Multinational Corporation & Strategic implementation: Almarai Case

Multinational Corporation & Strategic implementation. Consider yourself a management consultant. You have been commissioned by a domestic Saudi company to elaborate a report on the conditions necessary to successfully enter a ‘new’ market in foreign country. The senior management responsible asks you to assess the current strategy of the company, to produce realistic strategy and develop a plan for entering the new market (you have to select a particular foreign market on where your company will operate) To accomplish your tasks you have to: 1. Identify the pros and cons of the actual strategy of this company (choose a Saudi company from the real market). 2. Present the key challenges you are likely to face when internationalizing the business? 3. Describe the optimum and realistic strategy to a successful entry in the new market. Justify your choice of this strategy. Note: the chosen strategy should be supported by your findings from research of relevant theories and models. 4. Develop the steps for entering this new market 5. Present recommendations to the senior management team to gain market share and improve the competitive advantage on the new market. The assessment of the answers will be highly based on the usage of terminology, models and theories developed in your course.

Quick Response

Almarai Co. is a local Saudi Arabia company that seeks to invest internationally. The company seeks to invest in food and beverages in other countries using franchising. The strategy is used commonly in the United States and it works well for food and beverage businesses respectively. One advantage associated with franchising includes reduced chances of business failure since the business is based on an idea that has been proven(Miles, 2011). However, the idea has cons such as the brand having a bad reputation due to the failure of the franchisor to match the standards of the company. The key challenge likely to be faced when internationalizing the business includes high tariffs making the introduction of the business expensive, which translates to increased prices…

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