The Attractiveness of Countries for FDI
The World Bank provides a close analysis on the continuous rise of the China economy on the maters of FDI.
Hayes and Wheelwright’s models take a prominent position in business management. The first model is internal neutrality. This model focuses on the requirements of the operations process in order to achieve a certain standard. This got achieved by avoiding the basic mistakes managers make, thus, making it an inward-looking strategy. This, as a result, brings in internal neutrality since an agreement would be reached on the standard quality, required in the market, so that a country can be satisfied either to invest in an activity in terms of the foreign directs investment or not (Property Right Alliance, 2007).
The next stage is the external neutrality. At this stage, the possible levels of competition, available in the organizations’ environment, gets analyzed. Analyzing the organizations’ competition brings up the ideas that are best to be implemented, thus, allowing the organization to meet its objectives. This is essential in reducing unnecessary price wars and; hence, stabilizing the commodities prices in a business environment (IMF 2005). The third stage deals with internal support. This stage is required, especially when the organization has already achieved the necessary standards.
Internal support, thus, helps the operation in developing continuous needs to be the best in the provided market through the good aspirations from within. Any organization that lacks this internal support does not grow and, thus, remains at the same level. A united country attracts high numbers of foreign direct investment since it creates a peaceful business environment (Pearce, 2009). The final stage is the external support. A business operation needs to strategize itself in a way that it can enable it to compete and stay in the market in the future. This involves the use of suitable technologies in the resource organization, so that the organization adopts well with the continuous changing environmental markets.
Foreign direct investment has long term goals and a prediction of the investment, becoming short-lived, could lead to the investor’s withdrawal from the plan (Lall, 2000). Any organization should understand the operational world in their businesses. Any organization needs to understand the direction its heading and the possible environmental and other driving factors. Thus, on the minimal perspective, this strategy ensures the survival of the business from the minimal perspective; on the other hand, the maximum perspective deals with the creation of the value-added goods. This makes the final role of ensuring that the business is competitive enough.
The objectives of the organization, in most cases, originate from the good strategies of planning. This is, however, arrived at after a close analysis, if the given environment gets reviewed and the competitive environment of a business gets attained. These analyses on the environment get done through analyzing the opportunities, strengths, weaknesses, and any threats to the business (SWOT). Other strategies, in the business operation, include looking at the Political analysis, then, the Economic analysis, the Social analysis and finally, the Technological analysis (PEST). When taking all precautions and appropriate measures through the SWOT and PEST analysis, the business focuses on the maximum profits and possible operations costs; hence, promoting the need for investors to invest in the country (Dua, 1998). The operation’s ensures the performance of the organization is of high quality.
There are five key objectives of performance that need to be achieved. The first is the quality, which entails how good or poor a commodity is. Customers are not interested in low quality products; however, high quality products build a mutual relationship where the customers trust the products. Thus, they can pay anything for the commodity to meet their needs. Political stability also influences foreign direct investment. A politically stable country attracts more investors as compared to a less stable country.
This is because the risks, involved in investing in such a country, are minimal. Flexibility is another role of operations. The organization needs to be innovative enough in terms of tastes. Customers could end up shifting to the next option if the products produced are the same and monotonous. Therefore, organizations should invent adequate and creative products with varying models and colors in order to keep the consumers interested.