Developing a multinational sporting goods corporation

Logan asked many of his foreign friends from college days if they recalled seeing footballs sold in their home countries. The Sports Exports Company has no immediate plans to conduct direct foreign investment.

Logan planned to expand his product line over time once he identified other sports products that he might sell to foreign sporting goods stores. To the extent that this would increase the popularity of football U. What methods might the Sports Exports Company use to increase its presence in foreign markets by working with one or more foreign companies?

Furthermore, the expansion of cable networks in foreign countries would allow for much more exposure to U. However, it might consider other less costly methods of establishing its business in foreign markets. Consequently, Logan decided to start a business of producing low-priced footballs and exporting them to sporting goods distributors in foreign countries.

To the extent that this would increase the popularity of football U. He also knew how to produce footballs. Rather than pursue a different business, Jim decided to implement his idea on a global basis.

He decided to call his business "Sports Exports Company. Furthermore, the expansion of cable networks in foreign countries would allow for much more exposure to U. Is Sports Exports Company a multinational corporation? Sports Exports Company does not have a facility fee or employee wages to consider.

What methods might the Sports Exports Company use to increase its presence in foreign markets by working with one or more foreign companies?

Developing a Multinational Sporting Goods Corporation

Does Sports Exports Company have any comparative advantage over potential competitors in foreign countries that could produce and sell footballs there? Thus, his main business expenses were the cost of the materials used to produce footballs and expenses associated with finding distributors in foreign countries who would attempt to sell the footballs to sporting goods stores.

Unfortunately, many sporting goods stores began to sell low-priced footballs just before Logan was about to start his business.

He decided to call his business "Sports Exports Company. His goal was to create a firm that would produce low-priced footballs and sell them on a wholesale basis to various sporting goods stores in the United States.

Most of them said they rarely noticed footballs being sold in sporting goods stores but that they expected the demand for footballs to increase in their home countries. Rather than pursue a different business, Logan decided to implement his idea on a global basis.

Most of them said they rarely noticed footballs being sold in sporting goods stores but that they expected the demand for footballs to increase in their home countries.

The Sports Exports Company has no immediate plans to conduct direct foreign investment. The firm that began to produce the low-cost footballs already provided many other products to sporting goods stores in the United States and therefore had already established a business relationship with these stores.

Solution Summary The solution examines a small business dilemma of developing a multinational sporting goods corporation. How would Jim Logan decide which foreign markets he would attempt to enter?

These "Small Business Dilemma" features allow students to recognize the dilemmas and possible decisions that firms such as this sporting goods firm may face in a global environment.

Logan did not believe that he could compete with this firm in the U. To the extent that this would increase the popularity of football U.

Unfortunately, many sporting goods stores began to sell low-priced footballs just before Logan was about to start his business. He also knew how to produce footballs. Should he initially focus on one or many foreign markets? Rather than pursue a different business, Logan decided to implement his idea on a global basis.

Most of them said they rarely noticed footballs being sold in sporting goods stores but that they expected the demand for footballs to increase in their home countries. However, the sporting goods store where he worked, like many others, sold only top-of-the-line footballs.

From his experience, Logan was aware that top-of-the-line footballs had a high markup and that a low-cost football could possibly penetrate the U. Thus, his main business expenses were the cost of the materials used to produce footballs and expenses associated with finding distributors in foreign countries who would attempt to sell the footballs to sporting goods stores.Is Sports Exports Company a multinational corporation?

2. Why are the agency costs lower for (Solved) August 16, would Jim Logan decide which foreign markets he would attempt to enter? Should he initially focus on one or many foreign markets? 5. The Sports Exports Company has no immediate plans to conduct direct foreign investment.

Small Business Dilemma: Developing a Multinational Sporting Goods Corporation Last month, Jim Logan completed his undergraduate degree in finance and decided to pursue his dream of managing his own sporting goods business.

Jim. Developing a Multinational Sporting Goods Corporation. In every chapter of this text, some of the key concepts are illustrated with an application to a small sporting goods firm that conducts international business.

Problem 4SBD: Developing a Multinational Sporting Goods Corporation In every chapter of this text, some of the key concepts are illustrated with an application to a small sporting goods firm that conducts international business. These “Small Business Dilemma” features allow students to recognize the dilemmas and possible decisions that firms.

Small Business Dilemma: Developing a Multinational Sporting Goods Corporation, 24 Internet/Excel Exercises, 25 References, 25 Term Paper on the International Credit Crisis, International Financial Corporation, 48 International Development Association, 49 Bank for International Settlements, 49 OECD, View Notes - Chapter 1 SBD Answers from FINANCE at University of Maryland, Baltimore County.

Chapter 1: Small Business Dilemma Developing a Multinational Sporting Goods Corporation Last month,%(11).

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Developing a multinational sporting goods corporation
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