This research proposal is primarily focused to investigate the practicability / feasibility for internationalization or global expansion of multinational company by setting up their new manufacturing plant in new country. This research is all about the exploring various research methods and approaches for the new market or global expansion and its followed by detailed feasibility studies, analysis & theories, which helps the organization to identify the practicability / possibility and opportunities / threats which were exist in the new market / country, where the organization prefers to set the new manufacturing plant in order to benefit cost ...view middle of the document...
• To critically analyze and gather performance related data / information which probes for identifying “strengths weaknesses, needs and areas of opportunities”
Significance of Research:
• Helps the management to understand the proposed plant condition (i.e. size, appropriate technology, practices, development stages, etc), required resources (i.e. manpower, material, machine and money), characteristics of institution of new market environment (i.e. culture, growth rate, physical, distribution, media, competitor potential, etc).
• Helps the MNCs to understand the complexity and diversity of international environment which helps the management to making decision on locating new manufacturing plant, initial market entry, marketing mix or product positioning, or any subsequent changes.
• Enables the MNC’s to ready to manage and control the environmental and political changes.
• Helps the country to improve their growth rate.
• Customer gets benefits because they have multiple choices for shopping the particular product
This is one of the important process which must be carried our while doing the research on particular topic and this research literature review is a process of conducting survey of important books, articles which helps the researcher to identifying, critically evaluating, analyzing, synthesizing the already recorded or published or unpublished data about the given topic “exploring or introducing new manufacturing plant in new country to achieve the globalization or internationalism”(Loraine, Christina, and Malcolm, 2009, pp122-123)
The powerful global competition by locating new plant in new locality is mainly resulted in “persistent cost-cutting measures” such as seeking the opportunities to achieve the cheapest operating cost and market development by setting new production or manufacturing plant to the cheapest country, outsourcing purchase of raw material, etc. Many MNO’s obtain financial capital from one nation, raw material from another, produce finished goods with cheaper labor and capital equipment in another country and sell their goods to various national markets.
According to the Saunder et al, 2007 while MNC decides for entering into the new environment where it does not operate earlier, they must span the new environment factors both controllable and incontrollable factors because it involves more complexity though it involves different policies, customs, legal act relates to transportation, operating process and taxation procedures and political factors, cultural and economic diversity, etc. because these are the fact may impact the new plant if they are not properly maintained and managed. The International Environment controllable and uncontrollable factors are illustrated below:
|Controllable Factors |Uncontrollable Factors |
|Proximity to markets ...