Essay on Blue Ridge Spain

1920 Words Feb 11th, 2012 8 Pages
Table of Contents
Executive Summary 1
Dissolution of Blue Ridge Spain 1

Restructuring Management Based on Growth 2
LARGE GROWTH POTENTIAL 2 MEDIUM GROWTH POTENTIAL 2

SUSTAINABLE SIZE MARKETS 2

Growth Plans for Spain 3

Strategic Alternatives 3

EQUITY BASED STRATEGY 3

NONE-EQUITY BASED STRATEGY 4

Executive Summary

International business meshes across multiple domains most notably market entry strategies and sociocultural variances. Factoring in those two critical aspects and giving them the right amount of attention is the separating line between success and failure. Terralumen, Blue Ridge, and Delta are all successful companies; However, by not observing the basic requirements of
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This philosophy is what drove Delta to base its growth projections on a study which overlooked that Blue Ridge has previously failed in France under the beverages company due to the lack of patience of its parent company’s management team among other things (BRS p.2). There needs to be a restructuring of the regional managers in order to more efficiently manage different types of markets. Markets need to be identified as large growth, medium growth, and small growth potential, with different management and philosophies for each kind.

LARGE GROWTH POTENTIAL

Sodergran has shown he can be successful with P&G brands in Africa and the Middle East (BRS p.8). Many countries in Africa and the Middle East can be considered developing large growth markets because foreign brands are entering markets where there may be little or poor quality competition. Those are markets where the general opinion is that foreign products are of superior quality (MGE p.334)

MEDIUM GROWTH POTENTIAL

Costas, in contrast, has shown he can be successful in Spain, Kuwait, and Singapore. These areas value personal relations and are slower to adapt foreign products and services, but growth is possible with the correct partners and knowledge. With this potential for growth, these could be considered medium growth potential markets. The experience that Costas has in building relationships and managing joint ventures makes him qualified to manage the business in these

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