Business Project: Renault-Nissan Joint Venture in Taiwan

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Unit 6: Managing a Successful Business Project
Risks and Benefits of Renault Nissan Joint Venture to Enter Taiwan Market considering
customer perceptions
Student’s ID:
University Name:
Author’s Note:

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Table of Contents
Task 1: Project Plan (LO1)..............................................................................................................3
1. Explanation of the proposed research topic, and reason to choose it......................................3
2. Aim and objectives of the proposed research..........................................................................3
3. Discussion of scope and limitations........................................................................................3
4. Project Plan, Gantt chart and WBS to provide timeframes and stage for completion of
research........................................................................................................................................4
5. Risk register identifying 5 risks of the proposed research, comprising size of each risk and
the planned mitigation measures.................................................................................................7
Task 2: Research Report (LO2, 3 and 4).........................................................................................9
Chapter 1: Introduction................................................................................................................9
Background of the research.....................................................................................................9
Nature of the Problem..............................................................................................................9
Why the Context of the study is important............................................................................10
Literature gap.........................................................................................................................10
Aims and objectives...............................................................................................................10
Chapter 2: Literature Review.....................................................................................................10
Risk factors Renault Nissan Joint Venture (JV) may face from Taiwan market...................11
Productivity and profits of Taiwan market with market entry of Renault Nissan.................12
Other market entry methods and Pestel analysis of Renault Nissan in Taiwan....................13
Benefits Renault Nissan joint venture can receive from customers of Taiwan.....................14
Chapter 3: Methodology............................................................................................................14
Research Design....................................................................................................................15
Primary data collection..........................................................................................................16
Sampling method and sample size.........................................................................................16

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Data collection process/analysis............................................................................................16
Ethical issues.........................................................................................................................17
Chapter 4: Results......................................................................................................................17
Quantitative questions...........................................................................................................17
Chapter 5: Conclusions and Recommendations........................................................................27
Conclusions from literature and findings..............................................................................27
Recommendations..................................................................................................................28
Chapter 6: Reflections...............................................................................................................29
References......................................................................................................................................31
Appendices....................................................................................................................................34

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Task 1: Project Plan (LO1)
1. Explanation of the proposed research topic, and reason to choose it
As the research analyses risks and benefits of Renault Nissan to enter Taiwan market, for many
years, Renault had to manage with declining car sales in the traditional domestic market of
Europe. Renault also prepared its future, so that it can become pioneer in sustainable mobility
with its electric vehicles in coming years. Taiwan also has a small domestic automotive market
but in 2018, it also sold about 445,000 new cars. Most of its car manufacturers include the
Toyota, Yulon, Hotai, and Honda. Renault Nissan can enter successfully in Taiwan, if it works as
a joint venture with the Honda group (Zenkevich and Koroleva, 2014). However, the topic is
chosen to analyse how Renault Nissan can find response in Taiwan by associating with existing
automotive firm in Taiwan. Thus, there is a good possibility that Honda in Taiwan with Renault
Nissan can produce the best cars in the country, associating the risk factor to be clash of culture
or the partners bringing diverse level of expertise or investment.
2. Aim and objectives of the proposed research
The research aim is to analyse the possible risks and benefits of Renault Nissan joint venture to
enter Taiwanese market, considering the customer reactions. Below stated objectives include:
 To identify the risks factors of Renault Nissan joint venture’s market entry in Taiwan
 To determine the possibilities that Renault Nissan joint venture can receive among the
customers of Taiwanese market
 To investigate how productivity and greater profits could be increased with the arrival of
Renault Nissan in Taiwan
3. Discussion of scope and limitations
The research scope will be concerned on how Renault Nissan market entry could be effective on
provided good access to investment by the home country. As Renault Nissan is a joint venture, it

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can gain large access to market, so that proper R&D of the parent company in Taiwan could be
found. If Renault Nissan is successful in Taiwan, it could receive large access to resources, staffs
and technology (Tao, 2019). While the limitation that the alliance may face is that, the partners
bringing lot of expertise could result in poor integration. Even, the partners in Taiwan may not
have a clear state of objectives for joint venture.
4. Project Plan, Gantt chart and WBS to provide timeframes and stage for completion of
research
Project Plan
The project cost decided for the project is estimated at £2500, as this mainly includes the cost of
electricity, survey process, pen, paper, internet and market research of Taiwan market. The time
set for the project will be approximately three months starting from 25th of June 2019 and ending
it to 24th of August 2019. During the time, the survey will be conducted among the employees of
Renault Nissan, analysing how the joint venture could find success. The project deliverables will
analyse how the outcome of the study will make a positive effect on the activities of Renault
Nissan in Taiwan market (Ft.com. 2018). Likewise, it is important to analyse the success criteria
of the project, so that the risks and benefits of Taiwan can be estimated. The below WBS is
analysed with the five stages of the project that includes Project Initiation, Planning, Execution
and Control and Project closure.

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WBS
Figure 1: WBS
(Source: Learner)
Gantt chart
Research onRisks
and Benefits of
Renault Nissan Joint
Venture to Enter
Taiwan Market
Initiation
Asign to the Project
Manager
Develop a project Plan
Planning
Develop
WBS
Plan
Schedule
Plan Budget
and Resource
Identify Risk
Management with risk
register
Planning Research
Strategy
Execution
and Control
Manage effective
Communication
Execute on the Project Tasks
Apply survey on
Customers of Taiwan
market
Analyse the results
from customers
Analyse results with
questionaire
Analyse the attained
data
Draw
conclusions
Closure Document Closeup

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Tasks/Weeks W
1
W
2
W
3
W
4
W
5
W
6
W
7
W
8
W
9
W
10
W
11
W
12
Aims and
objectives
Select strategy
for the project
Meet with
project
stakeholders
Decide time
and budget
Doing the LR
of the project
Devising key
methods
chosen for the
research
Design
questions for
survey
Purchasing
required
materials
Send survey to
customers of

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Taiwan market
Analyse the
results with
percentage
calculations
Documenting
results
Preparing
report with
findings
Reflection
Submission
Table 1: Gantt chart
(Source: Learner)
5. Risk register identifying 5 risks of the proposed research, comprising size of each risk
and the planned mitigation measures
Risk Description Likelihoo
d
Size
of
the
risk
Planned Mitigation
The objective of the Renault
Nissan may not be communicated
in a clear way.
Medium Less This is where the Joint venture Renault Nissan
has to communicate the objectives first, so that
it can effectively enter to Taiwan market, and
trade with another parent company i.e. may be

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Honda.
The partners of Renault Nissan
venture may have different goal
to enter Taiwan market
High High For this, Renault Nissan has to set its own
objective, and make better deal with a parent
automotive company of Taiwan, so that
successful trade can be done, for making better
profits of the home and the international
company too.
Partners Renault Nissan venture
may not offer effective leadership
during the early stage of entering
to Taiwan
Low Less It is where the company’s best leaders have to
be appointed, so that successful leadership
criteria should be implemented by Renault
Nissan to trade in Taiwan.
It may have a risk of overtaking
the parent company that Renault
Nissan will be joint venturing
High Medi
um
If the market shares are higher in case of a
parent company, such as Honda, then, there
could be a higher probability of the parent
company to overtake it, and this risk factor can
go opposite to the international venture coming
to Taiwan. This is where Renault Nissan has to
come up with large market shares and funding,
so that better car models can be traded in
Taiwan.
Due to poor integration and
cooperation resulting Renault
Nissan to find better profitability
Medium High Due to low market integration, company’s
stability could decline. For this, Renault Nissan
has to bring the car models, which Taiwanese
customers like more. They should know which
car models will be attracted more to the
customers.
Table 2: Risk Register
(Source: Learner)

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Task 2: Research Report (LO2, 3 and 4)
Chapter 1: Introduction
Background of the research
Renault Nissan Joint venture that created in 1999 has been developed over the years with culture
and identity. It has enabled to become a longest transnational partnership between carmakers in
automobile industry. The alliance also has provided a competitive benefit to each company, and
mainly to Renault. Besides, Renault has gained huge scale in the international carmaker in ultra
competitive and globalised market. Due to recession in Europe and low sale in China, the global
sales rose to 8.1 million vehicles during 2012 (Ross and Ross, 2019). Renault sold around
2,550,286 units and Nissan sold 4,940,133 vehicles. The Joint venture alliance represented 36%
of global vehicle sales in the BRIC (Brazil, Russia, India and China) countries. It is quite clear
that the research will prove to be effective, as Taiwan automotive intelligence is leading well in
developing the electronics systems for the automotive intelligence. The best change Renault
Nissan can find from Taiwan market is the advanced innovation, which they can input electronic
power steering in their cars.
Nature of the Problem
The key problem that is identified in case of Renault Nissan while entering to Taiwan market
could be the increased competition from the home-based car manufacturers in Taiwan. Since the
Renault-Nissan, joint venture has been successful globally and in UK, it has found distribution of
sales in 2017-18 largely. As the auto sales are flattering in mature markets like Europe, Renault
Nissan can find prospect of slow demand, if Honda or Toyota car models are sold to customers
in large numbers (NEWS, 2019). Even, the rival groups of Renault Nissan i.e. Honda and Toyota
could give them a steady competition, which may be hard to beat during the company’s launch in
Taiwan by 2019. In that case, the joint venture group has to make a deal with Honda, so that it
can trade well in Taiwanese market. Ultimately, the profit will be for both the companies.

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Why the Context of the study is important
Because Renault Nissan Joint venture has dealt with profitability in the past 2-3 years in UK, it
has high tendency to do well in a new international market. The context of the study is effective,
as it shows how most companies initiate joint venture through a contractual agreement between
parties. While it is analysed that loss and profits would be shared by the parties respectively. In
that scenario, Renault Nissan can find shared investment, may be with Honda, if it contributes
initial capital made for the project (Kumar, 2014). This would also depend on the type of
partnership agreement, alleviating financial burden placed on each of the company. However, the
study also portrays that extensive distribution channels may offer smaller firms with diversified
revenue streams.
Literature gap
The gap that may be identified for the Joint venture Renault Nissan in Taiwan market could be
the synergy benefits that most companies often look during Mergers & Acquisitions. It may be
found that the financial synergy may lower the cost of capital or operational synergy that can
increase the company’s effectiveness in the Taiwan’s market. Even, there could also be barrier to
competition for Renault Nissan, as Toyota has been the market leader in Taiwan far from before.
Aims and objectives
From the LO1, the research aim is to analyse the possible risks and benefits of Renault Nissan
joint venture to enter Taiwanese market considering the customer reactions. The objectives are:
 To identify the risks factors of Renault Nissan joint venture’s market entry in Taiwan
 To determine the possibilities that Renault Nissan joint venture can receive among the
customers of Taiwanese market
 To investigate how productivity and greater profits could be increased with the arrival of
Renault Nissan in Taiwan
Chapter 2: Literature Review

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Risk factors Renault Nissan Joint Venture (JV) may face from Taiwan market
Renault Nissan joint venture alliance has developed over the years, and it has formed culture and
identity between the two groups. As the alliance was developed in 1999, it enabled to become a
transitional partnership for the carmakers in automobile industry. According to Zenkevich and
Koroleva (2014), Renault has launched 5 vehicles in a period of 17 months in 2011-12, while
Nissan aimed for a market share of 10% in India in 2016. Even, Renault’s production capacity
was doubled in Russia during 2016 and this makes a large hope for the JV to make sales in
Taiwan. As Renault is considered as the European leader in the electric vehicles market, the
alliance devoted resources to the electric vehicles with about €4 billion investment from 2015 to
2018 (Tao, 2019). It was found that Renault holds around 43.4% of the Nissan’s share capital,
and Nissan as 15% of Renault’s.
As opined by Zenkevich and Koroleva (2014), there could be certain risk factors associated to
Renault Nissan while entering to Taiwanese market. It is said that company’s strategies may
differ in order to expand globally. For instance, this may comprise of establishing a strategic
alliance or a JV in a foreign market that acquires a firm through FDI or licensing technology
abroad. JV might gain access to the new geographical markets, as diverse nations have varied
regulations and laws (Tao, 2019). In that case, it could prove cost-efficient for a partner who has
already established in other country for distributing or selling the products. However, the risk
could be in terms of high potential for the conflicts within and between collaborating
organisations. Even, there could be the clash of management styles and corporate cultures, which
in turn shows increased liability, exposure and risk for all parties. Bohnsack et al. (2014) have
stated that if mismanagement of resources and capital is found, there could be lack of
understanding of the foreign company’s role in the tactical execution of the agreement made.
Further, the non-specified objectives for the company could also lead to uneven division of the
profits, labour and the losses made between partners. Hence, the exclusivity for the JVs can slow
or impede individual partner growth because of the conflict of the interest clauses, or the non-
competent concessions during the duration of agreement (Kumar, 2014). Moreover, if imbalance
is seen in the levels of expertise, then assets or investments needs to be brought by parties on
difference of the priorities in business.