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10/27/2009
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documents in English
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The strategy of investment and development of the French companies in Poland

  1. Description
  2. Introduction
  3. The different entry modes in foreign market
    1. Alternatives to FDI
    2. Greenfield investment
    3. Acquisition
    4. Joint Venture
  4. The strategic motives for FDI
    1. Market seekers
    2. The raw material seekers
    3. The production efficiency seekers
    4. The knowledge seekers
  5. Rate of risk versus return
    1. Leverage rate of return
    2. The national market arbitrage
    3. The investor's myopia
    4. The notion of risk inherent to FDI
    5. Business failure
    6. Natural disasters
    7. Currency and exchange rate risk
    8. Financial risk
    9. Country risk
  6. Evolution of the flows of FDI
    1. Global flows of FDI
    2. FDI flows to the CEE
    3. FDI flows to Poland
    4. Particular forms of investment in the inflow of FDI to Poland
    5. Foreign investors in Poland with regard to the country of their origin
    6. The major investors in Poland
    7. Trade between Poland and its partners
  7. Attractiveness in Poland
    1. Why invest in Poland?
    2. A strategic location
    3. A coveted market
    4. Strong development perspective and the 'polish miracle'
    5. A young, cheap and qualified labor
    6. The EU membership
  8. Threats to Polish attractiveness
    1. Problems common to ex-communist countries
    2. A strong currency threat to Polish exports
    3. A lack of transportation infrastructure
  9. Poland: Reforms and incentives
    1. Law on the freedom of business operations
    2. The corporate income tax
    3. Special economic zones (SEZs)
  10. FDI in Poland - Case analysis
  11. The banking sector
    1. Sector analysis
    2. The reorganization of the banking system
    3. A foreign domination, result of the privatisation process
    4. A highly concentrated market
    5. Market potential and attractiveness
    6. The French investments
  12. The retail sector
    1. A favorable regulatory environment
    2. A domination of traditional Polish structures
    3. The strategy of the French group
    4. Shopping malls vs. small local stores
    5. A sector side with adaptation and innovation
  13. The telecommunication sector
    1. Market analysis
    2. The privatisation process
    3. The liberalization of the market
    4. A market with potential still under 'control' of the historical operator
    5. The strategy of the French operators
    6. A global strategy
  14. Conclusion: A deep reorganization of the structure of the French FDI
  15. A decrease of the share of French FDI of the total inflow
  16. The rise of SME in the concert of FDI
  17. A new 'sectorisation' of the FDI
  18. References

This paper deals with the strategy of investment and development of the French companies in Poland. In a first part, the author discusses the theory of Foreign Direct Investment, more commonly called FDI: its different types and their alternatives, their motives, benefits and risks. In the second part, more practical, he studies the evolution of the FDI on different scales, always keeping in mind the French activism in the area: on a global basis, in Central and Eastern Europe and in Poland itself. Then he tackles a sort of SWOT analysis of the Polish market and point out foreign investors’ incentives to settle their activities in the country. The third and last section is dedicated to an analysis of cases in the service sector focusing on 3 key sectors of economy: the banking, the retail and the telecommunication sectors.

This paper deals with the strategy of investment and development of the French companies in Poland. In a first part, we will discuss the theory of Foreign Direct Investment, more commonly called FDI: its different types and their alternatives, their motives, benefits and risks. In fact, before entering into details we need to define a couple of principles and theories to better understand the challenges at stake. In the second part, more practical, we will study the evolution of the FDI on different scales, always keeping in mind the French activism in the area: on a global basis, in Central and Eastern Europe and in Poland itself. Then we will tackle a sort of SWOT analysis of the Polish market and point out foreign investors’ incentives to settle their activities in the country. The third and last section will be dedicated to an analysis of cases in the service sector. The French FDI in Central and Eastern Europe, and particularly in Poland, is mainly affected to that area; thus, we will focus on 3 key sectors of economy, more particularly of the tertiary sector, e.g. the banking, the retail and the telecommunication sectors.

Key Words - FDI, Foreign Direct Investments, investments, French companies in Poland, CEE, Central and Eastern Europe, Poland, France, service sector, tertiary sector, banking sector, the retail sector, telecommunication sector, Greenfield investment, Acquisition, Joint-venture, Attractiveness of Poland, Special Economic Zones, France Telecom, Telekomunikacja Polska, TP SA, Polska Telefonia Komorkowa Centertel, Polska Telefonia Cyfrowa, Vivendi Universal, Deutsche Telekom, Era, Idea, Orange, BNP Paribas, Société Générale, Credit Agricole, Cetelem, Calyon, Franfinance, Lukas Group, Europejski Fundusz Leasingowy, Eurobank, Carrefour, Auchan, Géant, Casino Group, Globi, Champion, Muszketrowie, Leader Price

[...] But as we said earlier, the amount of investment made by German investors is mainly due to mid-size companies by opposition to French Multinationals, which explain easily this Exhibit 2.I.3 / 6 Size of investments among the 4 major investors in Poland Source: Polska Agencja Informacji i Inwestycji Zagranicznych S.A. Trade between Poland and its partners In 2004, Poland has exported for $ 65 billion of goods and imported for $ 82 billion, which represents a trade deficit of $ 17 billion. [...]


[...] This paper deals with the strategy of investment and development of the French companies in Poland. In a first part, we will discuss the theory of Foreign Direct Investment, more commonly called FDI: its different types and their alternatives, their motives, benefits and risks. In fact, before entering into details we need to define a couple of principles and theories to better understand the challenges at stake. In the second part, more practical, we will study the evolution of the FDI on different scales, always keeping in mind the French activism in the area: on a global basis, in Central and Eastern Europe and in Poland itself. [...]


[...] LIU, Scott X., Foreign Direct Investment and the Multinational Enterprise: A re-examination using signalling theory Praeger publishers MANFRA, Pellegrino Ph.D., Entrepreneurship, Foreign Direct Investment and Growth in Transitional Economies: The Case of Poland and China MÜLLER, Thomas, Analysing Mode of Foreign Entry : Greenfield Investment versus Acquisition, Discussion paper 2001-01, Department of Economics, University of Munich SCOTT, Patricia, Managing financial risk April 2001, ACCA TEWES, Christiane, M&A and Privatisations in Poland: Key success factors of cross-border acquisitions into the Polish market, October 2001 Gabler edition Wissenchaft WEI, Yingqi, LIU, Bo, LIU, Xiaming, Entry Modes of Foreign Direct Investment in China: A Multinomial Logit Approach, 2004/01, Lancaster University Management School Working Paper WITKOWSKA, Janina, WYSOKINSKA, Zofia, Dynamic interdependence between foreign direct investment and foreign trade in the context of the European integration process with special reference to Central and East European Countries, Comparative aspects Wydawnictwo Universytetu Lodzkiego ZORSKA Anna, Transnational Corporations in Poland Leon Kozminski Academy of Entrepreneurship and Management An Integrated Approach to Risk as a Determinant of Foreign Direct Investment Academy of Business and Administrative Sciences Glossary of Foreign Direct Investment Terms and Definition, Directorate for financial and entreprise affairs, OCDE Trends in Foreign Direct Investment in OECD Countries OCDE Yearbook of Polish European Studies, Volume 5/2001, Warsaw University Centre for Europe Websites - www.unctad.com,United Nations Conference on Trade and Development - www.broadliners.com, Top European I.T. [...]

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