Ford, FDI and Avon

Paper Summary:

This paper explains that Ford in Europe has developed an organizational model that can be adopted by other multinationals. The author feels that the FDI case demonstrates the importance of realizing there is a basic and essential difference between the way the Chinese and the Western World looks at capitalism. The paper discusses, using the 4P's of marketing, that a major reason why Avon has been so successful is that it has been more willing to change both its product and marketing strategies to meet local tastes and cultures.

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Summary
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Solutions

From the Paper:

"The company, before entering, analyzes its own PRODUCT line and then determines how much of its current product line would be suitable in each country. The next step seems to be doing a thorough study of the cosmetics market in that country as a means of determining what PRICE point resistance can be expected in the countries. Further, price is a good guideline to determine how much markup is available in the manufacturing process to absorb these price points."

More papers on Ford, FDI and Avon:

• Essay # 84341 : "FDI and Economic Growth"
• Dissertation or Thesis # 68917 : " Foreign Direct Investment (FDI) and Economic Growth"
• Essay # 14446 : "Foreign Domestic Investment (FDI) and Transnational Corporations"

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