Daewoo in Uzbekistan

Paper Summary:

In this article, the writer discusses the business practices of the Daewoo company and examines its operations in Uzbekistan. The writer notes that while it is important for Daewoo to focus on its quality control and to make sure that others know about the high quality that the company has, it is also important for Daewoo to ensure that it does not continue to attempt to operate in so many areas of industry. Further, the writer recommends that Daewoo practice foreign direct investment in other countries. In other words, they need to move some of their operations out of Uzbekistan and into other countries so that they are not so closely tied only to one country. The writer points out that the company is receiving a lot of pressure from the government of Uzbekistan, and it is having some problems with the exporting of its cars and with other issues. Because of these concerns and others that have the strong potential to develop in the future, the writer concludes that it is necessary for Daewoo to begin to make changes now.

Outline:
Executive Summary
Central Question
Strategic Underlying Issue
Sectoral Distribution of FDI Inward Stock 1990 and 2000
Step-by-Step Analysis
Purpose of the Analysis
Three Alternative Solutions
Recommendations
Case Update
Bibliography

From the Paper:

"The issue of foreign direct investment is one that has been misunderstood for many years. There are individuals that study it and discuss how significant it is, and there are others that see it as some kind of made-up problem that is really not important enough to focus on. Both of these are valid points of view but, in recent years, it has generally been accepted that foreign direct investment is growing, and that the study of it is important. While this particular study deals with developing countries' experience of foreign direct investment, it is important to remember that developing countries are not the only ones that are affected by it.
Daewoo is affected by foreign direct investment quite strongly, because it uses this in many different countries, but Uzbekistan is the country that it has expanded the most in and that it has gotten the most involved in."

Sample of Sources Used:

• Eichengreen, B., & Tong, H. (2005). Is China's FDI coming at the expense of other countries? http://emlab.berkeley.edu/~eichengr/research/chinese_fdi14apr29-05.pdf#search='growth%20of%20FDI%20and%20developing%20countries'
• Gould, S. J., Lerman, D.B & Green, A.F. (1999). Agency Perceptions and Practices on Global IMC. Journal of Advertising Research 39, 1: 7-20.
• Ho, PS. (1998). Multilateral trade negotiations and the changing prospects for third world development: assessing from a southern perspective. Journal of Economic Issues.
• Levitt, T. (1983). The Globalization of Markets. Harvard Business Review 61. 3: 92-102.
• Lorenzoni, G. & Baden-Fuller, C. (1995). Creating a strategic center to manage a web of partners, in: California Management Review (Reprint Series), Volume 37, Number 3, by Regents of the University of California, Berkeley, CA., pp. 146-163.

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