Exploring Vodafone's Algerian Market Entry: A Joint Venture Analysis

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Globalisation
Topic: Assessing Joint Venture as a market entry strategy for Vodafone Plc in Algeria
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Table of Contents
Task 1: Project Plan...................................................................................................................3
Explanation of a research topic and reasons for choosing the same......................................3
Aims and objectives...............................................................................................................3
Scope and limitation of the proposed research......................................................................4
Resources and cost consideration for the proposed research.................................................4
Work breakdown structure and Gantt chart...........................................................................5
Development and analysis of risk register.............................................................................6
Task 2: Research project............................................................................................................8
Chapter 1: Introduction..........................................................................................................8
Chapter 2: Literature review..................................................................................................9
Chapter 3: Methodology......................................................................................................11
Chapter 4: Results................................................................................................................14
Chapter 5: Conclusion and recommendations......................................................................22
Chapter 6: Reflection...........................................................................................................23
Reference List..........................................................................................................................25
Appendix 1 (Questionnaire).....................................................................................................27
Appendix 2 (Project Log Books).............................................................................................29
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Task 1: Project Plan
Explanation of a research topic and reasons for choosing the same
Globalisation has resulted in the expansion of the customer and the operational base for any
organization in a global market. The mentioned topic deals with the identification and
analysis of the risk and benefits of joint venture business in the international market. For the
conduction of the research, the expansion of Vodafone UK in the African nation of Algeria
would be taken into consideration. The reason for choosing the same includes the following:
 The topic and the organization would enable effective analysis of globalisation, as the
organization is essentially a multinational one and would be competing with local
providers in Algeria. Relative to the research, this would enable the identification of
the dynamicity of a joint venture market for the telecommunication giant.
Additionally, it would enable a comparative analysis with other market entry
strategies for the organization.
 The research would enable the identification of the perception of the citizens
regarding globalisation through the mechanism of joint ventures. In the long end, this
would enable the identification of the positive impact of globalisation in the segments
of market entry and increase of customer base.
 The research and the mentioned topic would enable the identification of the problem
associated with globalisation in the current business market. This would be
characterized by the understanding of the negative impact that globalisation would
have on the joint venture (Claessens and Van Horen, 2015). For example, the research
would enable the identification of the perception relative to the joint venture and the
impact of the same on the jobs of two organizations. Additionally, the research would
enable the identification of the ethical considerations of the international expansion of
the organization to the African nation in the event of Brexit and potential economic
impact on the organization.
Aims and objectives
The aim of this research lies in the identification of the benefits and the risk-associated
expansion in the international market relative to a mechanism of joint ventures and the theme
of globalisation. The objectives associated with the same include the following:
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 To understand the risks and benefits of business ventures on the international
expansion of Vodafone Plc
 To identify the impact of globalisation on the trade volume and revenue
 To identify the impact of globalisation on market expansion
 To identify the scope of JV in the international market of Algeria for the organization
Scope and limitation of the proposed research
The scope of the research would include the critical understanding of the impact that JV
project on an organization for effective market entry. However, the limitation of this research
would include limited access to employees of the organization for the conduction an effective
primary analysis. This limitation would be due to two reasons. First, since the primary data so
collected would be associated with the employees, poor access to the employees would limit
the conduction of the data analysis (Johnston, 2017). Second, limitation to access would limit
the practice of linking the existing research with the identified pattern of the primary
responses.
An additional limitation associated with the research would include consideration of articles
relative to joint ventures. As a result, articles having Vodafone as an organization would not
be taken into consideration. This would be because of two reasons. First, scholarly articles
are characterized by a generalized form of research in the segment of the benefits of joint
ventures. Second, a comparison of the multiple market entry strategies would be enabling a
limited identification of the risks of joint ventures for an organization in the international
market.
Resources and cost consideration for the proposed research
For the conduction of the research, the following resources would be taken into
consideration:
 Stationary resources like pens and copies for job segmentation and by the
development of flow chart. Additional stationeries would include sticky notes and
other hard copy books for referencing about multiple methods used in the conduction
of research.
 Technological resources like MS Excel for the decryption of data into analytical
forms and the development of the graphical presentation. Additionally, Google form
would be required for the collection of data. MS excel would additionally be used for
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the identification of the mathematical attributes like mean, mode, standard deviation
and others for conduction of effective analysis.
 Storage resources like laptops would be used for storing data in password protected
worksheets to cater to ethical consideration
The following is the potential cost consideration for the research:
Segment Cost (GBP)
Stationary resources 200
Technological resources 500
Data collection and compensation to participants 1000
Development of report and presentable submission 200
Total 1900
Table 1: Cost distribution
(Source: Developed by the learner)
Work breakdown structure and Gantt chart
Activities
Start
date
Durat
ion
End
date
Identification of theme and aims of the research
7/6/20
19 3
7/9/20
19
Identification of resources, cost, and rationale for conduction
of research
7/9/20
19 5
7/14/2
019
Development of literature review and survey questionnaires
7/14/2
019 5
7/19/2
019
Relationship development with the management of Vodafone
for primary data collection
7/19/2
019 20
8/8/20
19
Identification of methodology
8/8/20
19 5
8/13/2
019
Conduction of primary data collection
8/13/2
019 15
8/28/2
019
Analysis of data and development of recommendations
8/28/2
019 8
9/5/20
19
Development and submission of a final report 9/5/20 5 9/10/2
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19 019
Table 2: WBS structure
(Source: Developed by the learner)
Identification of theme and aims of research
Identification of resources, cost and rationale for conduction of
research
Developemnt of literature review and survey questionaaires
Relationship development with management of Vodafone for
primary data collection
Identification of methodology
Conduction of primary data collection
Analsysis of data and development of recommendations
Development and submit of final report
06.07 26.07 15.08 04.09 24.09
Figure 1: Gantt chart
(Source: Developed by the learner)
Development and analysis of risk register
Sl.N
o
Risk Descriptio
n
Likeliho
od of
occurren
ce
Impact
potenti
al
Impac
t
severit
y
Responsi
ble
individual
Mitigation
techniques
1 Noncooperati
on by the
Vodafone
UK
management
In the
event that
the
manageme
nt of
Vodafone
UK does
not
cooperate
completely
Low High High Researche
r
Providing
effective
demonstrati
on to the
managemen
t regarding
the reason
for research
and
assurance
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, data
collection
would be
hampered
of sharing
the results
with the
organizatio
n
2 Sudden data
corruption
due to
technical
faults
Data loss
would
rework of
research
Medium High High Researche
r
Taking a
backup of
data
3 Confronting
answers by
employees
Difficulty
in research
conduction
Low Low Low Employee
s
Developing
uniform
and
structured
questions
4 Poor
literature
sources
Poor
identificati
on of
framework
Low Low Low Researche
r
Taking
relative
literature
sources
5 High
compensatio
n claim by
participants
Exceeding
the budget
for the
same
Medium High Low Employee
s
Providing
lucky draw
based
compensati
on
Table 3: Risk Register
(Source: Developed by the learner)
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Task 2: Research project
Executive summary
The following section would provide information regarding the procedures that are conducted
in order to fulfil the objectives framed for the study. A brief overview of the topic, review of
academic sources, methods implemented to conduct the study, data collection and analysis
through survey are presented in the section including relevant recommendations. Finally, a
reflection is provided about the performance of the study in this section.
Chapter 1: Introduction
Globalisation is an international force that has affected multiple organizations across the
world. In most cases, this impact has been of a positive nature on the organization and a
negative one for the employee associated with the organization. Vodafone has been operating
in multiple nations across the globe. Its telecommunication services have been operational in
multiple African nations like CDR, Egypt, and others. Hence, the background of the study
could be analyzed based on two domains. First, incorporation of globalisation has to lead to
the development of the organization in terms of customer base and increase of average
revenue per user. For the African nation of Algeria that has only four quanta of
telecommunication providers like Algerie Telecom, OTA and Ooredo, the study would
enable the identification of the potential development that Vodafone plc would be subjected
in the near future. Second, Vodafone has been in multiple joint ventures in Asian nations like
India. This information could be used for the conduction of comparative analysis for potential
risk and benefits in the Algerian market.
The mentioned study is important due to two reasons. First, since the study is associated with
the primary data collection of the employees of the organization, the responses would enable
identification of perceived benefits and risk of joint ventures in the international market.
Additionally, the concept of globalisation and its impact on the process of joint ventures
would be studied in the long end. Second, the study would enable the identification of areas
in which the organization could improve the long end. This, however, would be limited to
segments of joint ventures in the Algerian market.
Relative to the wider sector, the mentioned research should be useful for the organization in
two segments. First, the mentioned research would enable the identification of the segmented
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processor areas that the organization should take into consideration to develop its work
culture. This would be because; the questions asked to the employees would be based on
globalisation and joint ventures. This would enable the management of Vodafone UK to
identify the perception of the employees regarding globalisation and Joint ventures. Second,
the organization would be able to use the report-generated post the conduction of the study to
identify the long-end viability of international operations in Algeria based on average revenue
per user, the number of customer and the tax obligations due to entry through the joint
venture mechanism.
The academic interest of the topic includes a critical understanding of the concept of joint
ventures and business. Additional academic interest would include the understanding of
practical response by regular employees of the organization. In the long end, this would
enable the mitigation of a knowledge gap that has been developed by consideration of only
bookish knowledge and it would result in the development of analytical skills.
The aim of this study lies in the identification of the risks and benefits that Vodafone UK
would be subjected to potential globalized expansion in Algeria through the mechanism of
joint ventures.
The objectives associated with the same include the following:
 To understand the risks and benefits of business ventures on the international
expansion of Vodafone plc in Algeria
 To identify the perception of globalisation for the organizational employees
 To identify the relationship between globalisation with revenue, market and customer
base
 To identify the JV mechanism in the international market of Algeria for the
organization
Chapter 2: Literature review
Benefits and risk of joint ventures in international market entry
According to Hitt et al., (2016), a multinational organization has been subjected to drastic
changes in the operational segment. The authors argued that this has been characterized by
the emergence of multiple attributes such as business sustainability, institutional complexity,
and others. The authors however considered research tenure of five decades for the
conduction of their research. Hence, based on the research undertaken by the authors, it could
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be deduced that the authors limited their research to international strategy. However, the
authors included the benefits of joint ventures in the international strategy incorporated by
multiple organizations. Overall, it could be deduced that the article is limited in the segment
of consideration of exclusive joint ventures as a mode of international market entry.
According to Razzaq et al., (2018), “International joint ventures (IJVs) are both
advantageous and challenging due to differing technical abilities, economic and political
environments, and cultural and legal frameworks” The authors identified multiple risks in
the event that organizations expand into the international market through the mechanism of
joint ventures. Some of the risks so identified include political instability, high variation in
the exchange rates and demographics. Hence, from the article, it could be deduced that
Vodafone UK would mostly be impacted with the risk of variation of exchange rates and the
potential reduction in the earnings due to bank charges for conversion of the same. However,
the articles did shed light on one of the practical risk associated with joint ventures like the
acute risk of political instability in 2019 in Algeria and the potential risk of negative impact
on the foreign organization.
Impact of globalisation in terms of revenue, market share and customer base
According to Wood et al., (2016), globalisation has resulted in the development of the
customer base for an organization. The authors argued that international ventures enable
incorporation of multiple retailers in the business operation of a multinational organization.
This results in the drastic increase of the customer base of an organization in the long end.
Hence, based on the findings of the research, it could be deduced that international capital
markets have been positively affecting post the occurrence of globalisation. However, the
research would be limited in the segment of the market type, as the research has been
conducted based on the retail market and not on the telecommunication market.
According to Burlacu et al., (2018), globalisation positively affects the revenue distribution
for an organization. The authors additionally included multiple benefits of globalisation like
expansion in the information base of an organization. Hence, from the research, it could be
deduced that globalisation increases the revenue and market share of an organization due to
the increase of high quality and extensive information to the customers. However, the main
limitation of the research lies in the consideration of the global market for the conduction of
the research and not a specific region. Hence, relative to Vodafone UK and potential
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expansion in Algeria, it could be deduced that the authors provided a framework for the
conduction of the primary data analysis in terms of globalisation and joint venture.
Globalisation in Africa
According to Asongu et al., (2017), globalisation has led to the development of human
resources in multiple African nations. This has resulted in the potential development of
market share for an organization, due to the increase in the available and skilled workforce in
the local market. The authors additionally argued that low-income nations share an inverse
relationship with entry and expansion of the concept of globalisation. Hence, from the
findings of the article, it could be deduced that globalisation in Africa has resulted in the
development of multiple nations. This has resulted in the opening of the African market for
the development of joint ventures business across multiple domains. However, the limitation
of the research would be an extensive focus on human resource than a business environment.
Literature Gap
Relative the articles that have been discussing, major gaps include poor development or
presence of recommendation regarding the identification of viability of globalisation for an
organization. This would be due to two reasons. First, due to time constraints, such extensive
analysis could not be conducted. Second, due to individual limitations associated with the
scholarly articles, the dynamicity of the JV mechanism could not be identified.
Chapter 3: Methodology
It is essential to decide the type of methods that the performer should develop in order to
conduct the study efficiently. By selecting a relevant methodology for conducting a study, the
objectives are achieved appropriately.
Research philosophy
The components of an appropriate research philosophy allow the performer to develop a
comprehensive knowledge regarding the source, procedure and nature of information that
requires analysis for fulfilling the objectives of the study (Saunders et al., 2015). It is
essential to determine an appropriate philosophy for conducting the study, as it will enhance
the course of data collection and analysis for the study. Since the study would be performed,
using primary data gathered through survey technique, positivism philosophy would be
implemented. The application of positivism would allow the researcher to use factual data
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and interpret it according to the objectives of the study. The choice of positivism philosophy
would be beneficial for this study, as it would allow the researcher to analyse data acquired
through primary methods and fulfil the objectives of the study (Quinlan et al., 2019).
Research approach
A relevant research approach ensures the researcher conducts the study efficiently by
analysing the outcomes gathered from data collection methods (Jackson, 2015). The
effectiveness of an approach is observed through the type of analysis that is developed in the
study as an effective research approach (Zikmund et al., 2010). Since positivism philosophy
is selected for the study, the deductive approach would be utilised in fulfilling the core
objectives of this study. The outcomes from the study would be analysed according to the
terms of existing theory and no new theoretical approaches would be developed through the
study. Hence, the implementation of deductive approach for the study is justified (Cooper,
2015).
Research design
The selection of an appropriate research design ensures the researcher is able to develop an
effective method for collecting data (Creswell and Creswell, 2017). The procedure of
collecting data and analysing it is enabled through the choice of research design (Meyers et
al., 2016). The choice of research design provides the researched with the opportunity to
choose a design that would enhance the analysis and data collection of the research (Patten
and Newhart, 2017). This study would implement the use of descriptive design, as it would
benefit the researcher in analysing the quantitative values identified through primary
methods.
Data collection
A primary method of data collection would be taken into consideration. Additionally, survey
questionnaires would be taken into consideration for the same. This would be because of the
nature of the sample undertaken for the research.
Primary data collection instrument
For the collection of the primary data, two instruments would be taken into consideration.
This would include high-speed internet as well as Google forms and MS Excel. The high-
speed data would enable effective sharing of information over the internet to the employees
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