Enterprise Case Study
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Enterprise Case Study
Introduction
It is important to critically evaluate the potential effectiveness of the entire idea of PRC’s Belt & Road Initiatives (BRI). Consideration of this particular idea is crucial to figure out its impact on the different economies of the world. The phenomenon of BRI is categorised as a valuable attempt at the global level to create effective connection and cooperation between different countries and China. It is worthy to notice that the approach of BRI is established as the one useful practical measure to ensure regional cooperation and connection on a trans-continental level. The main focus of this massive program is to enhance the domains of infrastructure, trade, and overall investment between China and approximately 65 other economies at a global scale (Yu, 2017). The extensive program of BRI hugely comprised on Silk Road Economic Belt, Maritime Silk Road, connecting China with the countries of South East Asia, the Gulf countries, North Africa, and with the area of Europe. This particular initiative is open to all countries and organisations which enhance options of profitability for all the shareholders. Undoubtedly, the initial phase of infrastructure building is a great opportunity for the organisation of construction. The projects of the China-Pakistan Economic Corridor (CPEC) under the prospect of BRI is an effective option of investment. It is important for western construction organisations to discover their interests in this region and attain better outcomes. Here the focus is to critically evaluate the effectiveness of the infrastructure projects in China and Pakistan in the form of CPEC and what an Australian construction firm can do to establish its valuable presence in these countries effectively and efficiently.
Discussion
The aim of successful can only achieve with the proper assessment of the potential opportunities. This certain formula is also valid for the construction firm of Australia to gain maximum output from the construction projects established for China and Pakistan under the prospect of China-Pakistan Economic Corridor (CPEC). The economic plan of CPEC is defined as one great economic opportunity which can change the spectrum of the entire global economy. It is vital for the Australian construction company to consider the growing opportunity and take some proactive measure to establish its prominent presence in these countries. The decision of entering the markets of China and Pakistan requires prior scrutiny to gain maximum profit and better handle prevailing challenges (Aoyama, 2016). The decision of entering into markets of China and Pakistan is associated with the proper identification of potential trends of these markets. It is essential to figure out how the projects of CPEC can be profitable for the western construction organisation. Judgment about the actual suitability of the developing scenario of CPEC is mandatory to achieve desired outcomes.
Introduction to CPEC
At the first phase, it is important to identify all the important aspects relevant to the main idea of CPEC. Comprehensive understanding of CPEC plan helps to determine the suitability of entering into construction industries of China and Pakistan. It is crucial to recognise that what is CPEC is all about and why it can be considered as the huge opportunity for the construction firms belongs to different parts of the world. Exploration of different aspects of CPEC eventually helps organisations to make inferences about their decisions of investment in different forms (Maqsood, 2018). China Pakistan Economic Corridor is identified as the grand projects which are based on the collection of various infrastructure projects that are under process in both the countries of China and Pakistan.
CPEC is established as the joint venture of both the public and private sectors of the countries of China and Pakistan. The approach of CPEC is considered as the game changer practical measure that has the potential to influence the economy of the entire world in different forms. The extensive magnitude of the project of CPEC can measure through its projected value worth of $62 billion. The project of CPEC is established as the grand bilateral project to attain better forms of infrastructure and trade. It is crucial to consider that growing infrastructure is one of the crucial features of this project. Huge investment is involving in the particular paradigm of the infrastructural domain of CPEC. The project of CPEC is recognised as the framework to ensure better economic connectivity between both the countries of China and Pakistan. It is critical to consider all the positive implications of CPEC are not only limited to the main stakeholders appeared in the form of Pakistan and China but it greatly influences the economic domains of other connected regions (Abid & Ashfaq, 2015). In 2013, Chinese Premier Li Keqiang proposed the idea of CPEC which is positively accepted by the government and all the political parties of Pakistan. The project of CPEC is initiated in both countries with a series of many different projects. Currently, the project of CPEC is going through with the important and initial phase of implementing different projects of construction.
Importance of CPEC
It is essential to critically assess the actual significance of the project of CPEC to make better inference about entering into the construction industries of China and Pakistan. It is crucial to understand that construction sectors of both these countries are somewhat different from each other which requires detail focus at the first stage of investment. Foreign construction companies need to thoroughly understand the market structures prevails in the geographical regions of China and Pakistan. The broad idea of CPEC has gradually operated in the phase of implementation from the planning. The overall importance of CPEC can never ignore because it referred as the main entity to promote the mutual and effective collaboration between China and Pakistan.
The role of CPEC is crucial because it is categorised as the major practical measure to enhance the cooperative partnership between the countries of China and Pakistan. The facet of CPEC is established as a great platform that offers new opportunities and vision of investment in different sectors (Ali & Faisal, 2017). The project of CPEC is anticipated as a great phenomenon for the economy of Pakistan that eventually enhance prospects of different domains at the country level. Both the countries of China and Pakistan have a huge interest in the project of CPEC that ultimately impact the overall economic features of these countries. The construction of CPEC is established as a great source to increase economic connectivity between the shareholders. The initiative of CPEC positively influences the strategic positioning of Pakistan in the region. Due to the approach of CPEC, the country of Pakistan is established as a great place for foreign investment with the announcement of different projects of infrastructure and energy.
The importance of CPEC can never be ignored because it is identified as the important initiative under the domain of One Belt One Road. The main focus of this particular project is to ensure proper connection between Kashgar City with Gwadar Deep Sea Port through the various prospects of infrastructure. The most prominent aspect relevant to the main idea of CPEC is that it is observed as the beneficial link between the paradigms of Eurasian land routes and maritime silk routes under the effective approach of BRI. The country of Pakistan is a key player in the entire scenario of CPEC that offer great options for investment. The role of Pakistan is crucial to consider because it serves as an effective approach of International Interchange that gives strategic advantage to the international economy. The doors of investment are warmly open for the international organisations considering the economic domains of Asia, Africa, and Europe.
Critical Assessment of CPEC Infrastructure Projects in Pakistan
When it comes to taking a decision about entering into the region of Pakistan than it is crucial for the Australian construction company to overview the ground reality and the potential of the market of this country. This form of evaluation helps the management of the organisation to form vital and authentic decision considering the options to gain access to the infrastructure projects of Pakistan (Cai, 2017). It is important for the management to have a complete realization of all the potential opportunities and challenges associated with the broad form of ongoing infrastructure projects in Pakistan. It is significant to mention that the domain of infrastructure projects of the country of Pakistan greatly influence by the main enterprise of the China-Pakistan Economic Corridor (CPEC).
When it comes to the important strengths related to the main idea of infrastructure projects in Pakistan under the domain of CPEC than the strategic significance of the country can never be ignored. The geographical structure of the country reveals that it is located at the juncture of West and Central Asia. The country of Pakistan is important because it is referred to as the source of connectivity with the other important countries situated in the region. Geo-strategic importance of Pakistan is adopted by China as the great strength to consider the option of investment. China invested billions of dollars in the region that ultimately enhance the prospect of infrastructure in the country (Rolland, 2017). There are many ongoing projects of infrastructure in Pakistan that open new opportunities of investment for foreign construction companies. The existing trade route between China and Pakistan is established as a great source of different projects of infrastructure. The Australian construction firm considers this form of the business domain as a great opportunity to consider the existing infrastructure projects in Pakistan and enhance its business paradigms in the region.
Consideration of the CPEC project is essential when a foreign construction company is thinking to gain access in the infrastructure projects of Pakistan. It is important to understand this fact that CPEC is one comprehensive project which is comprised of many projects of infrastructure. There are many infrastructure projects in the country which enhance the options of foreign investment in the sector. The institutional mechanism is another strong aspect that requires necessary consideration to achieve the objective of attaining access into infrastructure projects in Pakistan (Clark, 2017). It is critical for the company to gain proper knowledge about the existing mechanism concerning the entire idea of infrastructure projects associated with the main project of CPEC. The comprehensive institutional mechanism is established for the infrastructure projects considering the main aspect of OBOR. There is the establishment of a joint cooperation committee developed by the governments of China and Pakistan. The aim of this form of consideration is to ensure the proper application of the main idea of the proper mechanism (Pilling & Donnan, 2013). It is important for the foreign construction firm to check the overall feasibility and suitability of investing in the infrastructure projects of Pakistan.
A proper understanding of the security conditions of the country of Pakistan is also crucial to ensure the effective form of investment in the infrastructure projects. The country of Pakistan is established as the biggest victim of terrorism that eventually negatively influence the approach of investment (Clark et al., 2017). Foreign needs to be vigilant considering the ongoing issue of improper security of the country. Governance of the country is also one important factor to attain better positioning as the foreign construction company in the infrastructure projects of the country. it can be one challenging prospect for the company to effectively deal with the issues of bad governance. This form of the existing situation requires the adoption of a comprehensive plan of action to gain maximum benefits from the idea of investing in the construction sector of the country. Transparency is one major concern relevant to the overall idea of the CPEC project in Pakistan in the form of different infrastructure projects (Tong, 2015). It is observed that different shareholders involve in the whole spectrum of infrastructure projects in Pakistan have concerns in the form of a lack of transparency. Foreign companies need to focus this fact to avoid any further complications and attain better outcomes in the end.
It is notable to mention that globalization has brought vast changes in the global economy. China’s BRI is one of the leading regional integration and corporation in the region. Multiple world leaders have expressed their desire to work in the development and construction of CPEC due to potential benefits (Yu, 2013). The project has been moving with great pace and ease due to the commitment of China. It is noteworthy to mention that the vision of China’s new development is an alternative to regional trade agreements. Pakistan is actively engaged in such initiatives due to its potential benefits (Irshad, 2015). Many construction companies are willing to work in this project due to its potential to generate excessive profit. Australian construction companies are showing their interest in this project as it has the potential to become the largest platform for the economic corporation in the entire world. It is evident that BRI is going to connect untapped areas around Pakistan, so there is an increased potential for the construction companies to join this project in order to maximize their profit. Rail, road, and sea linkages will provide new opportunities for China and Pakistan due to regional integration and cooperation. CPEC is a framework of regional connectivity (Lim et al., 2016). OBOR/BRI has six major economic corridors which are responsible for holding more than 60 countries of Europe, Asia, and Africa. The construction companies will gain an excessive advantage by joining this project as it is one of the major construction projects in the whole world. The transpiration infrastructure of the CPEC is providing valuable enhancement for economic development and trades. Various construction companies are working on the same project in different regions of Pakistan to complete it before time (Yunling, 2015). CPEC is effectively looking for various construction companies that are capable of handling such huge projects with advance quality. Therefore, it will be beneficial for Australian companies to work in BRI projects in order to collect maximum profit.
Conclusion
In conclusion of the assessment of the effectiveness of the main idea of CPEC and specifically the approach of infrastructure projects in Pakistan, it is important to reveal that it is one great opportunity for the Australian construction company to gain access in the planned projects under the domain of BRI. it is integral to gain necessary and relevant information about both the countries of China and Pakistan to establish the desired form of investment. It is recommended for the company to focus the regional social, political, and technological paradigms of the country to ensure the proper form of investment. There is a range of regional competencies that offer an effective paradigm of foreign investment. The construction industry of Pakistan is growing after the initiative of CPEC for the region. The project of CPEC builds a strong position for Pakistan to achieve better features of investment for the infrastructure sector of the country. The overall importance of BRI projects in the regions of China and Pakistan is also a crucial feature of concern to attain desired outcomes of trade involvement.
References
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Ali, M. M., & Faisal, F. (2017). CPEC, SEZ (Special Economic Zones) and Entrepreneurial Development Prospects in Pakistan. Pak. Dev. Rev, 56, 143-155.
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Cai, P. (2017). Understanding China’s Belt and Road Initiative.
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