International Business

CASE STUDY 1
Big business is attractive, with huge profits for some. But there's
something to be said about small business as well, with lower risk and
the potential for creativity. Darren Robbins of Big D Custom Screen
Printing in Austin, TX found success in his business by pursuing
customers with orders both large and small. Although Big D started out
catering only to large orders, the shop sat idle in between orders, and
through effective scheduling and transparent pricing, was able to fill in
dead times with smaller orders. Big D found a profit in a market segment
that other local screen printers weren't clamoring to fill. Experts believe
this was a smart strategy, allowing Big D to spread out risk in their
business and offer customized products. But at least one person is
critical of the offering, pointing out that the niche has little upside
potential, and may hurt the company's efficiency.
Answer the following question.
Q1. What strategy was adopted by Big D forprofit?
Q2. Give an overview of the case.

Case study 2:

The 2000s witnessed the entry of several international retailers into emerging markets. The reason
for this could be as much attributed to saturated markets and cut-throat competition in developed
countries as to the untapped opportunities in emerging markets. Tesco, the UK-based retailer,
operated in several emerging markets in Europe and Asia. The case focuses on the entry and
expansion strategies of Tesco in the Chinese market. Tesco made several international forays in the
1990s and 2000s. Tesco developed an international strategy that involved having consistent
processes and policies while making localization efforts that took into account cultural differences and
local preferences.

The Chinese retail sector offered huge opportunities for international retailers with the average annual growth in the last 20
years being around 15 percent. Tesco entered China in 2004, after several successful Asian ventures including Thailand, South
Korea, and Japan. The Chinese market was a very different market in terms of tastes and preferences from the other markets
that Tesco operated in. Therefore, it decided to enter the country through a joint venture so that it could learn about the market
through its partner, which had operated in the market for several years. Also, by the time Tesco entered China, other
multinational retailers like Wal-Mart and Carrefour were already well established in the market.

Tesco faced the challenges in an emerging market like China by adopting strategies to suit that market. Some of the strategies
like entry and expansion strategies, store management, and localization strategies..

Questions

1. Analyze the entry of Tesco in an emerging market such as China.

2. Discuss how Tesco implemented the localization strategies in China.

3. Examine the challenges faced by Tesco in China.

4. Explain the growth and development of the retail industry in China.

Case Study 3

Advertising costs money, which many businesses find themselves

short of these days. But forgoing ad spending in favor of better profits
can be a mistake. Experts say that in a slump, one of the best things
you can do is adopt or increase your advertising strategy to attract
customers. During a recession, this is especially true, as other
businesses may be cutting back on their ad spending, making your
voice even more prominent to customers. After seven years of growth,
building from 30 to 300 locations, Firehouse Subs' growth fizzled, and
company leaders realized they had to do something about it. So they
returned local advertising fees collected from franchisees, not to put in
their pockets, but to take hold of their own local marketing. Sales fell
even more, revealing that this was not a good strategy at the time.
Instead, Firehouse reclaimed their local marketing fee, and then gave
franchisees the option to take part in a new marketing campaign,
requiring them to pay double for local marketing, but in return,
becoming part of an million advertising campaign poised for success.
Experts commend Firehouse for having the courage to ask franchisees
for more money where it was needed, even when times were tough.

Answer the following question.

Q1. Why proper advertising is necessary, during recession
period?
Q2. Give an overview of the case.

CASE
STUDY 4
“Chile’s Falabella – Succeeding through an Integrated Retail Strategy”
traces the journey of Chilebased retailer S.A.C.I. Falabella (Falabella) to
becoming one of the largest integrated retailers in Latin America. A brief
history of the company shows that the company progressed with an
insight into its business diversification and internationalization strategy.
Falabella’s adoption of the ‘integrated retail’ strategy was quite fruitful
for the company. The case also depicts the company’s focus on catering
to the distinct needs of the various customers across Latin America,
which helped it in not only creating a strong market position for itself,
but also in staving off competition from multinational retailers. The case
concludes with a look into the company’s future plans, which included an
expansion of its retail footprint and strengthening of its ecommerce
business.

Answer the following question.

Q1. Evaluate the business diversification strategy for a retail
company.
Q2. Analyze the international expansion strategy undertaken
by a strong regional player.