Sainsbury's and Shoprite Joint Venture: A Business Project Report

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Managing a Successful Business Project
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Table of Contents
Task 1...............................................................................................................................................3
Introduction......................................................................................................................................3
A brief explanation of your proposed research topic and why you have chosen it.........................3
An aim and some objectives for your proposed research................................................................3
A brief discussion of the scope and limitations of your proposed research....................................3
Resources and cost considerations relating to your proposed research...........................................4
A project plan, Gantt chart or work breakdown structure in order to provide timeframes and
stages for completion of your research............................................................................................5
A risk registers covering the five main risks with the proposed research, including the size of
each risk, planned mitigation measures and residual risk................................................................6
Conclusion.......................................................................................................................................9
Reference list.................................................................................................................................10
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Task 1
Introduction
In the competitive business scenario, gaining newer markets through globalisation is an essential
part of the business strategy. Sainsbury’s food retail division has taken up the endeavour to build
a joint venture with Shoprite of South Africa, in order to enter the new market for maximisation
of profits. Shoprite is associated with lower prices and it is very popular (Shoprite.co.za.
2019). Sainsbury is a United kingdom food retailer that has been wanting to expand in newer
markets in recent time (Sainsburys.co.uk. 2019).
A brief explanation of your proposed research topic and why you have chosen it
The research will focus on the globalisation drive that will be undertaken by Sainsbury food
retail department to enter into joint venture with the South African food retailer Shoprite. It will
be a joint venture collaboration to ensure that better revenue generation through globalisation is
possible and there will be a clear learning of the various factors associated with joint ventures
(Killing, 2017).
An aim and some objectives for your proposed research
The aim of this study is to understand the various benefits of globalization, when it is in the
mode of entering international markets in a joint venture mode for expansion. The objectives of
the project are as follows:
 To understand the risks and benefits associated with joint ventures in international market
 To understand the challenges and opportunities of rapid globalisation
 To provide recommendation to successfully complete the joint venture and ensure higher
profitability to both concerns.
A brief discussion of the scope and limitations of your proposed research
Included Scope
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The scope of the project lies in finding the benefits that the joint venture between Sainsbury and
Shoprite can bring about through a joint venture mode. It is also associated with unravelling the
various legal aspects of joint venture between these food retail giants in the background of
entering international market of South Africa by Sainsbury.
Excluded Scope
The excluded scope is that the entry is considered and the immediate benefits; however there is
no effort towards understanding the far off effects of this entry.
Limitations
 Time constraints and budget related limitations are the major factors that have plagued
the project There are also limitations associated with the not having enough research resources that
could help in the project Another major constraint was the fact that the market could not be understood in depth
Resources and cost considerations relating to your proposed research.
Elements Resources
Financial Resources $12550
Human Resources There is need of diligent, competent staff with excellent
communication skills and a dynamic project manager with
effective reporting abilities. There is need for survey related staff
to be present in South Africa to complete surveys for Sainsbury.
Good legal advisor to complete the joint venture procedure
Material Resources Need to be equipped with all project management software and
internet facilities, office equipments and communication
technologies are required.
Table 1: Project resources
(Source: Learner’s Creation)
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Activities Time (in hour) Cost per hour ($) Overall cost ($)
Survey conducted
with Shoprite
employees
150 25 3750
Consultation via
Internet related
communication
media among the
legal heads of both
companies regarding
the procedural
process of the joint
venture
100 20 2000
Face to face
interview conducted
of managers of
Shoprite
45 40 1800
Studying the
consumption pattern
of foreign food to
understand
popularity
200 25 5000
Sum Total 495 12550
Table 2: Time and cost factors
(Source: Learner’s Creation)
A project plan, Gantt chart or work breakdown structure in order to provide timeframes
and stages for completion of your research
Project Plan
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The project plan envelops the fact that there will be around 80 days that will be required to
complete the project and the financial resources required will be $12550. There will be need of
hardworking, competent staff with excellent communication skills and efficient project manager
good leadership is required. There is need for survey related staff to be present in South Africa to
complete surveys for Sainsbury. Excellent legal advisor and legal team to complete the joint
venture procedure (Piaskowska et al ., 2017).
Work Break down structure
Activities Start
Date
Duratio
n
End
Date
Determination of research topic 15.9.19 1 16.9.19
Aim ascertainment 16.9.19 2 18.9.19
Objectives Analysis 18.9.19 2 20.9.19
Literature Review 20.9.19 15 5.10.19
Preparation of Project Management Plan 5.10.19 12 17.10.19
Methodology 17.10.19 12 29.10.19
Data Collection Process 29.10.19 20 18.11.19
Data Analysis Management 18.11.19 10 28.11.19
Report Writing 28.11.19 5 3.12.19
Project Submission 3.12.19 1 4.12.19
Table 3: Work Break down structure
(Source: Learner’s Creation)
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Determination of research topic
Aim ascertainment
Objectives Analysis
Literature Review
Preparation of Project Management Plan
Methodology
Data Collection Process
Data Analysis Management
Report Writing
Project Submission
15.9.19
5.10.19
25.10.19
14.11.19
4.12.19
Figure 1: Gantt Chart
(Source: Created by the learner)
A risk registers covering the five main risks with the proposed research, including the size
of each risk, planned mitigation measures and residual risk
Risk register
Weeks
Number
Recognized
Dates
Recognition of risks Problems
faced
Effect on the project
1 15.09.2019 Communication issues in
between parallel team of
both organizations
High The cost and time
implications associated
with the project may
increase due to
communication
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problems
3 29.09.2019 Problems faced in
deriving work specific
information associated
with market study
High There is major difficulty
in the process of
deriving relevant
information and
understand the impact
that the entry of
Sainsbury will have on
the South African
market.
4 07.10.2019 Legal factors associated
with accommodating laws
of both the lands
Average It can lead to
unnecessary
complication as there
will be differences of
legal interpretations in
both countries
5 14.10.19 Risk of technological
incompatibility between
two different
organizations
Low There may be loss of
data and there may be
loss of information and
trend analysis that may
arise due to
technological
malfunctioning and
failures of technological
compatibility
6 21.10.2019 Budgetary constraints High There is high probability
that there may be over
doing of the budgeted
figures leading to much
difficulty for both
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companies as it will
strain the budget
Table 4: Risk register
(Source: Learner’s Creation)
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Conclusion
It can be concluded that there is the much promise associated with the concept of globalisation
between two major food retail groups and this is only possible when there is the chance of proper
use of the project plan in the context of the joint venture effort that has been taken up. The
project plan needs to be undertaken with the best effort and ensure that all the factors can be
considered in trying to resolve the factor associated with this international market expansion.
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Reference list
Killing, J.P., 2017. How to make a global joint venture work. In International Business (pp. 321-
328). Routledge.
Piaskowska, D., Nadolska, A. and Barkema, H.G., 2017. Embracing complexity: Learning from
minority, 50-50, and majority joint venture experience. Long Range Planning.
Sainsburys.co.uk. (2019). Sainsbury's - Please enable cookies or JavaScript. [online] Available
at: https://www.sainsburys.co.uk/webapp/wcs/stores/servlet/gb/groceries [Accessed 15 Jul.
2019].
Shoprite.co.za. (2019). Shoprite | Lower Prices You Can Trust. [online] Available at:
https://www.shoprite.co.za/ [Accessed 15 Jul. 2019].
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