This report investigates the role of Foreign Direct Investment (FDI) in fostering organizational growth, with a specific focus on the Arcadia Group. The study begins by defining globalization and its influence on business expansion, followed by an examination of the benefits of FDI, such as increased income flow, job creation, and technological advancements. The research then addresses the challenges associated with FDI, including resource constraints, equity concerns, and political instability. The methodology employed is qualitative, utilizing interpretivism and an inductive research approach. Data collection involves interviews with departmental superiors. The report concludes with recommendations for managing FDI challenges, such as assessing investment climates and developing local capital markets. The report includes literature review on the concept of globalization, benefits and challenges of FDI and recommendations to manage challenges faced by company in managing FDI.