Stonyfield Case Study

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Introduction of Team Diversity
Members: AMBA Team
Summary of Stonyfield Farm Case Study
I. What factors should StonyField Farm review before going international? Reasons to expand in international markets
- Increased profits in international markets
- Expansion and diversification of customer base
- New business opportunities and investments
Major Factors to consider before going International
Minimizing Production Costs
- Researching the labor laws of the specific country
- Working with local vendors and suppliers directly
- Dealing with low trade barriers
- Utilizing subsidies from local governments
- Resources access to inexpensive resources and raw materials Economies of Scale
- Strategies to reducing production costs
- Knowing of the geographic location for the international expansion - Understanding the markets- knowing consumers wants and needs - Knowing the foreign countries economic and political systems Economies of Scope

- The variety of products and services the company wants to offers (Daft, 2010) - Determining the geographic regions of expansion
- Knowing the markets size

II. What are the major ways for Stonyfield to take their operations global? Form Strategic Alliances with local partners
Indirect Exporter
- Creating strategic alliances with other firms to increase market share ( Horngren, Sundem and Stratton, 2002) - Contract with local vendors and suppliers to manage resources Direct Exporting Methods

- Establishing a domestic-based export department
- Creating overseas sales branches or subsidiaries
- Utilizing export sales representative using foreign based distributors and agents Licensing
- Stonyfield could consider selling its rights to other companies to use as trademarked names in the foreign markets Joint Ventures and Consortia
- Establishing a separate entity with two...
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