Ben Fisher's International Expansion Strategy

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1. What were the problems facing Luis Morales as he began implementing Ben Fisher 's international expansion strategy? The problems faced by Luis Morales as he began implementing Ben Fisher’s international expansion strategy are Morales felt the main problem was the GBD’s inability to provide a link to the domestic product divisions and assume the conflict-resolution roles he had been playing. Despite years of service, the GBD’s lacked the credibility and power to get things done. Some of the domestic managers didn’t help and they just seemed to want control over the fast growth oversea businesses. Second problem are the entrepreneurial independence of offshore entities was often complicated by long competitive histories. Morales acknowledged…show more content…
So when the Brazilian subsidiary unilaterally reduced prices on its line of general purpose polycarbonates as a loss leader to sell more of the expensive, technical medical products, the pricing impact was felt throughout Kent’s worldwide medical plastics business. The issue highlighted the fact that nobody was coordinating price, product, or sourcing decisions globally. Fourth problem are Morales become concerned that his organization was not adapting well to changing pressures and demands. His first concern was the impact of new systems. As Kent acquired majority positions, corporate reporting systems had been added to allow operations to be controlled and financial reports consolidated, but these changes had caused strains. Fifth problem are capital allocation had also become more complex. Subsidiaries now had to complete capital requests that were first reviewed by a regional manager, then by Morales, and often at the corporate level. In the process, relations between subsidiaries and their U.S. technical contacts shifted. Sixth problem are the advice and support that had long flowed…show more content…
The Porter’s Five Forces Model are the bargaining power of supplier. Here the company assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over the company, the cost of switching from one to another, and so on. The fewer the supplier choices the company have, and the more company need suppliers ' help, the more powerful company’s suppliers are. The bargaining power of Buyer. Here the company how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to company business, the cost to them of switching from company products and services to those of someone else, and so on. If the company deal with few, powerful buyers, then they are often able to dictate terms to the company. Rivalry among existing Competitive. The most important here is the number and capability of company competitors. If the company have many competitors, and they offer equally attractive products and services, then the company most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don 't get a good deal from the company. On the other hand, if no-one else can do what the company do, then the company can often have tremendous strength. Threat of Substitution. This is affected by the
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