Zip-6 currently has a presence in the United States, Canada, Mexico, Brazil, and in Korea (through a licensing agreement). While the firm has investigated other large Asian markets as potential expansion targets, Ravi’s Iranian heritage has influenced him to desire Zip-6 to have a presence in the Middle East. After examining and rejecting several Middle Eastern countries as potential expansion targets, Ravi has determined that the nation of Turkey offers acceptable economic and political stability. He and Keith have visited that nation and held Discussions with officials of Interbil Spirits Group, a large beverage firm and the producer of Sole Sports Drink, a regional best-seller. Interbil has offered Zip-6 a joint licensing agreement in which Interbil would manufacture and distribute Zip-6 in the Middle East and Zip-6 would manufacture and distribute Sole in its areas of operation. Both Ravi and Keith are not comfortable with this arrangement but are convinced this country offers great potential for Zip-6 products. They have quietly conducted marketing tests there and these look promising.
Based on your reading of Chapter 12, and your examination of websites on Turkey:
Go to the C.I.A.’s World Factbook resource and search for information on Turkey
Michigan State University globalEDGE™ website: http://globaledge.msu.edu/Countries/Turkey
1. What entries approach would you advise Ravi and Keith to use to gain entry into the Turkish sports drink market and why?
2. What are some advantages and disadvantages of the approach you have chosen (above)?
Respond in a minimum of 1 page in APA format to this Assignment
1. After reading about the IMF, journal your thoughts about the work of the IMF. Is it something new to you? Has its mission grown beyond merely imposing discipline on global currencies? Can you speculate what the world might be like for business without an organization like the IMF? Did anything you discovered in this examination of the IMF surprise you? Be sure to watch the short videos in each section that describes this organization and its work. After visiting the IMF website, Journal your thoughts about what you viewed and heard on this site. Is the work of the IMF something new to you? Has its mission grown beyond merely imposing discipline on global currencies? Can you speculate what the world might be like for business without an organization like the IMF? Did anything you discovered in this examination of the IMF surprise you?
2. Please read the short scenario on pages 417- 418 in Chapter 12 (it is a first case) about General Motors in China. At a time when this automaker was closing U.S. factories, laying off U.S. workers, and receiving U.S. taxpayer loans, it was busy building new plants in China. After reading this article, record your impressions of this General Motors strategy. As a global business; was this an acceptable strategy to behave as a global entity in its global expansion while emphasizing its national roots when soliciting U.S. government support? Why or why not? Do you believe its global operations will ultimately accrue benefits to the firm’s U.S. customers? Provide support for your response.
Write your thoughts and impressions about this exercise in your Journal in an entry exceeding 100 words.