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Volvo Geely

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Volvo Geely
SAVONIA UNIVERSITY OF APPLIED SCIENCES
Savonia Business

China’s Foreign Investment Analysis
Case Study of Geely Acquired Volvo

Zhang Huihui
Business Administration Bachelor’s Thesis
Degree Programme
International Business
April 2012

SAVONIA UNIVERSITY OF APPLIED SCIENCES
SAVONIA BUSINESS
Degree Programme, option

Degree Programme in International Business
Author(s)

Zhang Huihui
Title of study

China’s Foreign Direct Investment Analysis
Case Study of Geely’s acquisition of Volvo Car
Type of project

Date

Pages

Thesis

10 April 2012

42 + 3

Supervisor(s) of study

Executive organization

Abdelazim Hannoura , Anneli Juutilainen
Abstract

The objective of this research was to analyze the acquisition case of Volvo Car by Geely including the environment scanning, strategic management and acquisition implementation.
The theoretical overview to strategic management explained the acquisition decision making process with various management tools. Furthermore, the benefits and principles of foreign direct investment which were presented in this part are sound base for the detailed discussion about foreign direct investment in China.
The study was accomplished mainly on qualitative research method due to the research limitation.
Secondary sources are largely collected from a variety of publications, websites, journals, magazines etc. Meanwhile, the intensive case study provided a comprehensive picture of the acquisition case in a decision making process.
The result of the case study indicated the strategic goals for the acquisition between Geely and
Volvo Car. It also pointed out the possible problems Geely are coping.

Keywords

foreign direct investment, acquisition, strategic management, Geely, Volvo Car
Note

FIGURES AND TABLES
FIGURE 1

SWOT Matrix

FIGURE 2

PEST Matrixes

FIGURE 3

BCG Growth-Share Matrixes

FIGURE 4

Porter’s Five Force Model

FIGURE 5

Porter’s Diamond of National



References: Aaker, D. A. 1995 Strategic Market Management, 4th ed. Industry. The Truth about Cars [accessed 28 October, 2010] Available from: http://www.thetruthaboutcars.com/2010/03 [accessed 4 April, 2012] Available from:http://www.china.com.cn/economic/txt/2010-07/17/content_20517582.htm Chinadaily 2012. Geely, Volvo to set up China JV Chinadaily [accessed 5 April, 2012] Available from : http://www.chinadaily.com.cn/bizchina/2012-02/27/content_14699479.htm Eduardo Morcidclo2010. Geely’s Volvo Gamble. Harvard Business Review [accessed 21 November, 2011] [accessed 5 April, 2012] Available from: http://www.reuters.com/article/2012/03/09/geelyvolvo-idUSL4E8E92FQ20120309 Gabriele Carbonara & Rosa Caizza 2009 Geely Holding Group 2010. About Geely [accessed 17 November, 2011] Available from: http://www.geely.com/global/about_geely/about_geely.html [accessed 20 March, 2012] Available from: http://smallbusiness.chron.com/differencebetween-horizontal-vertical-acquisitions-33800.html Lin Qi 2010 Cooperation 2009. Foreign Investment and Economic Cooperation Statistic 2009 [accessed 24 November, 2011] Available from: [accessed December 30, 2010] Available from: http://www.stats.gov.cn/english/statisticaldata/

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