Posted on 20th Sep 2024 10:37:03 PM International Relations
Research Project
Land Mark is one of the world wide apparel marketers. Recently the company management is thinking to go for searching investment in South Asia. The company is looking for suitable venue for investment. These apparel items is exported in the USA & Europe.
Situation Analysis
Situation analysis means analysis the threat & opportunity of element change is inevitable for this reason land mark should understand the element of change that affect existence, growth & sustainability of their business. By analyzing situation we get the following factors:
Globalization
The world wide movement toward economic, financial, trade & communication integration. Globalization implies the opening of local & nationalistic perspectives to a broader outlook of an inter connected & interdependent world with free transfer of capital, goods & services across national frontiers. So we can say that FDI is the part of globalization. As a result of globalization key production factors such as capital, technology & even labour are globally mobile & notions of national products, national industries & national corporations have become redundant as have the nation state & its strategies. Globalization has weakened the ability of nation states to regulate economic activity & govern international corporations. To achieve this they have move production facilities where costs are lowest & they adjust revenues in different countries in order to pay less tax & receive more subsidies. What is happening that changes in technology & work. Relationships are moving to quickly for cultures to respond, social, legal & cultural safeguards.
Political Condition
Political instability significantly reduces inflow of foreign direct investment (FDI). On the other hand favourable political condition increases the inflow of FDI. Not all aspects of political risk affect FDI its depend upon domestic conditions of host economy. Some important things in order to make our investment become a successful investment money, currencies, market condition, kind of business some important things that landmark need to be concerned in order to be a good investor.
Besides those things we must also consider political condition of the country in which we are putting our investment. Good & stable political condition will support our investment & vice versa. Good political condition will make it comfortable for the business to run their business securely. Political condition of South Asian countries are not 100% favourable. Political instability is a common scenery in these countries. But some countries like India, Bangladesh, Nepal instability rate is lower compare to Pakistan, Mayanmar. As a result many foreign company like landmark may attracted to invest in these developing countries.
Efficient & Cheap Labour
Because of world getting smaller by globalization companies have deemed to wish invest where the labour is cheap. After all, in the world of capitalism it is the duty of the companies management team to maximize its profits & minimizes the expenses. Investing in other developing countries will entail a lot of costs. We have to make sure that there is a sufficient workforce available that has enough education for the product or services. Sure, that not much of a problem if it would only involve simple manufacturing production lines but outsourcing today includes services in the fields of accounting, web technology & other areas that require a decent level of educational attainment. Despite of all these tangible & intangible costs, the labor costs of South Asian countries are so low, that even if we add all these things together, everything still come out lower than the astronomical labour costs in developed or western countries that amount from $ 19 & above. Labour costs are important factor to many foreign companies to FDI in South Asian countries. Now for clear understanding I would like to give rate of labour cost some of the South Asian counties-
a. Sri Lanka: $ 0.62 per hour. Sri Lanka has a large workforce that has ability to speak in English. This is allowed to host call centres, as well as provided services for accounting & business process. It is only country of South Asia to have a high human development index.
b. India: $ 0.48 per hour. India is also a good source for cheap labour for the manufacture of textile & parts.
c. Pakistan: $ 0.32 per hour. Business process can also be done here but just like India law & order may be a problem. This country is not so good source of cheap labour for the manufacture of textile & parts.
d. Bangladesh: $ 0.32 per hour. Bangladesh actually has a significantly grades just waiting to be tapped. It is also a good place for those with simple requirements in the field of information, technology, production facilities also bound in the country. Investor have to factor in, however several areas of concerns child labours are used in the countries factories. The country also has one of the most corrupt bureaucracies in the world. Flooding during monsoon season will also interrupt operations.
Labour Hour
According to the law of ILO labour hour of any country 8 hours. But South Asian country do not follow this rule strictly. Specially in Bangladesh labour of garments factory work more than 8 hours. It may be a factor to attract foreign companies like landmark to FDI in this countries.
Competition
Competition also affect FDI. Competition in South Asian countries are not so strong as developed countries. So companies want to go for investment in the country which have lower competition within the country.
Infrastructural Facilities
Infrastructural facilities of South Asian countries are not as sound as developed countries. But infrastructural facilities are very important to determine location choice of South Asia. Better infrastructural facilities better socio-economic indicator. Better infrastructural facilities in terms of gas, electricity, road, rail, higher international orientation per capita attracted higher FDI flows. Among South Asian countries India is well developed in case of infrastructure. Bangladesh is near to India in case of infrastructure for garments industry.
Socio-cultural Factor
Socio-cultural factors are the key factors influencing FDI in South Asian countries. Culture is very from country to country & region to region. Land mark must select a country among South Asia which has fabourable culture for respective business.
Purpose
The main purpose of our research is to find out the suitable venue for FDI in South Asia & get competitive advantages by using resources of that country.
Component of Research
Component of research mainly related with 4 questions. Such as- What->? Who->? Why->? How->?
For answering the 1st question-
At first we have to define the problem. Already we have defined our problem. Our problem is to find out suitable venue for FDI in South Asia.
Then we gathered necessary items to solve the particular problem.
Then we find out related variables that are associated with particular problems are-
Political & legal condition
Political & legal condition of any country may be favourable or unfavounable for FDI. Unfavorable political & legal conditions are hinder to investment of any country. For this reason, we must analysis following matters of host country:
Past political behaviour.
Laws & regulation policy.
Administrative flexibility.
Requirement for approval.
Form of government.
Strength & ideologies of government.
Strength & ideologies of rival political groups.
Geographical Condition
South Asia is unique among the major geographic regions in the world. If geographical conditions are unfavourable such as heavy weather, rough weather, air pollution, tropical cyclone are treat to invest that country & running apparel industry. So It is important to analysis geographical factor before select a suitable venue.
Availability of supply & supply condition
Following factors must be considered when landmark invest in South Asian countries for apparel industry-
Availability & cost of plan site
Availability & cost of local raw materials, energy & other non labour inputs
Availability & cost of imported inputs from parents company
Transportation, port & warehousing facilities.
Entry barriers
Entry barrier is another problem associated with FDI in South Asia. In South Asia there are 9 countries among them some country impose barrier to entry as a result foreign company can not invest these country. So it creates a problem.
Technology
Technology is an important considering factor before taking decision to select a suitable country for FDI. In South Asian countries Bangladesh has flexible technologies for apparel garments that other countries. It production technologies is very inflexible & production requirement vary from country to country then it is very difficult to serve global market. For this reason need flexible technologies.
Consistency of power supply
South Asian countries are developing countries not developed countries. Consistency of power supply of these country is not enough sufficient. But some country have greater consistency than other country.
Why Landmark go for research
There are some important reasons behind this research these are as follows-
This research will help to identify the problem & opportunities of South Asian countries for apparel industry. As a result it will be easier for landmark to identify a suitable venue for investment.
It will be helpful for landmark to set realistic goal.
This research will help landmark to formulate winning strategy that means will show the path; how they will go to achieve their goal.
It will be very fruitful for landmark for effective management of resource & process.
This research also helps to take corrective measure.
Who will be benefited from our project- a. Client, b. Society, c. Government, d. Several Community, e. Fellow research, f. Consumer.
Research Design
Research design constitutes the blue print for the collection, measurement & analysis of data. For our research project we select descriptive design among three research design.
Reasons behind select descriptive design are-
a. Our problem has already identified.
b. For solving our problem we have to describe or narrate related problems sequentially.
c. If we narrate the problem sequentially we can easily characterized the related variables.
So, descriptive research design is fruitful for our research.
Land, Mark, World, Wide, Apparel, Marketers, Foreign, Direct, Investment, Globalization, Political, Client, Society, Government, Several, Community, Consumer, Fellow, Research, Geographical, Condition, South, Asian, Countries, Technology, Infrastructural, Facilities
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