Assessing Joint Venture Business for Ensoft Ltd. in Global Markets

This project report assesses the risks and benefits of a joint venture business for Ensoft Ltd., a UK-based software company, aiming to expand into international markets. The project analyzes the impacts of globalization on business operations, particularly in the context of joint ventures. The research includes a project plan outlining costs, scope, timeframes, and quality assurance measures. A work breakdown structure and Gantt chart are provided to illustrate the project's organization. The report examines the advantages and disadvantages of joint ventures, the impacts of globalization on international recruitment, and presents recommendations based on research findings. The study reviews existing literature on globalization and joint ventures, identifying key factors and challenges. The research employs a project management approach, including cost analysis, risk assessment, and communication strategies. The project addresses the challenges of globalization and joint ventures in global markets and offers insights into Ensoft Ltd.'s potential expansion strategies.

Unit-6: Managing a Successful Business Project
Project Title: Globalization
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Every business entity has an aim to be global brand through expanding the business operations
nationally or internationally. Both are possible by means of strategic alliances through franchise, joint
venture and merging with another company(Amit and Zott, 2001). These types of business formation
are the blessings of globalization. Globalization is defined as the means of expanding businesses
around the globe in the context of marketing, production, researches and innovation for increasing
benefits on sustainable basis(Dunning, 2013). In this research the impacts that can be positive or
negative due to globalization on the businesses specially incase of joint venture business in
international trends. To critically assess the risks and benefits of joint venture business a UK based
Software Company Ensoft Ltd. has been chosen that are willing to shift into international markets.
Project Aims: The aim of this research project is to critically assess the advantages and disadvantages
of joint venture business for Ensoft Ltd. in international markets. Another additional aim is to assess the
influencing factors of globalization on such business organization.
Project Objectives: For accomplishing the research aim, some objectives need to be determined by
the following ways:
 To critically examine the advantages of joint venture for Ensoft Ltd. in international markets.
 To critically examine the disadvantages of joint venture for Ensoft Ltd. in international
markets.
 To critically examine the impacts of globalization on international recruitment process of
Ensoft Ltd.
 To make effective suggestions by following the research findings.
Producing Project Plan:
Developing a Project Management Plan
Project Title “Assessing The risks and benefits of a joint business venture for Ensoft Ltd. to
enter international markets.”
Companies Ensoft Ltd. - a UK based Software company.
Executive
Summary
The project plan would generally highlight the costs, scope, resources,
communication style, leaderships, risks and data analysis methods of the
research. This also includes the information regarding timeframes and quality
assurance.
Cost Total cost would be £18000 to be completed the research.
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Scope The research would fulfill the gap of unavailability literature about
globalization and its impacts, nature of joint venture business, challenges of this
method with benefits for the organization in international context.
Time The management budgeted 1.5 months to complete the project.
Quality Research quality would be ensured by primary data and quantitative with
qualitative analysis incorporating the issues of TQM for continuous
improvement of the research project.
Communication The project leader would apply the follow up communication style for
collaborative supports from lower level and higher level of the research project.
Risks Risks include schedule breakdown and insufficient fund due to extra costs.
Resources Team members, project leader, computers, offices and internet supports.
Work Breakdown Structure: This is the picture of research functions that would be completed by
following the sequence appropriately. This will help the project members to understand the tasks and
responsibilities related to research project(Feely and Harzing, 2003). The structure of this project is
given below:
Gantt chart:
Limitations of the Project: The main limitation of this project, it would not consider the
impacts of macro environment factors for the selected company in global locations like
Germany. It is only limited to assess the merits and demerits of joint venture business in global
markets scenarios.
Tasks Wee Wee Wee Wee Wee Wee Wee Wee Wee Week
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k1 k2 k3 k4 k5 k6 k7 k8 k9 10
First meeting
with
supervisor for
research
introduction
Literature
review
Research
methodology
and second
meeting with
supervisor
Data
collection
Meeting with
supervisor
Data analysis
findings,
discussion
and
presentation
Final meeting
with
supervisor
Feedback and
recommendati
ons
Thesis
Submission
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Preparing a Comprehensive Project Plan:
Comprehensive project plan describes the time frames, project costs, stakeholders, beneficiaries, the
reasons of research objectives and all the deliverable of the project. The details of this project are given
below:
Research Aims and Objectives: The research has been taken to examine the impacts of globalization
on business functions specifically on recruitment process of Ensoft Ltd. The research will also explore
the advantages and disadvantages of joint venture for the company in global perspective. This will help
the company whether it will go to international markets on no.
Beneficiaries and People of the Project: The benefits from the research would be taken by company
management, owners and investors of national and international companies of UK. For this research,
total 15 people would be appointed for data collection, data analysis and presentation. This includes
one project leader.
Creating a Risk Register
Risk Numbers Probabiluty Impact Size Residual Risk Mitigation
1 Cannot get
permission
from the
company to
make
interviews
2 3 6 3 Write to the
company
ASAP
explaining the
scope of the
project and its
importance
Not meeting
the deadline
3 3 9 3 This would be
mitigated by
meeting with
the team
members
regularly .
Make
meetings with
the lecturer
3 Poor result
analysis
3 2 6 2 Follow the
slides in VLE.
Costs Details: The amount that has been budgeted to meet all the costs of the research project are:
Research Functions Costs
Making Project Plan £ 10
Review of Literature £ 25
Making Questionnaire £ 1
Collecting Data £ 7
Analyzing Data £ 1
Analyzing Findings £ 1
Suggestions £ 10
Report Presentation £ 10
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Total £ 66
Presentation of Final Report: At the end of the report after conducting the research, the findings with
suggestions would be presented to the investors, management, owners and other employees of the
Ensoft Ltd. to take decisions about to enter into global marketplace.
Chapter-1: Introduction
Background of the Study: Globalization makes the international business easy and suitable for
national companies by lowering business rules and regulations in foreign countries. Joint venture
business is the part of globalization that opened the door of entering into global marketplace more easy
way. In this research, all challenges and advantages of joint venture would be explored by analyzing
the foreign markets. This also will assess the benefits and disadvantages of globalization on different
activities of Ensoft Ltd in global context appropriately.
Rationality of the Study: The research is more effective and important due to the effects of
globalization on the organization specifically international brands. This research will be able to fill up
the gap on literature of joint venture business by assessing the advantages and disadvantages in global
aspects. This is also rational because of ensuring a primary research that is able to make accurate
findings and recommendations.
Aims and Objectives of the Study: The research would be accomplished the following objectives
appropriately:
 To critically examine the advantages of joint venture for Ensoft Ltd. in international markets.
 To critically examine the disadvantages of joint venture for Ensoft Ltd. in international
markets.
 To critically examine the impacts of globalization on international recruitment process of
Ensoft Ltd.
 To make effective suggestions by following the research findings.
Making Research Question: To conduct the research, the leader would require making a research
question like the following:
“Is there any risk and benefit of joint venture business in international markets?”
Scope of the Study: The research findings would be helpful for understanding the global competitors,
global customers, global marketplace, nature of joint venture business and impacts of globalization.
This will assist to take decision whether Ensoft Ltd. will enter into global markets or not because of
some challenges. The scope of globalization will also be assessed in this research effectively.
Research Hypotheses: To test the effectiveness of the research, some hypotheses would be required to
be made according to the objectives. The hypotheses are given below:
H1: There are some advantages of joint venture business in global perspective.
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H2: There are some disadvantages of joint venture business in global perspective.
H3: There are some impacts of globalization on global recruitment process.
Chapter-2: Review of Literature
To conduct a primary research, some secondary researches would be understood for gathering
knowledge and information about research topic. For this reason, some research articles have been
appropriately assessed to review the literature about the chosen topic. This will focus all the issues
regarding globalization, positive factors, negative factors, international recruitment process, joint
venture business and its advantages and disadvantages in global perspective. The summary of the
literature is:
Globalization is defined as the changes in the business operation by moving from self country to
foreign countries in production, marketing, supply chain and accounting sectors. It is the changing
formation of business entities by crossing the national border to operate in the multiple countries for
gaining higher benefits from large numbers of customer in those countries. This change has created an
open market for business organizations by lowering rules and regulations in international
marketplace(Hill, 2008).
The impacts of globalization have been grouped into two broad categories one is market oriented and
another one is production oriented. Market oriented globalization is the essential change by lowering
the obstacles in selling the products and services in other countries than the home country. The impact
is lowering tariffs and charges in selling the products and services internationally. Another impact is
fewer restrictions to be global through entering into international markets. More specifically, the
companies should require to consider cultures of different countries in developing business strategies to
cope up with such new things. It is also needed to be devised new marketing strategies to adjust new
culture and languages of new nations(Khanna and Palepu, 2000).
Another impact is production oriented that describes the methods of sourcing raw materials and
procedures from different foreign countries because of differences in foreign exchange rate that is
lower than home country. For instances, a company may want to purchase software machineries from
other countries where these are available at cheap rate and produce software in another international
location where labor is cheap. These benefits lower the costs of production that the leads the company
to offer the products in low prices and can increase profit range. But the negative impact is not
increasing employment in home country due to transferring into global location(Killing, 2013).
Globalization is free flow of operations, marketing and accounting due to the little restrictions on global
business rules and laws. The major benefits from globalization are creating an environment where
capital and investment are transferred easily, exchanging technologies from one country to other
countries and moving of labor among different nations. Other benefits from globalization are easily
movement for education among different countries, increased free business operations, speed in flow of
information and low cultural barriers(Kose et al., 2003).
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Increased competition, different linguistic barriers, frequent volatility in customers’ preferences and
unreal global political conditions and unfavorable global weather are the major drawbacks of
globalization for business entities. The remarkable complaint against globalization is it makes the rich
richer and poorer the poor in broad sense. It is good for investors, owners and suppliers but worse for
employees and workers. Some other disadvantages are creating inequality, inflation, strong dominant
by international brands and high unemployment in home country(Mantecon and Chatfield, 2007).
Joint venture business is the blessing of globalization as it has created the opportunity to enter into
international markets. It is defined as the process of creating agreement with foreign companies to enter
into that country or other new countries where they are not available in real sense. This is the method of
entering into new markets by doing an agreement between two companies for production, marketing
and supply chain. This is the process of combining the resources and skills of two unrelated or related
companies(Morrish and Hamilton, 2002).
The major advantages of joint venture business are increased productivity, increased skills, capabilities,
rapid growth and increased profit level. It has created the opportunity to access into new distribution
networks and locations. It creates the benefit of sharing cost and risks with partners. It has created the
scope of taking resources of other specially in employees, technologies and finance. It also creates the
scope of using customer database of partner firms to market the own products. Another benefit is
creating opportunity to offer the products of partner firms to the own customers. It is able to higher
skills in researching and developments(Peng et al., 2008).
The major disadvantages of joint venture are difficult to form, misunderstanding in venture’s
objectives, different working culture, different management styles, different leadership style and
different recruitment process in international context. This takes more time and costs to form an
agreement between partner firms. These challenges can minimize the productivity and capacity in
production, marketing and supply chain in international locations. To handle the partner’s employees in
global locations is very critical as it has different pay scale and benefits for their own
personnel(Shenkar, 2003).
Another big challenge of globalization is to handle the recruitment process in more easy ways as in
case of joint venture, two firms normally involved in operations, they are not known about the peer
organization’s objectives and aims appropriately. There is a problem arisen when they are evaluated
and recruited internally. Cultural differences and linguistic differences play great role in creating
problems for recruiting the employees externally(Wild et al., 2003).
Chapter-3: Methodology of Research
Research Approaches: There are two types of research approach such as inductive and deductive.
Inductive refers to providing new theories and generalizations that help in providing clear explanation
of strategy that is being followed by researcher in research (Amit and Zott, 2001). On the other hand,
deductive means testing assumptions that is provided for finding results by researcher. In this
researcher used inductive approach that help in fulfilling objective of the study. As this help in
analyzing impact of globalization on international markets (Feely and Harzing, 2003). This method is
realistic in nature that help in evaluating results while conducting specific research. By using this
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approach researcher able to gain knowledge about international markets so that help in evaluating
impact of globalization.
Population: Population describes the people who are involved in giving data and information through
questionnaire and interviews(Ghauri, 2004). For this research, employees, owners, customers,
competitors and investors have been chosen for the purpose of doing analysis regarding the risk and
benefits of joint venture business. The population also includes from employees and customers of
Ensoft Ltd. They are selected for the reason of directly involved with organizational functions and
responsibilities; they are able to understand the challenges and advantages of joint venture business.
Sample Size: Sample size refers to describe the number of sample that are involved for conducting a
survey on research topic (Hill, 2008). For this research, sample size that is being taken is of 30
managers through which questions will be asked regarding impact of globalization on international
markets. This sample size is able to produce accurate data for analyzing the research findings and
making recommendations.
Sampling Methods: Sampling methods are based on probabilistic and non-probabilistic. Probabilistic
sampling method defines that each element of population has an equal chance of being chosen from
given population. On the other hand, in non-probabilistic sampling method defines that each element
of population will be chosen on unknown basis.(Khanna and Palepu, 2000). There are different method
that includes simple random sampling, cluster sampling, stratified sampling, multistage and systematic
sampling method. In this researcher, used random sampling method for collection of data and
information for doing further analysis in the study.
The advantages of non-probabilistic sampling are easier to use that is convenient and cost
effective. The demerit of this method is it is not able to estimate the population parameters. Probability
sampling method has been chosen for this research as it is able to estimate population parameters.
Data Collection Methods: There are two types of method of collecting data that include primary and
secondary methods. Primary collection include raw data that can be collected through semi interview,
surveying, focus groups and questionnaire. For this research, questionnaire would be used for the
reason of that it is easy to contact people now over the phone, social media like Facebook, Twitter,
Gmail, Yahoo and Youtube. In this data collection process, face to face contact, mailing , online ,
telephone and SMS survey would be use effectively.
Data Analysis Methods: It is the method that will be used for finding out conclusion from researcher
based upon study. In this researcher, use thematic method for doing analysis of data. Data should be
analyzed to make conclusion and recommendations for Ensoft Ltd. For this research, both quantitative
and qualitative data analysis methods have been chosen to implement appropriately. Quantitative
analysis is defined as the process of quantifying the collected data through numbers, charts, graphs and
coefficient of variation etc. Qualitative analysis is defined as the process of analyzing the collected data
on literature basis that is based on focus groups.
Research Validity: Research validity can be ensured by applying the different methods and produce
some findings and data. This research is valid in the sense of using primary research methods to collect
data through questionnaire. In this case, if interview is done, same data would be produced as same
respondents are involved in this case appropriately. By using these methods there are different
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approaches that has been made that help in making research effective. It is valid as it help in fulfilling
objective of the study.
Research Reliability: The research is reliable as it has used random sampling method and data are
collected from very root level. Collected data has been analyzed through more structured and
appropriate ways like qualitative and quantitative methods. These are able to produce effective findings
and appropriate suggestions that would be useful in future for the beneficiaries. Reliable data and
information help in providing different aspect as for the purpose of achieving objective in the future. As
globalization also provide changes that is made while conducting study and gaining better results for
the future. It is important in providing different aspect that lead to access reliability under research.
Chapter-4: Data Analysis
(a) Quantitative Analysis
Q-1: Is increased competition drawback of globalization?
From the data that have been collected through questionnaire method it will be analyzed that
85% of employees were in favor of the statement that because of globalization competition has
increased and on the other hand, 15% said that competitor do not increase competition as it help in
building relation with competitors.
Q-2: Is raw materials availability benefit of globalization?
From the data that have been collected 86% respondents said that availability of raw material
benefit for the company. 16% of respondents are providing benefit to globalization. The question has
collected data regarding benefit of globalization by asking that it has created greater opportunity to
source raw materials from different countries.
Q-3: Does your company engage in any joint venture business?
The data shows us that among the respondents about 91% companies are not engaged in joint
venture business but only 9% are engaged in this business practices. So there is scope to suggest them
for forming joint venture business to take the benefits from global markets.
Q-4: Do you agree that high productivity can be ensured by joint venture business?
The data shows us that 87% people supported the statement that joint venture help in increasing
productivity and 13% respondents were not agree with the statement. It proves that high productivity is
the benefits of joint venture as both resources can be implemented for same production, marketing and
supply chain.
Q-5: Do you think that rapid growth can be possible by joint venture?
The data shows us that about 83% people supported the statement that through joint venture
rapid growth is possible and on the other hand 17% respondents were not agree with the statement.
This proves that rapid growth is possible by joint venture business as expansion capacity can be
achieved by this way. It is creating new markets and new customers for increasing profitability.
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Q-6: Does joint venture business able to increase skills and capabilities?
The data shows us that about 93% believes that capabilities and skills can be increased due to
joint venture business without only 7% respondents. Majority of the respondents are supporting this
statement this means that it is the benefit of joint venture business. It drives the business entity to form
joint venture with international brands.
Q-7: Do you think that separate objectives of partner firms drawback of joint venture?
From the analysis that is being done it is found out that 81% candidates said that separate
objectives of partner firms provide a drawback of joint venture. But in contrary, 19% were not agree
with the statement. In joint venture, there are different mission, vision and objectives. They proved that
it can create major problem in operations and production through joint venture business.
Q-8: Does different management style demotivate to form joint venture business?
Joint venture business formation is difficult for devising new strategies for production,
marketing and supply chain. All should be required effective leading from the company management.
But the data shows us that 82% people think that joint venture has a separate management style that
create problems in producing and marketing the products effectively without only 18% that is minor
portion against supporting portion.
Q-9: Does different leadership style create problem in joint venture business?
Another risk has been identified by the supporting of major portion of the respondents that is
about 84%, they are thinking that there is separate leadership style of different companies in joint
venture business operation without only 16% are opposite with this statement. This means that it can
create obstacles to form joint venture business with international companies.
Q-10: Is availability of cheap labor possible by means of globalization?
The impact of globalization on recruitment is positive as the data shows us that cheap labor is
possible by means of globalization by the supporting from 79% respondents regarding this statement
without only 21% respondents. External recruitment is suggested from different nations of the globe
where different cultural and skilled workers and employees are available. As majority of respondents
are saying there is an impact of globalization on labor as provided different aspect for the future.
(b) Qualitative Analysis:
From the analysis, the hypothesis of exploring the benefits of joint venture has been proved by taking
the advantages of joint venture like high productivity, rapid growth possibility, new markets
establishment, increased skills and capabilities. These proved the hypothesis of there are benefits of
joint venture business in international markets.
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The disadvantages of joint venture business have been explored such as separate objectives, different
management style and separate leadership style. These risks have proved the hypotheses of there are
some disadvantages of joint venture business in international markets.
The benefit of globalization is availability of raw materials and cheap labor but demerit is increased
capability has been proved the hypothesis of there are impacts of globalization on international
recruitment and selection process. All the hypotheses have been appropriately proved by accurate data
collection.
Chapter-5: Conclusions and Recommendations
In this section, the findings of the research would be concluded appropriately to give meaningful
suggestion to overcome the obstacles from that have been found from this study. The findings and
recommendations have produced and presented below:
1. It has been found that increased competition is the drawback of globalization, therefore the
company should create good relation with international competitors for operating businesses
without facing nay problem form them.
2. Globalization creates the opportunity of getting raw materials from different countries at cheap
rate, so the company should explore the raw materials from where it is cheap than home
country.
3. In this data has been collected from 30 managers of the company. From this it can be analyzed
that survey that has been conducted provide different perspective and different changes will be
made after globalization for the purpose of implementing new policies and procedures.
4. Another finding is joint venture increases the productivity by applying the resources of
partners. So it can be suggested that to take this benefits from partner, the company should
engage in international business.
5. It has been found that about 83% supported that joint venture business is able to grow the
business firms rapidly by employing the strategies and skills of other companies together, This
benefits suggest the company to increase the expansion strategy in global markets.
6. Another benefit has been assessed from this research is increased skills and capabilities by
sharing the information and obstacles with partner firms. This benefit encourages the company
to enter into global markets through joint venture business.
7. A major problem of joint venture business is having separate aims and objectives of the firms.
It can be suggested that all the companies in joint venture business should follow the same
mission, vision and objectives effectively.
8. Another drawback of joint venture is having separate management style of partner firms they
should be avoided and formed new common management style to take the benefits of
international marketplace.
9. Separate leadership style of spate entity is another issue of joint venture business as it creates
more conflicts in the international business operation. So, it can be suggested that the leadership
style should be common for all partner firms in forming a joint venture business.
10. There is positive impact of globalization on international recruitment as it increases the
opportunity to grab cheap labor from international markets externally. So the company can be
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