Research On The Investment Strategy Of BG Company In Cambodia

BG Company is a specialized manufacture of FIBC(Flexible Intermediate Bulk Container).As a typical labor concentrated industry enterprise,the labor cost take higher than 60% of the whole.Most of the customers of BG come from the overseas market since it established in the year 2000,however in the recent years the market and profit keep shrinking because of the soaring of labor cost in China.Along with the Go Out Policy and the One Belt One Road strategy which strongly encouraged by the Chinese government,many labor concentrated companies going out to invest and explore.To make a new production base for the future development,BG decided to invest in Cambodia.As a sample of the whole labor concentrated industry,BG is the object of the study in the thesis.Under the support of classic theories which accomplished by many esteemed researchers,such as the International Industrial Shift Theory,Product Life Cycle Theory,Marginal Product Expansion Theory,this thesis devote to concentrate to the operational approaches and the strategy.The necessity and the urgency will be reflected by the analysis of the difficulties which facing to BG Company nowadays.Using the SLEPT analysis method,the investing environment was investigated based on the five key elements: Social & culture,Legal,Economical,Political,and Technological environment of Cambodia.Furthermore,the infrastructure situation and location of the investment would be discussed.In the main study of investment strategy,we firstly confirm that the investment must be FDI and then we study the scale and the elements of the investment which including: the support from the BG Company,HR,supporting of technology & machinery.Afterwards the management and marketing for the new plant would be discussed.Hopefully,this study can work out a complete and operable strategy program.In the mean time,we hope to point out the risks in the operation to help the company to reduce the pullbacks.