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Oliver's doctor in Nevada has decided to run several tests on him. The test results are then sent to India to be read by a doctor there because it costs less to analyze them in India. Isabelle has decided to go into business for herself and has been able to purchase a complete package of materials and services, including managerial advice. Differentiate the market entry strategies that Oliver and Isabelle are both benefiting from.

a) Oliver is using a joint venture strategy, and Isabelle is using franchising.
b) Oliver is practicing outsourcing, and Isabelle is pursuing a turnkey project.
c) Oliver is employing offshoring, and Isabelle is following a turnkey project.
d) Oliver is using offshoring, and Isabelle is using a turnkey project.

1 Answer

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Final answer:

Oliver is engaging in offshoring by sending medical tests to India to reduce costs, while Isabelle is utilizing a turnkey project by purchasing a complete business package. The correct answer is 'd' as this reflects both individuals' distinct approaches to market entry strategies.

Step-by-step explanation:

The market entry strategies benefiting Oliver and Isabelle are different. In Oliver's case, his doctor is sending tests internationally to India to be analyzed, a strategy known as offshoring, seeking to reduce costs by utilizing cheaper labor markets overseas. This is not a joint venture as it does not involve a partnership with a foreign company but merely moving certain operations abroad.

On the other hand, Isabelle's strategy involves purchasing a complete package possibly including a business model, brand, and managerial advice, which suggests she is benefitting from a turnkey project, an arrangement where a company sets up and potentially manages an operational business for her. Thus, the correct answer is 'd) Oliver is using offshoring, and Isabelle is using a turnkey project.' This differentiates from options like joint ventures or franchising, which involve different levels of engagement and cooperation between the business entity and the foreign company or franchisor.

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