Kassatly Chtaura Essay

1648 Words May 22nd, 2016 7 Pages
Kassatly Chtaura
In April 2013, Kassatly Chtaura, a family-owned company of both alcoholic and non-alcoholic beverages headquartered in Chtaura, Lebanon, faces a dilemma. It is doing well with regard to sales and market share and has succeeded in building a solid income. Meanwhile, the prior year’s numbers show dim growth performance, and the family is unsatisfied about sales of its syrups, juices, ready-to-drink beverages and wines have reached a plateau.
Should the firm extend its supply network or manufacture a new factory and move some operations to Angola or Saudi Arabia? They are in distant locations with distinct cultures, although these are assuring markets. Or should it stay put and expand its operations by introducing
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According to the mentioned in the case, it is important to focus on improving sales in Lebanon. Kassatly Chtaura has an empirical knowledge in the development of a process of internationalization. It’s important to think about the process but with greater caution. They should analyze the market and competition in the Middle East and Africa to understand the risks, precise objectives, and the entry by an establishment of a factory, a strategy of entering a new country by a wholly owned subsidiary, which is relevant for gaining more sales in those countries. Since they have been exporting to other countries, they already need a factory, and to promote a coordination to other GCC countries or the emergent economies of Africa. It is important to know the products that will be manufactured and sold in other countries to understand whether it will be a concentration of products Buzz, Freez, to have the best earnings compared to Lebanon. Kassatly Chtaura needs an accurate strategy to capture the resources, manage and take advantage of opportunities in their target countries.
What are the main factors that affect the internationalization decision

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