Ferrero Group

Topic 

Ferrero Group

Instructions

1. Finish the entire Project and place it into one complete file – see overall structure below. MUST USE ORBIS DATA FOR THE RELEVANT SECTION – SEE SEPARATE FILE DESCRIBING HOW TO ACCESS ORBIS.
2. Design 5 slides PowerPoint and write a 500-word speech for the student to present to the teacher. This is NOT a pitch to potential investors or anything like this. This is a catch-up meeting between the student and the teacher to discuss how the project is going. The student wants a way to present their work so far to the teacher.

Answer Preview 

The article heavily borrows from the China Chamber of Commerce statistics by indicating that 34% of the foreign firms have been enrolled under the ambitious large-scale outward foreign direct investment program. In this case, Ferrero will have minimal operating cost especially because it will be set up in the Hangzhou special economic zone. With relaxed foreign investment regulations, a firm can work to form a solid base which would improve its chances of expansion (Wu and Chen, 2014). In a bid to create a harmony of policies between the two markets (Ferrero’s home market-Italy) and China, the policies outlined have been reviewed to enhance profitability for both markets. The policies will not only help Ferrero expand but also forms a basis for subsidiary local Chinese companies. In the article, the current policies and measures have been tailored to meet the ever-growing challenges faced by companies in their bid to grow.

As also noted by Li et al. (2010), multinational enterprises tend to create a direct working relationship between their home markets and the emerging markets to increase profitability. Institutional escapism and government promotion are key ingredients to the international foreign policies that cultivate foreign direct investment.

Word Count: 2300