RUNNING HEAD: CHABROS INTERNATIONAL GROUP 1

[Author]

[Institution]
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Chabros International Group: A World of Wood

Executive Summary

The case of Chabros Internation Group evaluates conditions and ways of a Lebanese

multinational wood organization faces a major decline in its biggest subsidiary’s sales

subsequent to 2008’s international economic crisis. Chabro’s president and owner, Antonie

Chami, was assessing his organization’s fall 2009 financial statements and, specifically, a 30

percent decline in sales in its Dubai subsidiary. During 2007, a year prior the global economic

downturn, Chami had put more than eleven million dollars to grab and grow a sawmill situated

in Serbia to fullfil Chabro’s increasing lumber sales requirement. Chami had to decide the right

strategy to overcome the challenge, with a substantially high potential to grow lumber and a

relatively lower potential to sell it. There is a question whether he should shut down the parts of

the Serbian sawmill? Or should he attempt to grow his organization’s sales to utilize all of the

Serbian’s sawmill’s accessible potential? If this should be the option, should the organization

attempt to enhance sales within the states where it already functioned for instance, UAE, Qatar,

Egypt, Oman, and Saudia Arabia. Another question for Chami, should the organization grow into

a new terrotiry like Bahrain, Algeria, Iraq, Kuwait, Jordan, Iran, Libya, Tunisia, or Syria? Or

would the Morocco among other states, be the perfect country to penetrate into? Was the time

was appropriate to adopt such expansion or growth strategy? The case study provides an

opportunity to analyse motivations for globalizations, the various global strategies like

international, global, transnational or multinational, crisis management, expansion strategies

(majorly market penetration and market growth through import/export and FDIs[Foreign Direct
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Investments] strategy), market entry (market/industry evaluation, choosing and comparative

advantage), entry schedules, and SWOT analysis.

Introduction

Chabros International Group is one of the biggest and well known producer and supplier of

veneer and wood across Middle East for more than forty years. It has a wide range of distribution

of interior and exterior brands that have been defined and utilized in big high-tech projects across

many Middle Eastern countries. Chabros is concentrated on delivering to the creative

requirements of Wood Workers, Interior Designers, Consultants, and Contractors. The

organization is positioned as one of exceptional customer service and exclusive expertise

implemented by a never ending list of projects and big references initated with the first day of its

inception. The organization’s success is triggered by its loyal clientele and team and their

insistent focus on offering results the correct way – through functioning responsible and

excelling with brilliance.

In the midst of a growing global market, Chabros has established overseas production units and distribution points throughout the Middle East Region,

targeting businesses that are in search for quality products and exceptional service. The company’s regional distribution centers are headquartered in

Dubai covering a vast geographical area of supply.

PRODUCT EXPANSION

In addition to the strong regional presence, Chabros is always devoted to expand its range of products to provide original and fresh design solutions to

the market. The company has been in business since the early 1960s, and has evolved to become one of the largest distributors of Wood & Veneer,

Parquet & Decking, Marquetry & Mother of Pearl, stretched out to represent world renowned names such as Dupont™ Corian® & Montelli®, Richter

Stone-Veneer® & Acoustic-Lightboards®, and Merino HPL & Compact Laminates. Out of its contineous endeavor to grow, Chabros has added a line of

services to its current product offerings. The services include Veneer Stitching & Pressing, Sanding, Veneer Finger jointing, Parquet and Exterior

Decking Installation as well as Teak Yacht Decking.