Bristow Inc. is interested in establishing a presence in Country Y. Bristow is expecting demand for several
Question:
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 The company currently produces products similar to Bristow, but it is using outdated technology.
Instructions
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.
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Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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