MBA Thesis based proposal that gives you good insight on how to write a MBA based dissertation proposal .
Title of the MBA Thesis
Barriers and Threats for Multi-national companies to enter Saudi Arabia Market.
Multinational Companies faces numerous barriers and threats to enter Saudi Market through Strategic Alliances or Mergers and Acquisition-Entry in Market require assessment of the strategic solutions.
- Mergers and Acquisitions
- Strategic Alliances
- Trade liberalization
- Predictable Risks
- Saudi Market
Aims of the research:
The research will focus and explore on the problems as well as constraints that face the overseas investors to start and run a new business in Saudi Arabia. External Environment of Saudi has numerous barriers, which are as follows government, regulations, competitors, rumors, social, economic and believable limitations. (Elmuti, 2001, 205-218) In depth analysis is required in order to evaluate Aspects related to risks in Saudi as in addition, the processes of strategic growth of market entry with domestic partners as alliances either amalgamations are required. Moreover, the thesis will explore on the strategic solutions that will help MNC’s for the predictions of the potential risks as well as handling with acceptable risks of Saudi Market.
On the other hand, incomplete information provided about the entrance of Saudi Market which are in terms of Regulation, Culture as well as Economic will promote research to demonstrate these thesis in addition with particular focus. (Chiao, 2010,pp: 338-365)
An investor should make a systematic risk analysis and guarantee that will be fully awarded of any government approval prerequisite in association with a future structure to avoid delays (Saeed, 2010).
Saudi Arabia makes availability and offerings for limited economic Zones with distinctive corporate laws as well as regulations along with tax encouragements. The already designed cities in Saudi Arabia also have a very limit of free economic regions. As a result, overseas investments across the Saudi Arabia would be directed as well as controlled by the Saudi Foreign investment legal organizations along with that Saudi Corporate laws will also keep a regular check on it. An investor who (Clare, 2010, pp. 46–58) is interested in entering Saudi Arabia market should do pre research in order to evaluate the legal obligations along with market performances, which are essential, as well as important for accomplishment of a successful acquisition transaction. The basic aim should follow the basic objective of minimization of risk, cost and time concerned on a transaction. An investor in order to eliminate risks should make a systematic risk analysis and guarantee that will be fully awarded of any government approval prerequisite, (Elmuti, 2001, 205-218) which is in association with a future structure for the purpose of avoiding delays.
To improve market capabilities as well as to enter into a new market Strategic alliances and mergers and acquisitions (M&As) became recognized organizational implementation all the way, through which firms will have the potential to very well raise their market influence. R&D has proved to be the maximum while the amount of spending on fixed assets. The distinctive and dissimilar capabilities required for a total independent strategy of firms could no longer, on their won, meet all the expenditure.
Searching of fast growth and diversification in business across the country Mergers and Acquisition of two or more firms have been used as the prime most strategies. A command improved market share (Hagedoorn, 2002, pp167-188, 22) is possible by a merger, which develops the competitive position of the amalgamation. All the way through diversification of risk the amalgamation of firms can also try to drop in the risk level.
The strategically major objectives are attained by strategic alliance, which means it is a partnership of two or more corporations (Clare, 2010, pp. 46–58) either business parts that work jointly those are equally beneficial. The approaching of strategic alliances is very enormous. If they are applied in a systematic and corrective manner some authors have claimed that it can dramatically helps in the development of a corporations operations and competitiveness.
Hagedoorn and Duysters (2002) recommended appropriate illustration of strategic plans for entry mode in a country, for companies operating and running in high-tech divisions, strategic technology alliances are favored as a most important technique for acquiring external prevailing ability because the technology used is very advanced as compared to others. For companies who are working in low-tech segment, M&As is favored as a most important instrument to attain external inventive capabilities that will help them in meeting the requirements. For firms operating in medium-tech subdivision, the assortment of external foundation to buy pioneering qualifications is of an assorted character of together strategic technology alliances and M&As. (Shukla, 2010, pp: 44-62)
The dissimilar options with contemplate to strategic technology alliances as well as M&As can also be positioned in the construction of environmental authority which is influential of the conduct of companies, as meaningful to by the structural contingency viewpoint in addition to the traditional supply confidence view. (Hagedoorn, 2002, pp167-188, 22) Then, environmental conditions whether internal or external are acknowledged to limit the opportunities that companies have with consideration to creating along with shaping the organizational form that is mandatory.
When MNCs make an entry into foreign markets with the aim of utilization of resources either capabilities exploitation at that point of time Entry strategy plays an important function. MNCs have started grasping feet in distinctive markets all over the Globe with different reasons by a multitude of forms. MNCs accomplishment of strategy is influenced from the external environment.
The conclusion can be drawn; the, the companies who wants to enhance more flexible systems of resources portion so that the reaction is quick and adjustment can be made in the environment. This is (Shukla, 2010, pp: 44-62) very important and accurate for firms who have operations in the emerging markets. Undoubtedly, that distinctiveness fastidious to the institutional environment in emerging economies extensively manipulates the operations of foreign MNCs.
Busse and Hefeker (2007) have examined the investment flows all across the eighty-three developing countries over a numerous years. In the cross sectional sections of their analysis, the discovery of the survival of democracies, religion, along with government stability is considered to be significant. Pooling states over time, as they find internal conflict, external conflict, law and order, along with bureaucratic value that is to be important too.
- What categories of threats that can be challenged and faced by MNCs before entering Saudi market all the way through the previous elements of entry mode?
- Which approaches are favored to enter Saudi Market in phrase of entry mode, Strategic alliances or Mergers and Acquisitions strategy?
- Does the International trade regulation give rewards to powers to MNCs to enter Saudi Market?
- Which Strategic solution can be produced in the contest of threats and risks?
The data collection will be done all the way through Case study (Saudi Arabia), the implementation of published data along with Questionnaire, categorization in addition with the recognition of the key factors of the function that are applied in the strategic alliances, mergers and Acquisition which are in terms of entering Saudi Market. The respondents who will be selected for the filling up (Patton, 1987, pp. 45-67) of Questionnaire will be the foreigner companies those are already operating in Saudi or have a wish to enter into the Saudi Market. As a result of which, the result or the outcomes from the previous questionnaire will be presented to the government organizations that organize the prouder of FDI in Saudi Arabia in order to find out the distinctive along with agreement points among the MNCs as ell Government institutions.
The mixture between positivist as well as phenomenology is the philosophy of the research that is designed. The collection of data involves statistics as well as number, which is actually a raw factual data being collected. The basic aim of researcher follows in the evaluation of the barriers along with threats for the entry of market Saudi that includes strategic alliances, mergers and acquisition (quantities data), which is regarded as positivist. In addition, the research is aimed to distinguish (Patton, 1987, pp. 45-67) the awareness and the awareness of MNCs attitudes to break through Saudi market in term of government, regulation, and economic, competitors, as well as rumors, social in addition to this it are believable limitation. Thus, the researcher have applied the framework of ‘qualitative data’ and the perception of ‘what is happening which is also considered as phenomenology philosophy.
Resources and Planning:
- Phase one: research training program, literature review, to help refine research question.
- Phase two: Piloting of tools and techniques to be used, expansion of research techniques and main empirical stage.
- Phase three: Analysis, supplementary literature review along with complete writing up of thesis.
The research conducted will help in evaluation of the techniques used for entering Saudi Market among strategic alliances either mergers or acquisitions tools for MNCs which will highlight the guidelines for new entrants without facing any hurdle in between. Estimation of the risks that maybe a threat for the foreigner investors in terms of investment at Saudi Marketplace all the way through the techniques of chasing of a strategies. Finding the appropriate strategic solutions will help in reduction of risk level.
Chiao,Y. Lo, F and Yu, C (2010) Choosing between wholly-owned subsidiaries and joint ventures of MNCs from an emerging market. Emerald Group Publishing Limited, Vol: 27, No: 3, pp: 338-365.
Clare, G and Gang, I (2010) Exchange Rate and Political Risks, Again. Emerging Markets Finance and Trade, Vol. 46, No. 3, pp. 46–58.
Elmuti, D and Kathawala, Y (2001) An overview of strategic alliances. MCB UP Ltd, Vol: 39, No: 1, pp: 205-218.
Grosu, F( n.d.) STRATEGIC ALLIANCES VS. MERGERS & ACQUISITIONS IN CENTRAL AND EASTERN EUROPE – ALTERNATIVE SOURCES OF INNOVATION [Online] Available from: http://www.asecu.gr/files/RomaniaProceedings/28.pdf [ Accessed On 01/06/2010]
Hagedoorn, J and Duysters, G (2002) External Sources of Innovative Capabilities: The Preferences for Strategic Alliances or Mergers and Acquisitions, Journal of Management Studies; Vol. 39 Issue 2, pp167-188, 22
Patton, M. How to use qualitative methods in evaluation. London: Sage Publications 1987, pp. 45-67
Saeed, M (2010) Structuring Merger and Acquisitions Transaction in Kingdom of Saudi Arabia [Online] Available from: http://www.zawya.com/Story.cfm/sidZAWYA20100322115035/Structuring%20Mergers%20&%20Acquisition%20Transactions%20in%20the%20Kingdom%20of%20Saudi%20Arabia%20/ [Accessed on 05/06/2010]
Shukla, A (2010) Effects of Multinational Mergers and Acquisitions on Shareholders’ Wealth and Corporate Performance. The IUP Journal of Accounting Research and Audit Practices, Vol: IX, pp: 44-62.