preview

13-6 Barrett Foods Case Summary

Decent Essays
There are several problems with his expansion to Europe. The first is that they lack international experience. They need to figure out international shipping prices, documentation licensing, and payment. Market research will play a large role here. Direct exports pay a higher price in time investment, personnel, and resources. I believe BFF needs to assess the global market first, organize their exporting tactics, acquire the skills needed like a team devoted to foreign sales, then implement their strategy. I do support his approach if he takes these actions described. 13-5 BFF chose to export because it is cheaper than FDI, it also allows them to have full control. The advantages of exporting are, it could potentially increase sales, diversify their customer base, the product is light and some are non-perishables which are easy to ship. It also spreads their risk and allows them to be less dependant on one market base. The disadvantages they could run into are tariffs or trade barriers, less likely to learn the culture which could hurt sales, and fluctuation of exchange rates. He would also have to understand all documentation required.…show more content…
They can all be categorized into the 4 risks, commercial, currency, cultural, and political.They need to acquire market research data in their new territory so they understand their consumer base better. This would include customs, culture, and the needs/ wants of their customers. They need to acquire a skilled team to do the market research and get all data on their prospective market. They also need representatives to help on how to market and gain profit from exchange rates, while also figuring out their transportation needs. They basically need a whole separate branch/team dedicated to
Get Access