Business Project: Impacts of Joint Venture Strategies in Organisations

Desklib provides past papers and solved assignments for students. This project analyzes joint venture strategies and their impact on business.

Managing a successful Business Project
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Contents
Introduction.........................................................................................................................................4
Task 1. Project Plan............................................................................................................................5
1. Brief explanation and significance of choosing the topic..........................................................5
2. Aims and objectives.....................................................................................................................6
3. Scope and Limitation of the project...........................................................................................7
4. Resources and cost considerations..............................................................................................8
5. Gantt chart...................................................................................................................................9
6. Risk Register:.............................................................................................................................10
Task 2.................................................................................................................................................11
Chapter1- Introduction.....................................................................................................................11
1.1 Background..............................................................................................................................11
1.2 Aims and Objectives................................................................................................................12
Chapter2- a Literature review..........................................................................................................13
Chapter3- Research Methodology....................................................................................................15
3.1 Research Design.......................................................................................................................15
3.2 Research method and type......................................................................................................15
3.3 Data Collection Method...........................................................................................................16
3.4 Research Philosophy................................................................................................................16
3.5 Research Approach.................................................................................................................16
3.6 Data Analysis Method.............................................................................................................16
3.7 Ethical Consideration..............................................................................................................17
Chapter-4 Results..............................................................................................................................18
Chapter-5 Recommendation and Conclusion..................................................................................23
5.1 Conclusion................................................................................................................................23
5.2 Recommendation.....................................................................................................................23
Chapter-6 Reflective Report.............................................................................................................25
References..........................................................................................................................................26
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Introduction
Globalisation is an advanced trend in business. Globalisation is a process of integration of
new markets into business and opening of the nationalistic perspective of spreading business,
product, capital and investments throughout the world. Globalisation affects the economy and
venture of the nation. It gives the scope to local markets and business to emerge into the
international market with the help of informational technology. Globalisation is a process of
cross-border trade in the field of goods and service. In this project, research is going on how
joint ventures impacts on managing the successful business (Zajda and Rust, 2016). The joint
venture is a combined utilisation of resources of different businesses on expertise level to
increase growth and economy globally. This project describes the risks and benefits of joint
ventures on business SME’s. It includes the aims and objectives of joint ventures of
businesses and their management planning. This project also covers the methodologies that
drive for the joint ventures into international markets. The project includes the development
plan to explain the impacts of a joint venture with benefits and risks on business
management.
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"Impacts of joint venture strategy in an organisation- A case study of Unilever company"
Task 1. Project Plan
1. Brief explanation and significance of choosing the topic
The project is carried out by team and project analyst to make a strategic management plan
for the project. This project contains sufficient information into the research for the
monitoring and execution of the project plan. This research report includes the briefing of the
management plan, data analysis of documents, scope and limitations of the project (Lasserre,
2017).
Globalisation provides the services to move throughout the world to represent their business.
It provides new opportunities to explore the foreign market and investments to increase the
economy of the nation. In this part of project aims and objectives of Unilever Ltd. which
setups subsidiary organisation as Hindustan Unilever Ltd in India. It includes the risks,
benefits, advantages, limitations, scope and profits of proceeding into foreign markets
through joint ventures
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2. Aims and objectives
Aim
To examine the possible impacts of joint venture expansion strategy on the business
operations
The organisation aims to make a strategic management plan for achieving their objectives.
These objectives provide the direction for performing the management plan to achieve the
missions and vision of the organisation.
Objectives
 To identify the role and importance of joint venture in the business expansion process
 To understand the impact of the joint venture on business operations
 To determine business performance with the assistance of the joint venture strategy
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3. Scope and Limitation of the project
Unilever Ltd. expands its market from the UK to other places via a joint venture. The scope
of joint ventures covers the different parameters which stable the foreign business and
investment.
1. Joint ventures can be organised by companies’ partners with respect to their business
in different varieties in a contractual arrangement with contract agreement which they
will conduct venture business directly.
2. The synergies will be created when these two different companies start their new
venture. It will give the fruitful advantage to both Unilever Ltd. and PepsiCo on large
scale integration and economies and boosts the potential and skills of their employees
(Timesofindia, 2017)
3. It acquires the superior quality product manufacturing with the help of new
technologies and proper utilisation of resources.
4. It also opens the new resources for the investment of foreign markets to increase
opportunity and employment with various costumer supports.
Limitations-
1. Lack of understanding between partners of companies into joint ventures affects the
cooperation which disbalances the communication between the partners.
2. Culture and style of management of different organisation affect the integration and
cooperation of business (Liu, 2017).
3. Expertise in own field creates the imbalance and venture didn’t become stable, and
partners bring investment or assets.
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4. Resources and cost considerations.
Shared Costs: Each partner contribute with equal shares into the initial capital cost to the
project, that distribute the financial burden on each of the organisation
Enhance Credibility: Initially, start-up’s struggles to get market credibility to set up the
organisation on a strong base. In joint venture, larger organisation with brand supports the
small enterprises to increases credibility.
Resources: It also explores the new ways to get the resources and provides better facilities
with innovative technologies for optimal and efficient use of resources (Schuster and Hunter,
2015).
Shared returns: By sharing upfront costs with the project, partners in joint members emerge
into equal shares and profits.
Establish of the Larger market: Companies with similar profiles and products engaged into
joint venture collaborate their schemes to produce a better quality of products efficiently to
create larger production into the market
Communication: Companies with the help of joint venture creates interpersonal relations
between the parties to enhance the business broadly.
Risks: Risk factor involved in the project will be examined, and the corrections will be
provided to monitor the better quality of research, the project will be identified.
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5. Gantt chart
Activities Starting Date Ending Date Duration (weeks)
Choosing the
subjective topic
3 January 2018 9 January 2018 1
Framing research aim
and questions
10 January 2018 16 January 2018 1
Literature review 17 January 2018 30 January 2018 2
Research method 31 January 2018 6 February2018 1
Interpretaation of
data
7 February2018 20 February2018 2
Conclusion/
Recommendations
21 February2018 27 February2018 1
Self reflection 28 February2018 6 March 2018 1
Submission 7 March 2018 13 March 2018 1
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6. Risk Register:
S.No. Risk Explanation Priority Actions
Undertaken
1. Objectives of the
venture are not clear
to achieve goals.
Possess during
the whole
project.
Every partner
should be aware
of their goals
and
responsibilities.
2. Lack of
understanding level
of partners.
In between the
project.
Same mindset
and cooperation
will be adapted.
3. Different culture and
management style
Long-Term Partners should
create a new
management
strategy to gain
profits.
4. Issues in different
level of expertise.
Long-Term Project should
be carried out at
own expertise
level.
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Task 2
Chapter1- Introduction
In this research, we learn about how a company can expand its business in the global market
through a joint venture. The joint venture is a business platform which is built by two or more
individuals or two companies to work together. Companies opted for joint ventures for many
reasons like, to spread their business globally, to build a new international market, to reduce
their risk for major investments or projects and to grow their business at a rapid pace
(Schuster and Hunter, 2015).
This research project will describe the risks and benefits to the Unilever in expanding its
business in India through the Joint venture. The project will explain the different technique
adopted in conducting the research. In this research project, the use of both quantitative and
qualitative method will be made. The technique will be used for gathering the data, and
qualitative research method will be adopted by Unilever in analyzing the data gathered. This
will give a clear view of the scope of a joint venture for Unilever.
There are many issues associated with joint ventures like lack of joint ventures experience,
there is no possible way to end the joint venture, competing against your joint venture partner
on some other projects and there is no financial update regularly (Sim, et. al., 2016).
1.1 Background
As we all know that globalization is the process of exporting goods and services to other
countries which are less efficient in producing those goods, and as a result, the joint venture
is the first choice for many multinational companies as compared to other strategic alliances.
Joint venture helps you in growing your business faster and to generate greater profits (Sim,
et. al., 2016).
Unilever is a UK based company established in September 1929. Margarine Unie and Lever
Brothers were the founders of this company. Headquarter of the company is in London,
United Kingdom and Rotterdam, Netherlands. This company produce goods like foods and
beverages, beauty products for men and women, cleaning agents and personal care products.
Unilever is one of the oldest and famous multinational company for beauty products and its
products are available in more than 180 countries, and also it is Europe’s one of the most
valuable company (Yan and Luo, 2016).
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In 2003, there is a joint venture between Unilever and PepsiCo; the joint venture entered
India in the year 2004 as they launch Lipton Ice Tea. However Lipton Ice Tea was the very
advanced product of that time and as a result Lipton Ice Tea doesn’t have the great sales and
soon it gets dropped from the market. After seven years joint ventures introduce two new
flavours of Ice Tea. They re-introduced the product because at that time Ice Tea was quite
famous in the market. Ice Tea was the fastest growing category especially in youth who are
looking for the healthier drink and Ice Tea turn out to be the best option for them.
1.2 Aims and Objectives
The main aim of this research is to make strategic management plan to achieve their
objectives. The objectives of the joint virtue are to make optimum use of prospective
resources, to achieve synergy and to reduce risk factor for heavy foreign investment.
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Chapter2- a Literature review
Carr (2017), says that the risks involved in the joint venture are mainly related to the
economy. These are economic development, racial and economic divisions and local
collaboration. One of the biggest risks is that the joint venture may run low on financial
resources being that there should be land acquisition which would lead to land development
etc. Local collaboration also falls into risks as the localities may not want to have such a
venture in which instead of gaining benefit, they are occurring losses. Also, before setting up
a joint venture, one must identify the risk of different divisions that are present in the country.
For example, in India, there are a huge number of cultures which have different ways of
seeing things and using products, so before entering one needs to do a proper analysis to
identify where the joint venture would gain profits. Other risks in the joint venture are that
the goals of the joint venture are not clearly set or conversed or different management and
leadership styles which will lead to poor collaboration between the two companies (Carr,
2017).
Various benefits of the joint venture have been defined by Jaeckel (2016), one of the most
recognisable benefits is that of finances whether it is on the receiving end or incurring
payments. In both situations, the organisations pool their capital together for development
and also share the benefits. If there is any loss that is drowning the organisation, then it will
be barred by both rather than the burden falling onto one's shoulder. Technology and building
is another benefit as one organisation might not have land for building or the proper
technology to implement the project so it can ask the other organisation for transfer of
technology. Sharing of equity is considered a benefit not just for the current period but can be
for future periods. Also, when one organisation is from a developing country and is going
into a joint venture with a developed one, then it can gain an immense amount of knowledge,
skills, technologies, experience etc. Market shares of both companies can rise like when
Unilever goes in a joint venture with PepsiCo, both of them being reputed brands, will
capture the market easily and earn a higher number of shares. Exploitation and exploration of
resources in a joint venture are discussed on how an organisation can use the resources to
their full potential and then explore other resources that its other half may provide. When two
companies go into a joint venture, they merge both of their resources to see which they will
need in the project(Jaeckel, 2016).
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