Successful FDI - Essay Example

This paper addresses benefits and disadvantages of FDI to both home and host countries and presents a brief business plan for the company linking its foreign investment proposal and analyzes its future plans. E-Walky Plc: E- Shoe and Slippers Electronic shoes and slippers from E-Walky Plc will be extremely amazing experience to the new generation. In today’s technology-driven business environment and life-style, the company plans ‘e-walking’ of new generation. E-Walky, a public limited company headquartered in Colorado, is in its very progressive stage of developing new products, e-shoes and slippers.

The days yet to come are to witness how the slippers and shoes can be integrated with advanced technology to make an easier life to both sportsmen and general public. Company plans to campaign its brand name ‘E-Walky’ for its products and chooses China for its FDI. It’s truly going to be a mere micro-computer in every one’s foots, being attached to the down-part of slippers and shoes covered by specific metals for its safety as well as water-proof purposes. These micro-chips can automatically measure the distances one walks, counts his footsteps, measure the speed of a sportsman and so on.

Count-down, safety-walk and speedy-walk are some extremely useful utilities that the company itself kept secret and rather surprising to the public. Its usefulness to electronically track one’s footsteps will attract indoor players of badminton and tennis as well as outdoor players of cricket and football. Its importance to play ‘two-men game’ and group games will certainly appeal to children and youngsters. Its importance to health and convenience to use inside houses will attract both house-wives and old aged customers.

More specifically, all these customers will find its operation wonderful and convenient due to the small ‘remote controller’ in their hand. E-Walky Business Plan The main objective of E-Walky is to design and develop electronic shoes and slippers to its customers in and outside the US to continuously promote the digitized life for both general public and sportsmen. The main mission is to create a generation of ‘e-walking’ with help of the highly advanced technology the company adopted in developing E-Walky shoes and slippers.

The financial management of the company proposed an initial investment of $10 million to establish the enterprise based in Colorado and to expand the business by directly investing in China with an approximate expenditure of $25 million. It plans to start its R&D and manufacturing activities in the US and to sell around 1.5 million shoes in the US markets within first 12 months. At the same, the company’s operation will be held in large scale in China to market around 10 million products through major countries like Japan, UK, India, Brazil etc.

The management expects that once its marketing starts in the US, it will attract a large number of sportsmen and other people from around the world. As planned, the penetration pricing policy would be used as a competitive tool to merit the firm and build a long-term brand image for the company (Hirschey, 2009, p. 567). The financial department proposed that the company would be able to sell more than 13 million products worldwide returning an