Detroit bankruptcy Essay Example for Free

Detroit bankruptcy Essay The City of Detroit bankruptcy is a historical event since the city of Detroit is one of the largest cities ever filed for bankruptcy. However, the court trial will decide after considering all the facts and testimonials, if City of Detroit will qualify for bankruptcy. City of Detroit has filed for bankruptcy mainly because of financial factors such as expenditures were higher than revenues, the high level of debts and bad management. In the audit report issued for the 2012 there were many qualified and adverse opinions with regards to the financial statements. The fact that City of Detroit filed for bankruptcy, as hard as it might be, would give the city a new start and a new way of managing and thinking. This city needs restructuring and functioning under a new economic vitality. By developing new strategic plans such as new employment opportunities and offering reliable services for its residents and businesses, city of Detroit will regain its role in the economic vitality of Michigan. The economy of Detroit plays a key role in the economic development of Michigan. City of Detroit is known as the Motor City for the innovations in the auto industry but also for its goal diversifications into emerging fields such as information technology and advanced manufacturing. Encouraging advantage are the different tax incentive programs that city of Detroit offers. For example, Detroit Renaissance Zone Tax includes a waiver of city income and utility users taxes, most city property taxes, county property taxes. The program applies to businesses that will conduct business within the area and are not delinquent in any local, county or state taxes and once qualified there is no need to reapply. Should our corporation consider being part of big changes in Detroit and consider the benefit of tax incentives, I would be happy to further assist in this initiative.

Singapore Essay examples -- Philosophy, Neoliberal Ideology

In a sense, Singapore has always been driven by neoliberal ideology. In the 1960s and 1970s, Singapore’s economic competitiveness was based upon its ability to generate low-cost manufacturing assembly, its political stability, and geographical location (Yeung, 2000: 142). However, by the 1980s, Singapore was being outcompeted by other developing Asian countries, and met this ‘competitiveness crunch’ with national strategies promoting high-tech business services (Yeung, 2000: 142). Rigorous infocomm programmes were enacted as early as 1980, the IDA maintained sustained drives to promote and educate their citizens regarding ICTs. As a result of the National IT Plan (1986-1991), computer software and services industry increased its revenue 10-fold, the ICT workforce pool grew from 850 to 5,500, and the IT business and e-commerce continued to expand through subsequent programmes (iN2015 Steering Committee, 2006: 33). In 2006, Singapore boasted the highest ratio of infocomm-related patents to total patents in the world, and the iN2015 Steering Committee attributed this success to the national ICT programmes (2006: 36). More than ever, Singapore is a consumer-driven country with a prosperous economy. The infocomm initiatives purposefully drove the economy forward by encouraging business to enter the e-economy and by persuading consumers this was safe and convenient. With the specific aim of encouraging national and international companies to set up e-commerce trading centres in Singapore, the Singaporean government introduced the ‘Approved Cyber Traders’ scheme which entitled qualifying firms to pay less corporate tax (Teo, 2002: 259). A highly sophisticated electronic payment infrastructure encouraged both vendors and consumers t... ...d safeguard against fraud and theft if a strong e-commerce industry is to be fostered. Are ICTs in Singapore being used as instruments of control, and how much are they being utilised as facilitators of open democracy? Democracy relies heavily on a free press, but as Brown points out, this is compromised by neoliberalist corporate ownerships and laws shielding political officials from defamation (2006: 695). This is true of Singapore today. The state controls the broadcast media that is friendly to the government, and defamation suits dissuade journalists from publishing contentious political pieces (O’Hara, 2008: 10). In Singapore, the media coverage of political opposition has long been suppressed, primarily under the justification of ‘national interest’, an ideology of control that has driven the nation’s policy on media control (Lee and Willnat, 2006: 10).

Project Management-Transformational Corporate Strategy Essay

Overview of the case study The business environment is very competitive. Consequently, companies need to offer customers proficient and reliable service. If they do not, customers will switch to more consumer efficient companies. Furthermore, as companies grow in size, it becomes harder to keep track of the growing amount of sales and customer information. If a company does a poor job by not focusing and maintaining customer satisfaction, it can result in problems for both the company and the consumer. This study will focus on the Minnesota Mining and Manufacturing Company, more commonly known as 3M, and how it empowered its employees, improved its growth rate, customer service and sales by introducing a new approach to growth. This study also provides critical interrogation on the approaches and strategies applied by Minnesota Mining and Manufacturing Company in its efforts to turn around the company after the loss of profit despite the reputable strong tradition of innovation culture. Firstly, the study provides critical elements of innovative methods applied in order to exploit the profitable gains from the excellent research practise. This is done by explicating innovation process that has been applied at the 3M Company  leading to innovative strategic thinking coupled with the work done on the ground. It then identifies the curative recommendations in addressing the major problems that have been identified throughout the case. The fundamental problem of the 3M Company was the inability to exploit profitable improvements by exploiting its excellent and reliable research practice to the advantage of the company. Consequently, the company could not diversify its products in relation to the demands of the fast changing and sophisticated markets at a worldwide level. The company needed to embark on a major example change without compromising its excellent research tradition but to seek turn around strategies in order to maximise its profits. Recommendations and conclusions are clearly defined and they reveal what the author thinks about being an innovative leader who is able to support employees’ in their new ideas by implementing the company culture which is supportive to all of them to produce successful projects. QUESTION 1: What are the main elements of the innovative process at 3M? Is it possible and desirable for other companies to emulate them? â€Å"Richard Lynch defines Innovation as the generation and exploitation of new ideas. Furthermore it also provides organisations with the ammunition to move ahead of the competition. He states that innovation can deliver three priceless asserts to strategic management: 1. Substantial future growth 2. Competitive advantage 3. Ability to leapfrog major competition, even dominant competitors The innovative process at 3M has usually been a focus area for the top management. The company adopted a get out of the away approach towards the product developers in return worked accordingly towards innovation, together with technicians each team had a process engineer to ensure that the product was efficiently made. ï  ¶ The whole team did not face any risk if the product has failed. ï  ¶ The product developers should pay visits in the factories and workplaces to talk to the workers to get ideas for products. ï  ¶ The developers were not given the share of product royalties as the company believed that innovation was driven by sheer love of it. But the developers were encouraged by various means like rewards for innovation and grants for innovative projects. ï  ¶ There was also a dual ladder approach that provided the senior technical persons with great career opportunities to advance without switching over to management. Some of the elements of an innovative process at 3M is a free frame, people are able, capable and freed from any restrictions. Nevertheless someone should judge, review the Innovation Process. Stage stones should be set up otherwise it is no real process. Furthermore the consistency and the success factor should beat a specific period extremely revised and reconsidered regarding implement capability. In today’s competitive industry, cost plays a big role. Innovation is perhaps one of the most words that are over used in the business world today, and some of the organisations blow the innovation trumpet preach but don’t necessarily practice. But there are organisations like 3M that do practice innovation which gives hope to the organisation as they are using innovation in their daily lives through ground breaking products & services which made the company to be in the top ten of Fortune magazine’s most admired US Company. 3M Company sticks to its innovation, If we take a step back from the Innovation process, for the process to be successful it needs an environment to encourage Innovation, below are the points of what the environment characteristics needs to be: ï  ¶ Organizations eager to take measured risks. ï  ¶Ã‚  Business leaders being able to understand technology and the application of it. ï  ¶ An organization that is exposed to change. ï  ¶Ã‚  An organization that is brave enough to see beyond the financial benefits is not made visible that quickly. ï  ¶ Processes and structures to encourage brave thinking business leaders that are able to see what tomorrow will look like The Innovation Process: (Tidd et al., 2005). States that â€Å"the ability to manage the innovation process is an essential competence of any organization, but members must first understand the workings of the process to be successful† Figure 1.1 Adapted from: O’Sullivan (Innovation Process) – 5/29/2008 â€Å"O, Sullivan further explains that† Idea generation The first stage in this perspective of the innovation process relates to the creative activity of generating an opportunistic idea. This stage involves the continuous scanning of the internal and external environment for threats and opportunities that might be developed into an innovation by the organization. This stage involves mining the sources of innovation for new ideas and evaluating solutions to identified problems. An organizational culture that encourages creativity and empowerment can significantly support this phase of the process; this is exactly the similar culture that functional at 3M Company. The input typically stems from a technical insight into a product or process. This is evident in the case of 3M, when Fry had an idea of taking a peelable  adhesive that had been developed some year’s earlier at the 3M research laboratories and spreading it to marketers, it is further mentioned in the case study that it worked well. Opportunity Recognition The second stage of the process is opportunity recognition, in which the opportunity of developing the idea into a new product, process, or service is assessed and evaluated relative to other opportunities. This phase of the process involves deciding which innovative ideas will be pursued by the organization and which are deemed outside its interest. The undertaking of innovative actions is both expensive and resource intensive for any organization, and even large organizations such as 3M. Development If an opportunity is recognized as appropriate for the organization, then the idea moves to a new stage where it can be developed further. This phase involves the development of the idea or solution into a potential innovation that is ready for launch to its internal or external market. The development of an innovation can be highly resource intensive for any organization. It also applies to Fry when his ideas worked well and requested permission to develop the product commercially and he was given an opportunity to develop a manufacturing process. Realization This phase of the innovation process relates to the launch to the market, which is where the customer makes the final evaluation of the innovation. Understanding customer needs is essential to ensure that the eventual offering to the market meets these needs. Competitive Advantage: A superiority gained by an organisation when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation which results from matching  core competencies to the opportunities. They had strong innovation and research foundation at 3M Company that has ability of adaptability, although they experienced loss before but they managed to turn around the situation. It appears that they do not have a competitor in the world with the same level as they are. Instead, there appears to be several competitors in each sector or industry in which 3M offers its products and services. Frequently, as companies grow, they tend to become more bureaucratic and less able to adapt to changes in the market or industry. To conclude I would say that 3M Company’s existing controls are very good and support their strategy. However, they should also incorporate the other missing controls to ensure greater innovation power and profitability. Looking at today’s Industries and competitions amongst them, in my opinion ,I would suggest other company’s follow the steps of 3M, the have made some mistakes but were able to turn around the situation due to their elements of innovation process. QUESTION 2: What do you think of Six Sigma? Can other companies do the same? Firstly Six Sigma is defined as a â€Å"program that is used to improve processes within the organization be it in manufacturing or production processes. Six Sigma is usually prepared at defining goals and problems, measuring existing data and processes, analysing problems and goals, improving processes or tasks and controlling how the problems will be resolved in the future. According to the research I have identified three traits from Six Sigma† I.  The advantages ï  ¶ The benefits of Six Sigma contain the improvement and development of operating processes to ensure quicker response time, quality products and services and better monitoring of performance and work outputs, which I think it is the best approach to growth for 3M since they have dropped their sales. ï  ¶ This type of an approach or model surely and possibly saved 3M Company to come up with the said results and benefits because it provides a formula in which an existing processes is checked for consistency, efficiency and effectiveness, if it fails to measure to the existing industry standards it is revised and redesigned to match the best practices . I would advise other companies to do the same because it is the model that guides the company. II.  The costs ï  ¶ The Six Sigma model also ensures that costs will be dropped because there will be limited time spent in the process and more time to work on the actual tasks which is already handy at 3M. ï  ¶ It appears time its cost is huge and that an organization has to appoint or hire a person that would guide and train top management and middle management in the principles of Six Sigma which is wise for all the companies like 3M than running their businesses at a lot, dropping sale, losing profit. ï  ¶ Furthermore Six Sigma will also empower the employees to gain knowledge as it is the model that will require trainings, yes it will be costly but with productive results at the end. III.  The risks ï  ¶ Six Sigma might also have its own risks, some organisations might not be patient but looking at its approach, it had a positive impact on the 3M Company; it also developed leadership skills and focused on customer satisfaction. Furthermore, even though the approach does wonders in the company, not all  companies of the 3M embraces Six Sigma some of these reasons are very costly training of human force, only applies to the manufacturing industry, and it is just a trend. Other companies might think that, main issue that have to challenge with is if the Six Sigma really benefits the company or  it cost the company to sacrifice the innovative and creative culture for the sake of continuous improvement of products to satisfy the customers and accelerate the financial performance. Nevertheless it proven worth it by 3M because of the rescue it has done to the company while it was falling behind. Organisational Culture: In terms of its organization culture, 3M’s Company culture is promoted to be freedom and full of excitement and anticipation. Employees enjoy being heroes. 3M Company is being innovative in its cultures and company growth, so the focus needs to be on how innovation in 3M, including working cultures and people management etc. can be replicated and benefits different areas in our daily applications Goldman, Maritz, Nienaber, Pretorius, Priilaid and Willliams (2010:94) referring to Roger Harrison’s model of organisational culture mentions that â€Å"it has various attributes with four types of culture that could be easily observed at 3M Company although one called power culture seemed to be more dominant than others. Goldman et al., (2010:95) continue their notion by saying that a person whose personality is suitable for the culture of the organisation will be more likely to succeed than the person who does not naturally fit within the organisation’s culture. The table below reveals all these cultures and their attributes. Culture Attributes Achievement culture Competence, growth, success and distinction Power culture Strength, direction, decisiveness, determination Role culture Structure, order, stability, control Support culture Relationships, mutuality, service, integration Figure 2.1: Adapted from: Goldman et al., (2010:95). Organisational cultures and their attributes. This case study has stressed some of the key activities and principles that contribute to 3M Company’s performance. Most of these are not new and are certainly used by other companies. In 3M Company’s case they may be summarized as an effective company culture that nurtures innovation and a range of management techniques and strategies that together have delivered long-term success. Most of companies pay lip service to the organisation values and practice set out in this case study. There is evidence that 3M Company supports these words with actions. 3M Company hire good people and trust them; this will bring about innovation and excellent performance. 3M Company ensured that introducing Six Sigma is a good move than at other companies. Moreover, the success of the approach is due to the continual reinforcement of its objectives. Indeed, also the performance of individuals is partly judged on whether they are able to achieve the objective. Marketing pull and Marketing push technology According to Lynch (2009:283) market pull is one of the principal sources of innovation which is customer needs analysis. Baker in Lynch (2009:293) emphasize by suggesting that innovation takes place when companies identify new market opportunities and this is how 3M Company attempted to employ market pull by introducing Six Sigma and this exposes that they had ability for creating innovation. The 3M Company business area was completely different from what Six Sigma specialised on so they were necessary forced to encourage creativity, develop leadership skills, customer satisfaction, and exploration and focus where new ideas can come from a wide variety of sources. According to Lynch (2009:283) Technology Push is technology development analysis whereby other industries are being surveyed for their technology developments and assessment of their relevance to its own. 3M Company joined forces with external companies as mentioned above in trying to introduce new approach to growth and link the internally controlled culture of technology push even though they assumed that it was market pull. Their main challenge at 3M Company is that they need to know what technologies to push so that they do not dissolve their establishments. The diagram below illustrates how the two sources of innovation should be exploited by organisation without distinction. Figure 2.2 Adapted from Lynch (2009:283) Two major drives of innovation. QUESTION 3: To what extent, if at all, does innovation matter in setting the purpose of an organisation? Yes innovation does matter in this case because; many organizations invest in innovation in order to change. Organizations put aside a percentage of turnovers to change products, processes, and services. In particular, the  objectives should be achieved because of this investment. Yet, a very large amount of innovation activities does not meet these objectives. The motives behind failure provides clue regarding how to avoid such failure in the future. In this case study the process by which the companies should apply innovation has been examined. It has been examined by making sure that employee understands the process by which innovation takes place in the work place and then improving. In this case study 3M organizations has tried to lower their innovation failure rates and move faster with the process of growth as mentioned previously above about Six Sigma, the approach to growth. Looking at the process of innovation from idea generation, through evaluation, and on to realization, you will also find customers who become evaluators of the success of an  innovation in the company and by concluding there is also key ways to improve the ability of the company or organisation by monitoring the following innovation processes: ï  ¶ Goals, Actions, Teams, Results. Goals of Innovation The principal goals required by an organization in return for this investment vary between organizations. The following have been found across a large number of manufacturing and service organizations and ranked in order of popularity, with the first goal being common to most organizations (European Commission, 1996): ï  ¶ Improved quality ï  ¶ Creation of new markets ï  ¶ Extension of the product range ï  ¶ Reduced labour costs ï  ¶ Improved production processes ï  ¶ Reduced material ï  ¶ Reduced environmental damage ï  ¶ Replacement of products or services ï  ¶ Reduced energy consumption ï  ¶ Conformance to regulations Following are the critical factors that managing technical innovation in 3M Company: a) Organization culture b) Communication and c) Management The causes of failure can vary widely depending on the individual innovation. Some causes will be external to the organization and outside its influence of control. Others will be internal and ultimately within the control of the organization. Some of the more common causes of failure in organizations can be distilled into the following five types (O’Sullivan, 2002): ï  ¶ Poor goal definition It means that organizations find it difficult to define their goals. Poor goal definition requires that organizations decide on appropriate goals for their environment and define these goals in terms that are understandable to everyone involved in the innovation process. ï  ¶ Poor alignment of actions to goals Means that organizations find it difficult to continuously link the ideas and projects they are pursuing with their goals. This is perhaps even more acute if goals are difficult to define in the first place. It also influences effective management of the portfolios of projects that the organization is undertaking to ensure they are balanced appropriately. ï  ¶ Poor participation in teams It refers to the behaviour of individuals and teams, latent knowledge of the organization, and the particular skills of individuals to contribute to the achievement of innovation. It also refers to the payment and reward systems that link individuals to goals. ï  ¶ The poor monitoring of results It refers to sharing of the status of goals, actions, and teams involved in the innovation process within the innovation team and its main stakeholders. ï  ¶ Poor communication and sense of community It relate to ineffective channels of communication and collaboration that constrain knowledge sharing and the ability of employees to participate as a broader community in the innovation process and make informed decisions when needed. Steyn, Schmikl and van Dyk (2010:66) state that knowledge delivers sustainable competitive advantage as illustrated below Leading to> Resulting to> Increased revenue Knowledge creation Technology development Experimental and emergent purpose Innovation Enhanced value added Stronger sustainable competitiveadvantage Figure 3.1: Adapted from Lynch 2009:261- An emergent approach to purpose According to Palmer and Kaplan (2007:2) Strategic Innovation is the creation of growth strategies, new product categories, services or business models that change the game and generate significant new value for consumers, customers and the corporation. According to Lynch (2009:282) innovation is the generation and exploitation of new ideas. This has helped the 3M Company to gain strength in applying lessons learnt from previous experiences like the one of losing the sales and profit. This has made them to be able to deliver what refers to as the priceless assets to strategic management such as the following: ï  ¶ Substantial future growth: The process of improving some measure of the organisation’s success which can be achieved either by boosting the top line or revenue of the business with greater product sales or service income. 3M Company able to restructure by introducing the approach to growth. ï  ¶ Ability to leapfrog major competition, even dominant competitors: Ability to conquer competition focusing on extensive promotions to highlight the distinctive benefits or features of products. 3M Company had employees who are strong in making sales and come up with high successful product â€Å"Post-it notes†. In terms of the competition, it started internally. â€Å"Every company seeks the keys to innovation, but few find them. Over the decades, 3M learned how to be innovative and today the company uses that skill to great competitive advantage.† — Jerry I. Porras, Co-author, Built to Last â€Å"Innovation is more than just a bright idea; it is an idea that gets implemented and has a real impact. In other words, somebody has to make it happen.† — Ernest Gundling, Author, The 3M Way to Innovation: Balancing People and Profit 2.  CONCLUSION It is advisable that, organisation should have its own database in order to fix or limit the problems in the company rather than running at a loss. 3M Company created their database and spent about $20 million, it in an integrated database, which stores information on customers, products, sales, inventory, and finance from all divisions and geographies. If all the organisations of the same nature can follow what 3M Company did, access can be gained to the database through a user-friendly website. Strong search which bring together related products and services from across the entire 3M Company can be easily accessed. Personnel and partners can also access latest information on product prices, availability, specifications and reviews of customer accounts. â€Å"The profitability of customers and products and the performance of partners can also be analysed across the entire company allowing better allocation of company resources. This allows 3M Company to take advantage of market opp ortunities and cross-selling opportunities and at the same time meet and customize the needs of customer segments. â€Å"(Some of the information is adapted from Harvard Business Review) 3.  BIBLIOGRAPHY ï  ¶ Ernest Gundling, Author, The 3M Way to Innovation: Balancing People and Profit ï  ¶ (European Commission, 1996): Goal Innovation ï  ¶ Goldman, G., Maritz, R., Nienaber, H., Pretorius, M., Priilaid,D. & Williams, D.2010.Strategic Management: Supplement for Southern Africa. (1st Edition) South Africa: Pearson Education. ï  ¶ Havard Business Review. Vol 75 (6): 102-103 ï  ¶ Jerry I. Porras, Co-author, Built to Last ï  ¶ Lynch, R. 2009. Strategic Management. (5th Edition). England; Pearson Education Limited. ï  ¶ McQuarrie, E.F. 1993. Customer visits. Building a better market focus. California: SAGE Publication. ï  ¶ O’Sullivan (Innovation Process) – 5/29/2008

Health Promotion Among Diverse Community - 1053 Words

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Personal Reflection In Early Childhood Education - 1907 Words

Although I have worked with children for the past six years in a childcare setting and gained a diploma in early childhood education and care, I learnt so much from being in a school based environment. I feel though that my previous experience did aid me in this practicum however. I already knew that play is an integral part of a young child’s learning and how those children need to feel safe, secure, and cared for as well as being educated. Knowing that the bond between a teacher and child is a vital part of being able to educate them well, allowed me to focus on building those relationships with the children and getting to know who they are, what they like and how they react to different situations before trying to teach them. 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Cja344 Cultural Diversity in Criminal Justice - 2141 Words

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FDI in Pakistan Telecom Sector free essay sample

Introduction: This work is only done for the Admission in PHD. This proposal is conduct only for the aim of PHD. This chapter will demonstrate a very brief overview of this research and also shows overall objectives of the research. There is also including literature review of previous studies, secondary research (journals, survey and previous study) and primary research (interviews of telecom companies, government officials and telecom consultancy agencies in Pakistan. In this paper researcher also mention the associate risk with foreign direct investment in Pakistan telecom sector. Finally recommendations review the whole research structure and very helpful work for new foreign investors to enter into the new market of Pakistan in Telecom sector Background: Telecommunication is the exchange of information over significant distances by electronic means. The simplest mean is communication between two different places. This arrangement is called telecommunication. The Internet and telephones are major examples of telecommunication. Telecommunication sectors are based on six major segment, Internet services, wireless local loop sector, mobile sector, payphone services, fix line sector and voice over IP. Telecommunication started from 1947 and in Pakistan telephone and telegraph department established in 1962. In 1991 PTCL (Pakistan telecommunication corporation) took over function and operation from Pakistan telephone and telegraph department. In Pakistan first mobile company (Mobilink) started his operation in 1994. Other major competitors are Warid (Abu Dhabi group) Ufone Zone (China mobile company) Telenor (Norway) Major Foreign direct investment in telecommunication sectors has been arrived from cellular companies, that’s are mention on above. Then later these companies also invested into the Internet, new 3g technologies and voice over IPS. These companies still earning a good profit and there is still good capacity into the Pakistani market. Pakistan telecom sector is very developing and flourishing industry (Union, 2007-2008). This sector was very developed in the regime of ex president of Pakistan Pervaiz Musharaf and on that time mobile phone was necessity. The difference of 1994 to 2011 was easily judge by visiting the market or sees the total number of subscribers. Therefore this research will look in details the factors that have resulted for the large inflow of foreign direct investments in Pakistan telecommunication sectors. It will also look the economy growth and GDP effects with these foreign direct investments. It will also give some information about the associated risk with the foreign direct investment in Pakistan telecom sector. This research is very help full for recommendation the suitable new entry mode for foreign investors in telecom sector of Pakistan. FDI (Foreign Direct investment): According to the international monetary fund, â€Å"foreign direct investment, commonly known as FDI, refers to an investment made to acquire lasting or long-term interest in enterprises operating outside of the economy of the investor. â€Å" 1The investment is direct because the investor, which could be foreign person, company or group of entities, is seeking to control, manage or have significant influence over the foreign enterprise In this globalised world only foreign direct investment (FDI) is an important source of economy growth. Normally economists consider FDI is phenomenon for developed country but in last two decades FDI inflow towards developing countries were surprising (Nunnenkamp, 2001). The main factors that attract FDI towards developing countries are infrastructure, political stability, natural resource, cheap labour, and government incentive for foreign investors. Pakistan is developing country with world largest six populations. In last  ten years unprecedented increases inflow of FDI, the GDP has grown at an average of 7.0 %. In the last few years Pakistan have received record inflows of FDI in telecommunication sector. According to (BMI, 2008) Pakistan telecommunication sectors attract FDI estimate US$ 1.824 million out of 1.8 billion, which accounts 54% of the total FDI and telecommunication sectors received 35% of FDI. Pakistan telecom sector has emerged one of the fastest growing telecom. (BMI, 2008) According to state bank of Pakistan investment in telecommunication sectors helps to increase the GDP. In 2007 telecom sector generate total Rs. 235,613 million revenue and telecom sector contributing 2% GDP out of 7% to government of Pakistan. Government of Pakistan is earning good revenue from those companies in the form of taxes and duties. Which is very positive effect on Pakistani economy. Research Objective: To critical analyze the foreign direct investment in Pakistan telecom sector and its affect on economy growth. We will also look some risk associate with this foreign direct investment. This study will help for new foreign investors to invest there capital in Pakistan telecom sector. In Pakistan there is still 36% free market available for new foreign investor in telecom sector. There is still research gap in previous study that how Pakistan attract more foreign investor in telecom sector? During this thesis researcher want to full fill the research gap. Research Questions The research will answer the following questions: 1. What are the determinants of foreign direct investment in Pakistan telecom sector? 2. How foreign direct investment in Pakistan telecom sector affects on economy in Pakistan? 3. What are the risks associate with foreign direct investment in Pakistan telecom sectors. 4. What recommendations make for Pakistan telecom sector to attract foreign direct investment? 5. In Pakistan telecom sector, what is suitable entry mode for new foreign investors? Literature Review: This chapter will provide detail aspects of theoretical background of  research. It will also demonstrate in detail the factors that influence the foreign direct investment in developing countries and specific sectors. It will also tell the associated risk with foreign direct investment. Foreign Direct Investment: â€Å"Foreign direct investment usually involves the establishment of the firm’s own control over raw materials, components, production, distribution and marketing facilities abroad† (Bartels Pass, 2000). On the other hand foreign direct investment can be defined as An investment involving a long term relationship and reflecting a lasting interest and control by a resident entity in one economy (foreign direct investor or parent enterprise) in an enterprise resident in an economy other than that of the foreign direct investor (FDI enterprise or parent enterprise or foreign affiliate)† (United Nations, 2006) Foreign direct investment enables the investor to take a control of the enterprise and activities, production, distribution, raw material, marketing and infrastructure (Daniels et al., 2004). There are number of theories that have been motives for foreign direct investment. Theory of trade and investment and marketing form the basis for these theories. The bot h theories give a complete understanding the reasons for foreign direct investment. Or any particular kind of foreign direct investment, but there is no complete theory of foreign direct investment (Harrison, Dalkiran and elsey, 2000). International advantage: According to Dunning (1973, 1979 and 1981). It is very profitable steps for companies that they cross their border and go to other markets for expanding there business and local company to international business. Internalization advantage arises because foreign direct investment allows a firm to remain or become integrated (Harrison, Dalkiran and Elsey, 2000). Company’s can Achieved cheap labour, batter quality raw materials and local government incentives. Infrastructure: Infrastructure in developing countries mean well developed networks of road, power supply, internet and telephone access, water supply, airport, train networks, transport and natural resource are the ingredients that attract  the foreign direct investment (Khan and Kim, 1999). Morisset (2000) argue that good infrastructure attract more foreign firect investment as compare to countries having poor infrastructure. Table : Host Country Determinants of FDI Natural Resources: In host country the availability of natural resource and access plays vital role to attract the foreign direct investment. Harrison Dalkiran and Elsey (2000) argue that location; cheap labour and availability of natural resource and Location affects foreign direct investment decision. So attracting the foreign direct investment natural resources are very important. Political stability:  Political instability is big thread for foreign direct investment for developing countries. Political instability provides a hostile environment for foreign corporations, discouraging their investment (Bennett and green, 1972). Basi (1963) argue that political instability is a big factor to change the decisions for foreign investors. There is positive relationship exists between foreign direct investment and political stability. Labour Cost: Multinational enterprise transfers all their production into developing countries where labour is very cheap and skilled and as well hard worker. Cheap labour reduced the total production cost. Aqeel and Nishat(2004) argue that high nominal wages discourage foreign direct investment. There is negative relationship between foreign direct investment and high labour cost. In Pakistan there is very skilled labour and that’s what foreign telecommunication companies get benefits. Foreign direct investment Risks: Developing countries despite their investor friendly policies pose different kind of risks and threats for foreign investors. According to Meldrum (2000), when foreign direct investment takes place, certain risk involves because of the domestic or national business. There are basically three major risk involves to attract foreign direct investment: 1) Political risk 2) Economical risk 3) Currency risk. Political risk: Political risk is major risk for the owner of foreign direct investment. These risks involve the risk of losing revenue or incurring costs due to changes in the political environment of the country (McDonald, 2007). Most of developing countries are suffering with political risks because Army take over the government and dictator freezes all foreign currency accounts and make restriction to transfer money outside the country. Economic Risk: â€Å"Economic risk involves a sudden change in the economic structure and the growth rate thus causing a significant change in the profitability of the investment† (Meldrum, 2000). Economic risk arises from the unfavourable changes in economic policies (wealth distribution, fiscal, monetary). Sanctions on trade or export on any other country will affect the economy. Foreign investors scared and they don’t want to invest on those countries. Currency Risk: Currency risk or exchange rate risk involves a sudden change in currency regime of a country such as change from fixed to floating exchange rate (Meldrum, 2000). Depreciation of home country currency also involves the currency risk. Methodology: Research methodology is the way to carry out the data including research, philosophy, purpose of research, data analysis and data collection. The research onion described by Mark Saunders, Philip Lewis and Adrian Thornhill (2006) is used to analyse the philosophy, approach, purpose and strategy of research. Research strategy: The best suitable strategy for this research is case study: According to Robson (2002), â€Å"case study is a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real time context using multiple sources of evidence† Qualitative Method: Qualitative research method is a very perfect tool to analysis the research (Gummesson, 2000). This method is very useful, where the aim is to undercover and understand a phenomenon about which is little known. In Pakistan there is not much research conduct on foreign direct investment in Pakistan telecommunication sector so qualitative method is suitable to apply. Qualitative data enable the research to explore more and in detail understanding the issues. Data Source: There is two type of data source. 1) Primary source 2) Secondary source Primary data: Primary research will be use to analysis the Pakistan telecom industry. It will also answer to some extent, the important question of what sort of entry strategies firms are using to invest in telecom sector in Pakistan. In primary source there is no data available. Hence the research has to start from scratch. That’s why research prepaid some question and conducts interviews and made some survey to collect the data and analysing the data. The main sources of collecting the primary data are Interviews of telecom companies’ officials and top-level management, PTA (Pakistan telecom authority) official Telecom consultancy agencies management in Pakistan Secondary Data: In secondary data there is enough material or data available for researcher, the data available from other source like publishers, newspaper, online journals, official websites and companies’ annual reports. There is advantage and disadvantage for both methods. Primary research is very more time consuming and very costly and some time researched does not need that information. While some secondary research may not suitable for researcher because data figures change significantly by time. In this research secondary data is suitable for researcher, so researcher decide to use secondary research method for this work.