Research Report: Strategic Business Development for Zimax Co. Ltd

This report presents a research study on strategic business development, specifically focusing on Zimax Co. Ltd's potential expansion into South America through Foreign Direct Investment (FDI). The research employs a literature review, questionnaire-based data collection from Zimax Co. Ltd managers, and thematic analysis to explore the concept of strategic business development, evaluate expansion methods in the context of FDI, identify challenges, and recommend strategies for successful market entry. The report analyzes the advantages and disadvantages of FDI, examines factors to be considered, and provides a reflective log of the research process. The findings suggest that FDI is a good strategy for Zimax Co. Ltd, offering benefits such as full ownership and access to skilled labor, despite potential challenges like increased capital flow and government interference. The research concludes with recommendations for Zimax Co. Ltd's successful expansion into the South American cosmetic market.

ATHE Research for Strategic Development

Executive summary
The research is conducted in order to analyse the concept of strategical business development
and expand business strategically with use of FDI. In order to conduct the research this report
has used literature review, different tools has also been used. The research has also used
questionnaire for the purpose of data collection. In the end of report conclusion of research and
recommendation for Ziamax Co. Ltd. has also been given.

Table of Contents
TASK 1............................................................................................................................................4
Research proposal...................................................................................................................4
TASK 2............................................................................................................................................7
TASK 2............................................................................................................................................7
Literature Review and Research Methodology......................................................................7
TASK 3............................................................................................................................................9
Data Analysis .........................................................................................................................9
TASK 4 .........................................................................................................................................15
REFERENCES..............................................................................................................................19
APPENDICES...............................................................................................................................21

TASK 1
Research proposal
Title :- To strategically expand cosmetic business in south America through FDI - A case study
on Zimax company. Ltd.
Background :- Preparing a research proposal will help the researcher in developing appropriate
methods for conducting research and will guide him in choosing the relevant methodologies.
Zimax Co. Ltd is a cosmetic manufacturing company based in Bangkok, Thailand. The company
is planning to expand its activities in international markets especially in South America. This
research proposal will help the researcher in identifying whether Foreign Direct Investment is the
best method and what are the pros and cons of expansion in South America and appropriate
recommendations will be made by researcher based on the interpretation regarding expansion
through FDI for Zimax Co. Ltd.
Aim: To analyse the way Zimax Co. Ltd will strategically expand itself in South America.
Scope of the Study :- The researcher will limit his study to the managers of Zimax Ltd. only due
to limited time frame but this will help the researcher in collecting all the relevant data and
generating insight regarding the expansion strategies.
Objectives:
 To determine the concept of strategical business development
 To evaluate the expansion methods for Zimax Ltd in context to FDI
 To identify the challenges which Zimax Co. Ltd will face during expansion.
 To recommend strategies for successfully establishing Zimax in South America through
FDI.
Research Questions :- The major questions that this research will address are :-
 What is the concept of Strategical Business Development?
 What are the pros and cons of the expansion methods which Zimax Ltd can use
especially in reference to FDI method?
 What are the major challenges that Zimax Ltd will face during expansion in South
America?
 Which strategies Zimax Ltd. Can adopt in order to establish themselves successfully in
South American cosmetic market?

Rationale :- Through this research, the researcher will analyse the major issue that Zimax Ltd. Is
currently facing i.e. determining whether FDI is the best method for expansion in international
market of South America. This issue will be analysed by the researcher because expansion
through FDI is an irreversible decision and involves huge resource utilization so Zimax Ltd must
ensure that FDI is the correct expansion strategy. This issue will be researched now by the
researcher as the managers of Zimax Ltd. Have recently decided to expand themselves in South
American Cosmetic market and therefore, they need to ascertain the correct mode of expansion
in foreign market. This research will highlight the advantages and disadvantages of FDI as an
expansion method in South America and whether Zimax Ltd should go further with this
expansion strategy. Through this research, the researcher will be able to recommend best
strategies for expanding the Zimax Ltd. In South American cosmetic industry.
Significance :- This research will help the management of Zimax Ltd. In deciding their future
course of action regarding expansion in international markets. This research will also help in
determining whether FDI is a good expansion strategy for Zimax Ltd and other similar Cosmetic
industries in Thailand.
Literature Review :- Reviewing the literature will help the researcher in studying what has
already been researched by other scholars and researchers. The researcher will use the literature
related to foreign expansion methods and the advantages or disadvantage of using FDI as the
mode of expansion. Researcher will also review the research done in respect to concept related to
strategies assisting in development of business.
Research Methodology :-
Topic Research Techniques
Research Type Qualitative research will be conducted.
Approach Inductive approach will be used.
Philosophy Interpretivism philosophy will be adopted.
Data Collection Primary and Secondary data collection techniques will be used.
Sampling Purposive sampling where 20 managers of different units operating
in different countries of Zimax Ltd. will be taken.
Analysis Thematic will be used for qualitative analysis.

Ethical Consideration Research is original work and no biasness will be incorporated on
behalf of researcher.
RM Limitations Researcher will not be able to use SPSS as Thematic Analysis will
be better and despite limited time availability, research will cover
all aspects.
Validity and Reliability Relevant and copyright protected data will be used for conducting
research.
Timeline :-
Particulars/
Week
Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Research
proposal
Research
aim and
objectives
Literature
Review
Research
methodolog
y
Data
collection

Data
analysis
Conclusion
Recommend
ation
Submission
Feedback
Modificatio
n and re
submission
TASK 2
Literature Review and Research Methodology.
Literature Review :- Literature review is basically in two forms, Systematic Review which is
usually done in healthcare sector and rigorous analysis of extremely specific literature review is
done. Another method is Quantitative or Qualitative Meta-Analysis Review where under
quantitative, numerical data is used for analysis and in qualitative, new themes r supporting
reviews are identified and discussed.
As per the view of Ramli (2015), there are predetermined factors which help in success of
any cosmetic industry which are customer knowledge, the image and branding of the company

and the strategic alliance that it has established. Any company can succeed in domestic as well as
international markets when it successfully implements these three factors.
According to Hohenthal, Johanson and Johanson (2015), in order to expand successfully
in international markets, by formulating proper networks and developing relevant contacts and
by creating business relationships, any company whether small scale or large scale can position
themselves in the international market.
However, Hitt, Li and Xu (2016), contradicts that contacts and relationships are not the
only key factors in success. A company should also formulate proper business strategies and
analyse them on the basis of pros and cons so that appropriate expansion models can be
formulated.
Tsang and Yamanoi (2016), states that FDI can be used as a strong method for
establishing a company in foreign market ad helps in meeting the challenges presented by
already established brands in the international markets. This also helps in developing a viable
positioning of the products launched and build value for customers.
Contradictorily, Cui and He (2017), has argued that the internal performance and
capability should be kept in mind before deciding on going for FDI as it implies the drainage of
resources out of the country. Therefore, a country's performance is positively linked with
successful investment in FDI and should be properly evaluated.
Research Methodology:- Under this, different methods and techniques are selected by researcher
in order to successfully conduct the research. There are many qualitative and quantitative
methods which can be used but as outlined in research proposal, researcher will use qualitative
research methods. Qualitative methods helps in analysing various theories and methodologies in
a better manner but does not incorporate numerical data. Quantitative methods on the other hand
analyse numerical data but fail to incorporate human factor in research.
Research Approach:- Research Approach helps in determining the problem and helps in
selecting the way of conducting research. In this research, researcher has used Inductive
approach under which models and theories are applied in order to collect the relevant data and
draw conclusions and interpretations (Silverman, 2016) because he evaluated the foreign market
situations in South American market using theoretical models.
Research Philosophy:- philosophy describes the underlying beliefs on the basis of which data is
collected, analysed and interpreted. The researcher has used Interpretivism philosophy under

which the data is collected by observation method or interview method i.e. by studying human
nature. This has helped in collecting qualitative data relevant in this study that has helped
researcher in forming relevant conclusions i.e. whether expansion should be done in South
America though FDI or not.
Data collection:- Data collection involves the primary and secondary sources form which data is
collected. In this research, researcher has used primary data i.e. questionnaire method for data
collection as well as secondary data i.e. referring to already published data and research for
collecting relevant data. This has helped in getting actual data regarding what is the perception of
the respondents so that correct decision can be taken accordingly.
Data Analysis:- This involves implementation of different tools which can be used for analysing
the data and in this report, researcher has used thematic analysis techniques under which
different graphs, figures etc. are used to analyse the qualitative data (Kumar, 2019). Thematic
Analysis has helped in pictorial representation of the data that was gathered and thus formulating
relevant conclusions.
Sampling:- Sampling involves those individuals used for collecting data out of whole universe
and in this report, purposive sampling has been used by giving questionnaires to 20 managers of
different units of Zimax Co. Ltd operating in Thailand and other countries which has helped in
collecting primary data. This has helped the researcher in collecting relevant data that will help
in formulation of accurate and relevant conclusions regarding expansion in South America.
Ethical Consideration:- Under this, the researcher declares that he has conducted research
ethically and has not introduced biasness in his report or manipulated the respondents to favour
one option over another. This has ensured that researcher has used valid and reliable data.
TASK 3
Data Analysis
Theme 1: Best business strategies to enter in South America
Particulars Number of respondents Frequency
FDI 10 50.00%
Venture 5 25.00%
Partnership 2 10.00%
Franchising 3 15.00%

Interpretation: 10 out of 20 respondents thinks that FDI is the good method or strategy which
can be used in order to enter to new market while 5 of the respondent thinks that venture can be a
good strategy which company can use to enter new market. And 2 respondent thinks that
partnership is good way while 3 respondent thinks that Franchising is a good option which
company should use.
Theme 2: FDI a good market strategy
Particulars Number of respondents Frequency
Yes 15 75.00%
No 5 25.00%
Yes
No

Interpretation: 15 out of 20 respondent holds the view that FDI is a beneficial market entry
strategy which company can use for the purpose of business development while 5 respondent
thinks that this is not right method to enter new market.
Theme 3: Benefits of using FDI as business development strategy
Particulars Number of respondents Frequency
Development of human capital
resource
5 25.00%
Provide opportunity to be
more competitive
5 25.00%
Tax incentives 15 50.00%
Development of human capital resource
Provide opportunity to be more competitive
Tax incentives
0
0.1
0.2
0.3
0.4
0.5
0.6
Column B
Interpretation: FDI is however a good practice which companies can use in order to enter new
market a wide amount of benefit is associated with the FDI(van Leeuwen, 2019). 15 of the
respondents thinks that the major benefit or advantage of using FDI is tax incentive. While 5
respondent holds view that major benefit which companies get due to FDI is development in
human capital. Companies get the skilled human resource easily of target market and at low

price. As in this era it become extremely necessary for companies to remain competitive in order
to survive in this tough competitive situation. 5 of the respondents thinks that FDI provide
companies an opportunity to be more competitive.
Theme 4: Challenges to use FDI as business development strategy
Particulars Number of respondents Frequency
Risk of increase in capital
flows
5 25.00%
Disruption in domestic
business practices
8 40.00%
Risk of interference of foreign
government
7 35.00%
Risk of increase in capital
flows
Disruption in domestic
business practices
Risk of interference of foreign
government
Interpretation: As while accepting FDI as a business development strategy it is required by the
business to carefully analyse the new market on the basis of government rules, competition in
market and various other aspects which however affects the domestic business practices of a
company. 8 of the respondent thinks that the major challenge which company might face while