MAR 4144 FIU Export Tropicana Juice to Mexico Responses
I’m studying for my Marketing class and don’t understand how to answer this. Can you help me study?
Discuss one of the following entry modes that will be suitable for your product/service to be sold in the country you selected. There are Joint Ventures, Wholly-owned Subsidiary, Strategic product/service. PLEASE PROVIDE COMMENTS TO AT LEAST TWO OTHER CLASSMATES CONTRIBUTION AND SHOW LINKS WHERE THEY CAN GO TO GET MORE INFO.
Those are the responses of two of my classmates. We chose export Tropicana Juice (owned by Pepsi) to Mexico. It will serve as a guide.
Gabriela Barrantes
Our company decided on a Tropicana juice to be exported to Mexico. We believe, in this case, our product is considered a wholly-owned subsidiary, owned by Pepsico. A wholly owned subsidiary is a company whose common stock is completely (100%) owned by a parent company. Tropicana does retain legal control over operations, products, and processes but we are relying on the parent company to diversify, manage, and reduce its risks in a new location.
https://www.wallstreetmojo.com/wholly-owned-subsid… (Links to an external site.)
Nydia Delgado
Pepsi Co. is the parent company to Tropicana Products, Inc. Doing business with a company such as Pepsi Co. which is already in the Mexican market, will make wholly-owned subsidiary the best entry mode. A wholly owned subsidiary is a company whose entire stock is held by another company, called the parent company. The subsidiary usually operates independently of its parent company – with its own senior management structure, products and clients – rather than as an integrated division or unit of the parent. In 1998, Pepsi purchased the Tropicana juice business from the Seagram Company in what was its largest acquisition to date. The acquisition meant that Pepsi would be competing in the market for orange juice with rival Coca-Cola, which owns Minute Maid. Establishing a foreign subsidiary enables a parent company to expand its target consumer and to introduce its products and services to a new group of prospects. This not only generates revenue in the host country, but also it can have the tangential effect of helping the subsidiary access markets in neighboring countries.
https://www.strategy-formulation.24xls.com/en619
Reply these two Answers with no more than 60 words
By Gladys Canelo
My group and I have selected to export tesla cars to Germany. Out of all the entry modes, I believe that Joint Ventures would be the best for us because it has low risk. Joint Ventures is an arrangement between two or more companies to come together for the purpose of investment with each having a share in the financial aspect and business aspect. This entry mode has a lot of advantages such as closer control over production and marketing, better local market intelligence provided by the partner. It gives us an advantage on what to expect in entering the new market.
By Gabriela Mestanza
The item our organization has chosen to send out is the acai mix bundles which have been proclaimed for a variety of medical advantages and certainly its heavenly taste. These attributes make the item needed and wellknown, so it won’t be important for our organization to join an accomplice firm to fare and sell our item. Thusly, completely possessed auxiliary will be the best fit for us. Since we will likewise depend upon providers and specialist co-ops, we will have the option to assume responsibility for our gracefully chain by utilizing this passage mode. An entirely possessed auxiliary will likewise offer us the chance to expand and oversee hazard on our own.Moreover, danger can be diminished with this mode on the grounds that any unfriendly outcomes of the new auxiliary into the new market will stay with us, the parent organization, less presented to coordinate misfortunes as a significant part of the danger of misfortune will be on the auxiliary’s shoulders.Also, our new auxiliary in the outside nation will get a more great expense treatment from the unfamiliar government. Simultaneously, we will have the option to control all operational and vital elements of our auxiliary which will include less danger of losing licensed innovation to the opposition. At long last, we will have the option to utilize basic money related frameworks, share regulatory administrations, create joint showcasing projects and control the advantages of our auxiliary. The item our organization has chosen to trade is the acai mix bundles. Since this item is well known, my gathering likewise feels that an entirely claimed auxiliary will be ideal for us. Among different things you referenced on your post, I likewise discovered that this section mode offers a ton of preferences, for example, controlling of our flexibly chain, enhancement of dangers, less presentation to coordinate misfortunes, and controlling all operational and vital elements of our auxiliary which will include less danger of losing licensed innovation to the opposition. Albeit an entirely possessed auxiliary might be speak to a costly advance toward the start, it is as yet the most ideal choice.
http://smallbusiness.chron.com/advantages-disadvantages-establishing-companys-own-subsidiary-
overseas-34167.html
http://www.ehow.com/info_8627934_advantages-disadv…
