The Risk and Benefits of Joint Ventures: Qatar Airways Case Study

This report presents a comprehensive analysis of the risks and benefits associated with joint ventures, using Qatar Airways as a case study. The study examines the airline's strategic decisions regarding international market entry through joint ventures, focusing on the advantages such as cost reduction, access to new markets, and shared resources, while also addressing potential challenges like cultural differences, conflicts of interest, and limited timeframes. The report delves into the literature review, exploring the concept of joint ventures and their impact on business expansion and growth. The methodology includes qualitative research design to understand the benefits and risks of joint ventures. The report also provides insights into the challenges and benefits of joint ventures, including access to new markets, and the impact on market share. Overall, the report offers a valuable perspective on the strategic use of joint ventures in the airline industry, providing insights into market entry modes, risk assessment, and the potential for global expansion. This is a student assignment available on Desklib.

Managing a Successful
Business Project
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Table of Contents
CHAPTER 1: INTRODUCTION..................................................................................................................3
Background of the study...................................................................................................................3
Aim and Objectives...........................................................................................................................3
CHAPTER 2: LITERATURE REVIEW..........................................................................................................4
CHAPTER 3 : RESEARCH METHODOLOGY...............................................................................................7
CHAPTER 4 : DATA ANALYSIS.................................................................................................................9
CHAPTER 5: CONCLUSION AND RECOMMENDATION..........................................................................13
CHAPTER 6: REFLECTION......................................................................................................................15
REFERENCES ........................................................................................................................................17
APPENDIX............................................................................................................................................20
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Title- “The risk and benefits of a joint business venture to enter international market- A case
study on Qatar Airways”
CHAPTER 1: INTRODUCTION
Background of the study
The company wants to make global presence in various international; markets which
in turn results in increase in expansion of the business (Yan and Luo, 2016). The company
wants to raise their market into various international border with the help of corporate
restructuring which in turn leads to higher growth and profitability.
Qatar Airways company was founded in the year 1993 which is headquartered in
Doha, Qatar. Qatar Airways fly to over 172 destinations and has around 45,633 people
working as an employee in the company.
The company wants to grow its business to effectively enter into international markets
with the help of joint ventures. Joint venture is an effective approach which helps two or
more business entities to come together in order to accomplish desired task.
Aim and Objectives
Aim
“ To examine the risk and benefits of a joint business venture to enter international
market -A case study on Qatar Airways”
BA extended a hand to Oneworld carrier Qatar Airways, to create a combined
network of 70 destinations. In a similar way to people double-barrelling their surnames, now
they are code share (BA/QR) on services around the world.
Objectives:
 To understand the concept of Joint venture.
 To identify the risk and challenges involved in joint business venture in the context of
Qatar Airways.
 To determine the benefits of using joint business venture to enter international market.
 To recommended other alternative market entry mode option to Qatar Airways.
 Cost: Production at low cost
 Quality: meet the quality standards defined by standards organizations.
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Rationale
The research of this study has opted for this topic because globalization is a wide
concept, as every firm wants to make its presence in various international markets. This will
help researcher to enhance their knowledge and gain wider prospects on the particular subject
matter. This study will also be very beneficial for the scholar which in turn helps in filling the
gaps on the particular area of study. This study is conducted for academic interest which
helps the scholar to gain insights on the joint venture in order to identify the risk and benefits
associated with it. Furthermore, this study will be beneficial for scholar to gain insight about
the various new market entry methods. This study is going to be beneficial for various new
market entry methods. This study will be beneficial for other researcher to further carry out
the research on the particular subject matter.
Significance and scope of the study
The scope of this study is very wide which helps in gaining knowledge about the
globalization and how it leads to expansion and growth of the business. This study will help
company to identify the various factors which in turn helps in assessing various challenges. It
helps in identifying how joint venture helps in examining the various method to enter into
new market and identifying the most effective method which helps in faster and less costly
entry to the international markets.
CHAPTER 2: LITERATURE REVIEW
(Harrigan, 2017) established the fact that, joint venture is an effective approach where
two or more business entities agree to pool their resources together in order to accomplish
desired goals and objectives. Joint venture can also be referred to as co- ventures where to
parties come together to accomplish the desired project. In joint venture, the partnership
comes to an end after the completion of the particular task or project. Joint venture is an
effective approach which helps two or more business entities to come together in order to
accomplish desired task. Every business party of the company is liable to profits and losses
associated with the specific share or on the basis of pre- agreed terms and conditions.
(Killing, 2017) argued that, Joint venture is useful as it helps in combining various resources
and expertise to attain better results and outcomes. Joint venture helps in combining various
large and small business entities in order to perform task in an efficient and significant
manner. By using joint venture method forms will be able to get access top various advanced
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technology, techniques, marketing, etc. in order to improve the overall quality and cost of the
Qatar Airways. Joint venture helps in getting access to the new geographical markets in a
legal and cost effective manner. Joint venture is very useful as it helps in sharing the
ownership, profit, expenses, governance, etc. This helps in gaining positive synergy which
helps in expansion of the company to various international borders.
(Hwang and et.al., 2016) sought to analyse that, the major risk and challenge involved
in joint business venture in the context of Qatar Airways is that partners have different set of
goals and objectives, cultural and management styles which in turn results in poor
cooperation and integration. Joint venture take time and efforts to build strong and right
relationship. (Carr, Hawkins, and Westberg, 2017) argued that, the major disadvantage is that
the joint venture is formed for a stipulated limited time period. Cultural difference, conflict of
interest, belief and knowledge is a major challenge for the Qatar Airways while establishing
business in an international market with the help of joint venture. Joint venture leads to
increased risk and liability for all parties.
(Hébert and Beamish, 2017) strived to establish that, Joint venture helps in entering
into new foreign market in order to expand the market share to various different markets. It is
also very useful in reducing the major challenge of heavy business investment in order to
establish business to internation markets. This method is also very useful in gaining
economies of scale by reducing cost and increasing profit. It is very beneficial in attaining
synergy in order to get higher results. Joint venture is useful in optimum utilization of
resources by synchronizing the resources of different entities which in turn leads to higher
operational growth. (Krishnan, and Das, 2015) argued that, joint venture helps in accessing to
new markets which leads to increased market share and capacity. It is very beneficial as it
helps in earning profits at a lower cost because it leads to shared expenses, risk, cost and
benefits. Joint venture is very easy to set up and is very flexible which eventually helps in
gaining access to various international markets. (Park, Vertinsky and Becerra, 2015)
established the fact that, joint venture helps in additional tax benefits for Limited liability
partnership (LLP's) and Limited liability company (LLC's). Joint venture is beneficial as it
also helps in establishing professional and talented employees without investing any huge
expenses. It also has greater ability to capability to get access to technology and it is also
useful in leveraging to patents. It is also very useful in establishing effective distribution
channels to reach higher customer base and market share. It also helps in effective research
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and development with the help of expertise professional and employees which in turn results
in higher operational growth and efficiency.
(Cuypers, and et.al., 2017) sought to analyse that, joint venture helps in producing
goods at a lower price because resource, capital and personnel of the two companies
synchronize in order to attain better results and outcomes. It also leads to lower production
cost and attainment of economies of scale by effectively utilizing the resources. Joint venture
of BA and One- world carrier Qatar Airways in turn leads to higher market share and
customer base by reaching more destination in various international markets. It helps in
lowering the cost because liability, risk, benefits gets distributed between various business
entities.
(Tsang, 2016) said that, the joint venture of BA and One- world carrier Qatar Airways
helps in delivering the best quality services to the customers by setting set standards for the
organization. They will focus on meeting quality standards by optimally utilizing the
resources and using effective advance technology in order to reach grater heights. Joint
venture helps in integrating specialized technology, finances, resources which helps in
delivering the best quality goods and services.
(Dhir,2017) said that, joint venture helps in getting mutual competitive advantage
which leads to higher operational growth and efficiency. It is a very flexible approach and is
very easy to form by making relationship with business entities who are desired to perform
task with synergy and synchronized manner. (Lu Jin, Zhou, and Wang, 2016) strived to
establish that, there is no separate legal entity and governing body which in turn leads to
smooth function of the business and attainment of higher operational growth and efficiency.
It is also very useful in upgrading and innovating the products and services in a cost efficient
manner in order to serve large customers and gain higher profits. It is also very useful in
creating a distinctive brand image and goodwill for the company.
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CHAPTER 3 : RESEARCH METHODOLOGY
The research methodology plays a role of crucial element for investigation of any project.
There is a huge relevance of research methodology that it is not at possible to execute any study
without it. It is a plan which follows a logical and systematic procedure to collect information for
decision making of businesses.
Research Methods – The research methods are tool in which research is undertaken in
logical manner. This method is an important part of research as it provide aid in collecting data
and analysing it. The two method of research generally adopted by researcher are qualitative and
quantitative research (Irwin and et.al., 2019). Quantitative method emphasises on building of
cause and effect relationship in between measuring of different statistical tools whereas
qualitative research method does not prefer to use numerical data unlike quantitative method.
The chances of number of questions are very high in qualitative research. The researcher has
adopted qualitative research method for executing this study as this enable them to include in
depth information of behaviour of individuals.
Research Design – It is useful for making research presentable. The research design is a
method which is useful in collection and analysis of problems which is specified in this issue of
research. The two types under which design of research is divided into is descriptive and
experience research design. The descriptive design includes defining of study associated with
research without affecting it while experimental research design is a tool under which cause and
effect relationship is determined by adopting different statistical techniques. This design includes
numerical facts and figures. The present study has applied descriptive research design as this is a
best method to be carried out to undertake qualitative research study. This research design is
evaluated for identification of benefits as well as risk in a joint venture of business.
Research Approach – After selection of research method the scholar firstly look forward
for adopting approach of research. The research approach is a procedure to analyse, interpret as
well as collect the data a pre set manner. The two ways under which research approach is
associated with is inductive and deductive approach. The inductive research begins with
development of hypothesis and findings which are planned for the ending point for further
observations. Another, approach is deductive approach in which the existing theories is base of
development of hypothesis. In this study of deriving outcome of joint venture, the scholar has
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used deductive research approach. This approach is best for determining qualitative results of
any study.
Sampling – This element of research methodology is crucial one because it is source
from which data is collected by selecting number of capable respondents from the while
population. The sample size is most important variable which is responsible for determining
outcomes of research. The two types under which sampling can be done is probabilistic and non
probabilistic. The probabilistic sampling offers equal chance to get selection of respondents from
the whole population while non probabilistic is different from this method because it does not
offer equal chance. Instead of this, non probabilistic sampling is a technique which selects
respondents from random basis. The present study has selected 20 senior managers of Qatar
Airways from random probabilistic sampling method. The reason for choosing senior managers
because their role is to undertake all the decision regarding joint venture.
Data Collection – The data collection is executed after selection of sample size and
respondents. Data collection is associated with collecting all information regarding present study
from relevant source. Primary is one method of data collection is related with ascertaining
questionnaire, survey, observations, etc. while secondary data collection is associated with
collect information from journals, books, internet articles, publications, etc. The present study is
collected all relevant data from primary source by questionnaire collected from all the
respondents. The scholar has distributed questionnaire among all the senior managers of Qatar
Airways which have been selected as respondents in order to fill questionnaire according to their
perceptions and experience.
Data Analysis – It is a technique under which cleaning and transforming of data
evaluation is undertaken. The collected data is raw and not useful for research which further need
analysis to make relevant data. Qualitative data analysis is one of the technique which evaluated
strategies and plan which uses qualitative information to be gathered for transform into some
relevant information while quantitative data analysis is analysed through different statistical tools
such as excel spread sheet, SPPS under which quantitative data is analysed effectively (Friese,
2019). The present study is associated with qualitative research for this data is analysed by
qualitative data analysis in which thematic analysis by using graph, charts and table.
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Ethical Consideration – The ethical consideration is a key element which need to be
followed by every research under which ethical standards and norms makes difference in wrong
and right doing. The researcher follows all the laws and ethics for executing this research as the
scholar knows about the investigation which considers only viable and reliable data. The scholar
under this research follows ethics and norms which only considers all participants as an adult.
Also, all the respondent are avoided enabling their forceful participation their will is indulged
under this research study. Along with this all the information were collected from valid and
reliable source of information. This study ignores all the sensitive topics such as caste, creed,
colour, religion, etc. so that the feelings of respondents remain stable.
CHAPTER 4 : DATA ANALYSIS
Theme : Do you think, Qatar Airways can establish their international presence ?
Particulars Senior managers Percentage
Yes 14 70.00%
No 6 30.00%
Total 20 100.00%
Interpretation – From the preceding survey conducted from 20 senior managers of Qatar
Airways and the outcomes is that 70% senior managers shared their views in support for
international expansion of Qatar Airways as this will help the company to higher profitability
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Yes
No

and growth while other 30 % managers did not support to establish international presence of
Qatar Airways.
Theme : What do you think the major risk associated with joint venture for international
expansion of Qatar Airways ?
Particulars Senior managers Percentage
Time consuming 8 40.00%
Cultural differentiation 7 35.00%
Increases liability of all
parties.
5 25.00%
Total 20 100.00%
Interpretation - From the preceding survey conducted from 20 senior managers of Qatar
Airways and the outcomes is that according to observation of 40 % senior managers the major
risk associated with joint venture for the international expansion is that it takes more time to
expand and establish. They support with (Hwang and et.al., 2016) the above literature review
that Joint venture take time and efforts to build strong and right relationship. On the other hand,
other 35 % senior managers of Qatar Airways is arguments on cultural differentiation is the
major risk which is related to joint venture in international expansion. In accordance with (Carr,
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Cultural differentiation
0 0.1 0.2 0.3 0.4
Percentage

Hawkins, and Westberg, 2017) literature review above depicted that cultural difference, conflict
of interest, belief and knowledge is a major challenge for the Qatar Airways while establishing
business in an international market with the help of joint venture. The liability of all parties also
increases by executing joint venture is also considered as major risk in accordance with 25 % of
senior managers.
Theme : In accordance with your understanding, what are the benefits of adopting joint
venture for getting entry into international market ?
Particulars Senior managers Percentage
Efficient utilization of
resources
6 30.00%
Cost effective production
and services
4 20.00%
Competitive advantage 8 40.00%
Higher operational
growth
2 10.00%
Total 20 100.00%
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Efficient utilization of
resources
Cost effective production and
services
Competitive advantage
Higher operational growth

Interpretation - From the preceding survey conducted from 20 senior managers of Qatar
Airways and the outcomes is that 30 % managers supported that benefits of joint venture is
associated with efficient utilization of resources. They supported their statement with (Hébert
and Beamish, 2017) above literature review that joint venture is useful in optimum utilization of
resources by synchronizing the resources of different entities. Other 20 % senior managers
supported according to their experience that joint venture enables a cost effective services and
production. 40 % managers is observing that company is attaining competitive advantage which
helps them in attaining growth and expansion in international context while 10 % senior
managers observed that there is a benefit of higher operational growth by adopting joint venture
as a mode of entry.
Theme : According with your views, the efficient resource utilization will help Qatar
Airways in attaining growth ?
Particulars Senior managers Percentage
Yes 10 50.00%
No 8 40.00%
May be 2 10.00%
Total 20 100.00%
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