Analyzing Risks and Benefits of Simba's International Joint Venture

This report examines the potential risks and benefits of a joint venture strategy for Simba, a company selling mattresses and bedroom accessories, to enter international markets, specifically Romania. The study explores the advantages of globalization and joint ventures in terms of business expansion and profit maximization, while also addressing potential risks such as financial uncertainty, industrial disputes, equipment failure, and breach of contract. The report includes an explanation of the proposed topic, aims and objectives, scope of the study, resource and cost considerations, a Gantt chart, and a work breakdown structure. It highlights key considerations for effective project management, risk mitigation, and the importance of financial planning and communication. The conclusion emphasizes the competitive advantages gained through international joint ventures and the need for effective risk management. The report references various books and journals on international business, joint ventures, and market expansion strategies.

Managing a Successful Business Project

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Explanation of the proposed topic...........................................................................................1
2. Aims and Objectives................................................................................................................1
3. Scope of the study...................................................................................................................1
4. Resources and cost Consideration...........................................................................................2
5. Gantt Chart & Work break down structure............................................................................2
6. Risk Register Covering risk.....................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

Topic: To identify the risks and benefits of a joint business venture to enter international
markets. “Case Study based on Simba”.
INTRODUCTION
Globalisation is the opportunity for current businesses to enter into another market with
some great opportunities and threats present research based on to identify the risk and benefits of
a joint business venture that will planning to open new business in Romania. For which Study
taking Simba which sells high brand quality Mattresses and bedrooms accessories through an
online platform. Company planning to attract Romania buyers towards the services.
TASK 1
1. Explanation of the proposed topic
Joint Venture businesses or more than two businesses influence high profit maximization
growth (Dunning, 2015). This is the best way to expand business and pool so many other
resources for the business. Present topic helps to introduce the concept of international market in
the context of joint venture or in order to attract potential buyers of Romania. Study presenting
the importance of globalisation on the business growth or in the process of getting some new
opportunity and growth. Apart from that, it also includes, some risk factor due to which company
also facing high uncertainties during the handling process.
2. Aims and Objectives
Aims: “To identify the risk and benefits of joint venture to enter international markets “
Objectives
 To determine the risk & benefits of Joint venture in international market.
 To identify the role of international markets
 To ascertain the challenges company faced in legal or ethical areas.
3. Scope of the study.
Joint venture into another country is the prospect for the company to gain new challenges
and opportunities. Globalisation is the process that open the gate for national or local businesses
to get business at global level. This is the ineffective way of learning and goals which makes the
effective learning goals. The main purpose of this file is to accomplish the new managing and
leading ineffective task purpose and goals (Huda and et.al., 2019). This study helps to ensure the
1

effective leading challenging goals in order to meet out the company aims and objectives and
goals. The main purpose of the study is to explore the importance of business into international
market. Simba is the online company which sells bedroom accessories and goals.
4. Resources and cost Consideration.
Resource and cost consideration, is the elements which helps to fulfil the effective management
task. Projects includes several resources and cost consideration such as Time, Scope, Resources,
Communications, overall, in order to accomplish the project goals effective learning styles and
effective management task. Apart from that, risk involves in every task which affect the
company overall performance task. Apart from that, In order to make new pan or process
company (Li, Cu and Lu,2018). Apart from that, it contains different project management
elements that affect the overall, systematic work and long-lasting development goals. Resources
also very important elements that is useful for the further growth development process.
Some major resources are human resource, capital resource, time etc. this all element has
to be completed in to more effective and effective manner. Moreover, it covers the most
enlarging and effective development that helps to accomplish the overall, process goals.
unit/ hrs Costs/ unit/ hrs WBS Level 1 total
Salary of
Employees 840
1730
$140
$630
$9710
$125000
Technical
campaigns
Servers
160
4
$750
$4500
$65000
$16000
Licensed software
160 $270 $21600
Testing of
hardware and
software
$69000
2

Equipment for the
project
$5000
5. Gantt Chart & Work break down structure
3

Activities Week
1
Week 2 Week
3
Week 4 Week
5
Week
6
Week
7
Week
8
Week
9
Wee
k 10
Research
proposal
Aims and
objectives
Literature
review
Research
methodolo
gies
Data
collection
Data
analysis
Data
interpretati
on
Finding
and
conclusion
Recommen
dations
Execute
the plan

Submissio
n
6. Risk Register Covering risk.
Risk Register Covering Risks is the process or matter which includes all kinds of risk that
affect the overall project management risk and growth factor (Sternquist and Goldsmith, 2018)
Yan and Luo, 2016). Apart from that, risk register includes Risk category, risk Description, Risk
ID, project impact and impact on the overall development goals. This affect the overall
development that helps to analyse the risk in prior effective manner. Risk register risk helps to
influence the effective leading goals. Risk also helps manager to identify the risk factor involves
in every element or in the process of goals. Risk factor can help Simba to identify the measure
risk factor in the Romania country in order to analyse the precautionary plan or goals.
Types of Risk Probability Impact Strategy
Financial risk
(it involves the
uncertainty of
labour law)
High High In order to reduce this risk Simba
needs to adopt proper financial
planning tool.
Industrial
disputes
Low High This risk can be reduced by
adopting proper coordination
planning and level of
communication.
Equipment
Failure
Low High Simba should need to adopt
productive technical staff to
reduce the high impact of this
risk.
Breach of
contract
Low High Clears terms and condition in
contract related to exist of joint

from joint venture.
CONCLUSION
It has been concluded from the report that by entering into a joint venture business with
multinational corporation a firm can gain competitive advantage in international market. The
other fact which has been found during investigation is that there is high risk of conflicts in
context of international Joint venture business.

REFERENCES
Books & Journals
Dunning, J. H., 2015. Reappraising the eclectic paradigm in an age of alliance capitalism. In The
eclectic paradigm (pp. 111-142). Palgrave Macmillan, London.
Huda, M. and et.al., 2019. Towards Cooperative With Competitive Alliance: Insights Into
Performance Value in Social Entrepreneurship. In Creating Business Value and
Competitive Advantage With Social Entrepreneurship (pp. 294-317). IGI Global.
Li, M. H., Cui, L. and Lu, J., 2018. Varieties in state capitalism: Outward FDI strategies of
central and local state-owned enterprises from emerging economy countries. In State-
Owned Multinationals (pp. 175-210). Palgrave Macmillan, Cham.
Sternquist, B. and Goldsmith, E. B., 2018. International retailing. Bloomsbury Publishing USA.
Yan, A. and Luo, Y., 2016. International Joint Ventures: Theory and Practice: Theory and
Practice. Routledge.
Zhang, X. and et.al., 2016. What drives the internationalization of Chinese SMEs? The joint
effects of international entrepreneurship characteristics, network ties, and firm
ownership. International Business Review. 25(2). pp.522-534.