Creation of Foreign Direct Investment - Report Example

INTERNATIONAL BUSINESS To stay and hold the position in the present competitive market the company has planned to expand its business outside US likeEurope and Far East Asia. XYZ (company’s name) is encouraging other companies to advertise their product on their website. A study has shown that a company would make more profit in diversifying and expanding. Diversify into other market- XYZ need to expand the business to other markets outside the United States like Europe and Far East Asia. They can do this by offering the choice to have their web site to be translated in different languages so the customers can pick the languages that they feel conformable with. Expand Product Offering- Getting new partners to sell their products on the web sites so more customers to their business. There are two main existing strategies that XYZ used and need to keep using to keep the business profitable. As we look at those strategies those they should not change and need to find a way to keep them in their operation plan: Price and shipment- By offering the cheaper price in their products and free shipment had help to attract their customers and get new ones through the word of mouth. XYZ will always succeed when the customers is looking for better products. Customer Service- Customer receives great customer service in the product that they buy and when they return product back to the company. The customers only have to deal with one company not other company that advertises the product in the web site. One of the important strategies to study is the feasibility study. Feasibility study is an important phase in the development process. It enables the developer to have an assessment of the product (like XYZ ’s soaps, detergents, etc) being developed. It refers to the feasibility study of the product in terms of outcomes of the product, operational use and technical support required for implementing it. Feasibility study should be performed on the basis of various criteria and parameters. The various feasibility studies are (1) Economic Feasibility, (2) Operational Feasibility and (3) Technical Feasibility. Economic Feasibility: It refers to the benefits or outcomes. We are deriving from the product as compared to the total cost we are spending for developing the product. If the benefits are more or less the same as the older system, then it is not feasible to develop the product. The development of the new product greatly enhances the accuracy of the system and cuts short the delay in the processing of the product. Operational Feasibility: It refers to the feasibility of the product to be operational. Some products may work very well at basic implementation but may fall in the real time environment. It includes the study of additional human resources required and their technical expertise. Technical Feasibility: It refers to whether the products available in the market fully support the present new one. It studies the pros and cons of using particular product for the development and it’s feasibility. It also studies the additional training need to be given to the people to make the product work. FDI FDI (Foreign Direct Investment) is of great significance for production as well as consumption of goods. It is through trade that goods produced at particular places are equitably distributed among users. With the help of trade goods are made available to consumers at the time of their need. It removes the hindrance of persons by bringing together producers and consumers who are widely scattered. Advantages of FDI for XYZ are outlined below: It enables the company to concentrate on the production activities; otherwise they would have to go in search of consumers for goods they produce. Trade makes goods available to consumers who can concentrate on their own occupations. It results in specialization and large-scale production as the markets are now spread over wide territories. Sale of goods from one country and purchase of goods form other countries. It provides avenues of employment to various persons. It increases the standard of living of people as they can avail of goods of various kinds produces by XYZ. Marketing In any marketing sector marketing plan is considered to be very important and a thoughtful business plan cannot be overemphasizes because much hinges on it: financial support, management of the available resources like operation and finances, credit from suppliers, promotion and marketing and last but not the least company’s goals and achievements. It’s the research and analysis done by the economic scientists and experts in marketing field yielded fruitful results in the development of different development strategies. The main purpose of these was to develop consumer friendly products that are used in everyday life. The research involves finding potential problems in the present marketing sector and resolving them by updating new strategies. Another important factor probably the most important one is the cost. If the final product is expensive there will be only few takers for it. Therefore research has been done to use cost effective products. According to marketing and advertising rules and guidelines, consumers always impress upon the advertisements they see. XYZ will appoint marketing agencies to attract the consumers by making publicity of the product through different media. The company will display the products in supermarkets and departmental stores for sale. At present, the marketing strategy for selling product to consumers is to lure them for branded products such as food items; play in branded spaces and exposing them to TV channel. The marketers and advertising agencies work and trade on psychology of consumers for marketing their product. In the present marketing world aggressive marketing is the new mantra. Due to the changing trends and tastes of customers the best possible strategies are to explore new ways of marketing. Advertising, considerably slashing the prices of the commodities, increasing the discount rates, aggressive marketing, etc., are the methods that should be used to stay in the extremely competitive market. The purchaser desires to have or own a good brand name product and material with good quality at reasonable and cheaper rate. If the marketers were able to meet this demand of people of the society, definitely there would be a souring business for their product. To oversee the marketing operations, company will send Marketing Executives from US to other countries. Marketing Mangers will be appointed from the respective local areas. Appointment of local mangers will greatly help the company in easily gaining strong foothold in the respective local area. I will make sure that my advertising firm and marketers would be able to supply the right kind of needed awareness or publicity on the deodorant to attract consumers. It may be right to say that marketers and advertisers are in a position to meet the desires of consumers up to some level. The best way of advertising is through print and broadcast media. The price of the products will depend on the changing of the marketing trend. It always best to assess company’s strengths and weaknesses. TOWA matrix (Threats-Opportunities-Weaknesses-Strengths) has been used to develop feasible alternative strategies. The matrix consists of four quadrants. They are (1) using strengths to overcome weaknesses, (2) Using strengths to overcome threats, (3) overcoming weaknesses to take advantage of opportunities and (4) overcoming weaknesses to address threats. First quadrant concentrates on possible strength-opportunity strategies. Important factors are to hire highly skilled workers, wide brand recognition, customer satisfaction, effectively and efficiently raising capital resources, etc. Second quadrant concentrates on possible strength-threat strategies. Important threats that have to overcome are changing government regulations, seasonal shopping, and competition from other companies. Third and Fourth quadrants concentrates on Possible Weakness-Opportunity Strategies and Possible Weakness-Threat Strategy. Third quadrant looks at reviewing product, develop standards up to the customer satisfaction, etc. Fourth quadrant looks at implementing backup systems, implementing policies to protect and avoid security risks. References Steven Miles. Consumerism-as a way of life. London: Sage Publications Ltd. 1998. Louis E. Boone & David L. Kurtz. Contemporary Marketing. New York: South-Western College Pub. 2004. Bandelj, N. Creation of Foreign Direct Investment in Central and Eastern Europe. New Jersey: Princeton University, Wallace Hall. 2002. Wikipedia. Advertising. Retrieved 22 May 2007 . 2006. SBA. Marketing Basics. Retrieved 22 May 2007 . 2006. Bethany K. Laurence. Will My Business Make Money? Retrieved 22 May 2007 < http://www.nolopress.com/article.cfm/objectID/73FBAC1E-B3B2-432A- B186FE6E090326F5/111/228/296/ART/>. 2006. SBA. Writing the Plan. Retrieved 22 May 2007 . 2006. Read More