Project Plan: Risks and Benefits of TESCO's China Joint Venture

This project plan examines the risks and benefits of a joint venture, using TESCO Plc's venture in China as a case study. The introduction provides a brief overview of globalization and joint ventures, highlighting TESCO's partnership with China Resources Enterprise. The research aims to evaluate the advantages and disadvantages of joint ventures for international market entry, with objectives including understanding the concept of joint ventures, analyzing their benefits and drawbacks, and determining resource requirements. The scope focuses on enhancing knowledge of joint ventures, while acknowledging limitations related to the broad scope of globalization and areas needing further investigation. The methodology employs a qualitative research approach, utilizing primary and secondary data collection methods including questionnaires and random sampling. The plan outlines resource and cost considerations, including finance, manpower, and time, as well as a Gantt chart and a risk register identifying potential risks and mitigation strategies. The project concludes with a list of references. The assignment is designed to provide a comprehensive analysis of the complexities involved in international expansion through joint ventures.

Project Plan

Table of Contents
TOPIC – Risks and benefits of a Joint Venture to enter international markets...............................1
TASK 1............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
1. Brief explanation of topic...................................................................................................1
2. Aims and objectives of research.........................................................................................2
3. Scope and limitations of project.........................................................................................2
Research Methodology......................................................................................................2
4. Resources and cost considerations.....................................................................................3
5. Gantt Chart.........................................................................................................................4
6. Risk Register......................................................................................................................5
REFERENCES................................................................................................................................6

TOPIC – Risks and benefits of a Joint Venture to enter international markets.
TASK 1
INTRODUCTION
Globalisation is being considered as an effective process through which business
companies that are looking forward to expand gets an opportunity to perform operations across
borders. Over the years, business organisations are looking forward to perform well and to
develop their customer base. Through different techniques to enter new market like joint venture,
merger, franchisee and more, a firm could blow up its business at international level. In the same
way, TESCO Plc which is a market leader in United Kingdom has joint venture in China with
China Resources Enterprise so that to become nation's biggest food retailer. This action was
taken by them because, grocery sector is carrying different sorts of uncertainties. Here, TESCO
Plc signed a deal in order to run their new business with state run China Resources Enterprise.
TESCO's 131 shops in China will be combined with CRE’s almost 3,000 stores and be called
Vanguard (Tesco signs supermarket joint venture in China, 2019). This country is having highly
influential market and could be considered as one of growing nation in Asia where TESCO has
captured as an opportunity and in order to grab a good hold in largest continent i.e. Asia. On the
other hand, this action taken considering the impact Brexit could make on profitability and
productivity of TESCO PLC.
1. Brief explanation of topic
Every single company whether it is from technology, retail, manufacturing or any other
sector consist with a main motive of expanding business in other countries. This could lead
business organisations to improve their presence at international market (Wu and et. al., 2014).
Brexit where Britain has been voted out of European Union has been one of a crucial factor
which led organisations of United Kingdom to expand their business in other countries that are
not a part of European Union so that they could remove the risks of uncertainties that UK and
countries of European Union are facing. TESCO'S chief executive Philip Clarke, who is fighting
fires across its business including in lacklustre economies in Europe, described the deal where
TESCO hold a 20% stake in Vanguard (Cleden, 2017).
On the other hand, vital reason behind choosing this topic is that many organisations
faces a range of problems like cultural differences, finance related issues, technology, perception
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and needs of targeted customers and so on, which basically impacts upon overall performance
level and business expansion at a whole new country.
2. Aims and objectives of research
Aim:
Main aim of this research investigation is “To evaluate the benefits and drawbacks of
Joint Venture to enter international markets.” A case on TESCO Plc.
Objectives:
 To understand the concept of Joint Venture.
 To analyse the benefits and drawbacks that an organisation goes through while Joint
venturing at international level.
 To determine the resources that are needed by TECSO Plc while joint venturing with
China Resources Enterprise (CRE).
3. Scope and limitations of project
Scope of this project is that, it will aid both researcher and readers to improve their
knowledge related to one of the best and easiest expansion technique i.e. joint ventures that could
be used by business companies (Rudick and et. al., 2014). Enhanced knowledge might aid them
in near future that will take them to understand new markets and distribution networks, sharing
of risks and costs with the partners and so on. Researcher has chosen this investigation because,
many business organisations has already done Joint Venture, which has helped company's in
expanding business at global level.
On the other hand, globalisation is a vast subject to study and there are many areas like
other expansion techniques, their benefits and drawbacks, strengths/weaknesses and more cannot
be covered in one place. Thus, this could be considered as limitation of this project. Another
limitation of this research is that, there are some of areas which needs proper investigation that
researcher did not covered.
Research Methodology
Research Method
In order to conduct an authentic research, investigator can choose one from two different
range of methods and these are qualitative and quantitative. In present investigating report,
qualitative method is going to be utilised by the researcher.
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Data collection tools
In present context, investigator is going to use both primary and secondary data. Here, in
primary data collection tool researcher has used questionnaire from various data collecting
approaches which could be interview, focus group, online survey, survey and more. This will
help in collecting the data from selected respondents.
Sampling method
Sampling method, which researcher is going to utilise i.e. Random Sampling Method.
4. Resources and cost considerations
If it is talked about resources, there are a range of things that are needed for every single
business organisation to keep the focus at time of business expansion like finance, manpower,
machineries, land, time and more. In the same way, TESCO Plc also would require the same that
may aid in reaching to new heights. Along with this, if it is talked about project than a researcher
would need to consider time, cost, human resource, technology and more (Cleden, 2017).
Along with this, if it is talked about cost considerations than it can be said that TESCO
Plc would require a huge money as investment in order to enter Chinese market. On the other
hand, researcher would require an amount of 110 pounds to complete the project in specific time
frame (Nundy and et. al., 2014).
5. Gantt Chart
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6. Risk Register
S.
No
.
The Main
risk
Owner
of risk
Reason/
cause
Effect Probabil
ity
Impact Level of
Risk
Risk
respons
e
strategy
Cost of
Strategy
1 Lack of
knowledge
related to JV
Researc
h
conduct
or
No
recognit
ion of
market
entry
strategy
Lower
authenti
cation
within
the
research
5-40% 5 to 7
pounds
Low Market
analysis
and
proper
decision
making
process
needed
10
Pounds.
2 Conflicts
among
researcher
and lecturer
Investor Insuffici
ent flow
of
informa
tion.
Lack of
meeting
s with
lecturer
within a
class
40-70% 6 to 7
pounds
Red Continu
ous
meeting
s and
seminar
s.
25
Pounds.
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REFERENCES
Books and Journals
Wu, Y. and et. al., 2014. Study of decision framework of wind farm project plan selection under
intuitionistic fuzzy set and fuzzy measure environment. Energy Conversion and
Management. 87. pp.274-284.
Rudick, R. A. and et. al., 2014. Multiple Sclerosis Outcome Assessments Consortium: genesis
and initial project plan. Multiple Sclerosis Journal. 20(1). pp.12-17.
Cleden, D., 2017. Managing project uncertainty. Routledge.
Nundy, S. and et. al., 2014. Mobile phone diabetes project led to improved glycemic control and
net savings for Chicago plan participants. Health Affairs. 33(2). pp.265-272.
Online
Tesco signs supermarket joint venture in China. 2019. [Online]. Available through:
<https://www.independent.co.uk/news/business/news/tesco-signs-supermarket-joint-
venture-in-china-9453455.html>.
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