logo

Business Development Plan Assignment - Armani

   

Added on  2020-10-05

15 Pages3359 Words457 Views
Project

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Establishment of the company in the allocated country from foreign direct investment............1Pestle analysis and porters five forces to analyse the expansion decision of the company........2Statistical data and its analysis...................................................................................................7Stock in the FDI of the Switzerland and industries.........................................................................7..........................................................................................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11

INTRODUCTIONForeign direct investment refers to a form of investment that results in providingownership control to an entity of the foreign country in the business of the local country (Duarte,Kedong and Xuemei, 2017). FDI helps the company in raising funds for the purpose ofmaintaining sufficiency of fund for operations in the business organisation. The present studyshows a business development plan of the Armani Exchange for the purpose of developing itsbusiness in the Switzerland. The Armani exchange was established in 1991 by an Italian fashiondesigner. It is the brand that provides a range of fashion accessories to the youth. The major partif this business plan The business development project of the company includes the informationabout the foreign direct investment of the company, pestle analysis and porters five forceanalysis of the business market. Further it also shows the table, graphs and statistics showing thepast 3 years data of the company. MAIN BODYEstablishment of the company in the allocated country from foreign direct investmentEstablishment of companyThe Armani exchange was established in the year 1991 by an Italian fashion designer. Inthe present time the brand sales a fashion clothing’s and accessories to the customers. The firm isplanning to expand its business in the Switzerland. For the purpose of establishing the newbusiness in the Switzerland for the expansion purpose, the business needs to analyse the overallmarket environment of the Switzerland and the competitive analysis of the market as well.Further, the most important analysis of the business plan is to develop the strategies andpolicies as to raise the funds of the business operations. There are several options available forthe Armani Exchange through which the company can raise the funds like, raising funds throughthe bank, financial institutions or through foreign direct investment, etc. The foreign directinvestment can be determined as the best source of raising funds due to the following reasons:Foreign direct investmentForeign direct investment refers to raising funds from the foreign business entities andprovide them a part of ownership as a consideration (Rios-Morales, Brennan and Schweizer,2016). In the current period the amount of foreign direct investment is increasing rapidly in thewhole world. 1

The foreign direct investment results in providing benefits to both, the company and thewhole country as well. It helps the country by providing economic growth to the country bybringing large number of foreign currency into the country. Moreover, it also provides benefits tothe company by way of providing tax benefits, huge profitability, enhancement of funds in thecompany for the expansion purpose, etc. Switzerland attracts the foreign direct investment towards it, as it provides effectivesuitability like political stability, effective legal system, effective capital structured market, etc.In this order, the Armani exchange can adopt the foreign direct investment for the purpose ofexpansion of the business. As per the recent statistics, the flow of FDI in the Switzerland has been risen at USD 41billion and it is keep rising as well. In this regard, the Armani Exchange should develop abusiness plan as to expand its business in Switzerland. The amount of investment made by thefashion industrial sector is 17.2 % of the total investment. It enhances the chances of gettingsuccess from the business(Switzerland: Foreign investment, 2019). Furthermore, as per the statistical data of Foreign direct investment of the Switzerland,the amount of foreign direct investment is keep raising (Wong and Eiselé, 2015). Moreover, theforeign direct investment in the Switzerland would also provide various benefits to the companyby the way of enhancing the profitability of the business, gaining the skill of highly skilledworkers, effective capital market, etc.In addition, Talking about the government grands, in Switzerland, with the help ofForeign direct investment, the Armani Exchange will get various tax benefits. Further, theSwitzerland is a small economy and also contains some extra strict rules and regulations for thecompany.In this regard, it can be analysed that The Switzerland is a small economy with the hugebenefits. The company will get various benefits from, this decision. Therefore, the Armanishould Expand its business through the Foreign direct investment.Pestle analysis and porters five forces to analyse the expansion decision of the companyFor the purpose of analysing the decision, the company needs to analyse the effect ofvarious external factors over the business of the company. This analysis can help the company inevaluating the various problems that can arise while expanding to Switzerland.For this purpose, the Armani Exchange can use the PESTLE analysis as under:2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Establishment of Santander Bank in France association with Foreign Direct Investment
|14
|3574
|267

Establishment or Expansion of Nike Inc in Spain
|13
|2876
|85

Organisations in a Global Economy
|11
|3262
|97

Porter's Five Forces Analysis - PESTLE Analysis
|11
|3253
|323

Trade and International Business
|13
|2715
|84

(doc) Business Organisations and Environments in a Global Context Assignment
|17
|4203
|38