China's Foreign Direct Investment - Case Study of Geely acquired Volvo

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.