Course Title: BUS 6100

Module 5: GLOBAL BUSINESS AND SUSTAINABILITY

Submitted By:

OLALERE TAWAKALIT MOTUNRAYO

Learners ID: 018457

3rd November 2023

 ORGANIZATIONAL DESCRIPTION

Organizational description is a stretch or structure of roles and responsibilities within an organization. It

gives a details chart, function, and requirement procedure. It assists in assigning positions in an organization.

we have established ourselves as a leading provider of high-quality cocoa products to customers in our

region. We have a strong reputation for reliability and excellence in the industry, and our customers trust us

to deliver exceptional products and services every time.

CJ Cocoa Shop is a technology-based firm that specializes in developing innovative solutions to address

complex business problems. The team of experts oversees every stage of the production process, from

cultivation and harvesting to processing and packaging. State-of-the-art technology and equipment to ensure

products meet the highest standards of quality and safety are in use.

INNOVATION STRATEGIES

In launching an international business, one innovation that could be introduced is the implementation of a

new logistic plan. This could involve the use of advanced technologies and systems to optimize supply chain

management, improve transportation and distribution processes, and enhance overall efficiency. By

integrating cutting-edge technologies such as blockchain, and the Internet of Things, the company can

streamline its operations, reduce costs, and ensure timely delivery of products and services to customers

worldwide.

This innovation at the logistical level would also require new leadership and management policies to

effectively implement and manage the new systems and processes. It would involve training and upskilling

employees to adapt to the technological changes, fostering a culture of innovation and continuous

improvement, and establishing clear communication channels to ensure coordination across different

departments and international locations. We will invest heavily in research and development to identify new

cocoa varieties and processing techniques that can enhance the quality and flavor of our products.
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FOREIGN DIRECT INVESTMENT (FDI) OPPORTUNITIES

In launching an international business, one of the key strategies to consider is attracting foreign direct

investments (FDI). FDI can provide significant opportunities for growth, expansion, and access to new

markets. By attracting foreign investors, the company can benefit from its expertise, capital, and global

networks. To capitalize on FDI opportunities, the company can implement innovative approaches at multiple

levels. Firstly, at the leadership and management level, the company can adopt a proactive approach by

actively seeking out potential foreign investors, engaging in targeted marketing and networking activities,

and showcasing the company's unique value proposition and growth potential.

Furthermore, the company can develop a comprehensive FDI strategy that aligns with the host country's

economic development goals and policies. This strategy can include incentives for foreign investors, such as

tax breaks, streamlined regulatory processes, and access to infrastructure and resources. At the operational

level, the company can leverage technology and data analytics to identify potential FDI opportunities and

assess the feasibility and profitability of investment projects. This can involve using market research tools,

conducting due diligence, and analyzing market trends and consumer behavior. Strategically focusing on

attracting foreign direct investments, the company can tap into new markets, gain access to capital and

expertise, and accelerate its international growth. Implementing innovative approaches at the leadership,

strategic, and operational levels will be crucial in successfully seizing Foreign Direct Investment

opportunities.

POTENTIAL CHALLENGES

Cultural differences: Foreign Direct Investment (FDI) involves operating in a foreign country with

different cultural norms, values, and business practices. These differences can impact communication,

decision-making, and overall business operations.

Regulatory barriers: Host countries may have complex legal frameworks and regulations that can pose

challenges to FDI integration. Restrictions on foreign ownership, trade barriers, and bureaucratic processes

can hinder the smooth entry and operation of FDI ventures.

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Political instability: Changes in government policies, political unrest, or unstable political environments
can create uncertainties and risks for FDI. It can lead to changes in regulations, nationalization of assets, or
even expropriation of investments.
Economic risks: FDI ventures are exposed to economic risks such as currency fluctuations, inflation, market
volatility, and economic downturns. These factors can impact the profitability and sustainability of FDI
ventures.
Legal and compliance risks: FDI integration requires adherence to local laws and regulations, which may
differ significantly from the investing company's home country. Failure to comply with these regulations can
lead to legal and reputational risks for the company.

RISK MITIGATION
Conducting thorough due diligence to assess the feasibility and profitability of Foreign Direct Investment
(FDI) opportunities.
Establishing strong relationships with local partners and stakeholders to navigate cultural and regulatory
differences.
Developing contingency plans to address potential risks and uncertainties, such as political instability or
economic downturns.
Adhering to ethical business practices and complying with local laws and regulations to avoid legal and
reputational risks.
Diversifying FDI investments across multiple countries and industries to mitigate concentration risk.

BENEFITS
Access to new markets: FDI allows companies to enter new markets and tap into new customer bases,
expanding their reach and potential for growth.
Technology transfer: FDI can facilitate the transfer of advanced technologies, knowledge, and expertise
from the investing company to the host country, promoting innovation and economic development.
Increased competitiveness: Through FDI, companies can gain access to new resources, capabilities, and
networks, enhancing their competitiveness in both domestic and international markets.
Diversification of revenue streams: FDI enables companies to diversify their revenue streams by
expanding into different markets, reducing dependence on a single market or country.
Job creation and economic growth: FDI often leads to the creation of new jobs, both directly and
indirectly, stimulating economic growth and development in the host country.

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 CONCLUSION

Integrating FDI into a business offers significant opportunities for growth and expansion, providing access to

new markets, technologies, and resources. However, there are potential challenges and risks involved,

including cultural differences, regulatory barriers, political instability, and economic risks.

To mitigate these risks, companies can conduct thorough due diligence, establish strong relationships with

local partners, and develop contingency plans.

By leveraging FDI, companies can accelerate their international growth, expand their customer base, and

gain a competitive advantage in the global marketplace.

Overall, integrating FDI into the business can be a strategic move to drive innovation, diversify revenue

streams, and enhance competitiveness in the ever-evolving global business landscape.

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 REFERENCES

Christopher, M., & Holweg, M. (2011). Supply chain 2.0: managing supply chains in the era of turbulence.
International Journal of Physical Distribution & Logistics Management, 41(1), 63-82.

Dunning, J. H. (2012). The eclectic paradigm of international production: A restatement and some possible
extensions. Journal of International Business Studies, 19(1), 1-31.

Fawcett, S. E., Magnan, G. M., & McCarter, M. W. (2008). Benefits, barriers, and bridges to effective
supply chain management. Supply Chain Management: An International Journal, 13(1), 35-48.

Meyer, K. E., Mudambi, R., & Narula, R. (2011). Multinational enterprises and local contexts: The
opportunities and challenges of multiple embeddedness. Journal of Management Studies, 48(2), 235-252