Popescu Eliza, Cance Virgil, Zecre Marie-PauleStrategic management & corporate politics8.04.2015Answers Mock examCase study 1.I. Swot analysis

Strengths the products are varied and qualified are supported on a complete culture built around local gastronomy and Mediterranean diet. exporting products the size of the populationWeaknesses small size: little opportunities for exporting and investing in R&DOpportunities distribution brandsThreats specific critical events, such as Pescanova crises or the Russian block of importations the pressure of the big retailers low prices precarious jobs atomization of the industry little capacity to invest in R&D scarce development of the brandsII.

III. Customers are struggling for the price declines, negotiating better quality services, juggling between a competitor or another. A group of customers is stronger if this group is concentrated on purchasing large quantities in relation to turnover of the seller. Products purchased in the sector are an important part of the costs or customer purchases. The purchased products are standardized or differentiated sector. Customers seeking to minimize costs, seek products with minimum cost. Transfer costs are low. Transfer costs bind customers and private sellers client has a less power if these transfer costs are strong (high). The customers have access to complete information. If the customers are informed, they have a higher pressure. With a complete customer information they are able to ensure that they are receiving the most favorable price. I think that the Spanish food and beverages industry can only increase their bargaining power against manufacturers if they succeed in influencing of purchasing decisions of the customers.IV. Pros of exporting:a) The exporting is increasing the competitivenessb) Exporting is one way of increasing the potential sales.c) No company would export unless it intends to make a profit.d) The costs per product is typically reduced. The food and beverage providers need to carefully assess the production process when levels increase to ensure the quality is not compromised.e) In the domestic market, your product might be approaching the end of its life cycle. In such an instance, finding an export market would be ideal in order to extend the life cycle of the product.Cons of exporting:a) Competitors can typically not be avoided in export markets.b) It can also be costly to develop new promotional/marketing materials, develop new packaging and assign new personnel to travel and undertake other administrative and operational tasksc) In order to meet safety, security and other requirements in the export market, your product may have to be modified( hiring an expert).d) Payment: letter of credit can be time consuming.e) Financial risks, transportation risks, cultural differences and finding information on some markets can be extremely difficult.

Case study 2.I. Creating a joint venture with a local producer - Joint ventures may involve companies in one or more countries and the basic reason is to save money. In effect, they are sharing the risks if a particular project fail. Joint ventures are extraordinarily helpful to some companies in gaining access to foreign markets. Also many companies reduce their labor costs by moving production operations to other countries. And with targeting other markets they are mantaining their prices and trying to reach the wealthy segment of the population.II. Risks of joint venture: potential financial losses if a project fails, expropriation or nationalization, disagreements among partners, and less-than-anticipated results. Some joint venture fail because of disappearing markets, lagging technology, partners' inability to honor the contract, cultural differences interfering with progress, or governmental and macroeconomic de-stabilizing factors.

Case study 3.I. Advantages of cooperation agreement: brand name, the marketing and the maintenance, the modern management tools and technology that which enable them to interact on-line at every level.

Disadvantages: high costs and royalty payments, strict product rules, and other start up challenges.

II. The main advantages: Faster speed of access on a new market area The market power is increasing Reducing the competition Economies on scale Diversification of business risk

The main disadvantages: Other culture Operational problems The business complexity is increasing Loss of organizational flexibility