Analysis of Joint Venture Strategies: Schaeffler in the UK Market

Desklib provides past papers and solved assignments. This project analyzes Schaeffler's joint venture strategy in the UK.

Advantages and Disadvantages of Joint
Ventures

Table of Contents
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................9
Reference List................................................................................................................................28
Appendix........................................................................................................................................29

TASK 1
1. A brief explanation of the proposed topic and why you have chosen it
The polices of businesses across the international scene have been observed with the changes due
to the internalisation. The companies has been expensively aspiring to the needs of prospering
the business operations in the foreign markets and acquiring a global brand image on the
perceptions of developing brand equity and increased sales revenue. The incentives of
international market might be appealing but at the same time, the penetration of the market with
the wrong set of strategy could only transcend on hampering their growth in the international
market. The adacvnatges of the joint ventures is demonstrated by the efficacies in the alleviation
of the profitable venture. Most of the companies in the automobile industry find it difficult to
assert on the lines of optimum sales on the foreign market. In order to alleviate the scopes of the
company of survival in the local market, the foreign company would benefit from strategic
alliances. Hence, this research project is going to be devised on the rationale of assessing the
benefits and disadvantages of the joint ventures of the organisation of Schaeffler in the UK
market demography, as an international market strategy.
2. An aim and some objectives for your proposed research
The aim of this research is to recognise the advantages and disadvantages that are associated
with the joint ventures aspirations of Schaeffler.
Research Objective
 To identify the features of joint ventures
 To assess the benefits of joint ventures in the business operations of Schaeffler
 To analyse the predicaments of joint ventures that adversely affects Schaeffler
 To recommend possible solution to address the joint venture challenges
3. A brief discussion of the scope and limitations of the project
Project Scope
Included scope

The research outcomes are going to be based on the results of primary research. The primary
research would be devised on the aspects of quantititative analysis. The quantitative analysis
would be conducted through the means of survey. The survey would consist of a sample size of
50 employees and responses will be received by the platforms of a questionnaire.
Excluded Scope
The excluded scope would be on the liabilities of carrying out a secondary research and would
not able to include the information, retrieved through the crucial journals. The assertions of
qualitative research are not going to be implemented in the research project.
Limitations
The research has to be carried out in a limited window of time and this would include the
inappropriate assessment. Thus, it serves as an significant limitation to the project outcomes.
4. Resources and cost considerations
Activities Time (hours) Cost Per Hour (£) Total cost (£)
To identify assertive
resources that are
associated with this
project
25 15 375
Appropriate allocation
of different research
inputs on business
operation.
20 5 100
Primary data
collection has been
conducted
22 12 264
Conducting research
to assess gathered
data
28 18 504
Documentation 12 5 60

process of the
research project
Progress and
evolution of research
process
12 15 180
Total 1363
Table 1: Cost analysis
(Source: Created by the learner)
Monitoring Plan
Activities Examination of activities
Selection of Theme Managed by the Project Manager
Identifying the objective Managed by the project manager and
other managerial heads
Literature review Managed by the project supervisor
Explaining the research method. Managed by the technical supervisor
Analyzing the information gathered. Managed by the project manager
Recommending solutions Managed by the project coordinator
Table 3: Monitoring Plan
(Source: Created by the learner)
5. A Gantt chart or work breakdown structure in order to provide timeframes and stages
for completion
Activity Start Date Duration End Date
Initiating business
project 10-02-19 1 11-02-19
Objective
implementation 11-02-19 1 12-02-19
Theme recognising 12-02-19 2 14-02-19

Scopes of the research
has been highlighted
14-02-19 1 15-02-19
Allocate budgets 15-02-19 2 17-02-19
Research objective
development 17-02-19 2 19-02-19
Interaction with
project member and
managers 19-02-19 1 20-02-19
Creation of
questionnaire that can
reflect the perception
of respondents 20-02-19 1 21-02-19
Creating the log of risk
management 21-02-19 1 22-02-19
Research methodology
explanation
10-02-19 1 11-02-19
Application of research
methodology
11-02-19 1 12-02-19
Estimation regarding
interview process
12-02-19 2 14-02-19
Analysis of information 14-02-19 1 15-02-19
Analysis of Interview 15-02-19 2 17-02-19
Analysis of Survey 17-02-19 2 19-02-19
Creating
recommendation 19-02-19 2 21-02-19
Documentation process
of entire research 21-02-19 1 21-02-19
Table 2: Work Breakdown Structure
(Source: Created by the learner)

Making proper aim and objective of the project
Proper Allocation of the Resource
Survey Interactions
Making questionnaire
Conducting surveys to collect authentic data
Conducting analysis of the collected data
Making proper recommendation and justified conclusion of the
project
Commencing of the Final Data
Submission of the Final Project
2/10 2/12 2/14 2/16 2/18 2/20 2/22 2/24
6. A risk registers covering the main risks with the proposed research
Risk
description
Risk
impact
Probability
of
occurrence
Project impact Consequence Risk owner
Unavailability
of finance
while
conducting the
research
High Low Impulsive
conclusion of
this research
This project has
been finished in
accordance with
disregard for
adhering with
inappropriate
outcomes
Project
Manager
The troubles
and the
dilemmas of
technical
databases in
addition with
information
regarding
High Medium The
characteristic
of this project
can help to
incline the
progress this
project for a
very long time,
Inappropriate
obsession of data
storages such as
different means of
Database
Management can
provide potential
security threat
Project
Manager

storage in addition
with financial
expenses
The
communication
of employees
and cautious of
vulnerabilities
that are
cropping up
Medium Low Insufficient
arrangement of
project
objectives and
inconsequential
alignments of
project aims
The unsuitable
methods of
misleading
prefabricated
project result
Project
Manager
Lack of
considerable
responses
High Low The project
might run
under some
project
milestones
Quality of this
project can get
affected
Project
Manager
Table 4: A Risk register of a project
(Source: Created By the learner)

TASK 2
CHAPTER 1 Introduction
Background Research
The aspects of the globalisation are on the rise through the means of exemplifying the
international trade. As the most of companies find it difficult to the penetration of the foreign
market this in turn proves to the ground where the facets of joint ventures provide with the
enlightened prospects. The terms of the joint ventures is asserted by the business alliances of two
or more organisations that comes from diverse jurisdiction to influence the flow of resources,
undertakings and at the same time sharing the risks and the profits. The project will be
deliberated on the outcomes of influencing the advantages and disadvantages that is shared by
the entry strategies of the joint ventures. The aspects of alleviating the purposes of providing the
business with the competitive advantage in the foreign market with the transcendence on the
features of joint ventures are influential.
Research Aim
The aim of this research is to recognise the advantages and disadvantages that are associated
with the joint ventures aspirations of Schaeffler.
Research Objective
 To identify the features of joint ventures
 To assess the benefits of joint ventures in the business operations of Schaeffler
 To analyse the predicaments of joint ventures that adversely affects Schaeffler
 To recommend possible solution to address the joint venture challenges
CHAPTER 2 Literature Review
Introduction
In the ascendancy of the prospects of reaping the benefits through revelling in the foreign market
has aspired most of the businesses to enter the international market (Killing, 2017). The
consumers regarding the use of the services have risen in several folds and they have shown

increased interest in the purchases from the foreign firms. This in turn has turned out to be the
driving factors that influence the business aspirations of tapping a larger consumer faction. This
is no different to the aspirations for the small and medium enterprises (SME). The sole
predicament that has been acting as a restraining factor to their purposes, have been the financial
constraints. Hence most of the companies have been accessing the strategically advantages
provided by the advents of joint ventures. The assertions made through the joint ventures have
been reflecting on the cost effective measures of penetrating the market. The development of the
strategic alliance makes the expenses instantiated for the business purposes to be shared by the
foreign company and the local institution. This in turn eradicates the liabilities of the possessions
in the terms of capital investment, demonstrated by the foreign companies and helps the
company to undertake the business operations with fewer possibilities of incurring financial loss.
These strategic alliances are often observed in the scenarios of the developed economies where
the cash intensive aspects are more prevalent as compared to the developing economies. The
manufacturing industry has been often observed with the strategic alliances on an increased
number of advents (Abd-Karim, 2014). The challenges that are associated with the demographics
of developed economy asserts on the higher taxation rates, trade barriers. Hence, this acts as one
of the hindrances to the company in order to propagate through the means of single entity. As the
foreign company has reduced understanding in the fields of economic expenses that is associated
with the purchases of raw materials from the suppliers in the developed economy, it will lead to
the wastages in the capital expenses that would relate to the initiations of the foreign enterprise in
the international market. In order to address the unprofitable ventures of the limited capital
ventures, the organisations has been observed with the correlations in the efficacies of
establishing the strategic alliances to exert on lean financial contributions.
The main benefits that are demonstrated by the facets of the joint ventures are described on the
lines of providing a substantial amount of knowledge of the prevalent policies in the concerned
market demography (Klijn et al., 2016). As the company delves in the aspect of foreign market
info graphics and has no prior knowledge about the policies, they often find it difficult to relate
the business purposes. In the developing economies, the assertion of the political interventions
plays an influential role on the outcomes of the company transcending on the backgrounds of
successful ventures. The foreign company that is vying their trade, coming on the backs of

developed economies would find it difficult to correlate with the political interventions. This in
turn hampers the growth of the company. The implications of developing the business strategies
on the lines of joint ventures would provide the company with credible information in the fields
of the dominant political parties and the influential political figures. As the local companies shed
light on the features of acquisitions of viable knowledge about the political influences, the
strategic alliance with the local company provides them with a competitive edge.
The measures of associating their business with the local ventures designate their efficacies of
gaining alleviated understanding and identification of the viable local suppliers. One of the main
predicaments that is reflected in the penetration strategy to enter the foreign market is signified
by the liabilities of resourcing cheap supplying facilities. These are the problems that are often
prevalent in the demographics of developed economies. The manufacturing industry has been
observed within the similar approaches in the warehouse and inventory management systems on
the subjects of upscale pricing. Hence it has been difficult for the foreign organisations to afford
such hefty duties and renting expenses. Through the instantiation of strategic alliance it has
helped the foreign companies to use the local warehouse as part of terms and conditions of the
joint ventures and thus it reflects on the adversaries of the strategies to penetrate the international
market (Yan and Luo, 2014).
One of the disadvantages that is associated with the features of joint venture would be asserted
through the prevalence in the effective evaluation before developing the strategic collaborations.
Most of the foreign institutions are liable to the culpable features of this strategy because the
organisation finds it difficult to align with the reliable sources of enterprises to form alliances. It
has been observed on regular occurrences that the foreign company has incurred loss due to
failed investment with the associations of sordid organisation and has hampered the limited
financial reserves of the foreign company (Gornall and Strebulaev, 2014).
Literature gap
The articles based on the subjects of the disadvantages of joint ventures are limited and has been
posed as one of the major literature gap.
Chapter 3 Research methodology

The research methodology is the tool that helps in giving the research project with the directions
in aligning with the research objectives. This helps in providing substantial and accurate
outcomes. The research methodology provides the features of assigning the set of protocols that
are required by the research to transcend on the appropriate research objective within a certain
time frame.
Research Philosophy
The aspects of research philosophy are quite assertive on the lines of defining the backgrounds
and rationale that is projected through the research project (Baronov, 2016). It provides the
researcher to elect the proper themes to orient the research in the proper inclinations. The
research philosophy mainly consists of positivism, interpretivism and realism. The domains of
the posistivism are advised on the advocating of generating measurable outcomes through the
means of scientific evidences. The terms of the interpretivism is highlighted through the
efficacies in the gathering knowledge on the qualitative methods and typically includes the
implementation of the observation and interviews. In this research, the philosophy of positivism
is used as the assessment of benefits and risks require logical analysis that could only be
reflected by positivism.
Research Approach
The concept of Research outcomes provides definite assessment in arranging the approaches of
the study. This provides the research in justifying the proper selection of the research topic
(Bryman, 2016). The research topic comprises of the deductive and inductive approach. The
deductive approach includes the implementation of the important models of relevant assertions to
the alleviation of the research topic whereas the inductive approach are initiated with the
observations and towards the accomplishment of the research are proposed with the theories as
an outcome of observations. This research is going to be implemented with the deductive
approach, as it will provide comprehensible assessment of joint ventures.
Research Design
The efficacies of the research deign helps inn providing the efficient processes through which the
information is acquired in order to reflect on the outcomes of proper assessment (Marczyk et al,.