Group 5 Final Paper Free Range v4

2777 Words Dec 2nd, 2014 12 Pages
Free Range: A Case for International Operations
Group 5
Katherine Stone, Michael Williams, Shawn Williams, Horace L. Wynn, Scott Terry

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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Free Range must keep this in mind when trying to sell their product. Trying to sell a product at twice the rate of the traditional product brings the inherent risk that many consumers will not be as open to making a purchase. Since the current exchange rate for the dollar is only .80 euro, Free Range will already face losses when converting to European currency. The company’s establishment and the amount of money lost from the conversion should also be established in an initial startup budget.
There is also the inherent problem of cultural issues to be faced in these new countries as business practices in the United States completely differ from those in other countries. Free Range is looking to do business in the United Kingdom; here we find the definition of successful in the United States is not the same as the definition of success in the U.K. The staff of Buzzle states that the position someone holds in a company in the U.K. is more important than the amount of money the individual makes in a company (Staff, 2013). This cultural tradition may not be identical to most American jobs, but this is where Free Range would actually benefit. Free Range’s business philosophy mirrors that of the United Kingdom in that it is more concerned with the company’s success rather than profits. Free Range shows a great deal of concern over the quality of their product and their stance within the organic farming production

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