||Location and Country Investment Decision: A Case Study on a French Global Minerals Company
||Location and Country Investment Decision: A Case Study on a French Global Minerals Company
||Institute of International Management (IIMBA--Master)(on the job class)
Finding the most suitable facility location for multinational enterprises is one of the most strategic components of globalization so it is important to consider how multinational corporations operate with different opportunities and risk confines of each individual country to obtain the greatest economic benefits in order for the investment to be successful.
Most of the real world decisions involve some aspects that are unknown and difficult to predict. This type of decisions is referred as decisions under uncertainty. The decisions under uncertainty can be further subdivided into fuzzy and Probabilistic be further subdivided into fuzzy and probabilistic decision-making .
The study try to find out to a set of systematic procedures and knowledge used in the decision analysis to find the most suitable facility location The AHP model provides a framework to assist managers in analyzing various location factors, evaluating location site alternatives, and making final location selections. The model requires that a number of potential sites have been proposed. Alternatives are then evaluated and compared under both quantitative and qualitative factors to allow managers to incorporate managerial experiences and judgment in the solution process.
In this study we classify many different types of criteria from reference and experts’ opinions which relate to the goal. Fuzzy Delphi was used to screen out the important criteria. Then by using the AHP (Analytical Hierarchy Process) method we obtain the relative weight of criteria. Since experts’ evaluations might have varied due to different operating environments this could have easily biased the weighting process by using the Triangular Fuzzy Number of FAHP theory to consolidate the experts’ opinion. In addition, we use Linguistic Variable to obtain the Fuzzy performance evaluation of alternatives.
The results of this study provide information about various countries. The Indian alternative was found to have the highest performance evaluation. This was found by analyzing the significant weight of criteria’s potential demand, facility proximity to customer, and low competition. The Chinese alternative was found to be at a disadvantage at maintaining long term relationships with customers. This was found to be due to far away customer. It was also found to be highly competitive in this market both from locally and internationally. Therefore, proximity to key customers and timing in entering the market were found to be key factors to achieve success in this industry.
TABLE OF CONTENTS IV
LIST OF TABLES VII
LIST OF FIGURES IX
CHAPTER ONE INTRODUCTION 1
1.1 Research Background. 1
1.2 Research Motivation. 4
1.3 Research Objective. 5
1.4 Research Structure and Flow. 5
CHAPTER TWO LITERATURE REVIEW 7
2.1 Location and Investment Theory. 7
2.2 Decision-Making Theory. 11
2.2.1 Problem Definition. 13
2.2.2 Evaluation Criteria. 13
2.2.3 Criteria Weights. 14
2.3 Background of the Targeted Company. 14
2.4 Facility Selection Criteria Theory Review. 16
2.5 AHP Theory Review. 18
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 20
3.1 The Delphi Method. 20
3.2 The Fuzzy Theory. 22
3.3 Analytical Hierarchy Process. 25
3.4 Fuzzy Analytical Hierarchy Process. 28
3.5 Linguistic Variable. 30
3.6 Fuzzy Synthesis Decision. 31
3.7 Ranking of Alternatives by Centroid Method. 32
3.8 Questionnaire and Sample Size. 33
CHAPTER FOUR RESEARCH ANALYSIS AND RESULTS 35
4.1 Facility Location Alternatives Selection. 35
4.1.1 Description of GCC Plant. 35
4.1.2 Background of the Alternatives. 36
4.1.3 Procedure for the Facility Location Selection in the real world. 37
4.1.4 Set up the Facility Location Selection Criteria. 37
4.2 The criteria screened out for Location Selection Decision – Fuzzy Delphi Method. 38
4.2.1 The Simple Calculation for AHP Weight of Each Criterion. 43
4.2.2 The Fuzzy Weight. 43
4.2.3 The Fuzzy Evaluation for Each Alternative. 46
4.3 Summary. 52
CHAPTER FIVE CONCLUSION AND SUGGESTIONS 53
5.1 The Results of this Research. 53
5.1.1 Data Analysis and Interpretation. 53
5.1.2 Alternatives Comparison and Findings. 55
5.2 Suggestions. 57
Appendix 1: Delphi Method Questionnaire 63
Appendix 2: AHP Questionnaire 67
Appendix 3: Fuzzy Evaluation for Alternatives Questionnaire. 76
Appendix 4: AHP Criteria Preliminary Weight 85
Appendix 5: Subjective Cognition of the Interviewees Linguistic Variables 87
Appendix 6: Fuzzy Performance of Australian Alternative 87
Appendix 7: Fuzzy Performance of India Alternative 87
Appendix 8: Fuzzy Performance of Chinese Alternative 88
Appendix 9: Fuzzy Performance of Taiwanese Alternative 88
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