Market Entry Strategy: A Case Study of True Botanicals in Africa

Desklib provides past papers and solved assignments for students. This project analyzes True Botanicals' joint venture in Africa.

MANAGING A SUCCESSFUL BUSINESS
PROJECT
Case Study: The benefits and risks that True Botanicals would be venturing with African
Botanics in Africa
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Table of Contents
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................8
Reference List................................................................................................................................28
Appendix........................................................................................................................................29
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Task 1
A brief explanation of the proposed topic and why you have chosen it
In the age of globalization many brands are moving out from the parent country and
collaborating with the other companies in order to suffice the needs of the potential consumer.
Globalization has made the place a common ground to operate for the small and the medium
sized organizations. In addition to this, due to globalization the market penetration and market
competition has also increased. In order to survive in the competitive market, small and medium
sized organizations are adapting different market entry strategies in order enter new markets in
different countries. In the business project, the risks and benefits of using the joint venture
strategy to enter new business markets will be thoroughly analysed.
An aim and some objectives for your proposed research
Aim of the project: Every business project needs to have some aims and objectives in order to
reach to the conclusion. In this project, the aim of the proposer research is to understand the risks
and benefits that a company faces while entering into a market through the joint venture strategy.
In this research project, True Botanicals will be venturing with African Botanicals a company
located in Africa.
The objectives that will be sufficed in this research project are as follows:
 To comprehend the needs of an organization in regards to enter into a new market To understand the benefits of selecting the Joint Venture strategy for entering into a new
market To identify and analyse the risks that an organization might face for selecting the JV
strategy for entering a new market To comprehend the major challenges that is associated with JV while entering into a new
market To identify the measures that can be undertaken to curb the challenges or risks associated
with the JV market entry strategy
A brief discussion of the scope and limitations of the project
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Different information will be provided in the project regarding the considerations that needs to
be undertaken while entering into a new market with a new market entry strategy. The benefits
and risk associated with the market entry strategy named Joint venture will be included in the
deliverables of the proposed research. The project needs to be complete within a period of nearly
55 days. Proper research and analysis will provide various insightful data on the benefits or risks
that True Botanicals might face while entering into the new market in Africa by venturing with
African Botanicals. Some risks might be faced by the proposed research due to unavailability of
relevant data and responses from the respondents. These potential elements have the ability to
hamper the quality of the research project.
Limitations of this business project
In addition to this, ineffective plans of project management and dearth of financial resources
might hamper the timely completion of the proposed research project. Some risks also might be
encountered while conducting this particular research project. The risks are:
 Time is a potential limitation that might stand as an obstacle in the timely completion of
the research project
 Dearth of financial resources might limit the number of respondents chosen for the
research project
 Ineffective human resources might degrade the quality of the research project
Resources and cost considerations
Before staring a project, a research needs to have a brief idea on the resources that will be
required in order to complete a research project. As the resources are identified, it becomes easy
to calculate the cost considerations associated with it. In order to successfully complete a
research project it is imperative to form a cost consideration table. The costs pertaining to the
different resources required in the proposed research is given below:
Activities Cost
Costs regarding project initiation £300
Surveying the respondents £450
Managerial interviews £350
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Transcript printing costs £100
Cost for convenience £200
Total Cost £1400
Table 1: Resources and Cost Considerations
(Source: Created by the learner)
A Gantt chart or work breakdown structure in order to provide timeframes and stages for
completion
Activity Start Date
Duratio
n End Date
Selection of Research Topic 1/03/2019 1 2/03/2019
Drafting of project aims and objectives 2/03/2019 3 5/03/2019
Preparation of literature review 5/02/2019 10
15/03/201
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Implementation of Appropriate research methodology
15/03/201
9 5
20/03/201
9
Collection of Effective Data
20/03/201
9 15 4/04/2019
Analysis of Collected Data 4/04/2019 12
16/04/201
9
Drafting of Conclusions and Recommendations
16/04/201
9 6
22/04/201
9
Documentation of Transcripts
22/04/201
9 2
24/04/201
9
Final Submission 24/04/201 1 25/04/201
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Table 3: Work Break down Structure
(Source: Created by learner)
Figure 1: Gantt chart
(Source: Created by learner)
A Risk Register covering the main risks with the proposed research
Every research project has some risks associated with it. The researcher should identify the risks
on time and comprehend the risk removal strategies in order to successfully complete a research
project. The risk register for the research project is as follows:
Risk Name Identification
of Risk
Resources
required to
mitigate risk
Ways to
encounter
Intensity of
Risk
Time taken to
resolve
Ineffective
allocation of
resources
2nd week of the
research
project
Proper project
management
tools and its
Using of
PMBOK
project
High 7 days
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application management
style
Ineffective
skills of
communicatio
n in regards to
the researcher
2ndweek of the
research
project
Application of
communicatio
n skills
Observing the
ways
implemented
by the other
researchers
Moderate 10 days
Table 2: Risk Assessment or Register
(Source: Created by the learner)
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Task 2
Chapter 1: Introduction
Project Overview: Globalization has made the business sector of the world a local market and
this has made pathways easy for the small and the medium sized organizations to enter into new
markets and get the advantage of it. There are various market entry strategies that can be used
my different organizations in order to enter into a new market. In this proposed research, True
Botanicals a cosmetic brand that deals with herbal and natural products in UK wants to enter into
the African market while collaborating with African Botanics. Globalization in the bigger picture
have provided to the organizations the chance to explore the business options that are present in
the different markets of the various countries. It has been noticed that due to globalization, the
number of mergers, partnerships and joint ventures have increased in multiple folds.
Aim of the Project: In this project, the aim of the proposer research is to understand the risks
and benefits that a company faces while entering into a market through the joint venture strategy.
In this research project, True Botanicals will be venturing with African Botanicals a company
located in Africa.
Objectives of the Project: The objectives that will be sufficed in this research project are as
follows:
 To comprehend the needs of an organization in regards to enter into a new market To understand the benefits of selecting the Joint Venture strategy for entering into a new
market To identify and analyse the risks that an organization might face for selecting the JV
strategy for entering a new market To comprehend the major challenges that is associated with JV while entering into a new
market To identify the measures that can be undertaken to curb the challenges or risks associated
with the JV market entry strategy
Problem Statement: In the age of globalization, market expansion has become very common. In
order to enter into a new market it is highly recommended to use a market entry strategy that is
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suitable according to the needs of the company. In the recent scenario, there has been noticed
that companies encounter many risks while using the joint venture strategy while entering into
new market. In this research project, the risk and the benefits associated with the joint venture
market entry strategy will be analysed. The analysis of the risks will help the concerned
organization to penetrate into the African market with ease.
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Chapter 2: Literature Review
2.0 Introduction
The literature review section is an integral part of the research study. The reviewing of the
literature is done in this section of the research project which helps in increasing the knowledge
of the researcher regarding the research topic. In addition to this, with the help of the data
available in the literature review section of the project, it becomes easy to analyse the data
gathered in the data collection stage of the research project. Moreover, in other words it can be
said that, the literature review section provides the answers for the questions asked in the
research objectives. In this part of the research study, important definitions for the terms related
to the research project will be discussed. Additionally different risks and benefits of using the
joint venture strategy in entering a new market will be identified. A literature gap will also be
identified in this research project.
2.1 Definition of Important Terminologies
Globalization
According to Hirst et al., (2015), the meaning of globalization cannot be confined as term, rather
globalization is a phenomenon that has drastically changed the ways the business world used to
function. The phenomenon of globalization was experienced first at the turn of the 21st century
and since then; this has made the world a huge market place. Globalization has made market
expansion plans easier even for the small and the medium sized enterprises.
Joint Venture Market Entry Strategy
In order to enter into a new market in a new country or in the same country, an effective market
entry strategy is required. According Killing (2013), the joint venture market entry strategy can
be defined as the strategy where two companies collaborate to form one new organization. There
are various risks and benefits associated with the joint venture strategy for entering into a new
market.
2.2 The need of entering into new market
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The competition among the small and the medium sized organizations have increased. As stated
by Rifkin (2015), it is now imperative for the organizations to come up with expansion plans in
order to survive in the competitive market. In order to exploit the different opportunities that are
available in the different market, it has become important to enter into new markets. New
markets not only help organizations to get hold of new customers and increase their sales
maximization. However, in the other hand entering into the new market increases product
diversification opportunities for organizations. After analysing the needs of the different
consumers of different geographical representation. (Coviello and Munro, 2015). By entering
into a new market, organizations are being able to increase their share in the market and thus
decrease the intensity of the completion on them.
2.3 The Benefits associated with the Joint Venture Strategy for entering into a new market
It is imperative for organizations to choose an effective market entry strategy in order to enter
into a new market. According to Trigeorgis and Reuer, 2017), apart from partnership, which is
also a potential market entry strategy, joint venture can be also used as a potential market entry
strategy. As opined by Johanson and Mattsson (2015), there are various benefits that a company
can experience while using the JV strategy to enter into the market. While collaborating with a
company, the expansion costs decreases for an organization, which reduces the cost
consideration for market expansion plans. In addition to this, it is always advisable for
organizations to collaborate with other companies when one is venturing into a new market. In
addition to this, the joint venture strategies allow organizations to understand the preferences of
the foreign consumers, which is imperative for product development.
2.4 The risks associated with the JV strategy for entering into a new market
Various risks are associated with the joint venture strategy while entering into the new market.
According to Beamish and Lupton (2016), one of the most potential risks that is associated with
the JV strategy is the uneven profit sharing structures. When there is no written contract,
regarding the profit sharing percentage among the two collaborates it, the venture might break
down and severe losses might be borne by the organization. In addition to this, it is very difficult
for the managers in the organization to implement a single strategy in the company as the two
organizations belong to two different cultural backgrounds (Kraus et al., 2015). However, it
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needs to be considered by the managers that application of a neutral managerial policy in the
company helps in solving the difficult situations in the company.
2.5 Literature Gap
A literature gap is identified when some relevant information on the research topic does not get
included in the literature review section of the research project. Not all the requirements in the
research objectives can be confined within the capacity of the research project and it is here the
literature gap is identified. In the literature review section of this research project, the measures
that could have been taken to reduce the challenges associated with the Joint Venture strategy to
enter into a new market cannot be provided with relevant information in the literature review
section. Thus, a gap in the literature has been created.
2.6 Summary
In this literature review section of the proposed research project, different important
terminologies included within the research topic have been provided. In addition to this, the need
for entering into a new market, the benefits and risks associated with it have also been analysed.
With proper implementation of the information provided in this section of the study, it will be
easier to analyse the data gathered for the completion of the research study.
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