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Key Success Factors for Foreign Direct Investment (FDI). The Case of FDI in Western Balkan
Key Success Factors for Foreign Direct Investment (FDI) The Case of FDI in Western Balkan
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Table of contents
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1 Executive Summary
5
2 Acknowledgements
7
3 Introduction
8
3.1 Occupational training as successful business idea
10
4 Strategic Issues in RFH as non-for-profit company
12
4.1 Strategy evaluation in non-for-profit organisation
14
5 Why companies go international?
18
5.1 Which foreign market to enter and on what scale?
20
5.2 The choice of Bosnian market for foreign expansion
22
5.3 Why is FDI the best mode of entry a foreign market for RFH?
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5.4 FDI by acquisition as successes factor for RFH in Bosnia
30
6 Economic overview, Educational Sector and InvestmentClimate in Bosnia and Herzegovina - Market blue sheet
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6.1 Current political background and economic situation overview
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6.2 Critical discussion of political situation and structure
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6.3 Critical discussion of macroeconomic situation
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6.4 Educational sector – Vocational Training and Adult Training
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7 Legal basic conditions
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7.1 Capital Investment Law
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7.2 Corporation Law / Legal forms of organizations
48
7.3 Tax - / Fiscal Law
50
7.4 Taxation incentives in Federation of Bosnia and Herzegovina
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7.5 Taxation incentives in Republika Srpska
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7.6 Sales tax
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7.7 Labour legislation / Social insurance regulations
54
7.8 Employment of foreigners
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7.9 Social Security Law
55
7.10 Foreign Exchange regulations
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7.11 Legal conditions in Republika Srpska versus legal conditionsin Federation
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7.12 Business related indicators overview
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8 Key successes factors for FDI
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8.1 Analysis of the competitive industry environment in Bosnia
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8.2 Five Forces analysis of educational and vocational trainingsector in Bosnia and Herzegovina
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8.3 What RFH can do, to develop sustainable competitiveadvantage?
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8.4 Failure factors in the foreign business
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9. Determination of suitable business location in Bosniaand Herzegovina as key success factor for RFH
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9.1 Analysis and specification of the business location
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10 Prudential financing policy as key success factor
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10.1 Capital requirements and profitability
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10.2 Profitably work – what does this mean?
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10.3 Approach for the determination of the turnover
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10.4 How can RFH raise the turnover and save the costs?
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10.5 Financing of business – Total capital requirements for FDI in2006
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10.6 Financing scheme
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11 Controlling and forecast calculations as key successfactor
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11.1 Bar graph projected turnover overview 2006 - 2009
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11.2 Projected ROI and ROCE on the end of the year
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11.3 Liquidity projection 2006 -2009
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11.4 How can RFH make efficient liquidity policy?
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12 Legal issues and choice of appropriate legal structureof the company as key success factor
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12.1 Specifics regarding legal form for subsidiaries founded byGerman non-for- profit organizations
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12.2 Arbitration board for disputes in Bosnia
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13 Appropriate marketing strategy as key success factor
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13.1 How can RFH fulfil the wishes of future customers?
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13.2 How can RFH win customers and build customer retention?
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13.3 Ways to successful customer retention
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14 Suitable pricing for services or products as keysuccesses factor
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14.1 Basic price strategy approaches
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14.2 Possible mistakes with the pricing
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14.3 An example of the service and trade price calculation for RFH
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14.4 Price as key success factor for RFH
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15 Organisation, HR and Control of foreign business askey success factor
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15.1 Organization of the subsidiary of the RFH in Bosnia
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15.2 HR management and control of business in Bosnia
114
16 Foreign business coverage and hedging as keysuccess factor
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16.1 Assistance programmes
120
16.2 Public Private Partnership (PPP)
121
17 Conclusion and Recommendation
123
18 Outlook
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19 References
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19.1 Bibliography and Articles
132
19.2 Publicly and web available sources
143
19.3 Statistics, Economic and Business Indicators - Sources
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19.4 Education in Bosnia and Herzegovina - Sources
149
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