Question

Sydney's Emporium has 59 stores in the United States and wants to expand globally. Sydney's wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely ____________.

Answer 1

Sydney's Emporium should establish wholly-owned subsidiaries in new international markets in order to maintain complete control over its stores and operations.

Step-by-step explanation:

The best global entry strategy for Sydney's Emporium would be to establish wholly-owned subsidiaries in new international markets. By doing so, Sydney's can maintain complete control over its stores and operations. Wholly-owned subsidiaries are 100% owned by the parent company, which allows for full control over decision-making, branding, and management.

An example of a company that has successfully implemented this strategy is McDonald's. McDonald's operates through wholly-owned subsidiaries in many countries around the world, which allows them to maintain consistent quality, service, and brand identity.

Establishing wholly-owned subsidiaries does involve higher costs and risks compared to other entry strategies like franchising or licensing. However, since Sydney's is not concerned about pursuing a high-risk strategy and wants to achieve the highest possible returns, maintaining complete control over its stores is crucial.