| Summary: | 碩士 === 開南大學 === 企業與創業管理學系 === 96 === With escalating open-minded and globalize investment environment, the world as a whole has experienced its fast-paced development recently, examples are the construction of European Union, and WTO (World trade organization). According to 2007 UNCTAD world investment report, due to superior economic growth, mounting corporate revenues, rising commodities prices, growing cross border M&A events, and depreciating USD, the worldwide overseas direct investment increases in recent years. For this reason, overseas direct investment plays its extremely important role in enhancing the prosperity of world economy during this global-expanding trend.
It is interesting to notice that Taiwanese enterprises have biased overseas direct investment strategy since they normally put most of their capital in China. This motives us to analyze BRIC investment market and tries to find out one best and suitable market expansion strategy that not only perfectly match corporate needs, but fully diversify the risks coming from over-focusing on Chinese market. After considering the major factors and entirely strategy making process, this paper is structured as follows: firstly, we refer to the Eclectic theory and propose our model based on four principles: Benefits (B), Opportunities (O), Cost (C) and Risk (R); Secondly, through literature review method, we discover 12 major factors effecting corporate overseas direct investment strategy and input them into our BOCR principles, and work out one joined structure through Strategic valuation experiment method and DEMATEL analysis; Further, we employ ANP (Analytic Network Process) method and obtain the weights of this joined structure, and finally ranking the strategies via BOCR calculations.Through applying the suggested strategy mentioned above, Taiwanese plastic manufacturers could not only recognize which factors are significant while entering BRICs, but also know where the biggest benefits (B) and opportunities (O) after identifying the least cost (C) and Risk (R), and decide their best entry strategy.
We find out that corporate should employ Joint Venture investment strategy in Brazil and Russia with the purpose of increasing the local market potential and improving some cultural misunderstandings. And in India, the best entry strategy is M&A. In addition to its underdeveloped plastic sector situation and low labor costs, enterprises could immediately control local markets through merging with companies having financial insolvency problems. In China, the suggested one is Greenfield strategy. Such strategy has almost the same influence on investment factors with M&A or JV strategies, but enterprises always adopt it in view of the intangible assets, local experience, market potential, and cultural difference.
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