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Feasability Of Multi National Manufacturing Process

The main aim of the current research is to investigate the feasibility of a multi national manufacturing organisation setting up a new plant in a country in which it has not operated before. In other words, The main aim behind conducting this research study is to understand characteristic of feasible decision and then evaluate if it is feasible for any multinational company to establish a new manufacturing plan in the market or country where it has got previous business operation experience equal to none or not.

Research Objectives:

The objectives of this research study have also been formed as follows.

To investigate the characteristics of feasible decision regarding investment.

To explore the decision making process of the multinational company regarding the investment.

To evaluate the feasibility of investment made by the multinational company in developing new manufacturing in the completely new market.

Finally, to provide an effective recommendation to all the multinational manufacturing companies about making investment decision feasible.

Significance of the research study

This research study will be investigating feasibility of investment from multinational company and also as the researcher has interest in finance and investment sector of management study, this study will be helping the researcher in building his professional career in future. The exhaustive knowledge in multinational company and their operational activities acquired during this study will be helping the researcher in getting the good managerial job in multinational company.

Scope of the Research

Because there are number of multinational manufacturing companies in the world and the researcher will have enough time and resources to incorporate a lot of multinational companies, the researcher of this study will be studying only one multinational manufacturing company extensively. The selected company for this research study will be the Toyota Motor, Japan which will be developing new manufacturing plant in Nepal where it does not have operated before. This particular company will be studied extensively during this research study.

1.5. Ethical Consideration

Consideration on the set of ethics a human being follows is studied as a primary issue on the field of human communication. For securing right of the respondents, the researcher will be informing the respondents of the research, in advance, about significance and purpose of the research together with the implication of participation in the research. No data will be made public by publishing through this research unless and until it is authorised. Secondary data sources are what are essential for the research thus there will be accumulation of data from others works. The results will be withdrawn from those data, thus the author should be able to avoid plagiarism considering the data from other authors' Research. There are some other issues that should be taken care of while some pre owned data is being used, all of which have been summoned below.

To make sure the study will not affect a group or an individual the data used will all be from authorised publically published.

No use of confidential belongings of any company will be made as tool research facilities.

1.6. Research Limitation

Every research has limitations. There are some known and some unknown factors responsible for those limitations that have to be faced. Some of the known one are mentioned below.

This study will be studying only one company extensively and therefore the outcome or recommendation made might not be accurate and hence the conclusion might be able to generalise.

Smaller sample size will be another limitation of this research study.

Chapter 2: Literature Review

In the situation of the emerging concept of the globalization, the multinational organisations are considered as industrial market leader but the multinational organisations are always threatened with the rising issues related with nationalism (Journal of International Business Studies, 2001). If the multinational companies have plan to give development and growth to the communities of any country, then they have to keep their responsibilities toward host country as well as home country. The primary forces responsible for continuous development and growth of any multinational company are its decision making quality related with its investment in different countries and the efficiency and effectiveness of this quality of the multinational companies defines the leverage of the organisations’ vertical system over national horizontal system.

The current researcher topic is very burning issue which needs serious attention by the multinational organisations while globalization concept is growing day by day. The growing concept of globalization for the multinational companies means growing opportunities for them to expand their business boundary and do business almost all over the world. The process of expanding business globally does not only involves opportunities but also contains risk factors with which needs serious attention from the entrepreneurs (Sapkota, 2002).

The globalization is the well known and widespread process as a result of which there do no exist any corner of the world which is out of reach for the business organisation willing to do business all over the world (Sapkota, 2002). In fact, the globalization dissolves the boundaries between the countries and gives opportunities to the organisation to do business all over the world. The concept of the globalization came around two decade before to give raise to the sense that there is not any part of the world, even remotest part of the world, not familiar with the well know famous brand products. There are large number of the manufacturing multinational organisations which are working hard in order to expose themselves globally by pioneering, innovating and developing new products for customers all around the world for all corner (Hindle, 2009). Previously in the past, the global strategies developed by the multinational organisations were under criticism by many scholars because according to them, the multinational organisations were structuring and strategizing regionally in stead of following the globalization trend (Rugman and Verbeke 2008).

Today, the organisations operating their businesses across the world market have to give special attention toward understanding environmental issues which are responsible for impacting on the organisational structure as well as the corporate strategy of the companies. The attention toward environmental issues can help the organisations to utilize the competitive advantages all around region. Because of globalization, the organisations operating all over the world are getting challenges for maintaining equilibrium between standardization and customization in overall activities through supply chain as well as value chain management in order to demonstrate effective balance of global integration for standardization, mass production and providing economic scale with the local responsiveness (localization) for customization for providing big opportunities to grab bigger market shares for addressing the demand from local regions. Therefore, it is very essential to understand such factors for releasing organisational performance ability in international scene (Ghemawat 2008, Rugman, Verbeke 2008a). The study over the multinational organisation is very essential because there are more than fifty thousand multinational organisations operating globally but only small numbers compared to the total are responsible for accounting on the greater part of the global investment and trading. According Rugman et al (2008) in their work explained that around 25% of total GDP of the world is contributed by multinational companies and also according to them, largest multinational companies (around 500 in count) are responsible for 91% of global stock in FDI (Foreign Direct Investment). In this way, researching on the issues related with multinational companies like their strategies, structure, globalization, regionalization and feasibility of investment (Rugmanet al, 2008).

The multinational company always tries to expand its business and capture global market share. Hence when any multinational company pays its interest to expand its business in the country market where its previous experience of operating is equal to null, then the company needs to go through number of research study in order to understand the local people interest and perception toward its products. Therefore, for the company to establish new manufacturing plant in the country where it has not operated before, it becomes most essential to considers various factors like political factors, environmental factors, economic factors, social factors, technological factors, legal factors etc of the home country. Because the political factor is very unstable factor which keeps changing over time causing the business instability during not only the manufacturing plant installation but also after the installation too. Therefore, in the context of Nepal where the political stability is uncertain and buying power of the people is weak because of weight of currency, it is not feasible decision to invest a lot by establishing a manufacturing plant for the first time in Nepal (Sharma, 2009).

The evaluation of many determinants within a more intense fashion is required before any decision is adopted by any of the multinational enterprises to create a fresh plant and begin a fresh business in a different location. The PESTLE determinants which signifies economic, political, technological, socio-cultural, ecological and legal determinants is required to be highly analyzed in a fashion which is quite intelligent and also quite supportive in obtaining the decision of either to do investing or not do investing in a brand new plant construction and function of a organisation. In the Similar way, it seems more sensible if the SWOT analysis is performed. Concurrently, as weakness and strength of the business, and being a multinational business also the chances for the business organization which surrounds the recent market is to take full advantage as a manufacturing organization which is competitive and also the threats in which the business sees the risk of getting operation within the fresh market area, which can be the additional established labelled organisations mainly of the same make up and which has a fine reputation or history amongst the society (Shrivastav,2007).

In the same way, the additional determinant which is quit critical and is to be examined by means of comprehending the practicability of the multinational businesses in the direction of arranging a fresh factory is the inquiry of the five forces of porter such as buyer’s power, rivalry, threat of the fresh entrants within the market area and substitutes’ threats supplier’s power (Shrivastav,2007).

In the forgoing literature, it has been seen that there are various researchers conducted by the researcher in attempting to understand likelihood of profit maximization in the new market by the multinational companies. But the close look in the forgoing literature clearly shows that there are lacking in the research evidences related with the feasibility of new plant development by multinational company in the country where it has no previous operating experience. The research on the selected topic will be helping multinational organisation to understand the factors related with the feasibility of the new plant establishment in the country for the first time.

Because of this reason, in this research I hope that it is taken as a milestone in adopting decisions of investments within the current world of globalized business context. Therefore it is seen that it is quite essential to perform study research so as to enquire the study of feasibility within the multinational organisations for the implementing of brand new plans within a brand new market place.

Chapter 3: Research Methodology

In this section, the methodology that will be adopted for this research study has been discussed. The whole chapter is divided in following sub-sections.

3.1. Research Approach

The researcher will prefer inductive research approach for carrying out this approach in stead of deductive research approach. The inductive approach is the approach in which research process moves from bottom to top which means it works by forming special idea about the topic and then finally doing generalization of the topic based on the outcomes from collected data. But in case of deductive approach, the research process moves fro top to bottom which means the researcher needs to form theories or hypothesis to be tested then based on the collected data, those formed hypothesises or theories needed to be tested. In this way, generalization moves toward specialization in the case of deductive approach.

Because current study does not have any hypothesis and the researcher will be collecting data for making conclusion, inductive research approach is very much appropriate approach for this study.

3.2. Research Strategy:

The researcher will prefer empirical research strategy for carrying out this research instead of theoretical strategy. The theoretical research strategy is most appropriate strategy for doing research based on data published by others and the researcher has no direct role in data gathering which means theoretical research strategy draws conclusion based on secondary data. Empirical research study is most appropriate strategy for doing research based on data collected by the researcher himself/herself and the researcher has direct role in data gathering which means theoretical research strategy draws conclusion based on primary data too. For current research study, the researcher will be involved himself in the data collection procedure and will not relying on data published by others, therefore, suitable research strategy will be empirical one.

3.3. Research Philosophies:

According to Hussey and Hussey (1997), broadly there are two kinds of research philosophies named positivist which is very much close to the physical science, phenomenological which is very much related with social sciences. Positivist is also termed as quantitative research whereas phenomenological is termed as qualitative research. Hussey and Hussey (1997) again suggested that the phenomenological research philosophy works very close to the inductive research approach.

As the current research study is related with social science and adopted approach will be inductive, therefore the researcher will be adopting the phenomenological research philosophy.

3.4. Data collection Method and Tools used

Data will be collected for this study from both published as well as fresh sources of data. Hence one can say that the current research study will be involving both primary as well as secondary data sources.

Data which can be found in already published form is called secondary data and for conducting current research study, the researcher will be collecting secondary data by visiting college library and internet web sources. In the library, the researcher will be using already published related journals, dissertations from seniors, books from popular writers, news papers, articles etc. Similarly, the researcher will be accessing similar documents from internet too.

Main reasons for using secondary data collection tool are listed below.

It reduces the hassle of researcher by reducing the burden of locating the sources of data and performing data collection operation by himself/herself.

It is available easily because it can be located in internet or in the proper library.

It is cheaper in term of time and cost because the researcher does not need to spend a lot time or cost in finding related data compared to the time and cost needed for conducting survey or interview.

The secondary data can be very much reliable because same data can be verified or validated, before using them, against number of sources.

The secondary research forms base for the primary research.

The disadvantages of secondary data

Secondary data sources might not be very much suitable for the research because the available data in the others research might not be collected in the same circumstances or situation as the current research. Therefore outcome based on the secondary might get wrong.

Secondary data are published data so it is the data collected in the past and the situation and environment always keep changing. Therefore collected data may be over dated and outcome of research using secondary data may become inaccurate.

The fresh data collected directly from the minds of respondents for example through the survey or interview etc. These kinds of data are fresh thought of respondents which can not be found anywhere published form. For collecting primary data, the researcher will be forming questionnaires for conducing survey with respondents and also researcher will be using semi-structured interview to collect some required data.

The reasons behind using primary data for this research study are presented below;

Accurate and reliable outcome can not be obtained from relying completely on data published by others.

The data will be more reliable as the researcher will be part of data collection.

The collected data will be very much matching with the situation and scenario of the current research as a result of which the probability of accuracy or reliability of the outcome of the research can increase.

3.5. Data analysis Techniques:

For the questionnaire analysis purpose, the researcher will be adopting SPSS method. The recorded data from the interview will be transcribed in order to analyse and task analysis technique will be used.

4.0. Research Schedule and Resources Required

Implementation is done using Gantt chart, one suitable chart form to represent the type of data that’s collected for implementation of project (Wilson, 2002).

The researcher will be completing this research in number of phases and resources will be used in each phase optimum way. The research phases are shown in the Gant chart presented below along with the resources used.



Required Resources

Initialisation of the research

2 April, 2011

Internet, articles, books, newspapers, current trends, journals etc.

Preparing of research aim and objectives

4 April, 2011

internet, articles, books, newspapers, current trends, journals etc

Secondary data collection and review of Literature

6 April, 2011

internet, articles, books, newspapers, current trends, journals statistics(government), laptop, laser printer etc

Developing Questionnaires, and Preparing Interview questions for field research

19 April, 2011

books, internet, laptop etc

Data collection

21 April, 2011

Interview, Questionnaires questions, PC

Data Presentation and analysis

29 April, 2011

graphs, charts, data analysis techniques, table et

Finding and Discussion

5 May, 2011

Analysed data, laptop

Conclusion and Recommendation

10 May, 2011

Finalising the whole research

12 May, 2011

Laptop, papers, printer etc.

5.0. Personal Reflection

This assignment of the research method has given the researcher an idea about developing appropriate research background, research aim and objectives, research methodology and research schedule for carrying out research successful research in future. The knowledge obtained in this assignment will be helping the researcher in completing upcoming dissertation in future. In this way, the researcher has become familiar with various aspects of research process.

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