Arcor: Global Strategy and Local Turbulence (Abridged)

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Lastly, Arcor could attempt to gain access to, and cultivate relationships with political decision makers in the country to mitigate risk. For dynamics on the confectionery industry see Exhibit 1. Going forward there are many potential strategic options for Arcor to sustain its growth. To ensure success, I recommend Arcor, employ a transnational strategy similar to the one conducted to penetrate the U.S market. In doing so, Arcor would aim to reduce costs, transfer core competencies while also paying attention to pressure for local responsiveness. Additionally, this strategy will address local differences without much adaptation from its original focus. Thus, it is a tradeoff or middle point, as Arcor could not do a complete local strategy. Nonetheless, this transnational strategy is a difficult task due to contradictory demands placed on the organization. However, Arcor has already done a good job of responding to local preferences by changing products, packaging sizes, and flavors. Overall this allowed them to successfully increase their percentage of international sales. The U.S market remains a major opportunity for Arcor, and their strategy, when entering the county, worked well as it reduced risk and ensured a steady transition into one of the largest confectionery markets on the globe. Moreover, I recommend continually

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