International Strategies
You’ve developed a very popular, up-scale but reasonably priced, clothing fashion line for young people. You produce designs in a number of countries, manufacturing in low-cost locations, and with retail outlets in major U.S. and European cities. Demand is popping and you have access to plenty of production capacity and capital. Answer the following questions in 250-350 words:
- How should you organize the business outside of the U.S.?
- Should you set-up reasonably independent companies, subsidiaries, in each foreign market?
- What would that do and not do for you?
- Or, do you want to impose a strict brand image, procedures, and central planning from headquarters, where your offices are?
What are the pros and cons of this approach?
Answer Preview
Each foreign market in the global economy should have independent subsidiaries since foreign markets differ due to differences in culture (Collis, 2014). For example, subsidiaries in the Muslim dominated countries should be allowed to adjust the designs of the clothes until they…
(389 Words)