Assessment and strategic planning in Engineering Consultancy in India: the case of a Lebanese engineering consulting firm

Abstract

The aim of this thesis is to increase understanding of the dynamics of foreign market expansion and as a result assess the opportunity and feasibility for a Lebanese engineering consulting firm to expand internationally. There are two major objectives for this expansion strategy. First, to increase geographical penetration and presence, in order to identify and grasp new opportunities worldwide, and as a result enlarge the customer database. Second, is to look for cheaper and more efficient workforce, and make use of economies of scale, which will result in a decrease in costs and increase in profits. India, with its huge economic growth and highly-skilled labor force, was chosen to be studied as a possible entry market for the Lebanese engineering consulting firm. Trying to understand the core process involved in foreign-market entry and expansion to new markets requires a multi-factorial analysis. Hence, through strategic planning, three major factors were identified for research: country-specific factors, mainly encompassing issues such as the Indian economy, political situation, human capital, and legislation, and relevant opportunities and weaknesses. Market-specific factors, mainly dealing with market demand and potential for foreign direct investment, and finally, firm specific factors, including issues such as international experience, specialized assets and other elements. Intensive research was conducted and abundant data and statistics were collected concerning the above mentioned elements in order to be analyzed and studied in depth. The study analyzed the data and statistics collected. There appeared to be several issues threatening the success of a global expansion into India. On the other hand, the huge economic growth and enormous market potential of India overweighed the risk and threats of any possible failure. The hypothesis "As an International Engineering Consulting firm, Entering India will be Profitable for the Company" was verified to be true and entrance into the India was proven to attain the goals set forth by this research.