Case Study: Play It Safe at Home or Take a Risk Abroad

716 Words Dec 1st, 2015 3 Pages
AE 5A Writing Assignmaent
Academic Essay: Case Study
Final Draft of Philip

For a company to develop, it is necessary to expand its scale of business, which is following opportunity and risk. All companies face the risk that could let them failed into transfer in new environment and new market, including lease-to-own stores. Lease-to-own is a pattern of shopping usually used in U.S. which provides goods to rent till own within a contract date. One of the dilemmas facing lease-to-own chain is whether to expand the businese by building retail stores overseas, where is a strange environment to them. This dilemma is the key point of Michael Chu’s case study, ‘Play it safe at home, or take a risk abroad?’(2012).

This case focuses on a
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Danel states that the CEO and his father have been successful in the United States, and they might have hardship to step out of comfort zone, especially what they have failed few years ago. Nevertheless, Danel recommends this lease-to-own chain should take the opportunity to expand to Mexico, where he is familiar with the market and situation there, with caution. To be more specific, three issues to suceed in Mexico are provided by Windham. In contrast, Loudermilk considers more and deeper that he focuses on the risks more than the hope of profits. Also, he notes the importance of understanding the Mexican culture and shopping ways of Mexican people which could seriously affect the expansion. His experience in Europe is an good example for international business that make his advice more convincing.
While Loudermilk Jr. draws on his own business experience and makes some good points about the venture abroad, I agree more with the viewpoint of Carlos Danel that Stan Windham should trust his perspective and consider the CFO’s proposals, balance the advantages and disadvantages before making a decision. Moreover, to make a deep analysis into Mexican rules and regulation, to learn from the lesson of Puerto Rico entirely, and to use well personal connection are the three methods to make company successful in Mexico. In my opinion, this

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