You are the Vice-President of Manufacturing for a company which manufactures small personal appliances
You are the Vice-President of Manufacturing for a company which manufactures small personal appliances. Your R & D department has designed a revolutionary, new type of electric toothbrush which cleans and polishes teeth at the same time. Your company has applied for a patent to protect the design. But your company has never actually manufactured electric toothbrushes. You have always outsourced the manufacture of toothbrushes to several suppliers with whom you have long standing relationships. You must decide whether to make the brushes in-house or to contract the brush manufacture to an outside supplier. If you manufacture the brushes in-house you must purchase specialized equipment (assets) and hire additional highly-trained specialists to manufacture the brushes because it requires unique skills and talent. As V.P. of Manufacturing, you must do an analysis of the options you have and present it to the Executive Board.
a) Would you recommend to the Executive Committee to make this product in house or to buy (outsource)?
b) Why would you make this recommendation? Explain what the advantages and disadvantages would be of making vs. buying in this particular situation.
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3. You are the Director of International Development for a company that supplies technology to law enforcement agencies in the detection of crime. You have developed markets in a few English speaking countries, such as Great Britain and Australia, but are now ready to expand into other markets. Your technology is cutting edge and is not readily available in many other markets. You have a few competitors but their technologies are slightly different. Although your company is known to be a leader in these specific types of technologies, your competitors are catching up.
a) What factors would you take into account and what recommendations would you make to determine which market or markets you would enter next and the timing and scale of your entry.
b) Based on the type of business in which your company is engaged, which entry mode or modes would you identify as being most appropriate? Explain why you would choose this type of entry mode or modes. Discuss the advantages and disadvantages of the entry mode(s) you chose.
4. You are the Vice-President for International Development of a small U.S. pharmaceutical company (located in Emeryville, California) which specializes in the development of new medical vaccines using unique biotechnological know-how. Until now, the company has only achieved small successes in limited markets. Recently, however, the company developed a vaccine to protect humans against the MERS virus. According to the World Health Organization, this virus has already been identified in Europe and the Arabian peninsula, two areas where the need for a vaccine is urgent and immediate. The virus is not yet a major problem in South America, North America or Asia. The company has limited manufacturing capability; if the MERS virus reaches epidemic proportions in Europe and the Arabian peninsula, it will not have the capability to supply large enough quantities to meet demand. The company wants to determine the best way it should supply the markets where the virus is currently a problem and which entry mode or modes it should use. The possibilities are:
a) Manufacture the product at home and export to the European markets and the Arabian peninsula b) License the formula out to a company already established in each of these two regions c) Enter into a strategic alliance with a large pharmaceutical company and establish a 50/50 joint venture company which would manufacture and market the product in these two regions) d) Establish wholly owned subsidiaries in the afflicted areas e) another alternative you might identify. As the Vice-President, you must make some strategic decisions:
a) Which entry mode or modes (entry strategy/strategies) would you follow in Europe and the Arabian peninsula?
b) Why would you choose this strategy or strategies instead of the other alternatives? Explain what the advantages are of the entry more or modes you are recommending and what the disadvantages of the other modes are.
c) What entry mode would you use in those regions where MERS is not yet a major threat and demand is not as urgent (South America, North America, Asia)? Why would you recommend this entry mode or modes?
You are the Vice-President of Manufacturing for a company which manufactures small personal appliances. Your R & D department has designed a revolutionary, new type of electric toothbrush which cleans and polishes teeth at the same time. Your company has applied for a patent to protect the design. But your company has never actually manufactured electric toothbrushes. You have always outsourced the manufacture of toothbrushes to several suppliers with whom you have long standing relationships. You must decide whether to make the brushes in-house or to contract the brush manufacture to an outside supplier. If you manufacture the brushes in-house you must purchase specialized equipment (assets) and hire additional highly-trained specialists to manufacture the brushes because it requires unique skills and talent. As V.P. of Manufacturing, you must do an analysis of the options you have and present it to the Executive Board.
a) Would you recommend to the Executive Committee to make this product in house or to buy (outsource)?
b) Why would you make this recommendation? Explain what the advantages and disadvantages would be of making vs. buying in this particular situation.
--------------------------------------"?
3. You are the Director of International Development for a company that supplies technology to law enforcement agencies in the detection of crime. You have developed markets in a few English speaking countries, such as Great Britain and Australia, but are now ready to expand into other markets. Your technology is cutting edge and is not readily available in many other markets. You have a few competitors but their technologies are slightly different. Although your company is known to be a leader in these specific types of technologies, your competitors are catching up.
a) What factors would you take into account and what recommendations would you make to determine which market or markets you would enter next and the timing and scale of your entry.
b) Based on the type of business in which your company is engaged, which entry mode or modes would you identify as being most appropriate? Explain why you would choose this type of entry mode or modes. Discuss the advantages and disadvantages of the entry mode(s) you chose.
4. You are the Vice-President for International Development of a small U.S. pharmaceutical company (located in Emeryville, California) which specializes in the development of new medical vaccines using unique biotechnological know-how. Until now, the company has only achieved small successes in limited markets. Recently, however, the company developed a vaccine to protect humans against the MERS virus. According to the World Health Organization, this virus has already been identified in Europe and the Arabian peninsula, two areas where the need for a vaccine is urgent and immediate. The virus is not yet a major problem in South America, North America or Asia. The company has limited manufacturing capability; if the MERS virus reaches epidemic proportions in Europe and the Arabian peninsula, it will not have the capability to supply large enough quantities to meet demand. The company wants to determine the best way it should supply the markets where the virus is currently a problem and which entry mode or modes it should use. The possibilities are:
a) Manufacture the product at home and export to the European markets and the Arabian peninsula b) License the formula out to a company already established in each of these two regions c) Enter into a strategic alliance with a large pharmaceutical company and establish a 50/50 joint venture company which would manufacture and market the product in these two regions) d) Establish wholly owned subsidiaries in the afflicted areas e) another alternative you might identify. As the Vice-President, you must make some strategic decisions:
a) Which entry mode or modes (entry strategy/strategies) would you follow in Europe and the Arabian peninsula?
b) Why would you choose this strategy or strategies instead of the other alternatives? Explain what the advantages are of the entry more or modes you are recommending and what the disadvantages of the other modes are.
c) What entry mode would you use in those regions where MERS is not yet a major threat and demand is not as urgent (South America, North America, Asia)? Why would you recommend this entry mode or modes?
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