Risks and Benefits of Joint Ventures for TESCO's International Markets

This report provides a comprehensive analysis of the risks and benefits associated with joint ventures for TESCO's international market entry. The introduction defines joint ventures and their role in business expansion, using TESCO as a case study. Task 1 outlines the research aim, objectives, and questions, alongside a project management plan covering scope, time, communication, risk, and resources. Task 2 details the research methodology, including quantitative and qualitative research methods, primary and secondary research, and sampling techniques. Task 3 presents the data analysis from a questionnaire, exploring respondents' awareness of joint ventures, preferred market entry strategies, and perceptions of the risks and benefits for TESCO. The report includes a work breakdown structure and Gantt chart for project management, and concludes with research recommendations and a reflection on the findings. The study aims to identify the key factors influencing TESCO's success in global markets through joint ventures.

Managing Successful Business
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Table of Contents
Topic: What are the risks and benefits of a joint business venture to enter International markets?
..........................................................................................................................................................3
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Aim and Objective............................................................................................................3
P2 Project management Plan..................................................................................................4
P3 Work break down Structure and Gantt Chart....................................................................5
TASK 2............................................................................................................................................6
P4 A small scale research to meet aims and objectives..........................................................6
TASK 3............................................................................................................................................7
P5. Data analysis....................................................................................................................7
P6 Research recommendations.............................................................................................16
TASK 4..........................................................................................................................................17
P7 Reflection........................................................................................................................17
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19

Topic: What are the risks and benefits of a joint business venture to enter
International markets?
INTRODUCTION
For expanding the business operations at global level and for gaining high competitive
advantages, companies adopt various aspects. One of the aspect which can be easily adopted by
companies is joint business venture. Joint venture refers to the agreement which includes two or
more parties, join their hands together in order to accomplish their goals and objectives effective.
It is an agreement which is for a limited period of time and is establish for a specific purpose
(Dosi and Galambos, 2013). With the help of this, company might be able to introduce fresh
talent which will enhance the productivity and develop new skills in order to Globalise their
business activities. For focusing more on such aspects, TESCO is chosen as the base company in
this present report. It is one of the biggest British multinational grocery company, founded in the
year 1919. its Headquarters is located in England, UK. TESCO deals in clothing, books,
groceries, furnitures and many more in more then 13 countries across the world. In the present
report, investigator have made effective aim and objectives in order to understand the concept of
Joint venture, various risk and benefits associated with it. Furthermore, for improving the
effectiveness and efficiency there are some recommendations which is also described in this
report.
TASK 1
P1 Aim and Objective
Globalisation is a wide concept, which provides various opportunities to business
organisations in order to expand their operational functions. It will aid the company to enhance
their sales as well as organisations will be able to generate more profits at the marketplace. For
expanding the business activities, various companies might adopt joint venture. It refers to a
contract which includes two or more parties in order to achieve their organisational goals in an
effective manner (Westerman, Bonnet and McAfee ,2014). In context to TESCO, management
team of company adopt joint venture for accomplishing goals effectively. With the help of joint
venture, company will be able to utilize huge amount of resources and funds as well as
effectively use the human resource. There are various risk and benefits associated with the

concept of joint venture. These benefits are that company will access the new marketplace easily,
access better resources such as staff members, technologies, equipments, materials and so on. On
the other hand, joint ventures includes various risk which might affect the whole working
process of the company. Some of the risk involved in joint ventures are as follows: unclear
responsibilities, clash between different working culture, not clear objectives of the company.
All these risk can highly influences the profitability and performance of TESCO at the
international marketplace.
Research Aim
The research aim for current study is “To identify the risk and benefits of a joint venture
to enter into international markets for TESCO”
Research Objectives
 To understand the concept of joint venture
 To role of joint venture in the success of TESCO at global marketplace.
 To evaluate risks and benefits of a joint venture to enter into international markets for
TESCO.
Research Questions
 What is the concept of joint venture?
 What is the role of joint venture in the success of TESCO at global marketplace?
 What are the risks and benefits of a joint venture to enter into international markets for
TESCO?
P2 Project management Plan
For every organisation it is very important for any organisation, to develop proper and
effective project plan with the help of which management team of the company achieve their
objectives successfully. In the present context of TESCO, managers of the company need to
develop adequate project management plan which will provide a blue print of every activity
required by the company in order to accomplish the goals effectively (Nambisan, 2017). For
developing a project management report, various elements are included such as time, resource,
scope, cost, risk and communications. All these components are explained below in detail:
Project Title:
“What are the risks and benefits of a joint business venture to enter International markets?”
Project Plan:

 Cost – Cost refers to the amount required to pay while buying something. It is one of the
main element of project management plan (PMP). According to this element, it has been
estimated that management team of TESCO need to invest approximately $ 85 million
and on the other hand for conducting this research, investigator and its whole team
require $45k for successfully accomplishing the whole research in an effective manner.
 Scope – It refers to the scope in terms of business organisations, while developing
changes in the profitability, productivity and competitiveness (Legner. and et. al., 2017).
In the present context of TESCO, joint venture provide various scope in order to expand
their business operations at international marketplace. With the help of this, management
team can give competition to their rival companies as well as will be able to generate
more revenue. Moreover, in case of researchers, with the help of this, they can enhance
their knowledge, skills and gain better opportunities for their futures.
 Time – It is one of the main element while conducting a whole research. It defines the
time period which is required while fulfilling the whole business activities in an effective
manner. Hereby, in case of researcher, they prepare the whole research report within 30
weeks and in case of TESCO, managers of the company require at least 5 months for
implementing this process effectively.
 Communication – It is very important for the project managers of TESCO to maintain
two way communication process, in order to accomplish the business activities
effectively and within the given time period. With the help of taking suggestions and
advices from every members, managers will be able to take decisions in an effective
manner. In addition to this, TESCO need to adopt effective communication process in
order to reduce the chances of conflicts.
 Risk – Risk is associated with every new venture. In the present context of TESCO,
company adopt joint venture in order to expand their business operations at international
level (Martin and Tian, 2016). There might be various risk associated with this
expansion, whether company will be able to maintain their sustainability at the
marketplace or not. Along with this, whether company earn enough profit and beat the
competition, all these risk are associated with this expansion.

 Quality- According to this element, it is very important for a researcher to conduct a
quality research for gaining suitable information regarding research topic. In this context,
this research will aid TESCO for examining the positive as well as negative impacts of
globalisation within the company. By checking the reliability and accuracy, researcher
can identify the quality of project. Similarly quality of products can be examine by
satisfaction level of customers.
 Resources- By utilising resources effectively, research can conduct their research in a
best way. In context of TESCO, management team need to utilise resource effectively so
that they can expand their business at international level. Resources can be intangible as
well as tangible both. investigator use all the resource effectively in order to get accurate
results for their project.
P3 Work break down Structure and Gantt Chart
Gantt Chart: This is the graphical charts analysis used by the researcher for creating
statistical reports. It is the technique used by manager for creating a blueprint design for
completion of a project on scheduled time. The diagrammatic image is based on 2-D structure
which shows dependency relationship status between activities and actual position of project.
The horizontal axis is represented as time interval whereas vertical line shows the activities to be
completed (DeCenzo, Robbins and Verhulst, 2016). The width of bar shows the activities
performed within the time period. While sum-up the overall operations in annual report, the
Gantt chart illustrates the starts as well end terminal and summary of a project. The management
uses this tool, for tracking the current position in order to manage other resources for
completing the project on schedule time period. Basically, there are various types of techniques
used, depending on the activity, expected time for long term and short term project.

Work Breakdown structure:

TASK 2
P4 A small scale research to meet aims and objectives
Quantitative research: It is a method used by researchers in order to collect numerical
data and then convert it into statistical information. According to this method, there are various
technical aspects in order to represent the whole information in a systematic as well as structured
format.
Qualitative research: Qualitative method is used by researchers in order to accomplish
their research process in an effective manner. Some of the methods of qualitative research
includes questionnaire, interview, and so on.
In the present research report, researcher use qualitative research for successfully
accomplishing the whole research effectively. It is the method which can be better understood
with the help of graphs and charts.
Primary Research: This is a fundamental research used for conducting research
methodology process. The investigator, adopted this approach for finding solution to the specific
problems (Mamic, 2017). The analyst needs internal sources for collecting informations and in
depth assessment is carried out on a particular topic. There are many ways through which data is
been collected for instance face-to-face interviews, online surveys, focus groups and observation.
The main advantage of applying this type of research is that data collected is fresh, investigator
can used this information while conducting investigations.
Secondary Research: This kind of research uses existing data while experimenting
methodology. The analyst, combine information with the statistical facts for preparing reports in
any company or organisation for successful growth of business. It is very cost effective, less time
is been consumed by the researcher (Wilson and Wilson, 2017). The data is gathered from
external sources like online portal, websites, books, library, statistical databases within the
company and many more. The application of this research, helps the researcher to work in a
systematic manner.
Sampling: It is a process used by researcher for statistically analysing the whole process,
in which a specific number of respondents have been chosen from a large number of population

from the whole universe. In this report, simple random technique is used where researcher select
30 respondents.
Questionnaire: It is a kind of research instrument used by investigator in order to collect
primary data for completing the whole research effectively. It includes a series of various
questions with the aim of collecting information from the respondents.
TASK 3
P5. Data analysis
Questionnaire
Q 1) Are you aware with the concept of Joint Venture?
a) Yes
b) No
Q 2) According to your perception, which one of the below stated is best market entry strategy?
a) Joint Venture
b) Franchise
c) Licensing
Q 3) Do you think, joint venture will helps TESCO in improving their business performance at
international marketplace?
a) Yes
b) No
Q 4) As per your thoughts, which one among the below mentioned is main benefit of joint
venture for TESCO?
a) Better access to resources
b) Sharing of risk
c) Quick access to customers
Q 5) As per your opinion, what is the main risk of joint venture for TESCO at the time of
international expansion?

a) Lack of clear communication
b) Unreliable partners
c) Conflicts among employees
Q 6) Do you think, TESCO is required to enhance its product portfolio at the time of joint
venture in international market place
a) Agree
b) Disagree
Q 7) Do you think, employees of TESCO will face issue related to international expansion with
Joint Venture?
a) Agree
b) Disagree
Q 8) Provide some recommendation to TESCO by which its business performance can be
improved in positive manner.
Questionnaire
Q 1) Are you aware with the concept of Joint Venture? Frequency
a) Yes 25
b) No 5
Q 2) According to your perception, which one of the below stated is best
market entry strategy?
Frequency
a) Joint Venture 20
b) Franchise 5
c) Licensing 5
Q 3) Do you think, joint venture will helps TESCO in improving their
business performance at international marketplace?
Frequency

a) Yes 26
b) No 4
Q 4) As per your thoughts, which one among the below mentioned is main
benefit of joint venture for TESCO?
Frequency
a) Better access to resources 12
b) Sharing of risk 6
c) Quick access to customers 12
Q 5) As per your opinion, what is the main risk of joint venture for TESCO
at the time of international expansion?
Frequency
a) Lack of clear communication 10
b) Unreliable partners 10
c) Conflicts among employees 10
Q 6) Do you think, TESCO is required to enhance its product portfolio at
the time of joint venture in international market place
Frequency
a) Agree 24
b) Disagree 6
Q 7) Do you think, employees of TESCO will face issue related to
international expansion with Joint Venture?
Frequency
a) Agree 27
b) Disagree 3

Theme 1: Aware with the concept of Joint Venture
Q 1) Are you aware with the concept of Joint Venture? Frequency
a) Yes 25
b) No 5
Interpretation: Joint venture is a business entity which is developed by two or more
partied who come together in order to share their returns, risk and ownership. From the above
mentioned graph, it has been stated that out of 30 respondents, 25 said that they are familiar with
the concept of joint venture as it helps in entering into foreign market so business can easily
expand its operations thus achieving growth and success. On the other hand, 5 respondents are
not aware with the concept of joint venture as they do not want to involve themselves into the
partnership business this can be because they are not having enough resources by which they
formulate plans and policies for expanding their business activities.
Theme 2: Best market entry strategy
25
5
a) Yes
b) No