Risk Analysis Assessment of Need for Speed Pty Ltd - Case Study Example

Download file to see previous pages Generally speaking, the paper "Risk Analysis Assessment of Need for Speed Pty Ltd " is a perfect example of a business case study. In the current fast-developing world business models are changing rapidly. In the past ten years, huge shifts have been witnessed particularly in the automobile industry. Owing to finite resources, increase oil prices, and increasing ecological sensitization, many automobile manufacturers have tried to penetrate the electric car market to meet the demand by customers for sustainable technologies (Hale & Long, 2011). Automobile manufacturers look for new ways of keeping pace with innovation in technology as new business concepts while new companies try to access the highly competitive market with their new business ideas. NEED FOR SPEED Pty Ltd seeks to launch its business concept of electric cars manufacturing in the Chinese market. China has become the largest recipient of Foreign Direct investment going above the United States in recent times. The country leads the list of nations that are most attractive to multinational companies. The encouragement of FDIs is part of the implemented policy targeting to open up China to the global world. The FDI trend surged upwards in 2015 increasing by 6.4% as compared to the previous year (Moran, TH 2012). It is a project that foreign direct investment outflow from China will surpass foreign direct investment inflows into the country. China has a huge and rapidly growing market that was not adversely affected by the financial crisis. China is a base for low-cost production hence making it very attractive for foreign direct investments. Some factors such as low level of protection of intellectual property rights, legal uncertainty; China’s lack of transparency, protectionist measures and corruption can act as hindering factors for further investments in the country (Wang & Wang, 2015). Appendix 1 shows China’s FDI in the first quarter of 2016.

China has the largest internal market globally with about 1.3 billion potential customers. The market is rapidly growing.

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