Question

Bean, is analyzing the risk of each of the following options for expanding into a foreign market: 1. It could partner with Olé, a local bakery chain, to create a new company together (requiring Bean to manage a partner relationship). 2. It could ship the product to be sold by a wide array of coffee shops (involving high shipping costs). 3. It could sell the name and format of the company to individual business people to operate on their own (giving Bean limited control over stores and lowering its potential profits). 4. It could open, manage, and operate its own stores. 5. It could collaborate with a group of food chains to boost branding (though Bean might harm its reputation through negative brand associations).

Answer 1

Expanding into a foreign market involves analyzing the risks and benefits of various options, including partnering with local businesses or operating its own stores.

Step-by-step explanation:

Expanding into a foreign market involves analyzing the risks of various options. These options include partnering with a local bakery chain to create a new company, shipping the product to be sold by coffee shops, selling the company name and format to individual business people, opening and operating its own stores, or collaborating with a group of food chains. Each option has its own advantages and disadvantages in terms of control, potential profits, reputation, and costs. For example, partnering with a local bakery chain may require managing a partner relationship, while opening its own stores gives Bean full control but also requires more upfront investment and operational costs.

Answer 2

1. It could partner with Olé, a local bakery chain, to create a new company together (requiring Bean to manage a partner relationship).

Step-by-step explanation:

There are a variety of options that can be taken by the company. For example, the risks and stakes are high. However, without much risk, there would be no business at all. Therefore, the risk that Bean is taking is very high. The main issue is how the entity will manage the business risk and contain it.

The potential solution is to partner with Olé and form a double franchise. Though the partnership will b required, the shilding from the economic turbulence will be better. In addition, Bean will be shadowed under Olé.