Unit 8: Assignment
Sylvie George
Kaplan University
Abstract
1. Compare the advantages and disadvantages of acquiring the existing firm, and continuing production in Korea through acquisition for Zip-6.
2. Compare the advantages and disadvantages of re-purchasing the licensing agreement and either establishing Zip-6 subsidiary through Greenfield venture and producing in South Korea, exporting the product to Korea, franchising to another firm or relicensing to another firm.
3. State your choice of options to pursue and reasons for this choice.
Answers:
1. If you get it right, there can be many good reasons why buying an existing business could make good business sense. Remember though, that you will be taking on the legacy of the
…show more content…
2. I will define licensing agreement: in this case we are talking about an international licensing agreement which allow foreign firms, either exclusively or non -exclusively to manufacture a proprietor’s product for a fixed term in a specific market. Licensing is a relatively flexible work agreement that can be customized to fit the needs and interests of both, licensor and licensee.
Advantages of using an international licensing agreement are:
Is highly attractive for companies that are new in international business.
Obtain extra income for technical know-how and services
Quick expand without much risk and large capital investment.
Reach new markets not accessible by export from existing facilities.
Political risk is minimized as the licensee is usually one hundred percent locally owned.
Retain established markets closed by trade restrictions.
Pave the way for future investments I the market.
Disadvantages are:
Low income than in other entry modes.
Risk of having the trademark and reputation ruined by an impotent partner
The foreign partner can also become a competitor by selling its production in places where the parental company is already in.
Loss of control of the licensee manufacture and marketing operations and practices leading to loss of quality.
Franchising agreement compare to licensing agreement tends to be longer and the franchisor offers a broader
6. Outline the potential pros and cons of the 3 key strategies for developing foreign markets: exporting, licensing and franchising, and direct investment.
Scotts Miracle-Gro is the largest company in the North American lawn and garden industry. It is also the world’s leading supplier and marketers of consumer products for do it yourself lawn and garden care, including products for professional horticulture. This paper is mainly centered on two decisions which include either to make and or buy. In other words whether Scotts Miracle-Gro should keep manufacturing in Temecula located in California, outsource production to a contract company in China or to build a company in China and relocate production there. The paper will be divided into three parts in
It also requires more of an investment and commitment by the international company which creates a higher risk. There is also the down side of having difficulty managing local resources.
Since John was in custody, what are the procedural steps the police were required to take once John began to incriminate himself? The police have no obligation to stop John Doe from making any statements. “Excited Utterance” made by a defendant before being questioned are admissible as statements given under Miranda advisement. Once the police begin to question John Doe regarding the theft, then they are required to read or provide Mr. Doe with his Miranda Warnings. Miranda rights (Miranda rule, Miranda warning) n. the requirement set by the U. S. Supreme Court in Miranda v. Alabama (1966) that prior to the time of arrest and any
2a. Consumers would certainly see a hike in prices on the imported product and in turn could affect the consumer’s ability to afford neither the domestic made clothing nor foreign made clothing.
In essence, we learned many important lessons. First, when the business is new and its’ future is uncertain it should not invest in large capital. Next, the business should outsource only when it is appropriate considering the risks and benefits. And most importantly, we learned that in a small business situation, the company should focus on its’ core competency in bringing value to the business and the customers.
Analyze both the structure of the competitive priorities and infrastructure of the production process. Develop three (3) new enablers that are aligned with the long-term plan of the selected organization. Evaluate three (3) pros and three (3) cons of the new enablers.
Question 2: From a qualitative viewpoint, discuss the pros and cons of launching this venture.
Before deciding to purchase a business, in this case one must weigh the pros and cons of purchasing an existing business. If I were interested in hardware and construction, this would definitely be an
* For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
The advantage of acquiring the firm in Korea would mean that this would be a wholly owned subsidiary entry mode, therefore, having the full advantage of taking over their production and distribution in the host nation. However, if ZIP-6 is already in the know about having a strong market for his product
Question 1: Assuming Bachand’s proposed system is accepted; compare the profitability of a franchised PK store to a corporate-owned store.
2. How would leveraging capabilities with respect to the Indonesian market differ between an Australian/New Zealand producer of computer software and an Australian/New Zealand manufacturer of automotive parts?
The lesson learned from this is that sometimes it is easier and faster reach a new market via joint venture, even though the profit will be less, but the company can save a lot of money in studying the new market trying to understand the new culture and how they purchase and also it can minimize the risk because there is a national brand supporting the new international brand, which gives confidence and security to the customers.
1. IF you were CEO of Harley Davidson, How would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?