• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Cran chile case study. What are the motivations and factors that influenced the foreign investment decision for Carn Chile?

Extracts from this document...


_____________________________________________________________________________________INTERNATIONAL BUSSINES - CASE CRAN CHILE QUESTION 1: What are the motivations and factors that influenced the foreign investment decision for Carn Chile? Warren Simmons was the owner of Chevys Mexican Restaurants when he realized that the cranberries suppliers were not able to fulfill the demand of these products, and that there will be inadequate suppliers of cranberries because there were some problems in the US in this market. First, regulation has become more stringent, and the land of cultivation was costly and more difficult to obtain. Also there was a problem with yields. The lands have become less fertile because many years of cultivation and urbanization and land development have increase land cost, so more areas were no longer profitable. Simmons knew this would be an increasing problem for suppliers and decided to make an investment abroad and gain some advantage. He finally chose Chile, first because it doesn't have environmental regulations, and the availability of fertile soil and rain which was a problem in the US, but in Chile, may have increased the production and yields. ...read more.


Other damages in agriculture may include an excessive use of fertilizer and pesticides or even contaminated water which may also affect consumers' health, and can cause huge media impact and damage the image of the company. In addition, deforestation and soil erosion are important issues to take care because the loss of woods in case of deforestation and because soil erosion can be a source of air pollution. Also, the company can cause damage because of the high consumption of oil and other fuels and he emission of large amounts of C02 which is responsible of the greenhouse effect. All of these problems caused by a wrong administration of the restrictions can influence the company in the long run. It may be highly effective at the beginning because of low costs, but it will later by punished by the ones who will be affected by these issues, or even the own host country may realize that the company is causing damage and may take actions against it. ...read more.


But this was a total failure in Japan and Chile, because of the acid flavor of the fruit. The most used expansion process of firms is exporting, which is chosen to be the first mode of entry when barriers and transportation costs are low and when they feel it could be safer because if they fail in the host country they won't lose anything but the transportation cost and barriers cost, but they won't have to spent in fabrics and initial investment costs. Nowadays this problem exists no more, because the cranberries are now being consumed around the world. Cran Chile has positioned as one of the largest producers and processors of cranberries in Latin America and has expanded its activities and it is even selling juice and juice and fresh and dried cranberries in different places. So even if the strategy was not normal, they could achieve lower cost of production, keep selling in their own country and satisfy the demand, and when other countries were ready to buy cranberries they had already learned about the process and gain economies of scale which let them grow and be successful in the industry. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. A Case Study on Infosys Technologies Ltd,

    Infosys takes pride in building strategic long-term client relationships. According to Infosys report, 95% of their revenues come from existing customers. (Continued from page 14) # Figure - 5 - Infosys Revenue Growth from "1999 to 2007".

  2. Netflix Case Study

    Actually, the company provided all the benefits of a typical movie rental store but without the hassle of having to return the rentals at a specific time. This was a unique aspect of Netflix. It is clear that the company's strategy focused on customer's needs having identified that a special

  1. Lufthansa Case

    This means that it is necessary to gain trust within the industry so as to get access to take-off and landing spots. This can be quite challenging as national policies still play a major role in the aviation industry. Furthermore it is a requirement to obtain permission from governments to enter airspace.

  2. BIDV bank case study

    hundred largest banks by assets in Asia, listed by Asiaweek magazine in 2000, the biggest bank in Vietnam, the Bank for Agriculture and Rural Development of Vietnam (BARD) is the 344th and BIDV is 364th. Source: http://www.asiaweek.com/asiaweek/features/financial500.2000/banks251-300.html 2.2. Introduction to BIDV Founded in 1967, BIDV is one of the oldest

  1. Organizational decision Making

    The Problem Solving Process Huber (1980: 13-21) breaks down the decision making, or problem solving, process into five phases: explore the nature of the problem; generate alternative solutions; choose among alternative solutions; implement chosen alternative; control the solution program. I break down the decision-making process into three major phases: the alert, analysis, and action phases.

  2. Information Systems (IS) Failure Case study and Synthesis

    Since information systems are complex and have many aspects attributed to each, failure (and success) can be manifested in many ways. A detailed view in this regard is given in subsequent topics in this paper. 2.0 Concept of Information Systems Failure - Information Systems (IS)

  1. Valero Oil and Expansion into Turkey

    Turkey is a more favorable location for foreign trade and international expansion, especially for companies in the energy industry because of the following reasons - * Turkey's geographical location makes it key to foreign trade between the Middle East and Europe.

  2. Boeing 787 Dreamliner Case Study

    Boeing 747-8 family: The Boeing 747-8 Intercontinental and 747-8 Freighter are the new, high-capacity 747?s that offers the lowest operating costs and best economics of any large passenger or freighter airplane in its class. With a range of 8,000 nautical miles, the 747-8 Intercontinental can connect nearly any major city pair in the world.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work