Question

In: Operations Management

There are basically five approaches for entering an international market; usually the choices and risks are...

There are basically five approaches for entering an international market; usually the choices and risks are very product dependent. Assume you are a consultant specializing in global logistics and distribution. There are four clients that are planning to enter an international market (China) with different products. Using the following factors for your choices, pick any two clients and complete their matrix below with your recommendations and briefly describe the rationale behind your choices.

Entry Approach

Exporting, Licensing, Management contracting, Joint Venture, and Direct Investment.

Shipping Methods

Truck, Rail, Water, Air

Level of Risk

High, Medium, Low

Client #1 Product: Candy Bars

Decisions to consider:

Your recommendation:

Your rationale:

Entry Approach

Shipping Methods

Level of product or market risk

Level of financial risk

Factors that could affect distribution service levels

Client #2 Product: Golf Clubs

Decisions to consider:

Your recommendation:

Your rationale:

Entry Approach

Shipping Methods

Level of product or market risk

Level of financial risk

Factors that could affect distribution service levels

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