International Joint Venture: Telefonica's UK Expansion Risk Assessment

Desklib provides past papers and solved assignments for students. This project analyzes Telefonica's UK expansion via a joint venture.

Managing a Successful Business
Project

TABLE OF CONTENTS
Task 1: Project Plan.........................................................................................................................1
A brief explanation of the proposed topic and why you have chosen.........................................1
An aim and some objectives for your proposed research............................................................1
A brief discussion of the scope and limitations of the project.....................................................2
Resources and cost considerations...............................................................................................2
A Gantt chart or work breakdown structure in order to provide timeframes and stages for
completion...................................................................................................................................3
A risk register covering the main risks with the proposed research............................................5
References........................................................................................................................................7

LIST OF TABLES
Table 1: Gantt chart.........................................................................................................................3
Table 2: Risk Register.....................................................................................................................5

Task 1: Project Plan
A brief explanation of the proposed topic and why you have chosen
The current project is related to identify the risks and benefits of joint business venture to enter
into an international market. Topic is chosen as a result of increasing globalization which has
restricted the growth of business in international markets as a result of increasing competition.
Many of the international organizations are increasing in number to enter into Joint ventures with
small and local companies for attaining profitable opportunities. It has been identified that joint
ventures comes up with number of benefits however there are number of complexities because of
different cultural, political, and legal frameworks (Yan and Luo, 2016). The current project will
consider the business expansion of Telefonica which is a multinational telecommunication
organization in Spain in UK with the help of Joint venture. The project will collect the relevant
information to assess the risks and benefits of the strategy undertaken for business expansion.
An aim and some objectives for your proposed research
Project Aim: Aim of the project is to assess the benefits and risks that would be faced by
Telefonica that would undertake Joint Venture for expanding its business into UK.
Project Objectives:
 To determine the benefits for Telefonica while entering into international market with the
help of Joint Venture
 To identify the risks of a joint business venture in context to Telefonica to enter into UK
market
 To gather appropriate information with the help of qualitative and quantitative
information with the help of books, journals and survey
 To collect relevant and accurate information related to benefits and risk of a joint
business venture to enter international market
 To accomplish the project as per the set deadlines.
1

A brief discussion of the scope and limitations of the project
Project Scope: The current project’s is to undertake the primary and secondary research with the
help of questionnaire survey as well as with the help of online articles, books and journals, etc.
Primary research is undertaken by asking questions from respondents who are managers of the
organization to assess the risk and benefits of Joint Venture while entering into the new market.
Entering into Joint Venture supports the business organization to compete in international market
and therefore the scope of the project is to identify risk and benefits so that better strategies can
be developed in future (Mata and Portugal, 2015).
Limitations: Limitations of the current project are related to scope and objectives. Set objectives
are related to specific organization which is the major limitation to the project as if the
organization changes then there are need of changing entire resources along with strategies.
Limited number of human resources is also the major limitation of the project that has resulted
into increasing workload of all the members employed within the project.
Resources and cost considerations
Project Resources: Essential resources required for completing the project are financial
resources, project members, and software and hardware tools for undertaking the project
requirements as well as quality management resources (Larson and Gray, 2017).
Cost Consideration: Overall cost estimated by the project manager includes following activities:
Activities Cost ($)
Market research 8000
Data collection 6000
Human resource planning 12,000
Data analysis and findings 3500
Project documentation 2500
Project budget $32,000
2

A Gantt chart or work breakdown structure in order to provide timeframes and stages for completion.
Table 1: Gantt chart
Activities 1-15
May
16-25
May
26-5
June
5-15
June
16-22
June
23-1
July
2-10
July
11-20
July
21-25
July
Create project plan
 Time estimation
 Identifying Project scope
 Market analysis
Project requirements
 Budget calculation
 Arranging for funds
 Competitive analysis
 Analysing risk factors
Pre-designing project
 Determining additional strategies
 Development and estimation of
plan
 Developing proposal
Project design
 Resource collection
 Allocation of roles and
responsibilities
3

 Quality management
 Communicating with stakeholders
 Project documentation
Project implementation
Controlling and monitoring of project
 Monitoring of progress
 Plan Updating
 Quality testing
 Risk control
Post implementation
 Collecting feedbacks
 Further training to team members
 Assessment of feedback from
stakeholders
 Project Completion
4

A risk register covering the main risks with the proposed research.
Table 2: Risk Register
S. No Risks Owner Mitigation Actions Risk
Likelihood
(for low 1
and for high
5)
Risk
Severity
(for low 1
and for
high 5)
Discussion
1 Risks related to
time
Project
members and
project
managers
Appropriate
allocation of
resources in the
more effective
manner
Utilisation of
strategies such
as
prioritisation
4 5 It will exceed
the overall
budget of the
project
2 Less skilled
resources
Project
Manager
Skill assessment is
crucial for task
allocation
Further
training is
required for
enhancing
skills as per the
project
requirements
5 5 Inadequate
knowledge will
result into
undesirable
outcomes
3 Issues related Project Appropriate Budget 5 5 It will exceed
5

to Budget Manager and
investors
bifurcation of
budget of all the
activities.
Contingency
reserve are
essential to
mitigate the risk
management
tools must be
used
the overall
budget of the
project
4 Lack of
communication
Stakeholders,
Project
manager
Timely meeting
and conferences
with stakeholders
and members
related to project
More usage of
information
technology
will facilitate
communication
3 2 Inappropriate
communication
will result into
issues and
affects the
clarity over
roles and
responsibility of
members
6

References
Books and Journals
 Larson, E.W. and Gray, C.F., 2017. Project management: The managerial process.
McGraw-Hill Education.
 Mata, J. and Portugal, P., 2015. The termination of international joint ventures: Closure
and acquisition by domestic and foreign partners. International Business Review, 24(4),
pp.677-689.
 Yan, A. and Luo, Y., 2016. International Joint Ventures: Theory and Practice: Theory
and Practice. Routledge.
7