Evaluating Joint Ventures as Market Entry Strategy for Tesco in India

Desklib provides past papers and solved assignments for students. This report analyzes Tesco's joint venture strategy in India.

RESEARCH 1
Research Project

RESEARCH 2
Abstract
The primary purpose of this study is to critically evaluate the joint venture for entering into a
new market. In this report, certain sections are entailed named as Chapter first is an
introduction, Chapter second isa literature review, Chapter third is research methodology,
Chapter forth is data analysis and findings, and chapter fifth is conclusion and
recommendation.
The initial section of this study could be effective in gaining the understanding of different
factors named research aim and objectives, and research significance. It could also evaluate
the many research questions that are considered in the study to conduct this study and reach
at a reliable conclusion. Under the literature review section, the research scholar would be
capable to evaluate the role of a joint venture for entering into the market of India.
The investigator has considered many articles, online and offline sources, journals, and
articles for collecting data in favour of the research issue.
The research methodology section leads to select a suitable method for conducting this study
and reach a reliable conclusion. Interpretivism research philosophy, as well as the inductive
approach, has been practiced by the researcher to conduct this study as it facilitates to get
theoretical information towards the research matter. It is stated that the simple random
sampling method has been practiced by the investigator in which 50 employees of Tesco
were selected.
For evaluating the responses of the employee, qualitative and quantitative data analysis
method has been practiced by the researcher to evaluate the conceptual and statistical data
and make the decision accordingly. The investigator could evaluate the collected data by
considering different charts, graphs, and diagram and make a favorable decision in the
context of the current matter. The findings were supported by considering the literature

RESEARCH 3
review method. The conclusion section is effective to comprehend joint venture is effective
for the Tesco to enter into the market of India.
Table of Contents

RESEARCH 4
Abstract.................................................................................................................................................2
Research Title........................................................................................................................................5
Introduction...........................................................................................................................................5
Background to the research...............................................................................................................5
Research Aim....................................................................................................................................5
Research objectives...........................................................................................................................5
Research Questions...........................................................................................................................5
Background of the Company.............................................................................................................6
Significance of the study...................................................................................................................6
Literature review: On how challenges in India affect Tesco decisions to enter the Indian market.........7
Conceptual understanding regarding Joint venture............................................................................7
Effect of joint ventures in India on Tesco..........................................................................................7
How Tesco can use joint ventures as an entry strategy in India.........................................................9
Challenges in India affect Tesco decisions to enter the Indian market...............................................9
Research methodology........................................................................................................................12
Introduction.....................................................................................................................................12
Research Philosophy........................................................................................................................12
Research Approach..........................................................................................................................12
Research Choices.............................................................................................................................13
Procedure and technique of data collection.....................................................................................13
Sampling method.............................................................................................................................13
Data Analysis Method.....................................................................................................................14
Access Negotiations........................................................................................................................14
Ethical Issues...................................................................................................................................14
Research Limitations.......................................................................................................................15
Costs................................................................................................................................................15
Gantt chart.......................................................................................................................................16
Data Analysis and Findings.................................................................................................................18
Conclusion and Recommendation.......................................................................................................27
Reflection............................................................................................................................................28
References...........................................................................................................................................29
Appendix.............................................................................................................................................33

RESEARCH 5
Research Title
The research title of this study is evaluating the Joint venture as an entry strategy in India: A
case of Tesco.
Introduction
Background to the research
The joint venture is the mode that facilitates to the founder of an organization to make a
tactical partnership with the agreed organization to put their goods and services or capital for
operating their business and gain higher competitiveness of the firm. For mainlining the
effective joint venture in India, the allied parties could have a reliable aim as well as
situations could be written out by considering the JV agreement clauses. Most of the
organizations have listed in India due to getting higher competitive benefits. In the current
business era, Tesco has needed to gain their depth undersign about the joint venture mode to
enter into the market of India and increase the success of the expanded business (Lasserre,
2017).
Research Aim
The main aim of this study is to examine the effect of a joint venture in India on Tesco. There
are certain objectives that will be considered by the investigator to meet the aim of the study:
Research objectives
 To review the literature on joint ventures in India
 To carry out primary research on joint ventures in India
 To examine the likely effect of joint ventures in India on Tesco
 To recommend how Tesco can use joint ventures as an entry strategy in India
Research Questions
The following research question is considered by the researcher to meet the aim of the study:
 What challenges would Tesco face in India using a JV entry strategy?

RESEARCH 6
Background of the Company
Tesco plc is dealing with the multinational groceries merchandise in the UK. This
organization was established in the UK as it comes in the top ten largest retail industry of the
grocery. This organization was founded by Jack Cohen in 1919. This company has listed in
the LSE as well as the FTSE 100 index. This organization has more than 6800 shops across
the world that differentiates this organization as compared to others. This organization IS
mainly concentrates on some elements as it could be known as demand, needs, and
expectation (Wood, et. al., 2016).
Significance of the study
This research study is imperative for the researcher as well as a reader as it supports to
comprehend the joint ventures in India that supports to get reliable. This study is significant
in increasing the knowledge towards the effect of joint ventures in India on Tesco. It could be
effective in collecting depth information about the research matter that could support to make
many careers in the organization that uses the joint venture. Through this study, the
researcher has gained their depth understanding of many strategies that support to collect the
data towards the research matter and conduct study systematically (Alon, et. al., 2016).

RESEARCH 7
Literature review: On how challenges in India affect Tesco decisions to enter the Indian
market
Conceptual understanding regarding Joint venture
As per the view ofMudambi et al. (2017), joint venture corporations are highly used mode for
penetrating into the Indian market. There is no need for separate regulation for a joint venture
in the nation of India. The corporation is incorporated into India despite, up to 100% foreign
equity is dealt the same as domestic corporations.
In contrast to this, Hanson et al. (2016) evaluated that a joint venture could be categorized
into different kinds such as unincorporated and incorporated joint venture. In this way, the
unincorporated joint venture could be used by Tesco in the form of a contractual joint venture
that is influenced through a legally binding agreement. It does not entail the incorporation
procedure and does not generate the separate corporate entity as well as generates the equity
capital. Thus, it is similar to the partnership. This type of joint venture is penetrated into for
limited time and does not join the parties related to perpetuity.
As per the view of Wood et al. (2016), an incorporated joint venture is a technique that can be
used by a company with the intention of joint ventures. Furthermore, ventures obtaining the
shares in a corporation. It could be either a private or public company with limited liability
where the shareholders are joint venture respondents. Along with this, shareholders have no
right with respect to the assets of the company. They can also involve in the profits, however,
not in the losses.
Effect of joint ventures in India on Tesco
As per the view ofLeposky et al. (2017), a joint venture is beneficial for sharing the risk and
rewards. Under joint venture agreement between two or more corporation, and may be of
same or different nations, there are different diversification in technology, target audience,

RESEARCH 8
geographical benefits and limitations, culture as well as, many factors are considered for
overcoming the joint venture issues. Therefore, risks and rewards are relating to an activity
where joint ventures are agreed upon could be distributed among the parties as predetermined
and entered into a legal contract.
In opposed to this, Baron and Capo (2017) assessed that there are no separate laws for using
joint venture mode in terms of penetration. There is also no separate regulatory authority that
regulates the practices of the joint venture. After penetrating the corporate structure, the
company can make an association with the ministry of corporate affairs and registrar of
corporations for maintaining a record on corporations. Despite this, there is no separate
regulation for implementing the joint venture.
In the view of Burt et al. (2017),a joint venture is beneficial for making innovation. It can add
benefits to upgrade the products and services with regards to technology. Marketing could be
performed with several innovative channels as well as technological advancement can
support in developing products at minimum costs. Tesco can develop new technologies and
ideas for declining cost as well as, facilitates better quality products and services.
On the other side,Gollnhofer and Turkina (2015) stated that a joint venture is beneficial for
the low cost of production. While two or more corporations join hands together, then the key
motive is to offer the product at an efficient cost. This could be performed while the cost of
production could be declined and the cost of services could be organized. Along with this, the
main aim of the joint venture is to offer the best quality products and services to its
customers.
As per the view ofBeiGielens and Dekimpe (2018), access to technology is advantageous of
using joint venture. Technology is an attractive cause for a company to penetrate into a joint
venture. Along with this, advanced technology with one company can be practiced for
producing superior quality related to products as well as, save the maximum time, resources,

RESEARCH 9
and energy. Without the high amount of investment into technology, a company can use the
same technology while entering into the joint venture.
How Tesco can use joint ventures as an entry strategy in India
As per the view of Baron Dholakia and Dholakia (2017), under the equity joint venture, an
independent legal entity is generated as per the agreement of two or more parties. Along with
this, the associated parties can undertake to offer money as well as, other resources as their
contribution towards the capital and assets of the corporate entity. This structure could be
effective for long-standing, wider based joint ventures and involves the joint venture
corporations as well as, joint venture limited liability partnerships.
On the other side, Bailey et al. (2018) stated that contractual joint venture can be practiced in
which the company of separate legal entity is not required or the development of such
separate legal entity is not appropriate. This kind of agreement can be preferred in a situation
that entails the temporary task and limited activity. Moreover, the joint venture should be
developed for limited terms.
Challenges in India affect Tesco decisions to enter the Indian market
Political Factors
As per the view ofParboteeah and Cullen (2017), the political factor can be defined as the
government policy with respect to the economy, political decisions developed in vital
business areas, decision making related to infrastructure, education, and workforces, and
offered products and services. In contrast to this, Hunt et al. (2018) evaluated that political
condition in India could be considered as stable. It has a federal republic democracy that
contains political stability with significant governmental regulations. Under privatization in
India, a joint venture contains different stages like deregulation, disinvestment, and de-
reservation.
Economic Factors

RESEARCH 10
Singh (2018) illustrated that economic factor involves the taxation transformation, interest
rates, inflation, economic growth, as well as exchange rates. India has a well-structured tax
system. There are different taxes as well as the obligatory contribution that an organization in
India has to consider. These involve central sales tax, employee’s state insurance, central
sales tax, company income tax, tax on insurance contracts, state VAT, tax on interest and
income surcharge. In contrast to this, Yoder et al. (2016) evaluated that other factors that
could be entailed are vehicle tax, excise duty, higher education cess, as well as education
cess. In India, the Tax system is entailed to be favorable for expansion of the business.
Social Factors
According toLakshman (2015), social transformation in the country has a significant effect
on demand related to the product of a firm and the presence and willingness of the individual
to work. The lifestyle of India is linked with healthy and modern lifestyle. The productions,
as well as the production of foods and clothes, are involved in daily practices. But, Tesco has
initiated to deliver organic foods and modern clothes that lead to an increase in the demand of
customers.
In contrast to this, Mahesh and Babu (2017) stated the attitude with respect to leisure and
work. It is addressed that Indian culture differs in the context of leisure day as compared to
the rest of the globe. For example, Sunday can be considered as a more leisure day for most
nations. It does not relate to Indian culture because for them Friday can be authorized leisure
day.
According to Kumar et al. (2017), new technologies may generate new products as well as
new procedures. India is a wider market in the mobile sector and Tesco can launch their
services in India. The annual growth rate related to the software of India has grown to 5.4
billion dollars in the starting of the 2000s. This could be a favorable impact on Tesco
business in terms of business expansion in India.

RESEARCH 11
In contrast to this,Ramamurti, and Williamson (2019) stated that legal factors can affect the
company that deals in the retail industry. In current times, there is significant transformation
is conducted in the legal environment of India that influences the way where a company may
deals. These transformations involve disability discrimination regulations, an increase in the
minimum wage and higher requirement for the company in terms of recycling. The legal
transformation can influence the cost of the company and demand of customers. Therefore,
the legal environment can influence the business of Tesco.
In the view ofTooteja and Prateeksha (2018), environmental factors involve the climate and
weather transformation. Along with this, the general move with respect to more
environmentally friendly products as well as processes can affect the demand structure as
well as generating the business prospects. In India, climate with long monsoons, as well as
equally long dry times, generates a challenge that should be attained by Tesco. Along with
this, the infrastructure of India can be viable for Tesco to expand the business in such a
diverse climate.

RESEARCH 12
Research methodology
Introduction
A research methodology is an important part of the investigation because it helps in achieving
appropriate and precise data for performing the research in a systematic way. Many methods
are considered in the research methodology which is research type, research design, research
philosophy, data gathering method, and research approach. Targeted aim of this investigation
is to analyze the Joint venture as an entry strategy in India: A case study of Tesco. In
addition, several authenticated websites, articles, and journals to improve the feasibility of
gathered figures and facts. Moreover, research scholar could enhance the quality and validity
of research outcome (Vijaya, and Kumari, 2015).
Research Philosophy
Research philosophy facilitates the investigator to make a rational opinion with respect to
evaluate, collect, and assess the information related to the research study. As this research
study has subjective nature hence, the researcher has chosen interpretivism research
philosophy (Srivastava and Kumar, 2015).
Research Approach
In this research study, the researcher has exercised inductive research approach as this
approach gives favourable result when it is used with the interpretivism research philosophy.
As per the deductive research approach, the researcher could develop a hypothesis related to
the research dilemma. But at the same time, this method of research approach would not be
utilized by the research scholar to perform this investigation as this method could be quite
complex. Apart from this, under the inductive research approach, non-numerical data has
pooled by the research scholar in the context of research issue (Brewster, et. al., 2016).