Free Range: A Case for International Operations
Group 5
Katherine Stone, Michael Williams, Shawn Williams, Horace L. Wynn, Scott Terry
AMBA 610 UMUC
Part A: Potential Advantages and Shortfalls of Various Globalization Strategies
Globalization strategies have been an issue for any organization that intends to increase its international presence. Free Range Foods has decided to grow operations in France, the United Kingdom, and other regions throughout the globe. The recommended strategies Free Range Foods should consider utilizing in order to strengthen its position in the international market are 1) Merger and Acquisition/ Takeover and 2) Strategic Alliances. Both strategies are effective in obtaining an entry into the
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Producing and maintaining a product is hard enough domestically and is only further compounded with the addition of taking further components into consideration.
A major factor that Free Range needs to consider is how they will like to set up their international organization. According to Jones (2013), a multidomestic strategy is defined as one which haswhen you have a corporateion headquarters and establishesdevelop divisions in each country or region where ityou would like to do business in. Authority in these divisions would be given to the managers located in eachthere. The divisions would develop and market products in a way that focuses on the region of the globe they are locatedin (Jones, 2013, p. 464). This is important to consider because what Americans want out of a product can be very different than what Europeans expect out of a product. For example, there are many different types of cheeses available in Europe that are not available in America, so it would be important to understand the culture and expectations of consumers in the country/region where a company doesyou are doing business in. The Multidomestic approach will allow you to form your products to satisfy the needs and wants of the consumers in that area.
One of the primary factors to consider is the cost of establishing the business in a foreign market. France maintains market for organic products but the products are sold at a much higher rate than traditionally farmed
The large initial capital investment needed for new entrants is another major barrier. The cost of machinery and manufacturing is expensive. It is hugely important and costly to have a global presence in manufacturing as it is extremely expensive to ship machinery to clients around the globe.
Since 2006, the demand and market for organic food and drinks has been increasing exponentially. The demand for these organic products is growing much faster than the supply. Consumers are more interested in where their food is coming from and how it was made. “The latest data shows organic sales in Canada have tripled since 2006 to 3.7 billion dollars a year.” (Global News). There are not enough farms in Canada that produce and supply organic products to meet the high demand. It takes approximately three years for an average farm to convert to an organic farm. However, the whole farm does not have to be organic, a portion of the farm can be converted to organic while the rest operates the way it was previously. The demand curve has shifted
While there are many significant challenges presented to dairy farmers including making production environmentally friendly, competitive products, and consolidation, I belvie that the shift towards mega-farms is the largest potential threat. As we advance in technology we also advance in productivy, moreover, this can be harmful to dairy farmers. Mega-farms allow better technology to become more competitive and increase more product output. With this advantage, these mega-farms dominate the market and gain significantly finicailly. While an increase in production from a fiscal stand point may appear positive it diminishes local dairy farmers and they can simply not compete with mega-farms economically. While mega-farms face there own problems
The organic foods industry is one that shows consistent growth. From year to year, they are undergoing an increase in demand. There are a number of factors that contribute to the industry’s growth. These factors include more consumers being educated, and conscious of health concerns of processed foods having a negative impact on their body and the environment. Trends in the retailing of organic foods would include the ups and downs in the
In the global capabilities of companies, the process of penetrating and developing an international market is seen as the most difficult. This happens because companies usually have little information about the new market as well as marketing infrastructure to penetrate it. However, companies treat entry into foreign markets as an extension of their business, which adds incremental revenue for their products and services. Additionally, firms pursue foreign business opportunities to minimize risk and investment thereby increasing their total sales and profits. For Tyson Foods to enter the Portuguese market, it would attain growth and expansion through diversification.
This individual assignment will be assessed by means of a 3,500 ± 10% word Report. The assignment has been designed to allow you to develop and use your knowledge and skills in understanding key strategic issues relating to food retail internationalisation. You will be required to apply the strategic concepts and analytical techniques studied in this module. All the learning outcomes below will be assessed:
When expanding into a global marketplace, companies must select a means of market entry. The decision to export, franchise, build a strategic alliance, establish a joint venture, and make a direct investment is based upon two things: an organization's interest in maintaining marketing control and how much of a financial investment it is willing to make. This holds true for 5 Bucks and Joe to Go, both of which are coffee retailers that want to enter emerging urban markets in India. 5 Bucks prefers to maintain greater control afforded by a joint venture and is willing to take on greater financial risk. Joe to Go, on the other hand, is not as willing to take on high levels of financial risk and is willing to rely on its franchisees to effectively market and brand Joe to Go in India. Both options require their local partners to adjust offerings to meet the needs of the local population while maintaining similarities in product, look, and experience across global locations.
Post-merger integration work is difficult, political, and often driven by teams that still have day jobs. Budgets are undefined, executive leadership is not clear beyond the C-level, no plans exist, and no one has done it before. Companies are willing to spend money on due diligence ahead of signing the papers, but do not always follow through to ensure that targets are met. In many cases, integration team members are plucked from the “operate and maintain” staff, and either cannot see or do not share the strategic vision of the “design and build” dealmakers. Companies that thrive from mergers do eight things (at least) correctly: Have a Plan, Communicate, and Measure Results, Dedicate the Team, Automate, Plan for Turnover, Focus on Business
International strategies are plans that are made by organizations to guide them in different commercial transactions that take place in different countries. On the other side, the organizational structures highlight how an organization plans its hierarchy, identify tasks to its personnel and ensure that workforce collaborate to reach a common goal. For a company to be successful in the international venture it has to properly organize its human resource, support devices as well as how it will group its products, services or brand so that it can increase its effectiveness. Therefore identifying the proper international strategy and organizational strategy for Whole Food Market will assist it to accomplish the goals that it has set and clearly
work with the goal of building a focused global food company that offers the consumer
There is a continuous political struggle between the acceptance of dairy farm growth and feedlot growth midst some of the family owned businesses in the rural areas. Insomuch, the largest milk producer wanted to invest about 55 million into a dairy feedlot last year, but regulators proposed environmental concerns such as nitrate pollution in the water, manure smell, and large-scale confinement of farm animals claiming it interferes with the beautiful side of country living. This family is known to have over 35,000 dairy cows currently working up to 22 hours a day giving them the competitive edge. Although this may appear somewhat monopolistic, it does provide employment opportunities for many as well as financial economic development for the entire State of Minnesota.
This assignment is about Brasil Foods, the largest Brazilian producer of meat and dairy. Today it has leading position in almost all its domestic sectors and strengthening its presence on the global market due to its potential. The globalization provides company many
The paper is about General Mills, evaluating the potential business opportunities in two countries, Greece and France. General Mills is a major food producer in the United States, and has some operations in Europe. France is a major European market while Greece is a minor European market. This paper will examine the business conditions within and between these two countries in order to provide advice for General Mills' management
The sectors in which WBD operates (dairy, beverage and baby food) are attractive to companies and offer the potential for significant growth (see Appendix C). A dominant force is the unique Russian context acting as a barrier to entry for international companies, although they are overcoming this by establishing production facilities in Russia (see Appendix C). The need for good distribution and regional suppliers acts as a barrier to entry. The potential buying power of major retailers (eg. major supermarkets) can put pressure on food producers and WBD is highly reliant on industry leaders Cargill for supplying juice concentrate and Tetrapak for supplying packaging. The increasing demand for premiumisation is putting pressure on Russian companies to improve quality due to the perception that international companies offer higher quality (see Appendix
Other issues regarding international expansion into other countries also need to be considered including, access to supportive infrastructure, adapting to local culture and trade laws. Competitors within each of these regions will also pose a threat; a deeper analysis of competition within the food service industry utilizing Porter’s Five Forces model is located on the next page.