Mode of Entry Choices

Strategic Management Scenario:  Assume you are the Chief Executive Officer (CEO) of a company that manufactures and sells packaged snack foods (chips, candies, nuts) in the U.S. (which is your home or domestic market).  As part of your firm’s growth strategy you are considering expanding in one or more foreign countries, markets, or regions across the globe.  As CEO you have decided that you will begin by considering expansion into Brazil and Japan.  When deciding to expand, two major issues that you face is choosing an international strategy and the mode of entry that your company will use to compete across each international market.Pre Report Analysis1) Using cross discipline knowledge you have gained from prior courses, analyze the global packaged snack foods (chips, candies, nuts) industry and describe what is required to successfully compete in this industry. This should be about 1-2 pages.2) Discuss relevant components of the international business environment for each country (trade restrictions such as tariffs, cost of labor, energy costs, etc.) and (b) the impact, if any, of cross cultural differences on the choice of the international strategy to use (ex. cultural preferences for the product itself or domestic vs. import product). This should be about 2-3 pages.The Pre Report Analysis should be included as an appendix in the back of the report and thus will be submitted at the same time as your report.ReportIn a well-written, typed, 5-7 page, double spaced essay carefully address the questions below.  Keep in mind the non bolded question are general Gen Ed questions for university curriculum assessment.  The bolded question are specific to the scenario for this project and that is what you should address and answer.  In other words, by answering the bold questions you are answering the more general question but with more specificity relative to the given scenario.  So you only need to address the bolded questions.1) What do you see as plausible decision alternatives to the business scenario you have been provided? Describe at least three alternatives; each should be discussed in detail and address different stakeholder perspectives.Specifically, in each market in the scenario, what strategies (if any) are plausible?  How would these alternatives impact stockholders, employees, and suppliers?  2) What would be the implications of each decision alternative? Describe any ethical implications associated with each of the decision alternatives. Explain the implications of your international strategy and mode of entry choices on local and global communities. Specifically, what impact does it have on the company and home market as well local employment, local tax revenues, and the natural environment?3) What should the strategy be so that the company is best positioned under each decision alternative?Which decision alternative(s) do you recommend and why?  Make sure you fully describe your choice of international strategy and mode of entry and explain why they are the optimal solution.4) As implications of your recommended decision, what are the actions needed in the next year for each function in the company: Marketing, Finance, Human Resource, Technology, Operations, etc.?Describe the impact of your choice of international strategy and mode of entry on how various functional area strategies should be performed.  For example, would operations need to expand aboard?  Would marketing strategies need to be adjusted for the new country? Reflection PaperAfter completion of your Pre Report Analysis and Report you will be placed into groups where you and your group members will be required to read and provide feedback on each other’s assignments.  You will then be required to submit a reflection paper on what you would do differently based on the feedback provided by your group members.Explain the implications of your international strategy and mode of entry choices on local and global communities. Specifically, what impact does it have on the company and home market as well local employment, local tax revenues, and the natural environment?3) What should the strategy be so that the company is best positioned under each decision alternative?Which decision alternative(s) do you recommend and why?  Make sure you fully describe your choice of international strategy and mode of entry and explain why they are the optimal solution.4) As implications of your recommended decision, what are the actions needed in the next year for each function in the company: Marketing, Finance, Human Resource, Technology, Operations, etc.?Describe the impact of your choice of international strategy and mode of entry on how various functional area strategies should be performed.  For example, would operations need to expand aboard?  Would marketing strategies need to be adjusted for the new country? Reflection PaperAfter completion of your Pre Report Analysis and Report you will be placed into groups where you and your group members will be required to read and provide feedback on each other’s assignments.  You will then be required to submit a reflection paper on what you would do differently based on the feedback provided by your group members.

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