UK Investment in China Assignment Example | Topics and Well Written Essays - 4250 words

UK Investment in elevatea - Assignment vitrineThe fll in foreign direct investment (FDI) since 1999, nd Chins growing shre, bother more or less developing countries. But n in-depth look revels new nd promising motilitys. The decline is lrgely one-time djustment following the privtiztion boom of the 1990s. FDI is coming from more countriesnd going to more vault of heavens. The conditions for ttrcting FDI vry by sector in lbor-indecadesive mnufcturing, for exmple, efficient customs nd flexible lbor mrkets re key, while in retil ccess to lnd nd equl enforcement of tx rules mtter most. Sorting out the microeconomic issues by sector will be favorable not only for FDI but lso for domestic investors.While Chin ccounts for 39 percent of the FDI to developing countries, it lso ccounts for lmost 30 percent of the developing worlds popultion. In fct, reltive to GDP, Chins performnce in ttrcting FDI is good but not extrordinry, with FDI t 3.8 percent of GDP in 19992002.Nineteen developin g countries did die over the sme period. Chins performnce lookseven less extrordinry if djusted for the round-tripping of FDI through Hong Kong (Chin), which some estimtes counsel my ccount for s much s 30 percent of totl FDI to Chin.Chin retil investments continuously grow (12 % in 2005) nd remin really ttrctive. However, becuse interntionl retilers re fueling this growth, mrket sturtion is lso on the rise. more than thn 40 foreign retilers hve entered the mrket to dte. From the generl criticism of the FDI in Chin it cn be concluded tht Tesco hs potentil to enter Chinese mrket nd to sty successful on it. This is due to the FDI trend nd its success in recent decdes. ... The compny is plnning to open 16 new stores in Chin, threesome of which will be in Donggung. nnul retil sles in this region incresed more thn 17% in 2005, mking it one of the most promising res in Chin. Tesco lso opertes 41 hypermrkets in the country through joint venture with sound Hsin.With Wl-Mrt nd Crrefou r firmly entrenched nd Tesco gining ground, the retil mrket is poised for some interesting developments in the next a couple of(prenominal) months. However, sturtion levels, especilly in Chins more ttrctive tier-one centers, re incresing. Tesco interntionl strtegy should be bsed on the six elements shped in compnys report over ten yers go Be flexible - ech mrket is unique nd posits different pprochct locl - locl customers, locl cultures, locl supply chins nd locl regultions require tilored offer delivered by locl stff - less thn 100 of Tescos Interntionl tem re ex-pts Keep focus - to be the leding locl brnd is long end point effort nd tkes decdes, not just few yers Be multi-formt - no single formt cn rech the total of the mrket. whole spectrum from convenience to hypermrkets is essentil nd you need to tke discounter pproch throughoutDevelop cpbility - developing skill in people, processes nd systems nd being ble to shre this skill between mrkets will improve the chnces of succes s in chllenging Mrkets Build brnds - brnds enble the create of importnt lsting reltionships with customers.In order to make a profound environmentl udit for Tesco, SWOT analysis is conducted. This analysis is a centering of looking at the Tesco as a business, where the strengths and weaknesses of the organisation can be contrasted with the threats and opportunities of the outside business environment. skirt 1Tesco - SWOT