Risks and Benefits of Joint Business Venture Project

This report examines the risks and benefits of a joint business venture, specifically focusing on the potential international expansion of two clothing companies, Flannels and Fenchurch. The study employs a mixed-methods approach, including primary and secondary data collection through literature review and surveys of employees within the UK clothing industry. The report outlines a project plan, including objectives, a project schedule with a Gantt chart and work breakdown structure, a communication plan, and risk and resource management plans. The research aims to identify the challenges and opportunities associated with entering international markets, such as Australia and China, and includes a PESTLE analysis. The findings are presented with detailed analysis of the data collected, and a conclusion is drawn, offering recommendations based on the research. The report also includes appendices with the survey questionnaires.

Running head: RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
DO NOT DELETE THE COMMENTS
Risks and Benefits of a Joint Business Venture to Enter International Markets
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1RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Executive Summary
This paper reflects the risks and benefits of a Joint Business Venture to Enter International
Market. The possible risks can cause massive threat for the business in future on the other
hand the benefits can assist the company to obtain commercial success and competitive
advantages at the same time. Two companies Flannels and Fenchurch (clothing) are
nominated to develop the joint venture that will be launched in the international market. Both
of these companies are clothing Flannels and Fenchurch JVstores located in United
Kingdom. Mixed data have been collected from the primary and secondary resources
followed by literature review and survey. The employees working in the Flannels and
Fenchurch JVindustry of United Kingdom are the participants to this survey. This paper
concludes with the findings and analysis.

2RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Table of Contents
CHAPTER I: Establish aims, objectives and timeframes for defining the risks and
benefits of a joint business venture to enter international markets............................................5
1.1 Introduction..............................................................................................................5
Objectives...............................................................................................................6
1.1.3 Statement of the problem..................................................................................7
1.2 Project plan to merge Flannel and Fenchurch clothing retail stores....................7
1.2.1 Project schedule, Cost/ Budget.....................................................................7
Figure 1: Gantt chart for the project.......................................................................9
Figure 2: Work Breakdown Structure for the project............................................9
1.2.2 Communication plan.....................................................................................9
1.2.3 Risk management plan................................................................................10
1.2.4 Resource management plan.........................................................................10
1.3 Purpose...............................................................................................................10
1.4 Significance of the study....................................................................................11
1.5 Research questions and/or hypotheses...............................................................11
CHAPTER II: small-scale research, information gathering and data collection to
generate knowledge to support the project...............................................................................12
2. Background..............................................................................................................12
2.1 Literature review................................................................................................12
CHAPTER III...............................................................................................................14

3RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
3. Methodology............................................................................................................14
3.1 Introduction........................................................................................................14
3.2 Population and sampling....................................................................................14
3.3 Instrumentation (include copy in appendix)......................................................15
3.4 Procedure and time frame..................................................................................15
3.5 Analysis plan......................................................................................................15
3.6 Validity and reliability.......................................................................................16
CHAPTER IV..............................................................................................................17
4. Results and Findings................................................................................................17
1. Gender......................................................................................................................17
CHAPTER V................................................................................................................24
5.1 Conclusions and Recommendations..................................................................24
5.1.1 PESTLLE Analysis.....................................................................................24
5.2 Summary of what you did and found.................................................................26
5.3 Discussion explanation of finding......................................................................27
5.4 Why do you think you found what you did?......................................................27
CHAPTER VI..............................................................................................................27
6. Evaluation of the Project..........................................................................................27
References....................................................................................................................29
Appendix......................................................................................................................34
1. Survey questionnaires..........................................................................................34

4RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE

5RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
CHAPTER I: Establish aims, objectives and timeframes for defining the
risks and benefits of a joint business venture to enter international
markets
1.1 Introduction
Joint venture is referred to as a business agreement where two or more than two parties can
be involved or agreed to pool their owned resources by accomplishing the project or company
objectives. Two companies Flannels and Fenchurch are nominated for this joint venture. The
joint venture will be launched in the international market to gain collaborative commercial
success and competitive advantages as well.
Flannels public retail company is a United Kingdom based retail chain of high end design
stores. The products manufactured by the company are extremely consumer focused and even
the qualities are also appreciable however due to lack of marketing strategies they are failing
to enter to the international market.
The other company that is going to take part in joint venture is Fenchurch. This distribution
and wholesaler company offers brands of skater clothing. Since last two to three years the
company is failing to offer quality and customer focused clothing products. The consistency
in net revenue of the company is being compromised these days. In order to resolve these
challenges Fenchurch is showing their willingness to collaborate with Flannels public retail
company. These companies are eager collaborate their product quality and marketing
strategies together to gain competitive advantages and commercial revenue at the same time.
Market globalization and worldwide project exploration is referred to as one of the most
crucial factors that helps the business organizations to obtain huge commercial revenues and

6RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
competitive advantages as well. Most of the business organizations are focused on exploring
and developing international source capabilities in terms of distributed good, products and
services. Fenchurch offers fancy summer and winter clothing on the other hand, Flannel
offers similar services in the international market.
It is determined that the recent economic downtown has started taking advantages from the
strategic business opportunities through the international alliances. While entering to an
international market, the risks and benefits that a joint venture faces are elaborated in this
paper. After identifying the problem statement a project plan is prepared considering cost,
resources and time. A small-scale survey is also conducted to gather data from different
resources. Apart from that a literature review has also been conducted to assist the research
question. Not only this but also significance of the study or to evaluate the benefits and risks
of joint venture to enter to the international market are all elaborated in this report.
Aims
International joint venture allows the business organizations to obtain a faster but less costly
access specifically in the competitive foreign marketplace. It has been determined that
business can obtain an international expansion through a joint venture.
The aim of this project is to identify the possible risks and benefits that a Flannels and
Fenchurch JV industry joint venture can face while entering to the international market. The
collaborative joint venture is willing to enter to the market of Australia and China.
Objectives
 To analyze the current status of international competition where Flannels and
Fenchurch are going to enter
 To identify the possible risks that a joint venture can face while entering to the
international market

7RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
 To identify all probable commercial, social and environmental benefits that a
joint venture face in an international market
1.1.3 Statement of the problem
It is determined that a joint venture can face several severe problems to enter to the
international market. In most cases joint ventures fail to represent cent percent clear and
concise project objectives due to lack of business associate’s involvement and the way they
do communicate.
 It restricts the international business flexibilities which results commercial sufferings.
 Each individual needs to take active participation throughout the project lifecycle.
 Though, equal capital investment is possible but it is extremely unlikely to expect
equal contribution in terms of roles, involvement and responsibilities sharing from all
involved Flannels and Fenchurch JV companies.
 In case of joint ventures many companies work all together which may imbalance the
assets, expertise and commercial investment as well. Therefore, the expected outcome
from the joint venture can negatively impact the business effectiveness.
1.2 Project plan to merge Flannel and Fenchurch clothing retail stores
1.2.1 Project schedule, Cost/ Budget
WBS Task Name Duration Start Finish Resource
Names Cost
0 Research plan
preparation 67 days Wed
3/20/19
Thu
6/20/19 $9,008.00
1 Research
initiation phase 13 days Wed
3/20/19 Fri 4/5/19 $1,744.00
1.1
Determining the
need for a research
on joint business
venture
2 days Wed
3/20/19
Thu
3/21/19 Research head $320.00
1.2 Focus on industry
research and
3 days Fri 3/22/19 Tue
3/26/19
market
surveyor
$336.00

8RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
development for new
product development
1.3
Possible market
sharing and research
distribution strategy
5 days Wed
3/27/19 Tue 4/2/19 Research head $800.00
1.4
Identification of
research goals and
aim
3 days Wed
4/3/19 Fri 4/5/19 market analyst $288.00
2 Research planning
phase 3 days Mon
4/8/19
Wed
4/10/19 $864.00
2.1 Defining research
mission 3 days Mon
4/8/19
Wed
4/10/19
Research head,
research team
member 2
$864.00
3
Research on the
joint venture
partners
22 days Thu
4/11/19
Fri
5/10/19 $2,816.00
3.1
Research of the
current status of the
nominated companies
5 days Thu
4/11/19
Wed
4/17/19 market analyst $480.00
3.2 Identification of
research participants 8 days Thu
4/18/19
Mon
4/29/19
market
surveyor $896.00
3.3
Understanding
the consumer’s and
employee values
9 days Tue
4/30/19 Fri 5/10/19 Research head $1,440.00
4 Research
execution phase 21 days Mon
5/13/19
Mon
6/10/19 $2,368.00
4.1 Conducting
survey 3 days Mon
5/13/19
Wed
5/15/19
research team
member1 $384.00
4.2 Primary data
collection 5 days Thu
5/16/19
Wed
5/22/19
research team
member 2 $640.00
4.3
Secondary data
collection with
literature review
6 days Thu
5/23/19
Thu
5/30/19
market
surveyor $672.00
4.4 Analyzing
research data 7 days Fri 5/31/19 Mon
6/10/19 market analyst $672.00
5 Research closure 8 days Tue
6/11/19
Thu
6/20/19 $1,216.00
5.1 Research team
signoff 2 days Tue
6/11/19
Wed
6/12/19
research team
member1 $256.00
5.2 Final draft
submission 6 days Thu
6/13/19
Thu
6/20/19 Research head $960.00

9RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
Figure 1: Gantt chart for the project
(Source: Created by author)
Research plan
preparation
Research initiation phase
Determining the need
for a research on
joint business
venture
Focus on industry
research and
development for
new product
development
Possible market
sharing and research
distribution strategy
Identification of
research goals and
aim
Research planning phase
Defining research
mission
Research on the joint
venture partners
Research of the
current status of the
nominated companies
Identification of
research
participants
Understanding the
consumer’s and
employee values
Research execution
phase
Conducting survey
Primary data
collection
Secondary data
collection with
literature review
Analyzing research
data
Research closure
Research team
signoff
Final draft
submission
Figure 2: Work Breakdown Structure for the project
(Source: Created by author)
1.2.2 Communication plan
Person involved Purpose Frequency
Project manager and market To conduct discussion regarding the possible risks and Weekly

10RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
analyst both existing and newly entered competitor companies
Business analyst and decision
making committee
To understand the joint venture parameters,
promotional tools and business strategies
Monthly
Operation manager, project
manager and market analyst
To analyze the current business operation, market
competition and identify respective parameters
Weekly
1.2.3 Risk management plan
Risk id Description Impact Probability Score
R1 Lack of skills and knowledge Medium Possible High
R2 Selection of inappropriate project tools and technologies Significan
t
Likely Extreme
R3 Inaccurate resource, time and cost management High unlikely Moderate
R4 Inadequate interaction between the partner companies
and decision-making team members
High Rare Low
1.2.4 Resource management plan
In order to launch a joint venture in the competitive international market the resource
management steps those are to be considered include:
 Reward and recognition system
 Acquire team through staffing management and reward management plan
 Developing project team with team building activities
1.3 Purpose
The purpose of the research is to conjugate two companies Flennels and Fenchurch after
understanding their current market status. In order to enter to the international market of
Australia and China the companies require conjugating their qualities and marketing

11RISKS AND BENEFITS OF A JOINT BUSINESS VENTURE
strategies together. The main purpose is to understand the requirements why theses
companies are willing to collaborate together.
1.4 Significance of the study
Successful progress of the research project will identify probable risks and benefits associated
to joint venture along with business promotional activities and competitive market analysis
strategies to be followed in the international market. It is found that in some applications
Flennels is effective and in some other Fenchurch is efficient. The products quality of
Fenchurch is better than Flannels however the marketing approach used by Flannels is much
market efficient. This study focuses on the individual features of these two companies. Based
on that, the business will be merged together and launched in the international market.
1.5 Research questions and/or hypotheses
H0: Being launched in the international market of china and Australia is beneficial for
Flannels and Fenchurch Joint venture.
H1: Being launched in the international market of china and Australia is not
beneficial for Flannels and Fenchurch Joint venture.