they used in their business this will

lead to the frequent conflict. They also have the conflict of interest in the matter of imbalance the
capital and the resources that is being invested by the partners this factor may lead to the conflict
among the partners. Difference in the culture of management styles leads to the poor integration
and cooperation among the partners. If the conflicts were not resolved than it ultimately impact
negative on the joint Venture. Unrealistic expectation ensures about the role players and they are
on the same platform when it comes about the success of Venture. There must be having the
clear indication regarding the chances in winning the tender and profits were made after the
tender awarded, so all the parties are having the unrealistic expectations regarding the expected
profits. Risk of finance always associated with the business and inn the joint venture if any of the
party is struggling for the financial issues than it will lead to the downfall as the reason behind is
simple that the struggling partner drain out the venture and these were the risks that is associated
with the venture.
Benefits and advantage of joint business venture for ASOS as enter into Australian market
As per the view point of Killing, (2017), it is stated that Joint venture helps to increase
the capacity of the business. It helps to share the risks and costs as two firms becomes
responsible after doing joint venture, Thus, the costs and risks is distributed between the equally.
According to the Nippaand Reuer, (2019), it is stated that through doing joint venture the
company can combine access the resources in greater way. The productivity of firm can enhance
by distributing the resources. They are now able to access the finance and technology of the
another firm with which they decided to do Joint venture.
As per the view point of Dussauge, Arslanand Wassmer, (2015), it is stated that Joint
forces can go purchasing and do research of the products and services easily as now they have
enough funds. Together the partners can also brings expertise people in the firm
According to the Dussauge, Arslanand Wassmer, (2015), it is sated that Joint venture
creates synergy together the firms can achieve desired results easily. They can also able to cope
up with the economics of scale (Merna, Vlcek and Michl, 2016). Joint venture partnerships can
bring innovation in the market and can take competitive advantage easily.
Recommendations as to overcome risk of joint business venture
The risks of Joint venture business can be minimized by ASOS before entering into
Australian Market in following ways -
 They need to plan carefully in order to minimize the risk efficiently.

 They should communicate with the other partner whom which they are thinking to do
Joint Venture, Through adopting this, the agreements can be done in clear form between
two parties.
 They also need to build trust with one another as to go long with their partner in this
business.
 Performance should monitor on regular basis for making further improvements in the
area in which they are lacking.
 The need to be flexible in order to cope up with the unfortunate situations.
CHAPTER 3 - Methodology
Research Type
Research can be defined as the systematic study of the topic in which it determines the
solution to the problem. There are four types of research namely, descriptive, experimental,
quasi-experimental and correlational. The investigator will use descriptive research because it
provides detail information of a particular subject of the research.
Research approach
It consists of projected plan and procedures that define elaborate method of collection.
This is further divided into two broad categories namely, data collection and reasoning. This
approach is of three types such as abductive, deductive and Inductive. The Deductive research
consists of hypothesis. In this a hypothesis is being determined and on the basis of it further
evidences for investigation has being collected (Kranc, Elmore, and Radhakrishnan, 2019). In
Inductive research it is defined by general laws through its inference. In abductive research it
starts with the surprising facts. Hence, for analysing the various modes of entering into
international market ASOS investigator will choose Inductive research (Merna, Vlcek and Michl,
2016). As they are not known of what major modes they need to take in order to enter into
international market, the Inductive research is best for them. It provides conclusion with logical
reasoning.
Research Design
It refers to the procedures and use of various methods through which the problem of
research can easily be identified. It is a type of systematic study in which outcomes are evaluated
in scientific way. There are four types of research design. First one is Exploratory research, in
this the answer for the study is determined by investigating a lot and questions are conquered in

how and what manner (Research Design – Types of Research Design, 2019). Second one is
descriptive, in this the researcher can identified the depth information about the topic of research.
Third one is explanatory research, in this the researcher seeks for explanation to the problem.
Lastly in evaluation the investigator measures out the study effectively. Therefore, to determine
the risks of joint business venture of ASOS, researcher will opt descriptive research design as it
provide information in detail.
Research Philosophy
This refers to a belief in which data can easily be gathered about the phenomenon. The
research philosophy can be defined in three categories such as Positivism, Pragmatism and
Interpretivism. In positivism the viewpoint of researcher is to take scientific measures for getting
answer to the problem (Merna, Vlcek and Michl, 2016). In Pragmatism the practical approach is
taken. In Interpretivism philosophy there is involvement of human interest into the study. Thus,
for evaluating the benefits of joint venture the investigator will choose Interpretivism research
philosophy as it gives coherent outlook to the study.
Data Collection
It can be defined as collection of insights to the study by procedure of measurement and
analysing the data. There are two ways of data collection Primary and Secondary. In primary
data collection method the information is collected by the investigator itself. It is collected
through questionnaire and data analysis method whereas in secondary data collection method the
researcher relay on some other data sources such as books, articles and newspapers. The Primary
data collection method is time consuming but it provides accuracy to the study. The investigator
adds its own facts and figurers into the research. Thus, the Primary data source will be preferable
as it original and accurate and it is collected through making questionnaire.
Sampling
It refers to the process in which data is gather by taking random number of observations
into the study. The sampling can be classified into following categories such as Simple random,
stratified and cluster sampling. In Stratified sampling population is divided into seperate groups.
In Custer sampling the sample is selected on the basis of the size. There are two types of method
Probabilistic and Non-Probabilistic Thus, the Simple random sampling will be done through
using Probabilistic method. In which 30 respondents will be taken as the employees of ASOS.