Swallowfield and African Botanics Joint Venture: A Case Study

Desklib provides past papers and solved assignments for students. This project analyzes Swallowfield's joint venture in Africa.

MANAGING A SUCCESSFUL BUSINESS
PROJECT
The risks and benefits associated with joint ventures: A Case Study of Swallowfield while
venturing with African Botanics in Africa
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Table of Contents
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................8
Reference List................................................................................................................................28
Appendix........................................................................................................................................29
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Task 1
A brief explanation of the proposed topic and why you have chosen it
Globalization has made it easy for the brands to move out of their native countries and branch
out is other nations which has apparently increased the market share for the companies. This has
increased the brand value for the companies by increasing the credibility of the brand among the
different potential consumers. Not only the large organizations, but the small and the medium
sized enterprises are also opting the options in the market in order to make a mark in the global
market place. In order to establish in a new location it is imperative to choose an effective market
entry strategy. In this business project, the risks and benefits of adapting to the strategy of joint
venture will be analysed with the help of taking an organization as an example.
An aim and some objectives for your proposed research
Aim of the project: Every business project needs to have some aims and objectives in order to
reach to the conclusion. In this project, the aim of the proposer research is to understand the risks
and benefits that a company faces while entering into a market through the joint venture strategy.
In this research project, True Botanicals will be venturing with African Botanicals a company
located in Africa.
A conclusion can only be reached with the help of some aims and defined objectives. For this
project, the aim of the researcher is to identify and analyse the risks and benefits of joint
venturing in to a new country as an effective strategy of market entry. The concerned
organization is Swallowfield and its will be joint venturing with African Botanicals in Africa.
Apart from the aims, the objectives of the research are:
 To find out the need of the organizations to go global
 To comprehend the positive aspects of choosing Joint Venture as an effective market
entry strategy
 To evaluate the negative aspect of the same
 To analyse the challenges associated with JV as an effective strategy to enter a new
market
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 To recommend some ways that can be adapted to curb the challenges associated with JV
A brief discussion of the scope and limitations of the project
In this project, a variety of information will be provided on the intricate details of joint venture as
an effective market entry strategy. The deliverables of the research project will include the risks
and the benefits associated with using the joint venture strategy to enter a new market. The
project will be completed in a span of 48 days. In addition to this, a proper analysis will be done
on the benefits and that Swallofield might face while venturing with African Botanicals in the
African Market. Some risks will also be analysed in this research project which might hamper
the last results of this study.
Limitations of this business project
Every business project has some limitations associated with it which it needs to tackle in order to
move towards its successful completion. This business project has also got some limitations
attached to it which might be curbed with the help of an effective project management plan. The
limitations that might be faced by this research project are as follow:
 Shortage of time might hamper the quality of the project
 Limited financial resources might restrict the ways of carrying out the proposed research
 Human resources and lack of motivation among them might be a potential barrier in
completing the research project on time
Resources and cost considerations
Project management needs to have a cost information that needs to be pre-drafted by the project
manager in order to move towards its successful completion. The cost table not only identifies all
the costs that will be required for the successful completion of the project, but it also helps in
making the final budget of the project which is imperative in nature. The cost considerations for
this project are as follows:
Activities Cost
Costs of project initiation £300
Surveying respondents £450
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Management interviews £350
Transcripting costs £100
Convenience costs £200
Total Cost £1400
Table 1: Cost and Resources Considerations
(Source: Created by the learner)
A Gantt chart or work breakdown structure in order to provide timeframes and stages for
completion
Activities Start
Date
Duratio
n
End Date
Project aim and objectives development 3/31/201
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1 4/1/2019
Devising Project management Plan 4/1/2019 7 4/8/2019
Determining budget and risks 4/8/2019 3 4/11/201
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Evaluating project management plan 4/11/201
9
2 4/13/201
9
Quantitative data collection 4/13/201
9
10 4/23/201
9
Data Segregation 4/23/201
9
6 4/29/201
9
Data Analysis 4/29/201
9
12 5/11/201
9
Report writing 5/11/201
9
4 5/15/201
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Final correction and project submission 5/15/201
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3 5/18/201
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Table 3: Work Break down Structure
(Source: Created by learner)
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Project aim and objectives development
Devising Project management Plan
Determining budget and risks
Evaluating project management plan
Quantitative data collection
Data Segregation
Data Analysis
Report writing
Final correction and project submission
3/31 4/10 4/20 4/30 5/10 5/20 5/30
Figure 1: Gantt chart
(Source: Created by learner)
A Risk Register covering the main risks with the proposed research
Research and business projects are associated with different risks and limitations. With the help
of the risk register all the risks can be identified and mitigated on time for the successful
completion of the research project. Some potential risks of the research project are provided
below:
Risk Name Identificatio
n of Risk
Resources
required to
mitigate risk
Ways to
encounter
Intensity
of Risk
Time
taken to
resolve
Wrong
research
allocation
3rd week of
the project
lifecycle
Tools of
project
management
PMBOK style
of project
management
can mitigate
this risk
High 9 days
Ineffective
communication
skills that
4th week of
project
initiation
Effective
communication
skill
Searching out
for the ways
other
Moderate 7 days
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limited the
scope of data
collection
application researchers
have improved
their skills of
communication
Table 2: Risk Assessment or Register
(Source: Created by the learner)
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Task 2
Chapter 1: Introduction
Project Overview: The main aspect or core concept of globalization is that, it has made the
world a global market place and people from different countries now have the confidence to go
overseas and explore the potentials that are present in the different markets. However, it cannot
be neglected that there are some advantages and disadvantages that are associated with
globalization and the market entry strategies associated with it. This research project will be
based on finding the risks and benefits that might be faced by Swallowfield while venturing out
with African Botanicals in Africa. Due to globalization it has been observed that companies have
gained the confidence to explore different market entry options which they have not been
explored in the previous decades. Along with this, the small and medium sized organizations are
now moving out of the countries in order to make their mark in the world business scenario.
Aim of the Project: The main aim of the researcher is to analyse and comprehend the risks and
benefits that a company faces on entering a market with the joint venture strategy. The project
will take into consideration two companies name African Botanicals and Shallowfield.
Objectives of the Project: The objectives of the research project are as follows:
 To find out the need of the organizations to go global
 To comprehend the positive aspects of choosing Joint Venture as an effective market
entry strategy
 To evaluate the negative aspect of the same
 To analyse the challenges associated with JV as an effective strategy to enter a new
market
 To recommend some ways that can be adapted to curb the challenges associated with JV
Problem Statement:
Market expansion is a common strategy that is being undertaken by different companies with
globalization in the background. Different and effective market entry strategies needs to be
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undertaken in order to enter a market successfully. However, it has been observed that there are
some risks and benefits associated with different market entry strategies. The identification of the
risks and benefits of using the joint venture strategy to enter a new market will help the business
organizations to come up with effective solutions to reach out to the global consumers. In this
research project, the research project will analyse the risks of penetrating into the African market
in the beauty and cosmetics industry.
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Chapter 2: Literature Review
2.0 Introduction
All the important facts and information about the research project on which the research project
stands is drafted in the literature review section. With the knowledge gained in the literature
review section, it becomes easier for the researcher to carry out the research in more effective
manner. The literature review section also contains different connotations provided by the
authors which helps the researcher find ways for the successful completion of the research
project. Different parameters related to the risks and benefits of entering into a new market will
be analysed with the help of facts and figures. In addition to this a literature gap will also be
identified in the literature review section.
2.1 Definition of Important Terminologies
Globalization
Globalization is not a term as opined by Hirst et al., (2015). Rather it can be said that
globalization is a phenomenon that has helped the world becoming a global market place. In the
21sts century, globalization has helped the business to grow in multiple folds by providing them
with innumerable growth options. In addition to this, globalization has given the small
companies the confidence to move out of the native nations and venture into new market and
explore the opportunities in it.
Joint Venture Market Entry Strategy
Different organizations needs to choose different market entry strategy min order to enter into
new market. Among the different market entry strategies that are present, the joint venture
market entry strategy can be defined as when two companies come together to form a third
company. While adapting to this type of market entry strategy, there are some risks and benefits
associated with it (Killing, 2013).
2.2 The need to enter into a new market
As globalization has increased, it has increased the level of competition in the market. In order to
survive in the industry it is required to explore different market opportunities in order to increase
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the profit percentage and the market share among the different competitors (Rifkin, 2015).
Market entry strategies are being considered by the small and the medium sized enterprises in
order to explore the different opportunities that lie in the different market. In entering a new
market, the companies get to understand the psychology of the consumers and come up with
better curated products that helps to increase its credibility among the other competitors
(Coviello and Munro, 2015). With better products and services that are aligned with the demands
and wants of the global customers, companies are being able to win competitive edge in the
market.
2.3 The Benefits associated with the Joint Venture Strategy for entering into a new market
In order to enter into a new market and survive the competition in it, it is highly recommended to
choose a perfect market entry strategy. As opined by Trigeorgis and Reuer (2017), in the recent
times, people and entrepreneurs are coming out from the notions that partnership is the only
effective market entry strategy to enter into the market. In the recent scenario, companies are
opting out for the joint venture strategy in order to expand into foreign markets (Johanson and
Mattsson, 2015). While adapting to this kind of market entry strategy there are some risks and
benefits associated with it. The benefits of using the joint venture strategy is it helps in
collaborating with a company that has through knowledge on the market dynamics. This reduces
the chances of failing in the market. In addition to this, using the joint ventures strategy it
becomes easy for the organization to chalk out market expansion strategies at low costs and
budgets
2.4 The risks associated with the JV strategy for entering into a new market
In the previous section of the literature review, the benefits of Joint venture strategy has been
discussed. However, there are risks associated with it as well. As opined by Beamish and Lupton
(2016), indifferent profit bearing structures in the joint venture strategy can be a potential risk in
this market entry strategy. In case there are no written contracts regarding the shares of profit
percentage it can lead to breakage of the venture of the two organizations. In addition to this,
mostly in joint ventures, two companies from different geographical backgrounds venture out
and this makes it difficult for the human resource department of the new venture to propose even
rules for all the employees working in that venture (Kraus et al., 2015). In such a situation it
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might be difficult for the managers of the organization to come up with uniform managerial
policies for governing the employees in the organization.
2.5 Literature Gap
The gap between the objectives stated for the research project and the literature drafted in the
literature review section can be termed as the literature gaps. It is not possible for the researcher
to incorporate all the information that is stated in the literature review section and this is where
the literature gap in created. In this literature review section, the challenges associated with the
joint venture strategy and the ways to curb it have not been identified. Thus, a gap in literature
has been created. The two different aspects of the research project could not be confined within
the scope of the literature review section.
2.6 Summary
The literature review section provides a brief synopsis of the data and relevant academic
resources that are required in the successful completion of the research project. In this project,
different aspects and key terms related to the research topic has been described in brief. In
addition to this, the risks and the benefits associated with the joint venture strategy for entering
into the new market has also been evaluated in detail.
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