I have to matching each of the potential international expansion actions availab
ID: 2748207 • Letter: I
Question
I have to matching each of the potential international expansion actions available to Free Range Foods (indicated by A, B, C, etc.) with the most appropriate globalization strategy for that action (indicated by 1, 2, 3, etc.). For each letter/number match, briefly indicate your rationale for making that choice. You are not required to comment on your peers’ posts in this individual activity. Globalization Strategy 1. merger and takeover 2. cooption 3. joint venture 4. network 5. strategic alliance 6. franchise 7. outsourcing 8. keiretsue
Potential International Expansion Action A. Free Range contracts with a large French food processing company to use Free Range’s formulas, packaging, name, etc. to market and sell Free Range branded products in France. B. Free Range, Danon, Sealtest, Breakstone, and Maplehurst form a group to build a new cottage cheese processing facility in France and to market and sell Free Range-branded products in Europe. C. Free Range and Danon agree to build a new cottage cheese processing facility in France to market and sell both Free Range and Danon products. D. Free Range buys an established French firm, La Fromage Petite, through a combined cash and stock transaction. Free Range plans to produce, market, and sell Free Range, in addition to La Fromage Petite, products in France. E. Free Range and La Fromage Petite agree to develop, manufacture, and sell each other’s product-line in the U.S. and France, respectively. F. Free Range agrees to manufacture and export its current product line to France for marketing and sale by the French firm, La Fromage Petite.
Explanation / Answer
Globalization Strategy
1. Merger and takeover: combining two previously separate firms into a single legal entity.
3. Joint venture: an agreement to develop a new entity and new assets by contributing equity.
5. Strategic alliance: an agreement between two or more parties to practice a set of agreed objectives though remaining as independent organizations.
6. Franchise: the right to use a firm's business model and brand for a prescribed period of time.
7. Outsourcing: practice used to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. It is cost-saving strategy and includes both foreign and domestic contracting, and sometimes includes off shoring.
8. keiretsue: a set of companies with interlocking business relationships and shareholdings.
Answers:
A - 6
B - 3
C - 1
D - 8
E - 5
F - 7