Business Expansion Plan: NPW Gifts Joint Venture in Thailand

Desklib provides past papers and solved assignments for students. This project analyzes NPW Gifts' joint venture in Thailand.

Managing a Successful Business Project
Topic: “Business expansion of NPW Gifts in Thailand – the risks and benefits of joint
business venture”
1

Executive Summary
The study is mainly divided between two tasks that are Task 1 and Task 2. These tasks have
huge importance to understand different risks and benefits of joint venturing. In task 1, a brief
overview of this particular project plan is given. On the other hand, in task 2 a proper research
work is constructed where a research with the help of Primary Quantitative research can be
acquired properly. For this research work hundred respondents from probable customers of NPW
gifts from Thailand are selected to introduce different important factors of company’s joint
venture with MBK centre.
2

Table of Contents
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................8
Chapter 1......................................................................................................................................8
Introduction..................................................................................................................................8
Chapter 3 Methodology.............................................................................................................12
Chapter 4 Results.......................................................................................................................15
Chapter 5 Conclusions and Recommendations.........................................................................27
Chapter 6 Reflection..................................................................................................................29
Reference List................................................................................................................................30
Appendices....................................................................................................................................32
Appendix 1.................................................................................................................................32
Appendix 2.................................................................................................................................35
3

Task 1
A brief explanation of the proposed topic and why you have chosen it
The Joint Venture of the company is the techniques of the company to enter the International
market in the way of making the company gain competitive advantage and by sharing the
resources of the partner company. The issue, which the proposed topic has illustrated with, is the
effectiveness of the Joint venture of the company. .The various factors which works for the
company through the Joint Venture. The various factors of the Joint venture of the organisation
will be able to give the company a boost to the organisation. The Joint venture will be in relation
to the NPW gifts.
An aim and some objectives for your proposed research
Project Aim
The aim of the project is to understand the various benefits and risks related to the Joint Venture
of the company and the understanding of the NPW gifts of United Kingdom in making Joint
venture of the company with the MBK Center in the Thailand.
Project Objectives
 To identify different aspects of Joint Venturing in different market conditions
 To analyze positive and negative factors of joint venturing
 To evaluate factors of joint venturing that can affect Joint venture of NPW gifts
 To access factors that can mitigate challenges of Joint Venture
A brief discussion of the scope and limitations of the project
The scope and limitations of the company is the one which helps the company to make their
goals and objectives to make the company (Kerzner, 2017). Therefore, the project consists of
both the excluded scope and included scope, which is necessary for the understanding of the
project. The Scopes and objectives of the company is the one, which are used by the company
authorities and the researcher for getting the accurate information about the project.
Included Scope-The Usage of primary resource or data collection is necessary for the
understanding of the view and concepts of research. The primary data collection methods are
4

very necessary for the accurate collection, getting the calculative, data, and collection methods.
There will be surveys related to the quantitative analysis of the project.
Excluded scope –The secondary collection of data will be used in these sections, the secondary
data collection does not give the accurate results of the data collection methods. The qualitative
analysis will not be used for the data collection of the business.
Resources and cost considerations.
It is necessary to use the resources of the project to understand the various projects of the
company. The usage of resources and the cost considerations of the company is necessary for the
company to consider the joint venture of the company.
A Gantt chart or work breakdown structure in order to provide timeframes and stages for
completion.
A risk registers covering the main risks with the proposed research.
Crises/Emergency
Description
Tendenc
y of risks
to
happen
Type of
the risks
The affects of
the risks on
the project
Output Risk Avoiding
Techniques
Insufficient
collection of data
and information
Medium High The data
collection will
be insufficient
and the project
will be due to
completion
Inaccuracy of
resources
The correct
planning and
the initiatives
by the
researchers
will help the
insufficient
collection of
data
Inaccurate data
and information
Medium High The
emphasizing of
the project
scopes and
The less
assumption of
the project
information will
This could be
the thorough
analysis of the
company
5

objectives will
not be
emphasized by
the company
give out
inaccurate
information.
objectives will
help in solving
these issues.
Table 3: Risk register
(Source: Created by Learner)
A Gantt chart or work breakdown structure in order to provide timeframes and stages for
completion
Activities Start Date Duration End date
Proposing project theme 2/9/2019 2 2/11/2019
Establishment of aim and objectives 2/11/2019 1 2/12/2019
Project scope determination 2/12/2019 5 2/17/2019
Risk analysis and evaluation 2/17/2019 3 2/20/2019
Literature Review 2/20/2019 10 3/2/2019
Proposing Research methods 3/2/2019 6 3/8/2019
Data collection through survey 3/8/2019 18 3/26/2019
Data Analysis 3/26/2019 12 4/7/2019
Drawing conclusion 4/7/2019 2 4/9/2019
Documentation 4/9/2019 2 4/11/2019
Project submission 4/11/2019 1 4/12/2019
Table 2: Gantt chart
(Source: Created by Learner)
6

Proposing project theme
Establishment of aim and objectives
Project scope determination
Risk analysis and evaluation
Literature Review
Proposing Research methods
Data collection through survey
Data Analysis
Drawing conclusion
Documentation
Project submission
2/9 2/19 3/1 3/11 3/21 3/31 4/10 4/20
Figure 2: Gantt chart
(Source: Created by Learner)
7

Task 2
Chapter 1 Introduction
The global business environment is influenced by the growing trend of globalisation that
provides an improved scope of conducting business for organisations. The organisations
operating in the UK market economy achieved a certain level of business saturation in the UK.
Hence the need for expansion is realised within the management of these organisations. To
understand the advantages and risks that joint business strategies present for organisations in a
global business context, NPW Gifts of the UK has been considered. The medium sized UK
company provides party supplies, beauty and fashion items, as well as stationary and craft
supplies to the UK customer base since their establishment in 2000 and would perform better in
an international market economy. Hence, the company’s decision to form a joint business
venture with the MBK Center in the Thailand market economy.
Background of the research
It is mentioned in a recent report that 70% of Joint Ventures around the world fail. However, the
reason why there are so many enterprises that practice joint venture is that there are chances of
high profitability and market share attainment than any other form of expansion. NPW Gifts is
currently in a position where they want to expand and wish to do it through a joint venture. UK
economy is not fruitful enough for the mentioned company in order to grow prolifically in the
contemporary market. On the other hand, Thailand is now becoming one of the most favoured
destinations as the management and authority of the government regarding legislation for foreign
companies are constructed to allure them more in their business activities.
Problem Statement
The high percentage rate of failure for joint venture can be attributed to poor research. There are
many enterprises which fail to implement proper research through which the needs and wants of
the people can be ascertained. NPW Gifts must implement proper research to eradicate this
problem.
8

Rationale
In contemporary world of globalisation, companies are using different strategies in order to
improve their business in contemporary competitive markets. Joint venturing is one of the main
strategies for modern day companies through which accompany can acquire new foreign
markets. Joint venturing often introduces certain issues because of improper political and
economic condition which is one of the main motives of this contemporary research work. This
is an issue for a company that does not know the new market that much therefore, the new
company has to rely on the company of the host country. This process introduces issues such as
dependency in the working process and resourcing.
Figure 1: Growth of Foreign Direct Investment
(Source: Iamsiraroj and Ulubaşoğlu, 2015)
It is mentioned in a recent report that companies that have introduced to international joint
venturing process have gained certain issues by which they have acquired difficulties to measure
exact data to maintain sustainability in the business process. The report has shown that the
growth regarding foreign direct investment has not been improved as expected by government of
Thailand.
9

Chapter 2 Literature Review
The Joint Venture of the two companies have been the sharing of the resources and the various
factors that counts for the growth of the company and therefore they have to make necessary
changes ion organisations to cater to the customers of the international market they are opening
to. The Joint Venture is the possibility of two company alliances and the sources of the company
to make the alliances of the two companies successfully and therefore many the ventures
successful. The combination of the resources of them company resources along with the expert
employees they make their entry or leverage their profits into a new market. They not only share
the various functionalities and resources but they also share the various factors of the loss and
profit factors necessary for the organisation. For understanding the advantages and risks that
joint business strategies present for organisations in a global business context, NPW gifts of the
UK has been considered and therefore the analysis of the Joint Ventures will be considers for the
company.
The Benefits of the Joint Venture
The benefits of the Joint venture are that it can make the business ventures very successful and
can make the profits of the company to reach a remarkable level. The Joint Venture of the
company generally depends on the various factors of the resources provided by the company.
They can get new markets to show their skills and their innovation and can cater to the needs of
the parts to get profits and revenues. The capacity of the company increases by the Joint Venture
of the company (Liu and Dunford, 2016).The Joint Venture helps in making the understanding
and collaboration among two companies and their employees as well they can make their
communication skills to a very goods level to reach to the level of satisfaction of the customers.
The success of the Joint Venture can bring more alliance to the company and can make
partnerships with many other partners and companies in the International market. The Joint
Ventures helps the small organisations as well as to get and collect more revenues by the help of
the partner company which can give the support in case of funds and it can make the offer of the
company.
Disadvantages of the Joint venture
10

There can many factors which can give references to the disadvantages of the Joint ventures they
are as follows they are the in vague objectives and goals of the companies chaliced out which
can produce inefficiency an unproductiveness in their work and also the disability to meet the
company objectives. The vague goals and objectives of the company are give way to the
inflexibility of the company. Therefore, they have to be flexible which involves the company
officials. Much time there is a less involvement in the taking up of responsibilities, which lead to
various disputes among the company and can led to the expectancy of the inefficient working of
the organisation. When the companies do not involve much within the company, they can give
up rise to the company disputes and it results in total breakdown of the company.
The failure of the Joint Ventures happens for all the disadvantages of the Joint Venture
mentioned before the Joint Ventures. Therefore fall to become successful in their operations
therefore they can make the Joint ventures very carefully by following also the objectives and
values of the company and giving proper training to the employees along with the involvement
of the company authorities.The alliance partner the employees should include in making the
goals and objectives of the company to follow.
The Lack of Proper agreement between the two companies can also led to various other files to
become invalid among the Joint Ventures and led to various other factors to make the breakdown
of the company. The lack of exact collaboration and communication can led to the inefficient of
the company and can make them break the collaboration or alliances. The dispute among the two
companies and the transparency among the two companies are not led properly them they can led
to the loss of their services and their products, loss of funds and instability if their economic
status, the resources getting faded away which makes their future opportunities less to make their
company gain competitive advantage.
11

Chapter 3 Methodology
Research Onion
Research Onion provides a brief overview of the whole research process through which a
researcher can acquire knowledge to conduct the research properly. It is a model that looks like
an onion where different stages of the research work are mentioned in different petal of the
company. In the outer layers of the model, it is seen that different types of philosophies such as
Positivism and Interpretivism are mentioned which have huge importance in research. On the
other hand, in deeper layers, different types of approaches and designs are also mentioned which
are important to discuss the method of research work appropriately.
Figure 2: Research Onion
(Source: Kivijärvi et al., 2017)
Research Philosophy
Research philosophy shows a pathway to a researcher regarding procedure of collecting data
from different resources. There are different types of research philosophies which are mainly
acquired by researchers such as Positivism, Interpretivism and Realism. Positivism philosophy
introduces a vivid path for the researcher where knowledge has the highest value which is mainly
12