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Group 5 Final Paper Free Range v4

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Group 5 Final Paper Free Range v4
Free Range: A Case for International Operations
Group 5
Katherine Stone, Michael Williams, Shawn Williams, Horace L. Wynn, Scott Terry
AMBA 610 UMUC

Part A: Potential Advantages and Shortfalls of Various Globalization Strategies
Globalization strategies have been an issue for any organization that intends to increase its international presence. Free Range Foods has decided to grow operations in France, the United Kingdom, and other regions throughout the globe. The recommended strategies Free Range Foods should consider utilizing in order to strengthen its position in the international market are 1) Merger and Acquisition/ Takeover and 2) Strategic Alliances. Both strategies are effective in obtaining an entry into the desired markets including France, the United Kingdom, Canada, and Eastern Europe. We will outline the advantages and disadvantages of each strategy and provide our recommendation on how we believe Free Range Foods should proceed.
We will first look at the advantages of forming a strategic alliance(s). A strategic alliance is the decision of multiple organizations or companies to share resources in order to undertake a specific, mutually agreed upon goal (Jones, 2014). A few advantages of strategic alliances are as follows (Mansfield, 2010):
Easier access into target markets
Sharing financial risks
Winning political obstacles
Achieve synergies in marketing each other's products/services
Cooperation in sharing facilities
Far less expensive than purchasing a company
A few disadvantages include:
Future profits at risk
Distractions between companies
Unclear communication plans
Poor chemistry between organizations
Alternatively, Free Range Foods has the option to consider a merger or takeover of a rival organization. Mergers and takeovers, while sometimes considered to be the same thing, are actually two separate strategies with their own inherent advantages, but are similar in they share similar shortfalls and disadvantages. A


References: Bluestein, A. (2014). Keeping Innovation in the Mix After the Merger. Retrieved November 6, 2014, from Inc.:www.inc.com/magazine/201407/adam-bluestein/how-to-maintain- presented by plans to eliminate the UK dairy trade deficit by 2025. (2014, June 27). Farmers Weekly, (943) Deal Capital. (2014). Acquisitions: Pros and cons. Retrieved November 6, 2014, from Deal Capital: www.dealcapital.com/pros-and-cons/ November 6, 2014, from Findlaw UK: findlaw.co.uk/law/small_business/starting_a_business-500269.html Gallant, C. (2014). What is the difference between a merger and a takeover? Retrieved November 6, 2014, from Kumar, R. (2014). Managing Ambiguity in Strategic Alliances. California Management Review, 56(4), 82-102 Mansfield, E. (2010). Business Alliances: The Pros, the Cons and the Payoff. O&P Business News, 19(1), 56. News: Europe leads the way as firms up environmental awareness. (2007, September 24). epn: European Pensions & Investment News Oldenziel, R., & Veenis, M. (2013). The glass recycling container in the netherlands: Symbol in times of scarcity and abundance, 1939-1978. Contemporary European History, 22(3), 453-476 Pearson custom resources, AMBA 610. (2014). Boston, MA: Pearson Learning Solutions Saltmarsh, M. (2011, May 23). Strong Sales of Organic Foods Attract Investors. Retrieved November 5, 2014, from http://www.nytimes.com/2011/05/24/business/global/24organic.html?_r=0 Schamotta, J November 5, 2014, from http://www.buzzle.com/articles/differences-between-uk-and-us-business-culture.html
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