Question: CASE: Jamaica Broilers Buys New Hatchery in the USA ( 4 0 MARKS ) Poultry producer Jamaica Broilers Group has acquired a hatchery ni Big
CASE: Jamaica Broilers Buys New Hatchery in the USA MARKSPoultry producer Jamaica Broilers Group has acquired a hatchery ni Big Valley, Pennsylvania, on the east coast of the USThis is particularly important as ni recent times Jamaica Broilers Group has registered a nine per cent reduction ni net profit for the quarter ended October despite increased revenues, but on the back of challenges with higher raw material costs, as well as competition from imports, resulting ni aglut in the local market.There is also increased competition from CB Foods CB the second largest poultry producer ni Jamaica. CB si also increasing its exports in the regional markets.The company has not disclosed the terms of the transaction ni the US saying only it would grow its hatching capacity by per cent.The acquisition positions Jamaica Broilers as a key supplier of baby chicks to small producers. And ti si now the largest independent supplier of fertile hatching eggs ni the US according ot Group Senior VicePresident for Finance &Corporate Planning Ian Parsard.Broilers closed the purchase of the Bel &Evans Hatchery last Wednesday, October tI wil rename the business International Poultry Breeders Hatchery Inc. Jamaica Broilers already operates a hatchery ni Iowa under the International Poultry Breeders subsidiary, from where it would truck baby chicks to the east coast.Parsard said the Pennsylvania facility wil reduce delivery mileage by an average of to miles, and otherwise offers the Jamaican company an opportunity to extend its market reach."It does open up a number of other frontiers in terms of markets. Because of thisexpansion we can do contract hatching for producers who require baby chicks. We can get into the markets even up ot the eastern side of Canada," Parsard said."We have been supplying into that market for some time, but what this acquisition wil do in part si ot make the logistics more efficient. So instead of trucking chicks al the way over from lowa ni hte west, we can do so from the Pennsylvania hatchery," he said.Jamaica Broilers declined to disclose the cost of the acquisition, but Parsard said they expect the facility ot pay back the investment in three ot five years.The Gleaner: October modifiedQUESTION NOA Assume you are the International Marketing Director at Jamaica Broilers. Taking into consideration the impact of global integration and other local challenges discuss at least five factors that would cause the company to be expanding overseas. marksB Illustrate how the Jamaica Broilers management can apply the key success factorsto continue to grow and expand its business in the US market. marks C Assess the pros and cons of the acquisition method used by Jamaica Broilers toexpand its poultry business in the US particular the east coast. marksD Discuss two environmental factors that are likely to affect Jamaica Broiler'smanagement as they expand in the US market marks SECTION BInstructions: Answer any two questions for marks each marksQUESTION NOABC Manufacturing Company limited si a locally owned year old family business thatdoes business only ni Jamaica. As a young Graduate ni business you are employed otABC as International Marketing Manager with a primary mandate ot explore business opportunities overseas.a Identify five global marketing legal issues and explain how they can causeconflict for your company ni different countries. marks b State how the political issues identified may be managed and or avoided marksQUESTION NOJamaica Producers company Limited has extended its operations ni various countries around the world. tI manufactures and exports coconut water to several of thesecountries. However, the price charged for the same quantity of the product varies ni different countries. Discuss five factors that would influence the company's globalpricing policy.QUESTION NO marksAgroup of local business operators, faced with global competition and declining market share have decided ot enter the overseas market. They contracted you as an international marketing consultant ot guide then through the initial stages of their new venture.Explain ot the group the following: marksaThe terms global localization and pluralisation of consumptionmarksbWhy sustainability has become a key driver of the firms business marks cTwo payment payments methods you may use marks d Importance of studying national data of a country before deciding ot enter.
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