FEEM Research Seminar on “The Internationalization in the Emerging Countries: the Model of 5C in Support of Corporate Decision Making”
12:00 - 13:30
The internationalization of companies has become a must in recent years, interpreted as a kind of surviving strategy for them. The entrance into new foreign markets represents a response to the economic and financial crisis as well as to the saturation degree of domestic markets that characterizes some countries. Foreign markets, emerging economies above all, are thus an opportunity for several companies. However, the penetration into those markets should not be considered straightforward: the lack of knowledge of market is one of the main problems encountered by companies.
The thesis entitled "L’internazionalizzazione nei Paesi emergenti: un modello di analisi di un mercato estero a supporto delle decisioni aziendali. Il caso SIPA” tackles this issue and, starting from a real business case, develops a model which provides companies, operating in a Business to Business (B2B) market, a methodology for analyzing foreign markets. The model of 5C – Customers, Channels, Competitors, Country, Culture – enables companies of any industry and dimension to fully understand the five main dimensions of the market (see 5C) but also the timeframe of realization and the ways and sources through which a business can implement the data collection activities. The model is the result of a long consulting project conducted in behalf of SIPA, an Italian company interested in investing in Ghana, in collaboration with E4Impact Foundation.
In light of the recognition, at the Third International Conference on Financing for Sustainable Development, of the importance that foreign direct investment play towards sustainable development and following the approval and launch of Agenda 2030 which aims, through 17 Sustainable Development Goals, at eradicating poverty by 2030, the methodology tested and the analysis model developed together with the service First -Step Africa of E4Impact Foundation wants to be an incentive for those companies interested in expanding their activities outside national boundaries in the face of the opportunities that exist for companies to contribute to sustainable development of emerging countries. The companies that make foreign investments have indeed a huge potential in influencing the economic and ecological performance of these countries through the transfer of management skills and modern and environment friendly technologies: SIPA through the direct investments in Ghana can produce social impacts in terms of increased capacity building and employment. Foreign direct investment (FDI), for their ability to promote business growth, diversify activities and generate significant social, economic and environmental impacts in developing countries represent thus the main business tool for inclusive and sustainable development for the south of the world and one of the ways through a company can contribute to the achievement of Sustainable Development Goals.
Through this model and the service offered by ALTIS the process of internationalization can be encouraged and strengthened in order to allow companies to contribute to the growth of emerging countries. This appears to be necessary in light of the recognition in the Agenda 2030 of the private sector as key actor to sustainable development. The objective of the seminar is therefore to demonstrate, starting from a real business case, as a theoretical and practical model of market analysis is able to support and assist companies in analyzing a foreign emerging market and how a company through the foreign direct investments is able to contribute to the achievement of Sustainable Development Goals.