Market Entry Strategies: exports, acquisition, joint ventures, franchises, and foreign subsidiaries

Market Entry Strategies: exports, acquisition, joint ventures, franchises, and foreign subsidiaries

1. Please take a look at the Case #5 Harley-Davidson and answer following questions (20 points).

1. If you were CEO of Harley-Davidson, how would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?

1. In America, Harley has shifted the positioning of its products away from simply motorcycles and more toward being status symbols of a particular lifestyle. What are the implications of cultural factors for positioning in other countries that Harley has targeted for growth—ones like Japan, China, France, and Brazil?

2. Please take a look at the Case #6 In-N-Out Burger and answer following questions (20 points).

1. Rich Snyder was twenty-four years old when he assumed leadership of In-N-Out after his father passed away. In what ways do you think his young age was an asset or a liability for his leadership? Does age really matter in entrepreneurship?

1. In an era of fusion cuisine and extreme fajitas, is In-N-Out’s long-term strategy of offering only four simple food items still on track? How about the firm’s approach to employees? Does it give them an edge over the fast-food competition?

3. Please take a look at the Case #7 Amazon and answer following questions (20 points).

1. In what ways does Bezos’s decision to develop and deliver the Kindle and Kindle Fire, and Fire TV lines show systematic and intuitive thinking?

1. How do you describe the competitive risk in Amazon’s environment as Wal-Mart, Barnes and Noble, and other retailers strengthen their online offerings?

4. Consider that you own rights to a plot of land under which there may or may not be oil. You are considering three alternatives: doing nothing (“do not drill”), drilling at your own expense of $500,000, or “farming out” the opportunity to someone who will drill the well and give you part of the profit if the well is successful. You see three possible states of nature:

• a dry hole
• a mildly interesting small well
• a very profitable gusher.

(40points)

You estimate the probabilities of the three states of nature pj and the nine outcomes as shown in the following table.

1. Please calculate the expected value of the three alternatives and choose the best alternative among three alternatives.
2. Please determine the best alternative based on optimistic approach
3. Please determine the best alternative based on pessimistic approach
4. Please determine the best alternative based on Hurwicz approach if α = 0.2