Analysis of Foreign Direct Investment's Role in Organizational Growth

This report examines the critical role of Foreign Direct Investment (FDI) in fostering organizational growth, focusing on the Arcadia Group as a case study. The study begins with an overview of globalization and its impact on business expansion, alongside the benefits of FDI such as increased revenue, job creation, and technological advancements. It also delves into the challenges companies face, including resource constraints, equity issues, and political instability. The research employs a qualitative methodology, including interviews with Arcadia Group departmental superiors, to gather in-depth insights. The report offers recommendations for managing these challenges, emphasizing the importance of assessing investment climates, developing local capital markets, and addressing legal and regulatory risks. The study concludes by highlighting the importance of strategic planning and risk management in maximizing the benefits of FDI for sustained organizational growth. The report also provides a detailed literature review, research methodology, and a timeline for the project, offering a comprehensive analysis of FDI's impact.

ROLE OF FOREIGN DIRECT INVESTMENT
IN GROWTH OF ORGANISATION

TABLE OF CONTENTS
PART 1............................................................................................................................................4
1.Background..........................................................................................................................4
Overview of organisation.......................................................................................................4
Aim.........................................................................................................................................4
Objective.................................................................................................................................4
Research questions.................................................................................................................5
Rationale of research..............................................................................................................5
2. LITERATURE REVIEW............................................................................................................5
Theme 1 : Concept of globalisation in achieving growth of organisation............................5
Theme 2 : Benefits of FDI in achieving growth of organisation...........................................6
Theme 4 : Recommendations to manage challenges faced by company in managing FDI...7
3. RESEARCH METHODOLOGY.................................................................................................8
Research type..........................................................................................................................8
Research philosophy...............................................................................................................9
Research Approach.................................................................................................................9
Sampling.................................................................................................................................9
Data collection......................................................................................................................10
Data Analysis........................................................................................................................10
Ethical consideration............................................................................................................10
4. TIMELINE.................................................................................................................................10
PART 2..........................................................................................................................................11
RECOMMENDATION AND CONCLUSION.............................................................................26
Recommendation..................................................................................................................27
Conclusion............................................................................................................................28
REFERENCES..............................................................................................................................43

PART 1
1.Background
Globalisation simply means breaking the barriers of trade, and increasing the reach of the
products and services across nation. Globalisation means integrating markets in the global
context and increasing interconnections with different economies which enhances trade relations
between nations. Globalisation leads to development of economy, suppliers, individuals as well
as producers of the product. It has emerged as a positive vibe in UK since 2008 and lead to
overall development of UK's economy.
Globalisation lead to sharing of variety of products and services to different customers
and individuals across nation, it enhances competition that lead to increase in quality of goods
and services. Globalisation has increased inter personal relation between different counties and
has increased GDP and economic growth and leads to development of the country. It also helps
in maintaining balance of payments which is consider to be important aspect of any country.
It has increased per capita income of the consumers and also enhanced living standard of
people and provided them with quality of life. It helped in breaking barriers of culture
differences and has led to creative and innovative products that are available to everyone across
boundaries which helps people in respecting and understanding each other's culture
Globalisation has eventually given rise to foreign direct investment and has impacted
economy and companies in earning profits and in gaining investment opportunities across nation.
It gave rise to mergers, acquisition, takeovers which helped companies in achieving economies
of scale, utilisation of resources etc.
Overview of organisation
Arcadia Group is a British Multinational retail company
Aim
''To examine the role of foreign direct investment in growth of organisation. A case study
on Arcadia''
Objective
 To understand the concept of globalisation in achieving growth of organisation
 To analyse benefits of FDI in achieving growth of organisation
 To assist challenges faced by companies in context to FDI
 To recommend ways to manage challenges faced by company in managing FDI

Research questions
 What is concept of globalisation?
 What are the benefits of foreign direct investment in achieving growth?
 What are the challenges faced by companies in context to FDI?
 What are the recommendations to manage challenges in managing FDI for the company?
Rationale of research
The study is being carried out for academic interest as this research project will help in
understanding the role of foreign direct investment in achieving growth of the organisation and
will help in understanding challenges faced by companies and will increase the knowledge and
will enhance the understanding of the topic. It will increase learning and will develop conceptual
understanding of how globalisation and foreign direct investment are related.
Another reason for conducting research is to assess the importance of FDI and its impact
on success of the organisation which will help in increasing knowledge about market trends.
Another reason for research is that globalisation and foreign direct investment are burning issue
which caught an eye of the researcher. The other reason for conducting research is personal
interest that includes writing, analysing, and sharing important information as it nourishes mind
and develop logical thinking and ability which leads to creativity and innovation. Another
reason for conducting research is that it will improve various skills like communication skills,
research skills, rationality thinking and confidence as it will involve people and communicating
with them for the outcomes.
2. LITERATURE REVIEW
Theme 1 : Concept of globalisation in achieving growth of organisation
According to (Hopper, 2017), globalisation means free movement of good and services across
nation without any restriction and barriers. It means integrating economies of world which
increase interactions and interpersonal relationships between different nations that boost the
economy and leads to development.
As per the views of (Psimmenos, 2018.), globalisation plays an very important role in
achieving success of the organisation as it allows organisations to create employment
opportunities and have employees from different nations which helps the company in having
new creative employees with different perspective and ideas. On the contrary (Thomas, 2017)
suggests that, globalisation helps the company in having updated technology which improves its

quality of products and give innovations to the products and helps the organisation in achieving
growth.
According to (Jones, 2016.), globalisation helps the organisation in market expansion
which enable the organisation to optimum utilisation of resources and make use of resources
efficiently that are available with the company. It enables the company in expanding its
operations as globalisation helps the company in reaching top large base of customers that
ultimately increases sales of the company and increase profit. It helps organisations in merging
with companies that are across boundaries so they can have cultural and political benefits as the
company working there would be aware about the norms and policies and to attract customers
and have operational synergies that help I achieving growth.
Theme 2 : Benefits of FDI in achieving growth of organisation
As per the views of (Chan, 2016), foreign direct investment means an investment done by
company or an individual in another country. FDI happens when investor or individual establish
relationship with foreign business operations in order to earn return. On the contrary (Alfaro,
2009), suggests that FDI increases the flow of income for the companies and generate revenues
for the company. It benefits the organisation as it contributes in creation of job opportunities for
people which increase work efficiency of the organisation as organisation gets skilled labour
force.
It helps organisation with the benefit of exchange of technology advancements,
knowledge etc. which lead to innovation in organisation and attract customers. As per the views
of (Ali, 2018), it increases the competitiveness of organisations working in domestic territory
and helps in capturing their market.
It helps developing economies in integrate and expand into international market where
domestic firms of the company gain foreign investors which increases profit of the company.
(Bitzenis, 2016. ) contradicts that FDI attract foreign investors in the company by reducing risks
as companies get government support and subsidies as it increase GDP of the country which
lead to development of companies as then foreign investors get more attracted to invest in the
companies.
Theme 3 : Challenges faced by companies in context to FDI
According to (Neelankavil, 2015), globalisation leads to foreign direct investment and the
challenges faced by the companies are facilitating FDI are vast. The first challenge faced by the

company are resources challenge as when the companies are investing in other countries to have
investment opportunities and get optimum returns. The resources need to be fully utilised
whether its investment, human resource or anything ned to be deployed at right place and to
efficiently use the resources a task for the company.
(Pastor, 2018) stated that the challenge emerge in the context of company is that of
equity, when companies does FDI it somewhat affects equality as for investing in other countries
the company needs to hire people that belongs to the country in which they are planning to invest
which creates a sense of dissatisfaction among existing employees of the country. As per the
views of (Iamsiraroj, 2016.),the another challenge faced by the company is political challenge
which is the most crucial challenge that a company needs to deal with. When government of
different countries are politicly in stable and come up with strict policies and procedures for
foreign investors it lead to trade barrier and globalisation gets lost somewhere and companies get
affected as they cannot enter in foreign markets. The foreign direct investment of UK is 21
percent which helps it In increasing its GDP.
Theme 4 : Recommendations to manage challenges faced by company in managing FDI
The company should regularly assess the climate of investment and should consider the
reports of international agencies to make sure about the investment returns they will make in
global market and investment they are seeking for from the global companies. According to
(Sekaran, 2016), the company should develop local capital markets which will create wide range
of financing sources and will promote and develop local capital market and will attract investors.
As per the views of (Potrafke, 2015), the company should address legal risks that may
arise in investing abroad or getting investments in the company and for that the company should
keep an eye on economic development programmes. The company should have proper
knowledge of rules imposed by the government of both the countries in relation with foreign
investment so that it can occur smoothly and efficiently.

3. RESEARCH METHODOLOGY
Research type
This is one of the fundamental element that is very important for researcher consider as it
is because the entire study is based on the type of research. Qualitative and Quantitative are two
types of research on which the study is based on (Ashournia, 2017). The data or information
produced in this method are always numerical and they are analysed using statistical and
mathematical methods are called as quantitative research methods. On the other hand, the data or
information produced in this method are non-numerical figures and numbers and the information
collected are on words, emotions and feeling.
In this present research report, scholar will apply qualitative research methods as it will
provide in-depth information and by conducting interviews of 15 departmental superiors of
Arcadia.

Research philosophy
Research philosophy in research deals with knowledge development and nature of the
research. It describes the process of how data needs to be collected , analyse and and interpreted.
Research philosophy can be of 4 kinds in which pragmatism deals with both qualitative and
quantitative design and use multiple designs (Rise and fall of globalisation 2017). Positivism
uses qualitative data but often taken high sample for formulating hypothesis and are highly
structured whereas realism deals with either qualitative or quantitative data whichever fits the
research data and interpretivism deals with qualitative data but consider small samples as the
core of study (Research methodology 2018.).
The researcher will use interpretivism as it will take small sample of study that will deal
with qualitative data and will take interview 15 departmental superiors of Arcadia.
Research Approach
Research approaches are the plan, techniques, and methods which consist of steps of
wide assumptions in order to detailed method of collection, analysis and interpretation. However,
research approaches are mainly two which are Inductive and Deductive. The research approaches
that moves more general to more specific is known to be deductive approach. Whereas, the
research approach that more specific observation to wider generalisation along with theories is
known to be Inductive approach.
In this current research, scholar will use inductive research approach as it will move from
specific to general.
Sampling
Sampling is very important part of the research especially when qualitative research
methods are used (Kumar, 2019). It is the process to select the small part of population because
of scarcity of resources and money. Probabilistic and Non-probabilistic sampling are two
methods of sampling.
The researcher will use probabilistic sampling in which 15 departmental superiors of Arcadia re
selected randomly.

Data collection
It is process to gather the data relevant to research questions. Primary and Secondary are
two methods for data collection (Quinlan, 2019). Primary methods are considered more reliable
and valid as information collected is fresh. For example, survey, interview, observation etc.
Whereas, secondary data are used data and do not reveals right conclusion because they are past
information for example, government publication, books, journals etc.
This researcher will use primary sources of data by taking interview of 15 departmental
superiors of Arcadia.
Data Analysis
This is the next process after the data collection process over. Analysis of the data is the
process to mould, clean and transform the data into meaningful information. Qualitative and
Quantitative are two main methods for data analysis.
In this current research, researcher has used qualitative methods for analysis of
information in which thematic analysis will be done which will describe each and every aspect of
research according to specific theme.
Ethical consideration
Researcher need to work with ethics and shall consider few point before carrying out any
research which will make research ethically considerable. The researcher will work with honesty
an will use validate data and will not manipulate the data and the research will be free from
biasses. The researcher will respect its participants and will work with dignity and by taking full
consent from the participant. The researcher will maintain adequate amount of confidentiality of
the research data and the researcher will be transparent to its participants in case of detail
sharing.
4. TIMELINE
Activities
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Selecting research
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Creating aim and
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Defining research
questions
Determining the
rationale behind
research
preparing literature
review
collecting the
information
preparing
questionnaires
analysing the data
creating
recommendation
conclusion of report
final submission
PART 2
INTRODUCTION
Data analysis is the process of systematically application of statistical and logical
techniques which helps in describing and illustrating, condense and recap and in the evaluation
of the data. Data analysis helps in process of inspecting, cleansing and transforming and
modelling the data with the goals of ascertaining the useful information, conclusion which helps
in further decision making. There are various type of data analysis which helps in analysing data
more effectively and efficiently. Some data analysis are descriptive, exploratory, predictive,
inferential and casual the data analysis are more specifically classified as qualitative analysis and
quantitative analysis. Quantitative analysis generally considers the data like numbers or which
can be measured whereas qualitative data considered the patterns' ad colours.
The process of evaluating the data using analytical and logical reasoning so to examine
each component of the data given. Data from various sources is gathered, reviewed, and then
analysed to form any findings or conclusion.
1. Do you know about the concept of globalisation in detail?
 Yes
 No

2.From the given options, What are the benefits of global business environment?
 Increasing profitability
 generating brand Image
 capturing the larger market share
 All the above
3. As per your opinion, What is the marketing strategies employed by business in emerging
markets?
 Using digital marketing techniques
 adopting different pricing strategies
 Improving customer loyalty by offering standard quality
 All of above
4. What do you think, what issues and challenges are faced by the company which would be act
as barrier in their success.
 Political interventions
 uncertainty about the future
 Financial management
 All of above
5. According to your viewpoint what would be challenges faced by the company in context with
FDI?
 Political challenges
 Resource challenge
 None of above
 all of above
6.Do you think technology advancement can enhance the business growth?
 Yes
 No
7.from the following what would be the benefits of FDI in achieving growth of the business?
 Contribution to Economic growth
 Non debt financial resource