Background of the case:

In 1987, Alain and Michel created a processed-food and soft drink manufacturer named Euromanage
Incorporation. This company is located at Lyons, France but also distributes its products in Switzerland,
Germany, Austria, and Netherlands. Due to his gained experiences in Europe, the company wanted to
expand themselves on Latin America by initially using distribution channels such as large supermarkets.
However, the company is conflicted on the next course of action between establishing own distribution
office in the major port city and capital of Massilia or appoint local agent in Mardoe as a sole distributor
for their product offerings. Pierre Goulet, the vice president of international marketing for the company,
is conflicted on both options and therefore, asks a marketing manager named Guy Lassalles to examine
and choose which of the options would best benefit the company’s performance.