TABLE OF CONTENTS

I. Question 1....................................................................................................................................3
1. Cultural shock........................................................................................................................ 3
2. Backstory............................................................................................................................... 3
3. Application of six Hofstede et al. (2010) dimensions............................................................3
4. Happening.............................................................................................................................. 3
4.1. Vietnam - collectivism.................................................................................................. 4
4.2. Singapore - individualism............................................................................................. 4
5. Reflection...............................................................................................................................4
5.1. Importance of cross-nation culture............................................................................... 4
5.2. Solutions....................................................................................................................... 5
II. Question 2:.................................................................................................................................5
1. Introduction............................................................................................................................5
1.1. Core Values................................................................................................................... 5
1.2. Mission..........................................................................................................................5
1.3. Goals............................................................................................................................. 6
2. Company Evaluation..............................................................................................................6
2.1.1. VRIO Framework................................................................................................ 6
2.1.2. Core Competencies Appraisal..............................................................................6
3. Macro and Micro Environment Analysis...............................................................................8
3.1. Pestle............................................................................................................................. 8
3.1.1. Political factors.................................................................................................... 8
3.1.2. Economic factors................................................................................................. 8
3.1.3. Sociological factors..............................................................................................9
3.1.4. Technological factors......................................................................................... 10
3.1.5. Legal factors.......................................................................................................10
3.1.6. Environmental factors........................................................................................ 11
3.2. Porter’s 5 forces.......................................................................................................... 11
3.2.1. Threat of new entrants........................................................................................11
3.2.2. Bargaining power of buyers...............................................................................12
3.2.3. Bargaining power of suppliers........................................................................... 13

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 3.2.4. Threat of new substitutes................................................................................... 13
3.2.5. Competitive rivalry............................................................................................ 13
3.3. SWOT Analysis.......................................................................................................... 14
3.3.1. Strengths............................................................................................................ 14
3.3.2. Weaknesses........................................................................................................ 15
3.3.3. Opportunities:.................................................................................................... 15
3.3.4. Threats:.............................................................................................................. 16
4. Strategies..............................................................................................................................16
4.1. Analysis of the four options........................................................................................16
4.1.1. Construct or purchase a facility in the United States.........................................16
4.1.1.1. Opportunities.............................................................................................16
4.1.1.2. Challenges.................................................................................................17
4.1.2. Pursue a strategic partnership with a US provider.............................................17
4.1.2.1. Opportunities.............................................................................................17
4.1.2.2. Challenges.................................................................................................18
4.1.3. Franchise sales and service in the United States................................................18
4.1.3.1. Opportunities.............................................................................................18
4.1.3.2. Challenges.................................................................................................19
4.1.4. Become a specialist provider, while continuing to sell and service solutions
from Canada.................................................................................................................19
4.1.4.1. Opportunities.............................................................................................19
4.1.4.2. Challenges.................................................................................................19
4.2. Expansion option........................................................................................................ 20
4.2.1. Overview............................................................................................................20
4.2.2. Eligibility........................................................................................................... 20
4.3. Mode of entry..............................................................................................................21
4.3.1. Opportunities......................................................................................................22
4.3.2. Challenges..........................................................................................................22
4.4. Chronological steps to operate a partnership.............................................................. 23
5. Organization structures........................................................................................................ 24
5.1. Current structure......................................................................................................... 24

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 5.1.1. Opportunities......................................................................................................24
5.1.2. Challenges..........................................................................................................25
5.2. Recommended structure..............................................................................................25
5.2.1. Opportunities......................................................................................................25
5.2.2. Challenges..........................................................................................................26

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 I. Question 1
Think of the last time you personally experienced a culture shock. Culture shock occurs
when somebody becomes painfully aware that a person or persons born and educated in
another country think(s), feel(s) and/or act(s) differently from what was expected. What
happened and which one of the six Hofstede et al. (2010) dimensions best explains the
reason for the shock?

1. Cultural shock
When individuals or organizations are exposed to a new culture, they suffer confusion and
discomfort. It can express itself in a variety of ways, including language difficulties, different
societal norms and beliefs, different communication styles, and different business processes,
and if not addressed, it can lead to misunderstandings, miscommunication, and commercial
failures.

2. Backstory
I had always been intrigued by other cultures, so when I was given the chance to study abroad
in Singapore on a summer camp, I jumped at the chance to travel and broaden my views. I,
however, felt overwhelmed and lost as soon as I landed in Singapore.

3. Application of six Hofstede et al. (2010) dimensions

My struggle to fit in with Singaporean culture's elements relies heavily on
individualism-collectivism, which refers to the extent to which individuals are obligated to look
after themselves and their close relatives only.
- In societies that prioritize individualism, people are expected to be independent and
capable of relying on themselves, while their personal achievements and objectives are
held in high regard.
- Conversely, collectivist societies prioritize group harmony and loyalty, with individuals
expected to prioritize the needs of the collective over their personal interests.

4. Happening
I had a hard time adjusting to this independent society. I missed the coziness and kindness of

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her village and felt alone and lonely. I found it difficult to interact with those around me
because they all appeared to be preoccupied with their own aspirations and goals.

4.1. Vietnam - collectivism

- For me, family and neighborhood were the pillars of civilization in Vietnam. Placing
one's own interests ahead of those of the group was unfathomable because everyone
depended on one another for support and assistance.
- In contrast to Singapore, where everyone appeared to be in a rush, people in Vietnam
frequently stopped and chatted with one another on the street. Vietnamese folks had a
strong sense of society and family.
- Vietnamese people are more reserved and polite. I was used to communicating in a
more indirect manner, where people would use gestures and subtle cues to convey their
message.

4.2. Singapore - individualism

- People in Singapore had more freedom to follow their interests and aspirations without
being constrained by societal norms or responsibilities. People were urged to
experiment and take chances, even if it meant defying social conventions. It was a
society that respected creativity and invention and gave people the freedom to be
liberated from the limitations of their upbringing.
- However, it seemed as though everyone in Singapore was preoccupied with their own
aspirations and goals. Rushing about, everyone kept their heads down and avoided eye
contact.
- Singaporeans tend to be more direct and assertive in their communication. In Singapore,
however, people spoke their minds without hesitation, which often left me feeling
confused and uncertain.

5. Reflection
5.1. Importance of cross-nation culture
Overall, my experience in Singapore serves as a reminder of how crucial it is to
comprehend cultural aspects like collectivism when engaging with people from other

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 cultures. People can better manage cultural differences and prevent mistakes by
understanding how culture affects how we perceive doubt and confusion.

5.2. Solutions
- Education: People can better comprehend and appreciate various methods of thinking
and acting by learning more about the traditions and values of other cultures.
- Exposure: While it's important to maintain my cultural identity, adapting to the new
culture can help me better understand and appreciate it. By trying to learn the language,
and participating in cultural events, I had made progress in understanding the cultural
norms and values of Singapore.

II. Question 2:
Students must prepare a feasible US expansion strategy for NorthCan’s fresh produce
packaging division.

1. Introduction
1.1. Core Values
- NorthCan's core values focus on a knowledge-based company infrastructure and
corporate culture that ensures employees maintain accurate packaging knowledge.
- The company values investing in its people and employees, providing training and
continuing education, and fostering a culture of expertise and excellence, ensuring the
highest degree of satisfaction and accountability.

1.2. Mission
- Bring together their packaging knowledge and expertise with their value
proposition as a value-added distributor: With the goal of achieving growth and
scalability in international markets, it retains its current international customers.
- Strive to build trust with their customers: NorthCan provides them with innovative
and customized solutions that cater to their specific requirements with belief that their
own success is linked to their customer's success, which is why they prioritize their
customers' achievements.

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 1.3. Goals
- Stategic goals: “doubling sales every five years”.
- Operating goals: NorthCan intends to build a plan for worldwide expansion into the US
market by exploiting its success in Canada.

2. Company Evaluation
2.1.1. VRIO Framework

Capabilities/ Competitive
Value Rarity Imitability Organization
Resources advantage

Temporary
Manufacturing
YES YES NO YES competitive
equipment
advantage

Providing the Competitive

YES NO NO YES
consumable parity

Servicing and
Temporary
maintenance of
YES YES NO YES competitive
the equipment
advantage
sold

Packaging Long-term
knowledge and YES YES YES YES competitive
expertise advantage

2.1.2. Core Competencies Appraisal

- Efficiency: The packing industry places a high value on efficiency because it has a direct
bearing on the price, speed, and quality of packaging. Packaging Equipment of Northcan

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 can guarantee that clients receive effective and affordable packaging solutions thanks to
its highly automatic and advanced technology.
- Sustainable packaging: Using this technology has reduced the amount of packing
needed, which is crucial for ecological packaging. These initiatives demonstrate a
dedication to environmentally friendly packing methods. Northcan helps to lessen the
effect of shipping on the ecosystem by using less packaging materials.
- Customer comfort:
+ Packaging Equipment of Northcan is able to give clients piece of mind by
providing service agreements, ensuring that both their equipment demands and
packaging requirements will be met. In the packaging sector, where machinery
downtime can add up to substantial expenses and delays, this capacity is crucial.
+ The company's focus on customer satisfaction shows a dedication to creating solid
and loyal customer relationships.
- Training and Development activities: Packaging Equipment of Northcan is able to
guarantee that its personnel possess the necessary packaging expertise to provide for the
needs of new and uninitiated clients. This skill is essential in the packaging sector
because consumers demand that the company providing their packing solutions be
knowledgeable and skilled enough to address their diverse requirements.
- Customer-centered: A further indication of the company's dedication to offering
consumers high-quality, personalized packaging solutions that can help them improve
their overall business performance is its emphasis on improving the performance of its
clients' businesses. By placing a high priority on this goal, Packaging Equipment of
Northcan can develop enduring bonds with its clients, which are crucial for preserving a
competitive advantage in the market.

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3. Macro and Micro Environment Analysis
3.1. Pestle
3.1.1. Political factors
- Tariffs and trade agreements: These two factors have an effect on the US
packing business. Certain packaging materials, including metal, steel, and paper,
are subject to US tariffs that may raise the cost of manufacturing for packaging
producers (USMCA, 2020). Changes to trade deals like the USMCA (United
States-Mexico-Canada Agreement) can have an effect on the supply chain and
trade ties between nations, which can have an effect on the packing business.
- Political stability: Political security can have an effect on the packaging sector by
influencing customer trust and product demand. Opportunities for bipartisan
legislation will be scarce because of how divisive the political climate still is.
Economic instability and a decline in the demand for packing goods can result
from political instability like unclear elections or civil strife (Coface, 2022).

3.1.2. Economic factors

- Increasing import of packaging: The import of packing containers, including
record sleeves, has increased by 6.2% year since 2014. At $420,622,215.45
(NationMaster, 2019), the nation ranked first among other nations in the import of
packing containers, including record sleeves in 2019.
- Increasing production of packaging: Since 2014, United States Paperboard and
Packaging Paper Production grew 0.3% year on year. With 48,045,425 Metric
Tons in 2019 (NationMaster, 2019), the country was ranked number 2 comparing
other countries in Paperboard and Packaging Paper Production.
- Expanding market: The US packaging market was one of the largest in the
world, with sales reaching US$177 billion, according to the Flexible Packaging
Association. It was one of the biggest producers and exporters of fruits and
vegetables, which led to a significant increase in the need for items for packaging
fresh food and produce in the nation.

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- Growing income: Consumer expenditure grew $27.9 billion, or 0.2 percent
(BEA, 2022), while personal income increased $72.9 billion, or 0.3 percent on a
monthly basis. The rise in compensation was the main factor contributing to the
growth in personal income.

3.1.3. Sociological factors

- Shift towards services: As people restart their pre-pandemic activities, the
demand for services like tourism, entertainment, and eating out is likely to rise.
The desire for manufactured products may decline as a result of this move
towards services (Stemmler, 2022). If this trend towards services persists, it might
not be good for the industrial sector, especially for businesses that make more
luxuries or non-essential products.
- Population growth: In recent years, the United States' population development
rate has slowed. The US Census Bureau estimates that in 2020, the country's
population growth rate was 0.35 percent, which is the lowest level in a century.
Since the 1990s, when it was greater than 1%, the population development rate
has been gradually decreasing (U.S. Census Bureau, 2020).
- Consumer preferences: The packaging market for fresh food products exported
from Canada to the US is influenced by social variables including customer trends
and preferences. More sustainable and environmentally friendly packaging
choices are in demand from consumers in the US (Nielsen, 2022). The market
may also be influenced by package designs that appeal to American customers,
such as practical and simple-to-use packaging.
- Spending habits: According to a survey by McKinsey & Company,
higher-income consumers are more likely to seek out premium packaging options.
In fact, 70% of consumers with household incomes over $100,000 are willing to
pay more for premium packaging, compared to only 42% of consumers with
household incomes under $50,000 (Baldesi et al., 2019). This suggests that
packaging manufacturers should consider offering premium packaging options to
appeal to higher-income consumers.

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 3.1.4. Technological factors
- Facilities development: The United States will build a number of high-volume
advanced packaging plants and emerge as a world leader in packaging technology
(U.S. Department of Commerce, 2023).
- Labor shortages: Although there are challenges to overcome, labor shortages are
pushing CPGs to explore automated solutions. Several CPG companies prioritize
automation during the production and processing stages because it increases
productivity and efficiency right away (PMMI, 2022). There is also a lot of room
for automation in warehousing, and there are solid reasons to do so.

3.1.5. Legal factors

- Heightened prevention policies: The FSMA altered many aspects of food
regulation by focusing on ensuring the safety of the US food supply through
enhanced prevention policies and protocols, rather than reacting after a food
safety incident happened (Center for Food Safety and Applied Nutrition, 2018).
- International trade: Multiple laws and policies influenced the domestic and
foreign commerce and usage of fresh food (e.g., vegetables). The Produce
Marketing Association and the Canadian Produce Marketing Association, in
particular, collaborated closely with industry and government to ensure that laws
met government objectives without hindering fresh produce trade.
- Packaging materials: The Food and Drug Administration (FDA) controls the use
of packing materials in the manufacture of food and beverages. The FDA has
created rules governing which materials are suitable for use in food packaging and
how they should be used. Plastics, metals, glass, and paper are among the items
covered by the rules. The FDA mandates producers to use materials that are
secure and appropriate for the intended use, as well as to ensure that they do not
contaminate food (Food and Drug Administration , 2017).
- Labeling requirements: The FDA also controls food and beverage container
labeling. Consumers are told about the components of the product, including the

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 ingredients, nutritional information, and any possible allergens, thanks to the
labeling regulations. The FDA also controls the use of packaging claims and
words , including "organic" or "natural."

3.1.6. Environmental factors

- Biodegradable packaging materials: Fresh food product packaging sales from
Canada to the US are significantly impacted by environmental concerns.
Exporters must abide by the stringent rules the US has set down for packing
materials. In the US market, using environmentally friendly and biodegradable
packaging materials may provide businesses a competitive edge.
- Recycle rates: Plastic packaging recycles at a modest rate. For instance, waste
management in the United States typically involves little leakage, yet recovery
rates for packaging and food-service plastics are only approximately 28%
(Hundertmark et al., 2019).
- Government measures: FDA offers producers assistance in using recycled
plastics for food contact materials in a responsible way (U.S. Department of State,
2022). The initiative makes sure that the high-quality plastics formerly used for
food contact articles are safely employed to generate new food contact articles
while preventing plastic food contact articles from ending up in landfills or
damaging the marine environment.

3.2. Porter’s 5 forces

3.2.1. Threat of new entrants
- High capital needs: The expense of establishing a packaging production facility
is expensive, and major businesses can benefit greatly from economies of scale.
The industry is characterized by high entry barriers due to the requirement of
specialized equipment, skilled labor, and significant investment in technology and
R&D.

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 - The existence of established companies: It might be challenging for new
competitors to acquire market dominance due to established companies' strong
connections with suppliers and customers.
- Regulatory barriers: The industry is highly regulated, which further adds to the
entry barriers. It also requires compliance with stringent government regulations.
→ The threat of new entrants is comparatively minimal in the fresh food product
packaging business. → LOW

3.2.2. Bargaining power of buyers

- Company’s objectives: Packer’s focus on potential customers highlights the
importance of the bargaining power of customers in NorthCan's success in the US
market. The potential customers' needs and preferences determine the demand for
NorthCan's fresh food product packaging and ultimately influence the company's
revenue and profitability.
- Numerous players present in the industry: Prices and other packaging terms
and conditions are negotiable by customers.
- Low degree of product differentiation: Buyers have the choice of easily
switching between several packaging suppliers, which strengthens their
negotiating position. Because there isn't much product differentiation in this
sector, switching between suppliers is also simpler for clients.
- Large customers: Due to their enormous order amounts, buyers like food
producers and merchants have a lot of purchasing power. These customers could
also demand discounted costs, first-rate goods, and packaging made from
sustainable resources. To be competitive, packaging firms must meet these
criteria.
→ Because there are so many competitors functioning in the fresh food product
packaging market, clients have a lot of negotiating power. → HIGH

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 3.2.3. Bargaining power of suppliers
- Reliance on suppliers: NorthCan's expansion plans involve entering new
markets, introducing new products, and offering new packaging solutions to
customers. To achieve this, NorthCan must work closely with suppliers to ensure
that the quality of raw materials, packaging equipment, and consumables meet
customers' standards. Any deviation from customers' expectations can lead to a
loss of business and negatively impact NorthCan's expansion plans.
- Raw materials availability: There aren't many vendors in the market, suppliers
of raw materials like plastic, paper, and metals have some power to impact costs.
Suppliers can significantly impact the success of the expansion project, as their
standards and requirements must be met.
→ As a result, the suppliers of these materials and equipment have a significant level of
bargaining power. → MODERATE

3.2.4. Threat of new substitutes

- Unfamiliar substitutes: While there are various alternatives to packaging made
of plastic and paper, these alternatives are not frequently used because of
difficulties with cost and convenience. Sustainability, convenience, and food
safety were highlighted by NorthCan as the current factors influencing customer
demand for fresh produce packaging.
- Regulations on materials: It is difficult for alternatives to products to capture
market share because to government laws in the US restricting the use of specific
packaging materials.
→ In the fresh food product packaging sector, threat of new substitutes are minimal. →
MODERATE

3.2.5. Competitive rivalry

- Large corporations:
+ Bunzl is a multinational distribution company that operates in more than
thirty countries, making it a formidable competitor for NorthCan. The

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 company's extensive distribution network and global reach allow it to
provide packaging solutions to a broad customer base.
+ Orora, on the other hand, is a global packaging manufacturer and
distribution conglomerate with operations in seven countries, over 4,000
employees, and 54,000 shareholders. The company's size and resources
make it a formidable competitor for NorthCan.
- Small, localized, or regional companies: NorthCan faces competition from
smaller, localized, or regional packaging companies positioned throughout the
United States. While these companies may not have the same resources as Bunzl
or Orora, they may have an advantage in terms of their local knowledge and
customer relationships.
→ The level of competitive rivalry in the fresh food product packaging industry is high,
as companies are constantly competing for customers and market share. → HIGH

3.3. SWOT Analysis

3.3.1. Strengths
- Strong brand reputation: Northcan has a reputation for high-quality and
innovative yet sustainable packaging solutions, which can help the company stand
out in a competitive market. The company has a diverse product portfolio,
including paper-based packaging, metal packaging, and flexible packaging.
- Highly skilled and experienced workforce: Northcan has a team of experienced
and skilled employees who can help the company develop and implement new
strategies, enabling it to produce innovative and customized packaging solutions.
- Diversified customer base: Northcan has a diversified customer base that
includes both small and large companies across various industries. Having a broad
range of international clients and suppliers, the company creates a strong platform
for further development and growth.

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 3.3.2. Weaknesses
- Limited geographical presence: Northcan is a Canadian-based company with
limited operations in the United States. This lack of a significant presence in the
US market limits the company's growth potential and reduces its competitiveness.
The company needs to explore ways to expand its reach in the US market to gain
a larger market share.
- Heavy reliance on raw materials: Northcan relies heavily on third-party
suppliers for raw materials, which increases the risk of supply chain disruptions
and reduces the company's control over the quality of its products. The company
needs to explore ways to reduce its reliance on third-party suppliers and increase
its control over the supply chain.
- Limited knowledge of local preferences: Northcan may face challenges in
adapting to changes in the packaging industry, such as shifting consumer
preferences or new technology.

3.3.3. Opportunities:
- Increasing demand for eco-friendly packaging materials: Consumers are
increasingly becoming aware of the environmental impact of packaging materials.
This presents an opportunity for Northcan to develop sustainable packaging
solutions that are eco-friendly and biodegradable. By offering sustainable
packaging solutions, the company can differentiate itself from competitors and
appeal to environmentally conscious consumers.
- Diversification of revenue streams: Northcan currently generates the majority of
its revenue from sales of packaging materials. Diversifying its revenue streams
can help the company reduce its reliance on a single source of revenue and
minimize the impact of fluctuations in demand. For example, Northcan could
offer value-added services such as packaging design, printing, and labeling to
generate additional revenue streams.
- Advanced technologies: Technology developments such as artificial intelligence,
machine learning, and automation provides an opportunity for Northcan to

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 improve its production efficiency and reduce costs. For example, the company
could explore the use of new materials such as bioplastics, nanotechnology, and
smart packaging.

3.3.4. Threats:
- Rising competition: The packaging industry is highly competitive, with many
established players competing for market share. Northcan operates in a market
where there are already many players who have established themselves, and it can
be challenging for a new entrant to gain attraction. Competitors with established
brand recognition and a strong reputation can easily outcompete Northcan in
terms of market share, pricing, and distribution.
- Uncertain economic and political conditions: Economic uncertainty, such as a
recession, can lead to a decline in consumer spending, which in turn can lead to a
decline in demand for packaging products. Additionally, inflationary pressures
can cause the cost of raw materials and other inputs to increase, which can reduce
Northcan's profit margins. These can affect the cost of raw materials and disrupt
the supply chain.
- Impact of the COVID-19 pandemic: Changing regulations for packaging
materials, such as plastic bans and taxes, can affect Northcan's product portfolio
and profitability. Effects of the pandemic on the global economy and consumer
behavior can affect the demand for NorthCan's products.

4. Strategies
4.1. Analysis of the four options
4.1.1. Construct or purchase a facility in the United States
4.1.1.1. Opportunities
- Full control: Constructing or purchasing a facility in the United States
will give NorthCan full control over its operations in the region. This will
enable the company to tailor its operations to suit local market demands
and achieve its business objectives.

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 - Enhanced efficiency: Having a physical presence in the United States
will enable NorthCan to reduce shipping and transportation costs, which
can help the company to become more efficient and cost-effective.
- Improved market penetration: By constructing or purchasing a facility
in the United States, NorthCan will be able to expand its market
penetration in the region. This can help the company to attract more
customers and grow its business in the long term.

4.1.1.2. Challenges
- High initial investment: Constructing or purchasing a facility in the
United States will require a significant initial investment. This can put a
strain on NorthCan's financial resources and limit its ability to pursue
other growth opportunities.
- Lack of local expertise: NorthCan may not have the necessary local
expertise to manage a facility in the United States. This can lead to
operational inefficiencies and hinder the company's ability to achieve its
business objectives.
- Regulatory compliance: NorthCan will need to comply with local
regulations and standards in the United States, which can be
time-consuming and costly.

4.1.2. Pursue a strategic partnership with a US provider

4.1.2.1. Opportunities
- Reduced costs: Pursuing a strategic partnership with a US provider would
reduce the costs associated with establishing a physical presence in the
United States. This would allow NorthCan to allocate its resources to other
areas of the business.
- Access to local expertise: Partnering with a US provider would provide
NorthCan with access to local expertise. This would help the company
navigate the US market more effectively and efficiently.

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 - Risk sharing: A strategic partnership would allow NorthCan to share the
risks associated with expanding into the US market. This would reduce the
financial and operational risks associated with entering a new market.
- Synergy: A strategic partnership could provide NorthCan with access to
new technologies and resources that could improve its business operations.
This could lead to increased profitability and growth.

4.1.2.2. Challenges
- Loss of control: A strategic partnership would require NorthCan to share
control over its operations. This could lead to conflicts between the
partners and a loss of control over business decisions.
- Limited market penetration: Partnering with a US provider may not
provide NorthCan with the same level of market penetration as owning a
facility in the United States. This could limit the company's growth
potential in the US market.
- Limited branding: A strategic partnership may not allow NorthCan to
establish its brand in the US market. This could limit the company's
visibility and credibility in the industry

4.1.3. Franchise sales and service in the United States

4.1.3.1. Opportunities
- Low risk: Franchising is a relatively low-risk strategy as the franchisee
invests the majority of the capital required to set up a new location. This
allows NorthCan to expand its operations with minimal financial risk.
- Rapid expansion: Franchising can help NorthCan expand its operations
quickly by leveraging the resources of its franchisees.
- Local knowledge: Franchisees have a better understanding of local
markets and can tailor products and services to the local market's needs.
- Shared marketing costs: Franchisees typically contribute to a shared
marketing fund, which can help to increase brand recognition and
awareness.

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 4.1.3.2. Challenges
- Lack of control: Franchisees operate independently, which can result in a
lack of control over brand messaging and quality standards.
- Legal costs: Franchising requires significant legal costs to create and
maintain franchise agreements and compliance with state and federal laws.
- Potential for negative publicity: A poorly performing franchisee or
franchisees can result in negative publicity for the franchisor, which can
damage the brand's reputation.
- Revenue sharing: Franchisees must pay royalties to the franchisor, which
can reduce their profits and make the franchise less attractive.

4.1.4. Become a specialist provider, while continuing to sell and service

solutions from Canada
4.1.4.1. Opportunities
- Focus: This strategy enables NorthCan to focus on specific products and
services, allowing it to become a industry leader in the market.
- Unique value: By becoming a specialist provider, NorthCan can
differentiate itself from competitors by offering unique and tailored
solutions to customers.
- Increased margins: As a specialist provider, NorthCan can charge
premium prices for its specialized products and services.
- Diversification: By offering specialized solutions, NorthCan can diversify
its revenue streams.

4.1.4.2. Challenges
- Limited market: Focusing on a specific area may limit NorthCan's
market potential, as it may not be able to serve all customers' needs.
- Higher development costs: Developing specialized products and services
requires significant investment in research and development, which can be
expensive.

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 - Increased risk: By focusing on a specific area, NorthCan is exposed to
risks associated with that area, such as changes in technology, regulatory
changes, or changes in consumer preferences.
- Increased competition: Becoming a specialist provider can attract more
competition from other providers in the same area.

4.2. Expansion option

4.2.1. Overview
- Between the two main methods of implementing growth strategies which are
organic growth and growth through M&A, the former strategy is achieved by
NorthCan via entering new markets, which is the US in this case.
- After thorough research of both the market and the company itself, pursue a
strategic partnership with a US provider appears as the best choice for
NorthCan. This tactic entails forming an alliance with a US business that already
has a solid clientele and distribution network.

4.2.2. Eligibility
Developing a strategic partnership with an established, complementary US-based
packaging solutions companyIs the most suitable strategy due to:
- BOD’s interests of:
+ “Cost effective”: Building or acquiring a facility in the US can be a costly
and time-consuming process. Pursuing a strategic partnership with a US
provider can be a more cost-effective option, as it allows NorthCan to
leverage the existing infrastructure and expertise of the partner.
+ “Scalability”: A strategic partnership can provide NorthCan with access
to a larger market and customer base, thereby increasing the potential for
growth and scalability. By partnering with a US provider, NorthCan can
expand its reach and offer its solutions to a wider audience.
+ “Yield a favourable payback period”: A strategic partnership can lead
to revenue and cost synergies that can result in a favorable payback period.

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 By leveraging the strengths of both NorthCan and the US partner, the
partnership can create value for both companies, resulting in a faster return
on investment.
+ “Survive in an international market”: Pursuing a strategic partnership
can help NorthCan mitigate risks associated with entering a new market.
By partnering with an established US provider, NorthCan can benefit from
the partner's existing customer base, distribution channels, and brand
recognition, reducing the risk of failure.
- “Ensuring its business objectives and operational efficiency remained
intact”:
+ “Providing a full-service”: A strategic partnership with a US provider
can allow Northcan to expand its offerings and provide a more
comprehensive solution to its customers. This can enhance the customer
experience by providing them with a one-stop-shop for all their needs,
including products, services, and expertise. The US provider may bring in
new products, technologies, or expertise that Northcan does not have,
which can be valuable in enhancing its value proposition.
+ “Value-added solution”: A strategic partnership with a US provider can
help Northcan access new markets and customers. This can further
enhance the customer experience by providing them with a wider range of
options and opportunities to grow their businesses. The US provider may
have an established presence in markets that Northcan does not, which can
allow it to expand its geographical reach and customer base.

4.3. Mode of entry

Establishing a joint venture (JV) between NorthCan and the US partner is the suggested
entry point for establishing a strategic collaboration with a US supplier. A joint venture is
an agreement between two or more people to carry out a certain business endeavor while
splitting the profits, risks, and management of the venture.

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While deciding on the form of entrance, establishing a JV has a number of benefits and
drawbacks that must be taken into account. Below is a thorough examination of the
suggested way of entry:

4.3.1. Opportunities
- Shared risks and costs: financial and operational risks and expenses associated
with entering the US market can be shared by NorthCan and the US partner by
entering into a JV. For NorthCan in particular, this might be advantageous because
it does not have the financial wherewithal to enter the American market on its
own.
- Local market knowledge: By collaborating with a US supplier, NorthCan may
benefit from the partner's understanding of the regional market, including regional
customs, laws, and client preferences. By doing so, NorthCan may hasten the
market entrance process and prevent making expensive mistakes.
- Advanced technology access: A US partner may provide cutting-edge equipment
and procedures that would help NorthCan enhance its goods and services and
become more competitive in the US market.
- Shared management: This can result in more effective decision-making and
improved communication between the two parties because NorthCan and the US
partner in a JV share management of the company.

4.3.2. Challenges
- Conflicts of interest: There is always a chance that NorthCan and the US partner
may have disagreements over what decisions to make and how to split earnings.
To prevent possible problems, it is crucial to lay out clear rules and expectations
from the beginning.
- Culture differences: Misunderstandings and poor communication between the
two sides may result from cultural differences, which may harm the JV.
- Loss of control: By entering into a JV, NorthCan may have to relinquish some
control over its operations, which can be difficult for a corporation that is
accustomed to having complete control over its activities.

23
 - Legal concerns: Forming a joint venture entails legal and regulatory difficulties
that must be properly researched and handled to ensure compliance with both
nations' laws.

In conclusion, establishing a joint venture with a US provider is the recommended mode

of entry for pursuing a strategic partnership with a US provider. While there are risks and
challenges involved, the advantages outweigh the disadvantages, and a well-executed
joint venture can help NorthCan successfully enter the US market and achieve its growth
objectives. It is essential to carefully consider the potential partners and establish clear
guidelines and expectations from the start to ensure a successful partnership.

4.4. Chronological steps to operate a partnership

- Establish clear cooperation aims and objectives: NorthCan must spell out its intentions
for its collaboration with a US provider. This entails determining the advantages of the
partnership, the contributions that each partner makes, and the precise goals that the
partnership should pursue.
- Find suitable partners: NorthCan needs to investigate potential partners and assess how
well they fit with the organization's aims and objectives. Market research, attending trade
shows, and networking may all help with this.
- Assess prospective partners' backgrounds, financial standing, market position, and
cultural fit: NorthCan should assess prospective partners' backgrounds based on these
factors. This entails going through a rigorous due diligence procedure to make sure the
prospective partner is a suitable fit for NorthCan's operations.
- Revise terms: Terms of the cooperation should be negotiated after a viable partner has
been found, according to NorthCan. This entails outlining the partnership's boundaries,
the precise obligations of each member, and the partnership's financial conditions.
- Establish a collaboration agreement: Upon the conclusion of discussions, NorthCan
and the US provider should sign a partnership agreement. The partnership's term, the
precise responsibilities of each partner, and any financial arrangements should all be
specified in the agreement.

24
 - Execute the collaboration: NorthCan must carry out the partnership in accordance with
its provisions. In order to accomplish the predetermined goals and objectives, this entails
communicating with the partner, exchanging information and resources, and coordinating
operations.
- Monitoring and evaluating the collaboration: This entails maintaining constant contact
with the partner, keeping tabs on the situation, and dealing with any problems or
difficulties that may appear.
- Change the collaboration as necessary: NorthCan should think about changing the
partnership or ending it entirely if it isn't accomplishing its goals or objectives. This
involves, if required, revising the partnership's conditions or looking for a new partner.

5. Organization structures
5.1. Current structure
A functional structure is a type of traditional organizational structure in which the
company is split into departments or functions such as finance and administration,
warehousing and logistics, or produce packaging. Each department is in charge of
carrying out specified tasks and reporting to the President.
5.1.1. Opportunities
+ Specialization and knowledge growth in certain functional areas: For
example, the sales and marketing department is entirely responsible for
developing and implementing sales and marketing strategies, whereas the
operations department is responsible for product and service production and
delivery.
+ Easy to execute: Functional structures are generally simple to put in place and
may be changed to the demands of the organization as it develops and evolves
over time.

25
 5.1.2. Challenges
+ Possibility of departmental silos forming: This can lead to a lack of
communication and cooperation, thus, impede cross-functional collaboration as
well as the capacity to adapt swiftly to market developments.
+ Lengthy and bureaucratic decision-making: As choices must frequently pass
through numerous layers of management before being executed.
+ Shortened view of the organization: Employees in a functional structure may
have a restricted view of the company as a whole, which can result in a lack of
awareness of how their job fits into the larger picture.

5.2. Recommended structure

As a result, NorthCan may need to explore a more flexible and collaborative organizational
structure that allows for cross-functional cooperation and quicker decision-making. This
might entail implementing a matrix structure in which staff from several departments
collaborate on cross-functional teams to achieve certain goals.

A matrix structure might be an appropriate choice for NorthCan exploring a strategic

collaboration with a US provider. This is because the firm would need to form a project team
with members from both NorthCan and the US supplier to manage the relationship. To
achieve a successful cooperation that satisfies the aims and objectives of both firms, the
project team would need to collaborate.

5.2.1. Opportunities
+ Flexibility: A matrix structure enables for resource allocation flexibility because
staff may be assigned to multiple projects as needed. This can be especially
advantageous for NorthCan, since the firm may need to dedicate resources to the
partnership project while not abandoning its other initiatives.
+ Improved communication: Because of the dual reporting structure, employees
may interact and collaborate with both functional managers and project
managers. This can improve communication across different functional areas of

26
 the company and lead to more effective project completion.
+ Specialization: Because of the matrix structure, it is possible to specialize in
both functional domains and project management. This can be especially useful
for NorthCan, since the firm may need to bring in specialist skills from many
functional areas to assure the partnership's success.

5.2.2. Challenges
+ Complicated reporting lines: Employees may be confused by a dual reporting
system, which may result in complex reporting lines.
+ Increased bureaucracy: There is a danger of increasing bureaucracy and
decision-making delays when numerous supervisors monitor each individual.
+ Conflict: When there are competing goals or resource allocation concerns, a
matrix organization can lead to conflict between functional managers and project
managers.

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