Leader:

Lopez, Kaye V.
Members:
Datu, Gaile Steffanie L.
Garcia, Romel D.
Intal, Kelly Jean F.
Tumulak, Nichole
A – 343
September 14, 2020

Background of the case

 Euromanage Incorporation was established in Lyons, France in 1897 by the
Picard brothers, Alain and Michel. As the organization developed in quality monetarily, it
extended its product offering to incorporate soda drinks, snack foods and breakfast
cereals. By 2010 the organization was a main prepared food and soda pop maker in
France and had to set up its essence in Switzerland, Germany, Australia and
Netherlands. The company wants to expand in Latin America starting with Massilia.
Massilia was one of the largest countries in Latin America. It has an income per capita
of US $6,800 a year. Euromanage considers a few producers to break into the market
and arrives at the resolution that it could accomplish greatest infiltration by assaulting
the high finish of the market and cutting a specialty in the mineral water, natural product
juice and caffeinated drink markets.

The company designated a marketing plan; it hopes to put a picture of its items
that would bid quickly to the upwardly versatile and driven areas of Massilia’s working
class. The international marketing strategy for Massilia becomes bogged down in
indecision over a choice of a distribution system. In studying the distribution system in
Massilia the company came up with a two options. The first one is to establish a
company distribution office in Mardoe, the major port city and the capital of Massilia.
The advantages in choosing these options is that the company will be having a
executive that would be assign to overall distribution operation and will be assisted by a
staff. Also, local office would be the one that will be assigned of collecting and assisting
the supermarket, and lastly the letters of credit imports would be opened. Seems like
the first option has a lot of advantages, Euromanage is entering into a fairly competitive
market where evaluating is the key factor and the presence of an in-house
dissemination course of action would spare impressively on the broker’s commission.
The second option is to appoint a local agent in Mardoe as the company’s sole
distributor of soft drinks and processed-cheesed products. One of the advantages of
these options is that all transportation, collection and arrangements would be made by
the distributor. Euromanage would also be free to talk directly about the issues of the
market about the new products, changes needed in product quality and varieties. There
would be minimum fixed amount of commission payable to the distributor to cover the
fixed costs. Further, with nearby experience, the discount merchant would have the
option to streamline routine issues with the general stores. Since the letters of credit
would be opened for the record of the distributer. Euromanage would be sheltered from
the credit hazard engaged with gathering installments from the grocery store outlets.
Both of the options have a lot of advantages but it has also disadvantages. So the vice
president of international marketing for Euromanage has to think very deep so that it will
come up with the best options.

Case Problem

The main problem of Euromanage Inc. is they are having a doubt on the
distribution of their products in Latin America. They find it difficult to do the same
distribution method they did in Europe to Latin America. They are thinking of two optins:
one is establish company distribution office in capital of Massilia which is Mardoe. Then
the other option is appoint a local to be their agent to do the main distributions in the
stores.

Point of View

The character we choose is Pierre Goulet which is the vice president of

international marketing for Euromanagé. Goulet consider the advantages and
disadvantages of the expansion of the company. He added that the success of
Euromanagé in Europe might not work in Latin America. Since, Pierre Goulet is the vice
president; he has the rights to decide on what option to do. However, he is very
determine to his goal so what he did is that he sends an email to his marketing
manager, Guy Lassalles, asking him to evaluate the difficulties and risks in each
alternative from the long-term perspectives of the company. He makes sure that
everything will be successful like what happen in Europe.

Alternative Courses of Action

 Since Euromanage Inc. is an international incorporation, the alternative action to
their problem is to have an Effective international company structure, Establishment of
Operating Systems and having a good communication.

If your aim is to be competitive globally, you must have an effective international

company that have a team in place that’s up for the challenge. One fundamental
consideration is the structure of your organization and the location of your teams. The
company may be run from one central headquarters and have offices and
representatives on the ground in key markets abroad. The company is organized into
continental groups, each overseen by a President. They will coordinate their working
time zones based on the time zone of where they are. Considering hiring local markets
experts that understand the target market must be work centrally. Having more than
6,500 selected community leaders can make your employees feel welcome. They also
get help from other members that share advice and experiences for faster integration

Establishing operating systems can help Euromanage Inc. This includes

establishing internal operating bases such as a sales organization, overall organization
of the supply chain, and IT, personnel, general affairs and accounting systems.
Because operating system is a unique way of doing things on how it operates, goes to
market, produces and deals with its customers. With this operating system, I’m not
talking about new technology; it is some new kind of dashboard to help you track your
data, but a complete framework around in which you can run your business. Operating
system becomes the key driver of performance and can persuade both investors and
prospective employees that your businesses are the right one for them. Having an
operating system will have a clear vision of where the business is going, and how you
are going to execute on that vision. Regular strategic reviews on a quarterly basis to
stay focused on the vision and execute better. It will build a team who match your
culture, share your vision, and are clear about their responsibilities. Accountability and
consistency are increased, so your business runs more efficiently day to day. There is
transparency and better communication throughout the organization, and meetings
become more productive.
 Good communication is at the heart of effective international business strategy.
However, communicating across cultures can be a very real challenge. Effective
communication with colleagues, clients, and customers abroad is essential for the
success of international business. And it’s often more than just a language barrier you
need to think about nonverbal communication can make or break business deals too.
Researching and knowing how different cultural values and norms such as shaking
hands can and should influence the way you communicate in a professional context.
Being aware of acceptable business etiquette abroad, and how things like religious and
cultural traditions can influence and help you to better navigate potential communication
problems in international business.

Recommendation

Since the case problem is about whether Euromanage have to continue an

international marketing in Latin America or not, the second alternative action which is
the Operating systems is recommended. Modernization and invention of the creative
minds brought us to an era where technology could help our lives convenience and
easier than the primitive way. We first learn how to explore the seas, Travel the depths
of the wide oceans, roam the plain, mountain and other landform with excellent speed,
and we are conquering even the high expansive sky. Even the transportation of goods
from continent to continent became much more easier and faster leading us to the age
of a more competitive international markets, yet with all of this is said and done we
shouldn’t forget that the best way to success is control to oneself, on how one
organization would handle their Operating systems and communications.

If your goal is to have an effective and efficient distribution of goods from one
country to another, the operating systems will help you to fasten your transactions and
expand your business internationally. This action will give the Euromanage a lot of
advantages when it comes in international marketing because it will make the
distribution method easier wherein the Euromanage can track their data and
transacations in a dashboard. This will be a good basis to know if the transactions of
Euromanage in Massilia are doing well or not and to know what the other possible
strategies that can help the Euromanage in importing their products. The company can
have a better communication to their investors, agents and consumers through the use
of operating systems and it can enhance the performance of the company when it
comes in business deals.

This proposal will give the Euromanage the overall outlook of its business
because it includes the internal operating systems that can monitor the sales
organization and how the business operates in different stores in Massilia and to control
its target customers and the production of goods and services. Through the use
operating systems, the company will have a proper vision in all transactions that is
happening with their business in Massilia and Europe. It can help the Euromanage to
achieve their goals which is to successfully distribute their products in Massilia just like
what they did in Europe. It will execute the operation of Euromanage better and can
build a strong foundation that can help the company to grow internationally.

Taking advantages of the operating system will give a great potential for
Euromanage to increase the revenue of the company and to widen its business partners
and consumers. This will widen the target customers of the company and it’s a great
way for the goods and services to be known internationally. It can slowly expand the
business and discover new strategies and techniques that can make the company to
distribute the products effectively and efficiently. Operating systems provides the
company an easier way of communication with the business partners and clients that
will surely give a great impact when it comes in creating more stores in different
countries. It’s a good key to carry a large amount of goods to distribute internationally
particularly in Massilia because the operating systems will make the business more
productive. With these, the operating system offers transparency, accountability and
consistency that can help the distribution of goods and services of the business to be
successful.
Plan of Action