Question: Bristow Inc is interested in establishing a presence in Country

Bristow Inc. is interested in establishing a presence in Country Y. Bristow is expecting demand for several of its products to increase in that country because a major customer, Kale Enterprises, is building a large manufacturing plant in Y. Bristow has been supplying Kale’s other foreign manufacturing operations mainly through exporting. However, shipping costs and long delivery times have been somewhat troublesome to both companies in the past. Bristow has also identified several other companies native to Country Y as potential customers.
Bristow currently has operations only in the United States. Kale Enterprises is a successful global company with operations in over 20 countries. Bristow’s managers have identified the following possible options:
a. Simply export to Country Y.
b. A company in Y has expressed an interest in licensing Bristow’s technology and has the capability and capacity to produce the products used by Kale.
c. A joint venture with Kale may be possible, but managers for Kale would be willing to enter into an agreement only if substantial control for Bristow’s operations is given to Kale managers.
d. Bristow’s managers have located a company that could be purchased and operated as a subsidiary. The company currently produces products similar to Bristow, but it is using outdated technology.

Discuss what factors should be considered when choosing among the above options. Develop a list of additional information you believe would be useful in making the decision.

View Solution:

Sale on SolutionInn
  • CreatedApril 17, 2014
  • Files Included
Post your question