Case Study Foreign Direct Investment Essay Example | Topics and Well Written Essays - 3000 words - 1

Case Study Foreign Direct Investment - Essay Example Consolidation in the United States with a penetrating strategy was also chosen based on the fact that the major competitors were on the verge of facing very adversity publicity, and the company had a product that could do the reverse nutritionally, if it is able to capitalize on the opportunity. Investment in terms of alliance in organic farming in Europe where projections are for double digits growth in that sector was also a viable option that North Western could pursue, due to the complementarities of both products to a growing health conscious society. In moving into such an alliance, the present management structure would require significant changes, as experts in this field will have to be recruited to strengthen perceived areas of weaknesses in advance, so that timely and informed decisions can be made. Going oversees in term of South Africa and or the Vietnamese markets will definitely challenged the competence of the organization, especially from cultural perspectives, as we ll as the levels of leadership representation required to negotiate with the government and private sector interest. Sensitivity to the needs of the environment, especially as it relates to environmentalists groups will require the adoption of new approach to maintain the stable climates that are conducive to its growth and development on a continuous basis, will prove crucial. North Western will do well to look at its financial commitment, the threats from competitors, the dwindling sales and market shares, as well as the attractive market options that are available now but may not be six months later, and make decisions, even changes in the leadership structure to reflect what qualities will be required to meet challenges in the national and global environments. Strategic Development Directions 1 North Western Corporation is a major manufacturer of health drinks and distributor of fusion nutrition health drink. Presently it has a 15% market share in the US and 12% in Europe. Howev er, these percentages were much higher six months ago. There is a cause for concern insofar as the strategy to deploy to change the scenario, increase percentage profitability, and consolidate its position as a major competitor in the market place. The managing director Leslie Owen and his Oregon City team knows that economic down turn is only one of the reasons why his company is not doing so well as this point in time. This team of managers are going to be provided with the options to consider, with a bank balance in excess of $500 million dollars, a Research and Development that is has to produce at least five new brands for the market, are advantages to bear in mind insofar as options are presented. Strategy Development Directions for North Western Corporation will include four different approach, from which management will make the choice that will reflect its best interest. Based on market intelligence North Western prices are competitive with other products in the market. How ever, the company is not satisfied with its returns and market share, and has decided to engage in market penetration strategy to reduce the level of competition. The company has already profited from all these products and is in the process of introducing additional products to the market. This is reminiscent of Sony according to Berkowitz, et al (2000), which in1995,