Managing a Successful Business Project: Tesco Joint Venture Analysis

This project analyzes Tesco's international joint venture strategy, focusing on its expansion into Romania. The report begins with an introduction to joint ventures and their role in a globalized business environment, followed by an overview of Tesco and its market position. The project aims to identify the risks and benefits associated with Tesco's joint venture strategy, with specific objectives including understanding international joint ventures, measuring associated risks, identifying benefits of strategic alliances, and suggesting ways to maximize advantages. The scope and limitations of the project are defined, along with resource and cost considerations. The project includes a Gantt chart, work breakdown structure, and a risk register. The main body of the report includes a literature review, methodology, results, conclusions, and recommendations, along with reflections and references. The project examines the background of the study, the importance of the study, and the methodology used to conduct the research. The results section presents findings, and the conclusion summarizes key insights and provides recommendations for Tesco. The project highlights the importance of managing risks, including geopolitical, financial, and security risks, and suggests strategies for mitigation. The project is a comprehensive analysis of Tesco's joint venture strategy in the context of its international expansion.

Managing a Successful
Business Project

TABLE OF CONTENTS
TASK 1 ...........................................................................................................................................3
1. Introduction to the proposed topic and rationale for selecting the same ...............................3
2. Aims and Objectives of research ...........................................................................................3
3. Scope and limitation of the project.........................................................................................3
4. Resource and costs considerations.........................................................................................4
5. Gantt chart and work breakdown structure ...........................................................................5
6. Risk register ...........................................................................................................................7
TASK 2 ...........................................................................................................................................9
Chapter 1: Introduction...............................................................................................................9
Background of the study.............................................................................................................9
Importance of the study ............................................................................................................10
Chapter 2 : Literature review....................................................................................................10
Chapter 3: Methodology ..........................................................................................................14
Chapter 4: Results ....................................................................................................................18
Chapter 5: Conclusion and recommendations ..........................................................................27
Chapter 6: Reflections ..............................................................................................................28
REFERENCES..............................................................................................................................29

TASK 1
Background of the topic
Globalization has bought big changes in the business environment. It has bought various
opportunities as well as challenges for companies. Globalization is considered to be as major
driver of change and it also encourages firm to expand business at intentional level. It has
provided enterprises an opportunity to cross border trade. Few companies in retail sector has
entered into Joint venture agreement with global firms in order to provide an appropriate
response to globalization. Joint venture is basically a management in which two or more firms
shows their agreement to share their resources for accomplishing desired objectives. By entering
into Joint venture business companies can get various benefit but at the same time they are
required to consider the risk associated with formation of Joint venture with international
companies. The main purpose of formation of Joint venture by firms is to get an ease in
expansion of business.
The research report will have focus on identifying the benefits as well as risk associated
with Joint venture business. It will include detail about the different methodology adopted by
researcher for conducting the various activities during investigation.
Overview of organization
Tesco is a British Multinational company operating business in retail industry. An
organization has retail outlets in more than 6800 countries worldwide. Business entity is among
the third largest retailer in terms of gross revenue. The products or services offered by Tescio are
books, toys, clothes . Electronic item, furniture, financial services etc. During the year 2015,
Tesco has a market capitalization of £ 18.1 billion. Tesco target people belonging to the moddle
income group people.
Rationale for selecting the topic
The reason for selecting the topic is that scholar wants to increase the knowledge about
the international joint venture business. The Tesco is a small business enterprise which has been
chosen for present study. Specific organization has been chosen as an enterprise is planning to
expand business ta international level Other rationale for selecting the specific topic is to assist
organization in taking important business decisions related to selection of the best strategy for

entering into international market. This present investigation will assist an organization in
making the suitable decision whether to expand business at international market by applying the
Joint venture strategy or not.
Importance of the research
The present investigation has great importance as for Tesco, as result drawn from the
investigation will assist management in making the suitable decisions about whether they should
enter into The Joint venture with global companies or not. In addition to this, the outcome of
investigation will assist management in making sure that whether decision taken by them
relating to the forming international Joint venture with global company is suitable or not.
The study has great importance of scholar as it will help them in developing the understanding
about joint venture business. In addition to this, by performing research on particular topic
researcher will able top gain knowledge about the risks as well as benefit associated with
International joint venture business.
2. Aims and Objectives of research
Aim: To identify the risk and benefits of Joint business venture strategy used by organization for
expanding business in Romania. : A case study of Tesco
Objectives
 To develop the understanding about the International Joint Venture.
 To explore as well as measure the risk associated with International Joint business
venture.
 To identify the benefit of forming strategic Global business alliances by Tesco for
expanding business in Romania. .
 To suggest the ways through which maximum advantages can be gained by Tesco in
context of Global joint venture with international firm in Romania.
3. Scope and limitation of the project
Scope is the most important component of project plan. It mainly includes detail about
project goals, investigator responsibilities, key deliverable etc. The research project have wide
scope. As by executing the investigation on particular topic research can easily identify the risks
and benefits associated with International Joint venture. Research report will assist companies in

getting an appropriate solution for the problem faced by them in entering into global market. As
per the view of other people, the scope of the present research is very wide, the further
investigation can be conducted for identifying appropriate solution for dealing with the
challenges or issues associated with establishing joint venture business.
Limitation is the parameter which restricts the scope of the study. Due to limited
resources and Time researcher might have to face difficulty in conducting the in depth
investigation on particular topic. According to other participant in investigation, strict budget can
create barriers in execution of investigation procedure.
4. Resource and costs considerations
Resources: The different types of resources required for conducting the investigation and
implementing specific project include manpower, information about the companies as well as
market, technology, finance etc. In context of present investigation, proper technique will be
utilised by scholar for allocating the resources. Researcher will allocate resource considering the
nature of tasks (Glesne, 2015.). In addition to this, Proper resource plan will be prepared by
scholar with the support of computer software such Enterprise resource planning and other
similar software .
Costs: There are basically two types of costs associated with performing the investigation
on specific topic these are fixed and variable. Costs also include travelling expenses,
communication cost etc. In context of research, the major cost occurred in collection of data
(Bell, Bryman and Harley, 2018). . In context of project, expenses are associated purchase of
technology, salary of employees, communication costs etc. In present study researcher will
utilise budgeting technique in order to control the flow of cash. Scholar in present study will
conduct the specific procedure calculating the costs of project which includes breaking down of
each requirement into set of task. At the initial stage researcher will address the member who
will perform specific task and consider the time duration of the activity. At the second stage,
researcher will Calculate the cost of completing these tasks. After the completion of the second
phase, investigator will compute the cost of each individual task to arrive at the cost of team
resources.
unit/ hrs Costs/ unit/ hrs WBS Level 1 total

Project
management
Project manager
group members
940
1830
150$
74$
$ 9710
$133000
Hardware
Handheld devices
Servers
150
3
750$
$4400
660 00 $
$16000
Installation and
development of
Licensed software
150 $250 $20500
software and
hardware Testing
$70000
5. Gantt chart and work breakdown structure
Activities Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8
Choice of
topic for
research
establishi
ng aim
and
objectives
Writing
Literature
review
Collectio
n of

informati
on
Data
analysis
Drawing
conclusio
n
Edition as
per
feedback
received
Final
submissio
n

6. Risk register
In context of risk associated with international joint venture are :
Type of risk Probability Impact Strategy
Geo political Medium High It is required by an

enterprise to follow all
the rules and regulation
formed by government.
Management in Tesco
need to consider all the
terms and conditions
when making
important business
decisions.
Financial risk Moderate High An enterprise can
include various terms
and agreement before
entering into joint
venture business with
global firm.
Threat to security and
breach of maintaining
the confidentiality of
information
High High Tesco need to use
unique strategy for
maintaining the
confidentiality of
business information.
In context of research project, different types of risk involved in conducting the
investigation process include ethical or legal issues, plagiarism, threat to participants security,
delay in completion of investigation process can have negative effect on outcome etc. Researcher
will have emphasized on collecting the information mainly from primary source, as this will
assist them in eliminating the risk of plagiarism. In addition to this, participants will be informed
about the purpose of investigation and confidentiality of information will be maintained as this
will assist them in eliminating risk of ethical issues.

TASK 2
Chapter 1: Introduction
Background of the study
Globalization can be defined as the integration of worlds economy. This is the
phenomenon which has bought drastic changes in business environment. It has encouraged
companies to make various arrangements for expanding business ta global level. International
Joint venture is basically arrangements in which two or more parties agreed to share their
resources in order to accomplish desired objectives. An international joint venture is considered
to be as the best approach which can be utilized by companies for entering into global market.
International Joint venture strategy will help an organization in gaining the competitive
advantage in global market. It will aid firm in reducing the negative effect of changes in global
environment on business. Joint venture allows an enterprise to share risk as well as profits.
There are different types of Joint ventures these are Limited Co-operation, business partnership
and separate joint venture business.
Nature of the problem
The rationale is that many of the companies in retail sector due to economic crisis in the
country is facing lower demand in local market, therefore scholar wants to support such
organization in identifying the best mode for entering into International market.
Aim : To identify the risk and benefits of Joint business venture in order to enter into
international market. : A case study of Tesco.
Objectives
 To develop the understanding about the International Joint Venture.
 To explore as well as measure the risk associated with International Joint business
venture.
 To identify the motive of International joint venture by Tesco .
 To suggest the ways through which International joint venture risk can be minimised by
Tesco .

Importance of the study
This research has great importance, it helps management in identifying the potential risks
and benefits associated with joint venture business in context of entering into international
market. It assists management in making suitable and an appropriate business decision. Research
on specific topic has great importance as it helps business entity in determining the strategies
which can be utilized for entering into global market.
Chapter 2 : Literature review
Concept of international Joint venture
According to the view of Bamel and Dhir, (2019), joint venture can be defined as a
commercial organization undertaken jointly by two or more parties. . The author Prashantham,
Bhagavatula and Sarasvathy,(2019), argues that Joint venture is a business arrangement in which
two or more parties shows their consent related to sharing of resources with the purpose of
accomplishment of common objectives. As per the opinion of Bradley(2019), Joint venture can
be considered to be as implication of domes organization with international firm in order to
accomplish business objectives. The author Hoffmann, (2018) argues that international joint
venture is the strategy which is mainly utilized by companies for entering into international
market and expanding business. As per thinking of Reuber, ALiesch, and Zhou,(018), Joint-
venture can be defined as the joining of two or more business partners from separate jurisdiction
with the motive of exchanging resources, risk. According to the view of Kwok,(2018),
International joint venture is agreement between domestic as well as internal organization, they
work together for gaining mutual benefit from long term contract. The author Williams, (2018),
argues that international joint venture is a process utilized for responding to specific business
issues. According to the thinking ofPrashantham, (2019), international joint venture is a separate
business entity which represents the partial holding of two or more partial organization which
headquarter is located outside the nation.
Risk associated with international Joint venture
According to the view of Bradley,(2019), lack of control on business can be considered to
be as the major risk associated with international joint venture. The author (), argues that there
are high chances of conflicts which might have negative effect on business performance. As per
the perception of Shen, (2018), there is high risk of clashes in culture and disputes about control
and operational decisions are common. According to the thinking of Inkpen, (2018), there is

high threat of lack of direction or damage to reputation of firm. The author also states that due to
strict control employees might feel frustrated which might give rise to the high employee
turnover rate. As per the view of Inkpen, Minbaeva and Tsang,(2018), The technology and
know-how shared with other organization can give rise to stiff or intense competition after
dissolves of Joint venture. The author also argues that major risk associated with international
joint venture is occurrence of Tax or financial issues. As per the view of Rosenbaum,(2019),
threat to the business security is the major risk associated with entering into a joint venture with
global corporation. The author Shen and Cheung, (2018) argues that there are high chances of
misuse of business information and stealing of customer data base due to which an organization
might have to face long term financial losses. According to the thinking of Prashantham,
Bhagavatula and Sarasvathy, (2019), There is an imbalance in levels of expertise, investment or
assets brought into the venture by the different partners which can have negative effect on
performance of an organization. The author argues that The partners don't provide enough
leadership and support in the early stages which can lead to high level of dissatisfaction in
workers. As per the thinking of Bradley, Hellmann and Wilson,(2019), there are high chances of
obligations or legal issues, as in context of international joint venture the structure offers no
liability protection to the parties involved. The author Liu, (2020), argues that complex
regulation around foreign investment has seriously threatened the functionality and enforce
ability of joint ventures. As per the view of Fatehi, K. and Choi, (2019), logistical risk due to
complex supply chain which is result of forming international joint venture is the major business
risk as such issue might have effect on the firms' ability to deliver products or services on time to
customers.
Motive of International Joint venture
According to the view of Friday, Ryan, Sridharan and Collins, (2018), Gaining market
knowledge is the main motive of international joint venture by companies. The author Shen and
Cheung, (2018), argues that firms enter into international joint venture for bringing improvement
in the different business activities such as human resource, marketing, finance, administration
etc. According to the survey conducted by author Hoffmann, Lavie and Shipilov,(2018), results
indicates that knowledge development is the main reason for establishing international joint
venture business. The purpose of international joint venture by firms is to increase knowledge
about country as well as market. For instance, a specific organization in its domestic country