The Middle East, India, Russia, Zimbabwe, or elsewhere? Place and Entry Method
Overview and Thoughts
Developed and developing countries are modern classifications that refer to the level and effectiveness of industrialization rate, individual income, and human indicators, such as life expectancy, child mortality rate, and literacy rate. Basically, countries with a high level of industrialization, high level of income per capita, high life expectancy, low child mortality rate, and high level of educational attainment are considered developed, and the opposite is true about developing countries.
However, the relationship between the aforementioned factors is not linear. For example, in 2015, Brazil had a higher income per capita than China, but China had a higher literacy rate, higher life expectancy, and a lower child mortality rate than Brazil for the same year.
Although developed economies tend to be more attractive to multinational corporations and foreign investors due to their reliable legal and financial systems as well as their high income, developed markets tend to be saturated, and there is little room for growth. Developing economies, on the other hand, might lack solid and reliable legal and/or financial systems, but they have much wider space for growth as they typically have a large young population, more low-skilled labor (low labor cost), and a population with an appetite for new commodities.
Your job here is to help a multinational corporation decide where and how to invest. Help them pick a region or a country, and then tell them what the best method of entry is based on the characteristics of that region or country.
Assignment Description
Organic Valley, which is an organic food brand and independent cooperative of organic farmers based in La Farge, Wisconsin, United States. Founded in 1988, Organic Valley is the nation’s largest farmer-owned organic cooperative and one of the world’s largest organic consumer brands. The organization is interested in expanding their international market for lactose free products, primarily yogurt and milk (Organic Valley, n.d.).
The company has approached you to help them select one region or country to expand to and the method of entry to that region or country. Their target regions and countries (just pick one) are the Middle East, South America, Russia, India, Zimbabwe, Netherland, Japan, Iraq, Qatar, Kazakhstan, and Romania.
They need to know which region or country has a higher potential for market growth for lactose free dairies and why and also the best approach to enter the market—export products there, build production facilities in the region or country, or build production facilities somewhere near the region or country, and how to manage logistics based on the region’s or country’s characteristics.
The following are useful sources for obtaining data income and demographic by country.
Economic, Development, and Demographic data Sources
To review these sources, copy and paste the following links into a new web browser.
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Writing Style (APA) and Page Number Requirements
·Font Type: Times New Roman or Arial
·Font Size: 12
·Spacing: Double
·Number of Pages: Two to three pages, not counting the separate Title page and the separate References page.
Content Structure and Requirements
· Title Page
· Title of the paper (your choice)
· Name of the author (your name)
· Email address of the author
· Class name
· Professor’s name
· Date
· Content Structure
·Introduction:
· Briefly state the name of the region or country that you have selected for the company to enter, its population size, its average household income level, its political and legal index, and the size of the dairy industry there.
· Briefly discuss export and import restrictions in that country.
·Country and Dairy Data and Analysis:
· Use graphs, data, or tables to show the growth pattern of the dairy industry in that country and state whether the industry is growing or declining.
· Use data to show the size of the lactose free dairy market there. Does it exist? Is it growing?
·Recommendations:
· State the name of the region or country that Organic Valley could enter to sell its lactose free, and list the reasons that make the country most suitable for their lactose free products.
· State the best method of entry (export or manufacture) and why. What makes that country attractive (or unattractive) for dairy production?
Reference List
· Use two to three credible sources to support your argument.
· Cite any sources used. The references need to be in APA format.
Use APA ResourcesLinks to an external site. to learn more about how to cite and format resources.
References
Organic Valley. (n.d.). Our humble history. Retrieved on November 03, 2022.
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