Business Plan Essay Example | Topics and Well Written Essays - 750 words

Business Plan - Essay Example 5. Increase charity from 0.5 of total profits to 5% in 4 years. SWOT Analysis: Strengths 1. Company attends to its corporate social responsibility by doing charity work. 2. PPQ is in par with the industry’s average profit margin for the last 3 years. Weaknesses 1. High employee turnover rate. 2. The market share of 5% is just fair. Opportunities 1. Japan’s increasing need for auto parts industry companies after the tragedy last March 2011. 2. More females are using SUV cars and market share of SUV type is increasing. 3. One of Japan’s road to recovery is to boost employment. Threats 1. There are low cost countries such as India, China, and even Korea that are already competing in this industry that could possibly be one of the leading players in SUV cars in the future. 2. Costs for new facilities that will be built when entering a new location. Alternative Courses of Action/Analysis of PROs and CONs 1. Build new facility in Japan and continue with its operations in US. Advantages: The latest tsunami tragedy that happened in Japan made other existing companies close out and this is an opportunity for PPQ to lead the industry in Japan. Since PPQ attends to its corporate social responsibility, opening a facility in Japan would be an opportunity to provide jobs to families there. PPQ will be able to gain revenue while also helping people have jobs. Japanese employees are most likely to be more cohesive as compared to their existing employees since they are recovering from their recent tragedy encounter. Disadvantages: The industry in Japan is starting up again and so competing globally may somehow be difficult. Continuous operations in US would mean that PPQ has to work on building their loyalty from their employees so as to increase employee turnover. 2. Build new facility in one of the following countries: India, China or Korea where industry is already growing and continue its operations in US. Advantages: There are more buyers in the said c ountries especially that the SUV industry is heating up in China. Disadvantages: PPQ has to cope up with the existing companies established in any of the said countries. The SUV industry which is growing could also mean that there are several competitors already. Continuous operations in US would mean that PPQ has to work on building their loyalty from their employees so as to increase employee turnover. 3. Focus on opening new facilities in different locations and close its US location since there is very high employee turnover rate already. Advantages: PPQ would no longer need to invest on time, effort and costs on winning their employee loyalty in US region if they will be giving up the said location. Disadvantages: Possible risk will be encountered since PPQ will be investing in a very new location which it has not made operations yet. It will not have another location as a backup or to exchange parts with just in case there is a shortage in the new location. Recommendation It i s recommended that PPQ take ACA#1 which is to invest in Japan to pursue on entering the SUV industry of the said country and work on making it grow there. It should also continue with its current location in US right now and decrease its employee turnover rate. The US location has always been PPQ’s home headquarters and so the company knows the business in the region, the market share and average revenue of PPQ in US is

A Critical Analysis of the Government Strategies for Attracting Dissertation

A Critical Analysis of the Government Strategies for Attracting Foreign Direct investment in Saudi Arabia - Dissertation Example FDI potential is measured by comparing the country’s FDI levels to its economic size. In this regard, Saudi Arabia ranked 138th out of 140 countries in terms of its FDI potential (UNCTAD, 2004). Closing the gap between FDI potential and actual FDI performance is very important to Saudi Arabia because under the leadership of King Abdullah, Saudi Arabian officials have made a commitment to attracting FDI to Saudi Arabia. Saudi Arabia’s economic plans include the construction of large cities and the enhancement of Saudi Arabia’s global competitiveness. These economic strategies necessitate attracting FDI and foreign partnerships (Blanchard, 2009). In its efforts to liberalise FDI entrants Saudi Arabia repealed its previous investment law and replaced it with the Foreign Investment Law 2000. The new law created a new licensing authority for facilitating the processing and approval of FDIs: Saudi Arabia General Investment Authority (SAGIA) (Foreign Investment Law, 200 0). The idea is to make FDI entry easier and to reduce the time involved in establishing FDIs in Saudi Arabia. Additionally, corporate taxes were reduced from 45% to 30% (Hussein, 2009). This research study analyses the regulatory and policy strategies employed by Saudi Arabia to attract FDI inflows and to minimize FDI outflows with a view to identifying the extent to which these strategies are successful and can be improved to close the gap between FDI performance and FDI potential. ... usion 32 Recommendations 32 Conclusion 35 Bibliography 42 Chapter One Introduction to the Study Research Aims/Objectives Saudi Arabia’s new Foreign Investment Law 2000 is a liberalized approach for attracting FDIs. The new 2000 law is arguably a major improvement over its previous investment law. For instance, unlike the previous law, the 2000 law permits foreigners to own property and projects (Foreign Investment Law, 2000). With the creation of SAGIA, FDIs are processed faster and entrants have greater certainty relative to the FDI criteria for. Moreover, together with the European Union (EU), the US, China, Japan, South Africa and Brazil, Saudi Arabia is among the G20 leaders and has demonstrated a commitment to efficiently and effectively regulating its financial markets (Eichengreen & Baldwin, 2008). In the Middle East, Saudi Arabia’s regulation of its financial markets is among the region’s most advanced. Nevertheless, Saudi Arabia’s regulatory frame work contains a number of restrictions that have the potential to negatively influence FDI performance in Saudi Arabia (International Monetary Fund, 2006). The restrictions on FDIs reveal that although, FDI inflows are remarkable, they can be improved. The aims of this research are therefore to: Identify and analyse Saudi Arabia’s FDI regulatory framework with an emphasis on the Investment Law 2000. To identify and analyse the strengths and weaknesses of Saudi Arabia’s FDI regulatory framework. To determine why Saudi Arabia’s FDI performance is not commensurate with its FDI potential. To identify how and why Saudi Arabia’s FDI regulatory framework facilitates the gap between its FDI performance and its FDI potential. To identify Saudi Arabia’s FDI performance trends and its FDI potential. To