Analyzing Risk and Benefits: Zara's Joint Venture Project in Kenya

This project delves into Zara's strategic initiative to expand its business through a joint venture with Lalesso in Kenya. The project begins with a comprehensive project plan, outlining the topic's rationale, aims, objectives, scope, limitations, resource considerations, and cost analysis. It includes a detailed Gantt chart and work breakdown structure for effective project management, alongside a risk register to identify and mitigate potential challenges. The research plan encompasses a literature review, methodology, results, and conclusions, with a reflection on the overall process. The core objective is to analyze the risks and benefits associated with this joint venture, providing insights into Zara's expansion strategy and its potential impact on market share and profitability. The project employs various research techniques, including questionnaires and surveys, to gather data and assess stakeholder perspectives.

Managing a Successful
Business Project

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1: Project Plan.......................................................................................................................3
1) Brief explanation of proposed topic and the reason for choosing it..................................3
2) Aims and Objectives of proposed research .......................................................................4
3) Scope and limitations of project.........................................................................................4
4) Resources and cost consideration.......................................................................................5
5) Gantt chat and Work break down structure........................................................................6
6) Risk register with proposed research ................................................................................8
TASK 2Research Plan...................................................................................................................10
Chapter 1Inroduction............................................................................................................10
Chapter 2Literature review...................................................................................................11
Chapter 3Methodology.........................................................................................................13
Chapter 4Result....................................................................................................................17
Interpretation:.......................................................................................................................27
Chapter 5Conclusion and Recommendation........................................................................27
Chapter 6Reflection..............................................................................................................28
CONCLUSIONS............................................................................................................................29
REFERNCES.................................................................................................................................30
APPENDIX....................................................................................................................................32
Project logbook.....................................................................................................................32

INTRODUCTION
Managing a successful business project is all about the practice of planning, initiating,
executing and controlling each operational activity so as to achieve specific goals on specified
time period. The company which is being taken into consideration in order to carry out this
assignment is Zara which is one of the fast fashiom retailer company with its headquarter in
United Kingdom (Bartlett, Doz and Hedlund, 2013). Moreover the company is planning to
enhance its business by adopting the technique of joint venture with Lalesso in Kenya. This
assignment was divided into two main task in the first task project plan is of the proposed
research is being explained with the help of aims, objectives, resources and cost consideration.
Along with this Gantt chart, work break down structure and risk register with proposed research
is also being explained in this task. Whereas in task 2 research plan of the proposed research with
the help of literature review, methodology is being explained. Lastly, final result and conclusion
along with recommendation has being given so as to achieve the target aims and objectives on
specified time period.
TASK 1: Project Plan
1) Brief explanation of proposed topic and the reason for choosing it.
Zara which is one of the fast fashion retailer company with its headquarter in United
Kingdom and it was founded by America Ortega and Rosalia Merain 1975. It serves all over the
world and as the company is achieving huge successful growth in such areas so management of
Zara company is planning to enhance its business area in through joint venture with Lalesso in
Kenya. Therefore the main reason behind choosing this plan is to enhance its market share and to
gain more of competitive advantage at global level so as to increase the profitability ration of
business by taking customer satisfaction into consideration.
Therefore the proposed project topic is to analyse the risk and benefits of a joint venture
business while entering at international market (Beringer, Jonas and Kock, 2013). Joint venture
is one of the best technique which is adopted by an organisation in order to expand their
business. It is a business entity which is created by two or more parties in order to share
ownership, returns, governance etc. In addition to this it is the best technique which the Zara
company is planning to take into consideration with Lalesso in Kenya. so as to increase its
market share at an international level. There are several risk and benefits which are associated

with joint venture business in international market so in order to identify risk and benefits a
researcher carry out this research.
The main reason for choosing this topic is expansion of business at an international level
so as to overcome the impact of Brexit. As due to Brexit UK faced several crisis in the form of
downfall of economy , MNC's got degraded. So in order to overcome such issue and to improve
the overall economic condition Zara have planned to joint venture with Lalesso in Kenya.
2) Aims and Objectives of proposed research
Aims:
“To analyse the risk and benefits of joint business venture with Lalesso in Kenya. A case
study on Zara”.
Objectives:
 To study about the concept of Joint venture.
 To identify benefits of joint venture for Zara while expanding their business in Kenya
with Lalesso.
 To analyse the risk factor of joint venture for Zara while expanding their business in in
Kenya with Lalesso.
3) Scope and limitations of project
Scope of project:
Scope of this project as per company prospective term to be wider Zara is planning to
globalises its business in Kenya with lalesso through joint venture technique. So if the company
will enhance its business in Kenya through joint venture with Lalesso company then it will help
in achieving greater number of market share as well as will be helpful in achieving more of
profitability ratio and productivity (Drucker, 2012). This is because joint venture is term to be
the best techniques with the help of which company can easily achieve its competitive advantage
in international market. In addition to this economies of scale can also be achieved easily as well
as it forces company to share revenue and profits along with risk of loss and failure. Whereas
from the researcher point of view the scope of research is also term to be wider because
researcher acquire more and more knowledge of various tools and techniques like about in which
situation what type of research need to be carried out as there are different type of research
techniques like exploratory, descriptive etc. Moreover with the help of such tools and techniques
research also acquire in-depth knowledge about the topic which could be helpful for carrying out

future research as well in an effective and efficient manner. Whereas the schedule of my research
project is that to carry out research in order to analyse the scope of growth and development of
Zara in Kenya for which data is being gathered with the help of questionnaire as survey is being
conducted among the employees, customer of an organisation. In questionnaire a set of question
are being given to sample respondent related to research topic so as to analyse the viewpoints of
respondents.
Limitation of the project:
Main limitation of this project is Sample size, Lack of available and/or reliable data, Lack
of prior research studies on the topic, Measure used to collect the data and Self-reported data.
The limitation of this project for Zara company is that while entering in joint venture with
Lalesso company in Kenya it is essential to analyse the risk which may affect the working of
business. Analysis should be done of whether the Lalesso is liable to invest equal amount of
capital or not, whether they possess skilled or unskilled labour. This is because if in case Lalesso
will not be liable to invest or possess unskilled labour then it will negatively impact upon
profitability of an organisation and will turn into a major limitation of entering through joint
venture. Whereas from researcher point of view the limitation of the acceptance of the method of
joint venture with Lalesso is that flexibility can be restricted and when this will take place
participants have to focus on joint venture and because of which individual business may suffer
from loss. As well as clash of culture may also take place place which can result in poor co-
operation and integration. Additionally, it may also be difficult to exist from partnership in case
when they want to exist as there is a contract involved.
4) Resources and cost consideration
Resources:
There are different resources needed by researcher such as cost, time, communication and
many other. All these are essential for researcher to complete research activities within given
time period. Resources are term to be the essential aspect which an organisation and a researcher
must consider, so as to carry out project plan effectively and efficiently. From the point of view
the Zara company the resources which the management must take into consideration is of funds,
human resources, machinery etc. If the management will make best and optimum utilization of
this resources then it will help in achieving greater profitability and productivity of an
organisation (Eskerod and Huemann, 2013). Additionally optimum utilisation of resources will

also help in minimizing of cost, if in case there arise a issue of insufficient funds availability then
it will negatively affect the project plan. Thus management of Zara must ensure better and
effective utilisation of resources in each operational activity. Whereas from the research point of
view, researcher must make best utilisation of its resources like books, journals, magazines,
online survey, libraries etc. so as to achieve viable and accurate data for research which can
terms to render better outcome for an organisation. Thus, the resources considered by a
researcher to collect effective data is 50 respondent from wider population.
Cost consideration:
Cost is term to another essential aspect which must be considered by management of Zara
and a researcher so as to execute proper project plan. From the company prospective the cost that
will be required to carry out project plan is approx 388000 pounds, whereas a researcher point of
view the cost required to carry out effective research is approx 50000 pounds.
Total forecasted budget
Particular 2017-18($)
Implementing technology cost 170000
Promotional expense 70000
Advertisement expense 55000
Catalogues 18000
Training charges 75000
Total cost 388000
5) Gantt chat and Work break down structure
Gantt chart:
It is the chart used by the management of Zara so as to determine the completion time of
each task. Horizontal side of this chart represent the total time span of the project which is term
to be broken down into increments, whereas on the vertical axis it represent about the types of
task that make up the project (Hillson and Murray-Webster, 2Killing, 2013). Therefore this chart
gives the clear picture of the project status. Moreover it include the start and finish time schedule

of different set of activities which are to be carried out while carrying out this project. Apart
from this it also helps in representing the status of the project as well as who is responsible for
each task in the project. There are certain features of Gantt chart which states the project
milestones, dependencies between task, person assigned to each task and the start and end date
for tasks.

Work break down structure:
This structure is all about the key project deliverables which helps in organizing the team
works into manageable sections (Lientz and Rea, 2016 ). In addition to this this structure is being
prepared by the management of Zara because it helps in dividing the complex projects into
manageable and simplex task which result in simplifying the project execution. Furthermore this
structure also helps in indicating about the project milestone and control points as well as helps
in estimating the cost, time and risk factors associated with the project plan.

(Source: Work Break-Down Structure, 2018)
6) Risk register with proposed research
Risk this is another essential aspect which must be taken into consideration by the
management of Zara and by the researcher while making plans an policies for effective project
plan. For the management of Zara risk can take place in the form of insufficient amount of
funds, lack of skilled labour, political risk, social risk, technological risk etc. So it is very much
essential for the management to carry out brief analysis of the factors affecting business while
operating at international level so that accordingly plans and strategies can me made. Whereas
from the researcher point of view risk may arise in the form of lack of time, resources,
unwillingness of respondent to answer etc. So a researcher should first make an analysis of this
Illustration 1: Work break down
structure

risk factors so that accordingly plan can be made in order to carry out effective and efficient
research which would result in gathering valuable and accurate data.
S.
No.
Risk
Description
Likelih
ood
Impact Owner Mitigation Continge
ncy
Pre
action
weightin
g score
out of 10
Post
action
weightin
g Score
out of 10
1 Over cost risk High High Managi
ng
director
Keep safe
funds,
cheap
resources
Create
back up
plan to
reduce
this type
of risk
and
arrange
all
resources
8 6
2 Technological
risk
high high Managi
ng
director
Keep safe
funds,
arrange
extra
resource.
Prepare
proper
strategy
in order
to
allocate
resources
in an
appropria
te
manner.
8 5
3 Data loss risk Mediu High Project By making By 1 4

m manager proper
records in
computer
system.
keeping
soft and
hard
copies of
collected
data.
TASK 2Research Plan
Chapter 1Inroduction
Background of the study:
Managing a successful business project is all about the effective study and analysis of
project plan so as to achieve the desired target on specified time period. In addition to this it is
very much essential for every organisation to manage effectively the project plan because it will
help in delivering real value against the business opportunity and as well as result in achieving a
successful growth and competitive edge in marketplace (McLeod, Doolin, and MacDonell,
2012). The organisation which is taken into consideration in order to carry out this assignment is
Zara, which is one of the British multinational groceries and general merchandiser company
with its headquarter in United Kingdom. Additionally it was founded by Jack Cohen in 1919 and
the products it mainly deal with is of supermarket, hypermarket, superstore and convenience
shop etc. Moreover company specifically render its services in the area of UK, Ireland, Malaysia,
Thailand, Hungary, Czech republic etc. As the company is achieving its huge success in this area
because of the best quality product and services they are offering to customers, so after analysing
such successful growth company is planning to enhance its market via joint venture in with
Lalesso company in Kenya at an international level in order to achieve greater competitive
advantage in the world.
Rational of the study:
Main reason behind selecting the topic “To analyse the risk and benefits of joint business
venture to enter international market” is to aware about the risk and benefits which may take
place while operating business at an international level. Risk term to be uncertain and partnering
with other business can create a complexity, especially if the firm enter to form a relationship
with those business whose abilities or resources don't match with the firm resources. Problems