1. Do you see any problems with Philip Austin’s plan for European expansion? Do you support his entrepreneurial approach to exporting? What should be the features of a more systematic approach to exporting?

2. Why did Barrett choose exporting as its entry strategy for Europe, as opposed to foreign direct investment or licensing? What advantages does exporting provide to Barrett? What are the potential drawbacks of exporting for Barrett?

3. What challenges can Barrett expect in its export drive? What types of new capabilities does the firm need to acquire to manage its export transactions?

4. How should Barrett choose between direct and indirect exporting? What are the ideal characteristics of European intermediaries for Barrett? Where can Barrett turn for financing its export sales?

5. There are already numerous companies selling processed foods in Europe. What can Barrett do to compete successfully against these firms?

6. Why does Austrade want Australian firms to focus on exporting processed foods? Why is exporting high value-added products good for Australia?

Philip Austin, general manager of Barrett Farm Foods, was thrilled after returning from the food industry trade fair in Cologne, Germany—the largest food and beverage fair in the world. Barrett Farm Foods, based in Melbourne, Victoria, is Australia’s sixth-largest food company. It distributes both bulk agricultural commodities and processed food products. Among others, it sells macadamia nuts, cereal bars, garlic, ginger, dried fruits, and honey throughout Australia.