Closing Case: Barrett Farm Foods Essay examples

884 Words May 2nd, 2012 4 Pages
Closing Case: Barrett Farm Foods
Case Questions: 1. Philip Austin’s plan for European expansion is very simplified and will rely mostly on the foreign intermediary to complete export and complete sales transactions. I believe that this is the main problem of this expansion plan; there is too much liability in someone outside of the company that possibly doesn’t share the same goals and objectives of the company and sometimes is not completed committed with the process. There are some important issues to consider when dealing with intermediaries on an exporting process: First of all the company would need to identify the appropriate commission structure for compensating intermediaries, which sometimes might lead
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3. The challenges involved in exporting are the same of any other international operation; there are commercial risks, political risks, cultural risks and currency risks. In order to be prepared to face these risks the company would indeed need to invest and create an export team, hiring and training employees in international operations. The team will require skills in areas such as product development, logistics, finance, currency management, foreign languages and cross-cultural skills.

4. First of all Barrett needs to think on how much they are willing to invest in this European expansion; how much risk do they want to take?; and maybe most important, how much control of their products do they want to have? After answering these questions Barrett would be able to decide between direct or indirect exporting. In my opinion, Barrett should start its European operations by indirect exporting, so they can first measure the degree of receptivity that their products have there. Then, according to performance, they could invest even more or give up.
There are important characteristics that Barrett should consider while deciding which intermediaries to choose. First of all it

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