Closing Case Barrett Farm Food

Topics: International trade, Trade, Value added Pages: 2 (535 words) Published: May 27, 2013

Jawablah pertanyaan dibawah ini:

1. Do you see any problems with Mr. Austin’s plan for European expansion? Do you support his entrepreneurial approach to exporting? What should be the features of a more systematic approach to exporting? Answer:

Philip Austin could have two of the following issues in the European market. First, BBF had little experience in export. Secondly, BBF has to solve many export sector problems. Europe also has many differences in national tastes, regulations, and market structures. While Australians love Vegemite-a brown, salty breakfast spread made from yeast-the product enjoys little popularity outside Australia.

2. Why did Barrett choose exporting as its entry strategy for Europe, as opposed to foreign direct investment or licensing? What advantages does exporting provide to Barrett? What are the potential drawbacks/weaknesses of exporting for Barrett? Answer:

Physical characteristics should be considered when developing an export-strategy. BBF sells nuts, cereal bars, garlic, ginger, dried fruits, and honey. (They do not goes bad easily). They weights less. BBF made the right choice in this respect. The export-strategy of BBF for entry into foreign markets may have several problems. First, they have poor opportunity for experiencing local markets. Second, export-strategy is sensitive on the trade barriers such as tariffs or exchange rates.

3. What challenges can Barrett expect in its export drive? What types of new capabilities does the firm need to acquire to manage its export transactions? Answer:
BBF has to consider packing, insurance, tariffs, taxes, storage and decide what profit margin they want. BBF needs to understand the foreign market. Comprehensive market data and insightful market analysis help BBF make informed, intelligent decisions. BBF might have to hire market research firm or Austrade to analyze the European...
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