Global Business Locations – FDI, Cluster, Park…

Archive for February, 2010

Taking the complexity out of global resource allocation in FDI initiatives

Monday, February 22nd, 2010

Understanding marketplace positioning is crucial; Whether referring to traditional business and marketing strategies or online strategy… Call it what you want; marketplace analysis is crucial for business strategy development and critical to business margins. Gathering FDI insight is therefore -or should be- established as an ongoing process in the Foreign Direct Investment decision making process.

Marketplace analysis and systematic development of FDI insight helps identify opportunities for growth from discovering gaps in the market that competitors aren’t exploiting. In strategic terms, marketplace analysis helps identify gaps where customer segments aren’t well served by existing propositions.

Despite all the rich data available from web analytics and media consumption, companies and their decision makers do not dispose over the necessary tools to structure all available data! It seems to me that this core part of FDI decision making is often hindered due to the fact that multi dimentional managerial input cannot be reduced to an objective one dimentional managerial output.

On Global–Arena.com we give our users acces to GlobalArenaRank, the scientific algorithm developed to identify business locations which best meet the differing requirements of parties -FDI supply and demand- involved in Foreign Direct Investment initiatives. GlobalArenaRank draws upon a large amount of data from authoritative sources and reduces it to relevant results only using statistical reduction methodology.

The GlobalArenaRank scientific algorithm calculates rankings of countries within their regions, and of locations within their countries. GlobalArenaRank also drills deeper into locally-specific rankings of locations which have upgraded their profile presentation through purchase of Global Arena’s premium FDI Marketplace services.

On our website users assign their own weightings to any combination of nine location factors – Labour Cost, Labour Productivity, Infrastructure, Education, Labour Availability, Labour Market Flexibility, Market Attractiveness, Socio-Political Stability and Cost of Living – to receive an overview report that shows rank by country and lists locations within each. From here, users can start to access deeper levels of information and perform systematic business location search and analysis.

Companies from all sizes can now conduct their own resource allocation and location longlisting processes without the need for subscription based expensive online FDI data analysis systems and or FDI services from location consultants or global consultancies. Global-Arena.com saves you time and money while providing you the best answers when you need them for your business needs.

We hope this helps your company or location compete effectively in the global economy.

How could you know if companies in your business area are thinking of packing-up to move?

Thursday, February 11th, 2010

Today I had an interesting conversation with a FDI thought leader and market expert. We both sensed that we do not yet see much movement in the FDI market. It led us to the question, are companies on the fence or even already planning for site related cost cutting or consolidation?

True or not true, it is an interesting challenge for any Investment Promotion Agency to have Investor Relationship Management in place such that you could engage proactively. You may not be able to stop it but you can influence or at least learn from their decision making to understand how that might be related to your competitiveness. 

I think that you will most likely not get an early inside lead, that would allow you to influence company decision making.

What you can do is use your Investor Relationship Management process, combined with the right Insight about your competitiveness, to maintain a systematic dialogue with your customers to pick up warning signs and certainly also feed them systematically with positive information concerning your global competitiveness. 

You all know how hard, labour intensive and expensive it is to maintain clear line of sight of your global competititiveness, not to mention pick up key trends early (positive and negative).

We can at a unique price point because we apply our GlobalArenaRank Insight globally. We are interested to discuss with you how this Insight could be applied most effectively in your Investor Relationship Management. 

Of course this is not relevant if business is booming in your area. Is it?

Global resource allocation strategies and decision making – making the right one

Wednesday, February 10th, 2010

Defining a global resource allocation strategy on Foreign Direct Investment and its implementation is one of the main challenges companies are facing in today’s global business environment. Resource allocation will influence reputations of companies and may even fundamentally change the economic, social and political climate in countries.

In order to stay competitive, companies are apparently convinced that global resource allocation strategies will given them an unfair advantage and enable them to fund their future growth. Since the impact of resource allocation and location decisions is utmost important, companies can only afford to make one decision, the right one.

In practice however, these decisions are often based on the decision makers’ intuition. The challenges they are facing which are complex, not in the least because of the abundance of data they base their decisions upon, which often is: too fragmented, too in-transparent, too dispersed, too opinionated, too subjective or too less correlated.

It is easy to believe that the decision-making on where “to go or to be” relies upon an situational translation of a perceptible trend. These decisions are often more the result of a “me too” behaviour leading to”me too strategies ” of the decision makers. Me too resource allocation strategies will never provide the necessary competitive differentiators to companies in today’s business environment. Therefore it goes without saying that decisions to (re)allocate resources need to be driven from clear defined strategies and made after careful comparison of selected decision criteria and location possibilities supported by objective systematic resource allocation algorithms and tools.

The Global Arena Ranking Methodology GlobalArenaRank challenges and tackles all the concerns and defeats.

Based on a statistical data reduction methodology, the Global Arena Ranking Algorithm allows management to reduce and translate  a multi dimensional business case ( based on multi dimensional business data ) into a mono dimensional ranking of possibilities. A ranking that will pin-point the most favourable (al) location to setup a new or expand an existing company site. All depending on the company and situation specific management requirements and the activities the new site will have to perform.

It is our believe and vision that making our GlobalArenaRank resource allocation algorithm available to companies online for free contributes to more transparency and competitiveness of the FDI Marketplace.

FDI Marketplace – business locations in Brazil

Tuesday, February 9th, 2010

As a result of our 2010 goal to make the Global-Arena.com FDI Marketplace truly global, we started a market investigation into the fast growing Brazilian FDI market. Some findings so far:

  • FDI into Brazil amounted USD 40+ billion in 2008
  • Goal of FDI into Brazil is mainly to benefit from the fast growing inland market, with investments in commodities in second place
  • Key to success seems to be to invest in partnership with Brazilian companies
  • The labour market flexibility is low, with complex hiring and firing procedures
  • The Brazilian Government has established BrazilTradeNet to support FDI activities
  • Expected growth figures and some high-profile events (2014 World Football Cup and 2016 Olympic Games in Rio de Janeiro) predict a further grow of FDI into Brazil
  • Other South and Central American countries qualify for FDI and provide active support to foreign companies wishing to locate there (eg Chile, Peru, Mexico and Colombia)
  • To generate maximum value for it’s customers, Global Arena will seek cooperation with a partner that is well established in the Region.
We now need to decide to start with Brazil as a country or the entire continent South America. Pivotal to that descion is the availability of solid and independent economic data to feed the GlobalArenaRank algorithm.