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Chapter 8
International market selection and entry
Book Content
Learning Objectives
Learning objectives from the textbook per chapter
Discussion Questions
Sample answers to discussion questions from the textbook
Case Study Solutions

Answers to case study questions
International Marketing Edge (IMEDGE)

Guide to using the IMEDGE feature in class
Teaching Notes
Tutorials
Teaching ideas for tutorials and small groups
Lectures
Teaching ideas for lectures and similar learning spaces
Assignments
Ideas for individual or group assignments
Additional Questions
Further questions not in the textbook for assessment and quizzes
Copyright © 2014 Pearson Australia (a division of Pearson Australia Group Pty Ltd)
– 9781442560833/Fletcher/International Marketing/6e
1
Book Content
Learning objectives
After reading this chapter you should be able to:
• identify the different problems faced by firms in international business when

selecting an international market
• assess a country’s attractiveness in terms of its potential, its membership of
trading blocs, its competitive intensity and its entry barriers
• create a portfolio of the most attractive foreign markets to enter given the
circumstances of the firm and the potential offered by the market
• recognise the different available modes for entering an international market
and the advantages and disadvantages of each
• explain the differences between export-based entry modes, manufacturing-
based entry modes and relationship-based entry modes.
Discussion Questions
1. Discuss the pros and cons of:

(a) simultaneous versus incremental entry into international markets
(b) concentrated versus diversified market entry strategies.
(a) Simultaneous versus incremental entry into international markets:
Incremental entry – pros:

• enables a firm to gain international marketing experience at a measured
pace
• involves less exposure risk
• reduced resource commitment
Incremental entry – cons:
• greater competitive risk
• may preclude economies of scale
• could result in a haphazard approach to entering markets
Simultaneous entry – pros:
• economies of scale can be achieved
• experience overseas is acquired rapidly
• likely to preempt competitors in overseas market
Simultaneous entry – cons:
• higher (relative) operating risk
• resource intensive
(b) Concentrated versus diversified market entry strategies:
Return To Beginning of Document

2
Concentrated entry – pros:
• allows for a more focused effort
• reduces operating costs
• reduces operating risks
• benefits from economies of scale
• exploits information and experience acquired quickly
Concentrated entry – cons:
• ‘all eggs in one basket’ (i.e. no spread of risk geographically)
• ignorance of opportunities in other parts of the world
Diversified entry – pros:
• greater strategic flexibility
• broadens knowledge of potential in a variety of markets
• spreads risk exposure geographically
Diversified entry – cons:
• may affect competitive economies of scale
• may require greater management resources at headquarters
• resources may be spread too thin
2. (a) Take a product that you are familiar with and which has not
previously been sold internationally and apply a selection procedure to
arrive at the three most promising markets for the international product.
Answers will vary as this activity requires students to select their own:
• product
• international destination market
• market selection process (see Figure 8.1)
• choice of three markets.
(b) Take a product that you are familiar with and which is already being
sold in several foreign markets and apply a selection procedure to arrive at
the three most promising markets that could be considered when
expanding international business for the product.
See comments and tasks for Question 2(a).
c) What different factors would you consider in the case of a product never
exported compared with the one already exported to several countries?
Factors to be considered are:
• the degree of customisation that the product may require in preparation for
export (e.g. packaging, content, size)
• type of export strategy

3
• level of risk involved in exporting to a particular nation (e.g. risk of
marketing failure, risk of non-payment)
• distance between domestic and export market
• transport mode
• level of corporate resources (e.g. time, money, people) required to export
the product
3. What factors would you consider if you were an Australian or New

Zealand manufacturer of catamarans in choosing between Mexico,
Indonesia and Japan as the next country to enter?
Factors to consider include:

• consumers’ ability to afford such a product in each country, hence each
nation’s economic factors
• size of the target market and potential demand for the product in each of
the countries and the impact of environmental factors such as climate and
lifestyles
• established networks or potential to establish networks in the market
• availability of joint venture equity partners, contract manufacture partners,
export/import agents etc
• the strength of the competition in the market
• mode of transport to each nation and the relative cost of transport to each
nation
• trade barriers for such a product in each nation
• cultural impediments and advantages
• minimum product standards for catamarans in each country, indicating the
degree to which the product might need to be customised for each country
• the possible political conflict or civil unrest in each nation
• whether there is a skilled, trained labour force which (if needed) can make
or service such a product in each country.
4. What would be the advantages and disadvantages of licensing the

manufacture of your product internationally as opposed to manufacture
under a joint venture arrangement?

4
Mode
Advantages Disadvantages
Licensing Minimal commitment of Less control over raw materials and

resources production process, therefore quality
Often the fastest way to may be an issue
enter a market No control over market development,
May gain access to local therefore may give little return
market knowledge Excludes the firm from the market
for the period of the licence
Might be ‘cloning a competitor’
Terms of licence agreement need to
be very clear
Joint venture Reduces the capital and Conflict may occur
other resource There may be problems with
commitment communication
Spreads the risk Cultural differences in management
Gives access to contacts styles
and expertise in
penetration of the local
market
Potentially greater returns
that one would get from
royalties from a licence
5. What aspects of an international market might cause you to settle on

an entry mode which gives you less control over how your product is
marketed but requires less investment of resources?
If there is long-term economic uncertainty or political instability in the overseas

market, a smaller financial investment lessens the likelihood that you will lose large
sums of money. Similarly, if market conditions overseas suggest intense
competition, a large investment may not be advisable if the likelihood is that the
firm’s brand cannot sustain the intense level of competition overseas. Finally, when
you are selling direct to the end user (e.g. Amazon.com) there is little need to have
a costly physical presence (e.g. greenfield operation, contract manufacturing)
overseas.

5
6. Because it is located in the southern hemisphere, Australia’s and New
Zealand’s fruit-growing industries have a counter-seasonal advantage in
many northern hemisphere markets. What entry mode would be most
suitable in view of possible trade barriers in some of these markets?
Given the perishable nature of the product, a form of export-based foreign market
entry mode is best suited. Direct exporting might be preferable if overseas agents
have already established supply chains in their own and other nearby countries.
Exporting is the quickest method of getting this product to the northern
hemisphere. Depending on the mode of transport adopted by the exporter, the
product can be refrigerated so that it arrives fresh into its export market(s).
Case Study Solutions
WalMart’s Entry into Africa: Not business as usual but a leap into unknown
territory
Question 1
Critically evaluate the potential challenges which WalMart is likely to confront in
doing business in South Africa in view of the difficult process it had to go through to
gain entry.
Answer
Students might focus on the following challenges:
• An apprehensive labour movement which might continue to monitor
WalMart’s transition and treatment of workers
• Continued government interest whose focus will be on evaluating whether
their broad economic benefits of the joint venture are being realised
• Adapting their business model and culture to the different South African
retail context
• Aggressive competitors who would be weary of having a global giant ‘in their
backyard ‘.
Question 2
Given WalMart’s experience in entering international markets, did its entry into
South Africa require a detailed screening approach?
Answer
WalMart has a long history of international expansion, therefore under normal
circumstances a detailed screening approach would not have been necessary.
However, since this was WalMart’s first entry into Africa, it was prudent for the
company to carry out a detailed screening process since the challenges that
emerged in South Africa were unique in their own way and required a longer time
frame to solve. Entry into South Africa is a good example of market selection in the
new millennium where WalMart’s strategic objectives to enter into Africa and
attainment of a competitive position were paramount in its decision making.

6
Question 3
Identify and discuss the pros and cons of WalMart’s strategy of entering into a joint
venture with MassMart.
Answer
Pros
• MassMart had expertise in penetration of the South African market
• MassMart had access to key local contacts in the sector, having operated in
South Africa for a long time
• WalMart was able to reduce its capital and resource commitment since this
was being shared with MassMart. In so doing, WalMart also spread its risk of
entering a new market.
Cons
• Possible risk of conflict between WalMart and MassMart on issues such as
strategy and organisational re-structuring of the new entity
• Possible communication and management problems due to the different
culture and language.
Question 4
Assume you have been appointed a consultant to WalMart and have been asked to
review WalMart’s strategy in entering South Africa’s retail sector. What could Wal-
Mart have done differently in its strategy to enter the sector?
Answer
• WalMart could have expanded the scope of its screening process of the
South African market. This would have helped it identify and understand the
nature and extent of influence of stakeholders such as labour unions.
• Whilst joint ventures have been the cornerstone of WalMart’s international
expansion strategy, the company could have considered a short-term
strategic alliance with MassMart before expanding to equity-based joint
venture. This was likely to be viewed differently by the coalition labour and
government since strategic alliances have a broader framework of options to
explore.
• This would have allowed WalMart more time to understand the intricate
dynamics of the different stakeholders such as government and labour.
• Wal-Mart could have provided evidence to dispel concerns raised by the
different lobbyists regarding the company’s dealings with local suppliers .
Wal-Mart could also provide evidence of their fair labour practices from their
other international operations.
Question 5
Now that WalMart has managed to get approval for its joint venture, what
measures can it take in order to ease the tensions that existed between it and the
coalition that was against the venture?
Answer
Measures
• WalMart should continuously engage the coalition on matters that relate to
their initial objections of the venture. This will assist in minimising
antagonism since there is still an element of mistrust from the coalition
• Where possible, WalMart should integrate local suppliers into its supply chain
network as part of its contribution to the general economy
• WalMart should engage in socially responsible marketing activities such as
engaging communities and assisting in programmes such as AIDS-HIV
workshops.

7
International Marketing Edge (IMEDGE)
Concept
The IMEDGE section draws on materials covered in each chapter to give students
an opportunity to undertake a practical and hands-on exercise which covers a
specific international marketing topic. Using information from the chapter and other
extra sources, IMEDGE tasks can be done either as group or individual activities.
What are the potential benefits of IMEDGE?
Students
• It requires students to apply theory to a real life scenario using information
from the sources identified in the chapter.
• It consolidates students’ understanding of key concepts covered beyond the
basic theory.
• Unlike case studies, the task involves collecting current on-going data and
applying it to concepts covered.
Instructors
• It is a very useful teaching aid since it asks students to complete a task
which involves looking for current information and applying principles
covered.
• It encourages students to keep abreast of current international marketing
activities.
• It can complement other blended teaching and learning activities applied by
instructors. For example, discussion questions and research assignments.
Model Answer - IMEDGE - Chapter 8
Using Cavusgil et al’s (2004)’ framework of foreign market opportunity assessment

which places countries into different clusters, students should select one country
each from clusters 6 and 8 and then use the corresponding market potential
indicators and overall market attractiveness index. These two indexes are outlined
in the chapter. The first task for students is to establish and understand the Deus
ex Machina business model since this is an innovative way of marketing surf wear.

8
The dynamic model has potential impact on how the business expands
internationally beyond the US and Indonesia. An understanding of the business
model is always crucial in assisting students in their selection of countries from the
two clusters.
The Deus ex Machina Experience
Deus ex Machina is a break away from the stereotype marketing of surf wear to
one that combines a number of lifestyle elements such as art, film, music and food.
The business is modelled around diversity which encompasses a retail-workshop-
gallery-restaurant concept. This is a concept which is becoming a big trend in
Europe and breaks away from the conventional surf wear marketing used by big
brands such as Billabong. The unorthodox approach is in response to a changing
global target consumer group which are looking for a one-stop shop for its surfing-
related lifestyle and these consumers can be found in different markets across the
globe. The target consumers for these products are not always the domestic
consumers of these products but also tourists.
In selecting their countries, students should:
1. Demonstrate an alignment of the country’s attractiveness with Deus ex

Machina’s unique product offering which is lifestyle oriented. The company
combines a surfing and street culture as part of its strategy to market niche
motorbikes, clothing and books. Therefore, students’ choices of countries within
these clusters should reflect whether there is likely to be an opportunity to market
these products. Is there a likelihood of a surfing and street culture in that country?
2. Students should also demonstrate their ability to identify the fact that Deus ex
Machina market boundaries are not restricted to the basic attractiveness of the
market from the perspective of the market having a domestic consumer who has
potential to buy the Deus experience. They should also note the role of the tourist
segment in determining market potential as illustrated by the decision of Deus ex
Machina to enter the Indonesian market.
3. Based on the clusters and evaluation of market attractiveness, students can

select any of the following and be able to illustrate relevance to Deus ex Machina
based on these countries’ alignment to the strategy of Deus ex Machina.
Cluster 6
Singapore and Czech Republic
• Based on market attractiveness and attraction of international tourists

• Students can then go on to illustrate how the other indicators for these two
countries provide a good marketing opportunity for Deus ex Machina.

9
Cluster 8
Any of the countries in this cluster would provide an opportunity for Deus. New
Zealand could initially provide an easier platform for expansion compared to
Canada or the Nordic countries. This is due to its proximity and similar environment
unlike the other two which have ‘hostile’ weather, although there are good
opportunities for surfing lifestyle products in these countries. Students cannot use
Australia since the company is already in Australia.
i. Recommended entry strategy
The market attractiveness analysis and alignment of Deus ex Machina’s strategy

with the selected market should provide some guidance on the entry mode to
be used by the company. This could also be assessed from the viewpoint of the
firm’s current strategy of establishment of a physical presence by setting up
shops. Advantages of this strategy include:
• establishes measure of control of operations

• creates consumer confidence
• cuts down on middlemen costs
• enables company to manage distribution of its products.
The major downside would be the initial costs of setting up shops.
Key Information sources

1. Cavusgil,S.T., Kiyak,T. and Yeniyurt,S. (2004) ’Complimentary Approaches to Preliminary Foreign
Market Opportunity Assessment: Country Clustering and Country Ranking’, Industrial Marketing
Management, vol.33, pp.607-17
2. Paroz, M. (2012), ”The New wave of surfwear”, The Australian, November 23
3. Deus ex Machina (2012), About http:// http://au.deuscustoms.com/
Teaching Notes
Tutorials
1. A small Australian company manufactures gas barbeque grills. Have students

select two offshore markets that hold potential, discuss the advantages and
disadvantages of various market entry options and make a recommendation to the
company. The following grid could be used.

10
Market entry options Advantages Disadvantages
Indirect exporting
Direct exporting
Overseas sales office
Licensing
Franchising
Joint venture
Consortia
Acquisition/Greenfield
Strategic alliance
The purpose is to get students to identify two markets that have potential and then
critically evaluate the different market entry options, taking into consideration the
resources that would be needed (e.g. high for acquisition/greenfield), risk (low for
indirect exporting), need for country knowledge (e.g. low for indirect exporting)
etc. Students should also consider, for example, the type of product (gas barbeque
grills), the company’s country knowledge and experience, potential markets
selected and any restrictions/requirements, what the company has to offer (e.g.
what would they license, what would a franchisee be buying) and the company’s
productive capacity (company billed as a ‘small’ producer).
2. A medium-sized New Zealand company produces a range of cheese products

usually sold in supermarkets (assume it currently sells its cheese in Australia and
New Zealand). Have students select two offshore markets that hold potential,
discuss the advantages and disadvantages of various market entry options and
make a recommendation to the company. The following grid could be used.
Market entry options Advantages Disadvantages

Indirect exporting
Direct exporting
Overseas sales office
Licensing
Franchising
Joint venture
Consortia

11
Acquisition/Greenfield
Strategic alliance
The purpose is to get students to identify two markets that have potential and then
critically evaluate the different market entry options, taking into consideration the
resources that would be needed (e.g. high for acquisition/greenfield), risk (low for
indirect exporting), need for country knowledge (e.g. low for indirect exporting)
etc. Students should also consider, for example, the type of product (cheese), the
company’s country knowledge and experience, potential markets selected and any
restrictions/requirements, what the company has to offer (e.g. what would they
license, what would a franchisee be buying) and the company’s productive capacity
(company billed as a ‘medium sized’ producer).
An option would be for the lecturer to select the two countries to be considered and
then randomly assign students either Question 1 or Question 2. Students assigned
the same question could compare their recommendations (to illustrate the range of
options) and then responses for each question could be compared e.g. a particular
entry mode might be suitable for the small company in a given country but not for
the medium sized company or a particular entry mode might be suitable for grills
but not perishable products such as cheese.
Lectures
1. When discussing assessing market potential, students should critically evaluate

the following statement: There is potential in every market – the question is how
much and for whom? Many marketers, some at their own peril and often great
expense, are attracted to markets such as China, lured by the numbers e.g. 1
billion consumers. Even a large market like China does not hold potential for every
product or doesn’t offer enough potential to warrant entry (costs etc). Smaller
companies looking at large markets often underestimate the scale required to
service the market – for example, a ‘small test’ order from China may require a
significant proportion of annual production. Marketers need to critically evaluate
markets for the potential for their particular product and can often service that
market by making adjustments to the marketing mix e.g. single sachets of
shampoo in markets like Burkina Faso.

12
2. When discussing market entry options, students should be encouraged to
provide examples from Australia and abroad. International students in particular
should be encouraged to share examples from their home countries. The purpose is
to expose students to the range of different companies that pursue similar or
different market entry strategies. With franchising, for example, students will likely
discuss international franchises such as McDonald’s and Starbucks and, with
licensing, discuss Coke. Lecturers can prompt them to broaden their thinking by
providing a couple of closer-to-home examples. Students may be surprised to learn
about home-grown franchises such as Fastway Couriers (www.fastway.co.nz). This
company started in New Zealand in 1983 with one van. It is now the world’s largest
courier franchise with 1,500 franchisees in 10 countries. Les Mills (Bodypump etc)
started in 1968 with one gym in Auckland NZ but has expanded through licensing
with 75,000 instructors in over 14,000 licensed gyms in 75 countries.
Students should also realise that companies might select different market entry
options for different markets – or change in response to market needs or demands.
For example, Annies (producer of dried fruit bars) started exporting from New
Zealand into Australia using an Australian-based distributor. As the need to ‘look
and feel’ Australian became apparent, the company set up a fully owned subsidiary
in Australia to handle all Australian marketing and distribution. When Foster’s
entered Vietnam, it chose to open its own brewery. The company believed this was
the best way to ensure product quality even though the high up-front costs meant
it took many years to turn a profit.
Assignments
1. Explain why there is not one ‘right’ entry mode and how resources and risk affect
market entry decisions. Use examples to illustrate.
This assignment requires students to critically evaluate the different market entry
options, with particular focus on the resource commitments required of each and
the risk inherent in each form. Students should realise that a range of factors have
to be considered e.g. the type of product, production capacity, managerial
experience and expertise, country-specific knowledge, competition,
cultural/economic/legal/technological environments, need to protect intellectual

13
property etc. As such, there is no ‘one option fits all’ and that companies not only
chose the best option for a given market but may also pursue other options in other
markets e.g. joint venture in one, sales office in another, direct exporting in yet
another.
2. Discuss when a company might enter an overseas market via an inward form of
international involvement. When would a company contemplate a linked form of
market entry and how would the companies ensure the relationship is beneficial to
both parties?
At the end of the chapter it was suggested that ‘a more holistic view of market
entry should be adopted catering for inward, outward and linked forms of
international behaviour’ (see Chapter 8: Summary). This assignment requires
students to do additional research to determine what constitutes inward, outward
and linked forms of international behaviour. An example of an inward form would
be through an initial licensing agreement. For example, an Australian firm that has
a licence for an international product in Australia may get the rights to export that
product to another country (e.g. New Zealand).
A linked form of market entry should be contemplated in the following conditions:

• If there is a viable market in underdeveloped nations, countertrade gives the
international firm an opportunity to participate in international marketing
where, under normal trading conditions (invoice cash payment for delivered
goods), these markets would not be considered at all.
• Strategic alliances allow the international firm to share its capital, resources
and expertise in exchange for the capabilities that the firm does not have, so
that both parties can jointly access a market. Without the alliance, either
party may not consider international marketing viable or desirable.
• Contract manufacturing involves contracting an overseas firm to
manufacture your goods in their (overseas) manufacturing plant. You may
contemplate contract manufacturing if:
o the cost of labour overseas is relatively cheaper in the long term
o the cost of raw materials purchased from overseas is cheaper in the
long term
o the overseas market size justifies manufacturing the product in that
country.

14
The maintenance of the relationship to ensure that it is beneficial to both parties
requires both parties to have an explicit understanding of:
• the goals of the relationship
• the roles each party is required to play to sustain the relationship
• the rewards each party is to receive for their role in the relationship.
Additional Questions
1. Briefly explain what is meant by the term ‘born global’ firm and provide
an example.
‘Born globals’ are firms that either from inception or shortly thereafter begin trading
in international markets rather than first serving their local market and then slowly
expanding into other countries. The internet has made it easier to be ‘born global’
regardless of the actual location of the company’s headquarters or its
manufacturing facilities. For example, Amazon.com was born global from the day it
started in 1995. ‘Born globals’ are usually created by people who are
entrepreneurial and who have large extensive international personal and business
networks. Research has shown not only that their entry mode is often dictated by
the circumstances of their industry, but also that in small isolated economies, such
as New Zealand, born global firms can occur in traditional as well as knowledge-
intensive industries.
2. Discuss the five theoretical explanations for strategic alliances.
Each of the five theories reflects differing motivations for entering into strategic
alliances. The five theoretical explanations for strategic alliances are:
• Transaction costs: Firms form strategic alliances to minimise both costs and
risks. The firm can internalise all necessary processes, reducing uncertainty
and gaining control.
• Resource dependence: Strategic alliances provide a way for firms to access
resources in areas where they are not self-sufficient in a timely and cost-
efficient manner.
• Organisational learning: Specific knowledge can be transferred through
contractual agreements such as licensing but the tacit knowledge embedded

15
in individuals can only be transferred by working with the individuals. In
strategic alliances, firms can gain both types of knowledge.
• Relationship marketing: Strategic alliances allow firms to form strong
relationships with customers and suppliers to provide superior value.
• Strategic behaviour: Firms form strategic alliances when they believe it will
allow them to better meet their strategic objectives and maximise profits.
3. Explain Williamson’s transaction cost approach.
Williamson’s transaction cost approach argues that the foreign entry mode selected
is the one that maximises long-run efficiency measured in terms of risk-adjusted
rate of return on investment. Williamson suggests that control is the most
important determinant of risk and return. High-control modes (e.g. wholly owned
subsidiaries) increase return but also risk while low-control modes such as licensing
require less resource commitment but also produce lower returns. Williamson
suggests that the extent to which the chosen entry mode should provide control is
a function of:
• transaction-specific assets e.g. proprietary processes
• external uncertainty e.g. unpredictability in the chosen market due to
economic and political factors
• internal uncertainty e.g. difficulty controlling international agents due to lack
of familiarity with business customs
• free-riding potential e.g. agent’s ability to exploit the relationship for
personal gain.
High-control modes should be chosen when the firm has transaction-specific assets,
external uncertainty is high, agents are difficult to control and there are
opportunities for agents to take advantage of the relationship.

16
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Cook onion in fat in saucepan over moderate heat until lightly
browned.
Add remaining ingredients and cook until okra is tender and
mixture thickens, 10 to 15 minutes. Stir occasionally to prevent
sticking.
Quick cauliflower au gratin

6 servings
2 packages (10 ounces each) frozen cauliflower
1 can (10½ ounces) condensed Cheddar cheese soup
2 tablespoons fine dry breadcrumbs
1 teaspoon melted butter or margarine
Cook frozen cauliflower according to package directions.
Drain cauliflower and place in a greased 1-quart casserole. Pour
undiluted soup over cauliflower. Mix crumbs with fat and sprinkle
over top. Bake at 350° F. (moderate oven) 20 to 30 minutes, or until
sauce bubbles and crumbs are brown.
Note: Two pounds of fresh cauliflower, separated into small
flowerets and cooked until tender, can be used instead of frozen
cauliflower.
Variation
Quick spinach au gratin.—Use 2 packages (10 ounces each)
frozen chopped spinach. Crumble 6 slices crisp fried bacon over
mixture before topping with crumb mixture.
Lima bean creole

6 servings
2 packages (10 ounces each) frozen lima beans
6 slices bacon
¼ cup finely chopped onion
2 tablespoons chopped green pepper
½ teaspoon salt
Pepper, as desired
2 cups cooked or canned tomatoes
Cook beans as directed on package; drain.
Fry bacon; drain on absorbent paper. In 2 tablespoons bacon
drippings, brown onion and green pepper. Crumble bacon. Add
browned onion and green pepper, bacon, seasonings, and tomatoes
to beans. Cover and simmer gently 15 minutes.
Variations
Green bean creole.—Use 2 packages (10 ounces each) frozen cut
green beans instead of lima beans.
Eggplant creole.—Use 1 medium-size eggplant, pared and cubed,
instead of beans. Do not cook eggplant before combining with other
ingredients. Increase salt to 1 teaspoon. Cook 15 to 20 minutes, until
eggplant is tender.
Scalloped zucchini squash

6 servings
6 cups thinly sliced zucchini squash
1 cup boiling water
¾ cup medium white sauce (p. 57)
2 eggs, beaten
1 teaspoon salt
½ teaspoon worcestershire sauce
1 teaspoon finely chopped onion
¼ cup fine dry breadcrumbs
1 tablespoon butter or margarine, melted
Cook squash in boiling water until tender, about 5 minutes. Drain.
Make white sauce.
Stir a little hot white sauce into beaten eggs; then gradually stir
eggs into remaining sauce. Stir in salt, worcestershire sauce, onion,
and cooked squash.
Put in a greased 1-quart casserole. Mix breadcrumbs with fat;
sprinkle over squash mixture. Bake at 325° F. (slow oven) about 35
minutes.
Ham-seasoned green beans

6 servings
1½ pounds green beans, broken into short pieces
2 small onions, quartered
½ stalk celery, sliced
About 2 ounces cooked ham, cut into bite-sized pieces
2 teaspoons salt
Pepper, as desired
½ cup water
1 tablespoon butter or margarine
Place beans in a 2-quart saucepan. Add remaining ingredients.
Simmer until beans are tender, 12 to 20 minutes.
Note: Instead of fresh green beans, use 2 packages (10 ounces
each) frozen cut green beans.
Harvard beets
6 servings
3 tablespoons cornstarch
⅓ cup sugar
¾ teaspoon salt
1½ cups beet liquid (or beet liquid plus water)
2 tablespoons vinegar
1½ tablespoons butter or margarine
3 cups sliced cooked or canned beets
Mix cornstarch, sugar, and salt. Blend in beet liquid, vinegar, and
fat. Cook over moderate heat, stirring constantly, until thickened.
Add beets to sauce. Let stand 10 minutes, if desired, to blend
flavors. Heat to serving temperature.
Eggplant casserole
6 servings
2 cups pared, cubed eggplant
2 tablespoons finely chopped onion
¼ cup water
2 eggs, slightly beaten
2 slices soft bread, torn in very small pieces
½ cup milk
1 teaspoon salt
Pepper, as desired
1¼ cups shredded sharp Cheddar cheese
Cook eggplant and onion in unsalted water until eggplant is tender,
about 7 minutes; drain. Combine all ingredients except ¼ cup
cheese; mix well. Pour into a greased 1-quart casserole. Bake
uncovered at 350° F. (moderate oven) 25 minutes. Sprinkle with
remaining cheese and bake 5 minutes longer.
Glazed carrots
6 servings
2 tablespoons butter or margarine
¼ cup brown sugar, packed
1 tablespoon water
3 cups cooked carrots, cut in strips
Blend fat, sugar, and water in a heavy fry pan over low heat. Add
carrots. Cook over low heat 5 to 10 minutes, turning carrots to coat
all sides with sirup. Keep heat low to prevent scorching.
Potato patties
6 patties
2 cups seasoned mashed potatoes
1 egg or 2 egg yolks, slightly beaten
1 tablespoon finely chopped onion
1 tablespoon chopped green pepper
2 tablespoons fat or oil
Combine all ingredients except fat; mix well. Shape into six patties.
Brown well in hot fat, about 4 minutes on each side.
Note: Leftover mashed potatoes or instant mashed potatoes,
prepared according to package directions, may be used in this
recipe.
Stuffed baked potatoes

6 servings
6 medium-size baking potatoes
1 package (3 ounces) cream cheese, at room temperature
⅓ cup milk
1 teaspoon salt
⅓ cup butter or margarine
Paprika
Rub potatoes with a little fat if soft skins are desired. Bake at 425°
F. (hot oven) 50 to 60 minutes, or until potato is soft when pressed.
Slash tops lengthwise and crosswise. Fold back flaps, scoop out
inside, and mash thoroughly.
Soften cream cheese and blend in milk, salt, and fat until smooth
and creamy. Add cream cheese mixture gradually to hot potato,
blending thoroughly.
Stuff skins with potato mixture. Sprinkle with paprika. Return to
oven a few minutes to brown tops.
Green bean-mushroom casserole
6 servings
2 packages (10 ounces each) frozen cut green beans
¼ cup finely chopped onion
¼ cup water
1 teaspoon salt
1 can (10½ ounces) condensed cream of mushroom soup
1 can (4 ounces) mushroom stems and pieces, drained, chopped
½ cup canned french-fried onion rings
Cook beans and chopped onion in water with salt until beans are
tender, 12 to 15 minutes. Drain.
Stir in undiluted soup and mushrooms. Pour into greased 1½-quart
casserole. Top with onion rings. Cover and bake at 350° F.
(moderate oven) 30 minutes, or until mixture is heated through and
top is brown.
Onions in mushroom sauce

6 servings
1½ pounds small yellow onions
1 cup water
1 teaspoon salt
1 can (10½ ounces) condensed cream of mushroom soup
Parsley
Peel and quarter onions. Leave very small onions whole. Simmer
onions in salted water 15 to 20 minutes, or until just tender. Drain.
Add undiluted soup and simmer 10 to 15 minutes longer. Garnish
with parsley before serving.
Salads and Salad Dressings
What better way to serve a variety of fruits, vegetables, even
meats—than in a colorful salad? As an appetizer, a side dish, a
dessert, or the main course of your meal, a salad brings lots of
goodness to your table. Salads can be light or hearty, depending on
the ingredients you choose.
Summertime salads often feature a medley of fresh fruits. Tossed
green salads are year-round favorites. Salads made from eggs and
potatoes, from seafoods, and from meats and cheeses also deserve
a place in your meal planning.
Tips on salad making

Selecting top-quality fruits and vegetables is a good start toward a
good salad. Fresh food has eye and taste appeal.
Give salad foods the best care to avoid damage and to keep them
fresh. If you prepare salad ingredients ahead of time, store them,
without dressing, in the refrigerator.
If you plan to use unpeeled fruits or vegetables in a salad, choose
those with smooth, tender, colorful skins.
See page 12 for other pointers on selecting fresh fruits and
vegetables. You’ll find suggestions for storing them on page 14.
For appetite appeal

Chill ingredients before you mix your salad.
For tossed green salads, tear greens into fairly large pieces. This
will give your salad more body.
Always thoroughly drain the greens you use in salads.
Vary your salad greens. Try chicory, escarole, endive, kale,
spinach, dandelion greens, romaine, watercress, and chinese
cabbage.
Some salad fruits are likely to turn dark on standing; dip these in a
little citrus juice.
Drain canned fruits and vegetables before you add them to a
salad.
Tips on dressings
Main-dish salads made with meat, fish, poultry, eggs, beans,
cheese, or potatoes usually call for a mayonnaise-type dressing, but
some are good with french or italian dressing (p. 53).
On vegetable salads and vegetable-fruit combinations, try french,
italian, thousand island, or Roquefort or blue cheese dressing (p.
53). Fruit salads taste best with sweet dressings—sweet french,
orange-honey, or celery seed dressing ([p. 53]).
Prevent sogginess and wilting by using just enough salad dressing
to moisten ingredients. Add dressing to raw vegetable salads at the
last minute unless your recipe calls for marinated vegetables.
Salad go-togethers
Some salad combinations are traditional—lettuce and sliced
tomatoes, canned peaches and cottage cheese. You can make a
variety of salads by sometimes contrasting flavors and textures,
sometimes complementing them.
Ingredients that go well together in salads are suggested below.
Fruit salad combinations

6 servings
• Pare and section 2 grapefruit and 3 oranges. For each salad
arrange grapefruit and orange sections on a lettuce leaf; garnish with
a maraschino cherry half.
• Lightly mix 1½ cups each of cantaloup, honeydew, and
watermelon balls or cubes. Serve on crisp salad greens. Allow about
⅔ cup fruit per serving.
• Drain 1 can (13½ ounces) pineapple tidbits; combine with 3
oranges, pared and sectioned, and 1 banana, sliced. Place on crisp
salad greens and sprinkle with ¼ cup chopped walnuts. Allow about
½ cup fruit per serving.
• Lightly mix 2 cups cantaloup cubes; ½ cup fresh blueberries; and
1 large banana, sliced. Serve on crisp salad greens; allow about ½
cup fruit per salad.
• Combine 4 peaches, peeled and sliced; ½ cup halved seedless
grapes; ½ cup halved, seeded Tokay grapes; and 1 large banana,
sliced. Serve on crisp salad greens; allow about ⅔ cup fruit per
serving.
Vegetable salad combinations

6 servings
• Lightly toss together ½ pound young spinach leaves, torn in bite-
size pieces; 2 green onions, thinly sliced; and 4 crisp bacon strips,
crumbled. Garnish with 2 hard-cooked eggs, chopped.
• Lightly toss together 2 carrots, thinly sliced; ½ head raw
cauliflower, thinly sliced; ½ head lettuce, torn in bite-size pieces; ¼
cup chopped green pepper; and 2 tomatoes, cut in wedges.
• Cook, drain, and chill 1 package (10 ounces) frozen mixed
vegetables; lightly toss together with ½ head lettuce, torn in bite-size
pieces.
Marinated vegetable salads

6 servings
Asparagus spear salad.—Hard cook 2 eggs; chill. Drain 1 can (1
pound) asparagus spears and marinate overnight in ½ cup sweet
french dressing (p. 53). For each salad arrange asparagus spears on
a lettuce leaf, top with a strip of canned pimiento, and sprinkle with
chopped hard-cooked egg.
Cucumber and onion salad.—Score 2 cucumbers with a fork; pare
first, if desired. Slice thinly. Slice ½ medium onion and separate it
into rings. Marinate cucumber and onion slices 3 to 4 hours in ½ cup
sweet french dressing (p. 53). Serve garnished with tomato wedges.
Green bean salad.—Drain 1 can (1 pound) cut green beans and 1
can (8 ounces) cut wax beans. Thinly slice 1 small onion and
separate into rings. Toss beans and onion rings with ½ cup chopped
sweet red or green pepper. Marinate overnight in ½ cup sweet french
dressing (p. 53).
Three-bean salad.—Drain 8-ounce cans of green beans, wax
beans, and kidney beans; continue as directed for green bean salad.
Creamy fruit salad

6 servings
1 package (3 ounces) cream cheese
1 tablespoon sirup from canned mandarin oranges
1 can (11 ounces) mandarin orange sections, drained
1 can (13½ ounces) pineapple tidbits, drained
1 cup miniature marshmallows
⅓ cup halved, drained maraschino cherries
Lettuce
Beat cream cheese with liquid from mandarin oranges until
creamy. Add oranges, pineapple, and marshmallows; combine gently
but thoroughly. Lightly fold in cherries. Chill. Serve in lettuce cups.
Variation
Frozen fruit salad.—Blend ¼ cup mayonnaise with cream cheese
and liquid before adding the fruits. Whip 1 envelope of dessert
topping mix as directed on package label. Fold whipped topping and
cherries into the fruit mixture. Pour into a 1½-quart mold and freeze
overnight. Dip in warm water to unmold.
Molded pineapple-carrot salad

6 servings
1 package (3 ounces) lemon-flavored gelatin
1 cup shredded raw carrots
1 can (10½ ounces) crushed pineapple, drained
¼ cup raisins
Lettuce
Mayonnaise
Prepare gelatin according to package directions, using pineapple
sirup as part of the liquid. Chill until mixture is slightly thickened.
Fold in carrots, pineapple, and raisins; pour into a 1-quart mold.
Chill until firm. Serve on lettuce; top with mayonnaise if desired.
Souffle meat salad

6 servings
1 package (3 ounces) lemon-flavored gelatin
1 cup boiling water
½ cup cold water
½ cup salad dressing
2 tablespoons vinegar
¼ teaspoon salt
Pepper, as desired
½ cup chopped celery
1 tablespoon chopped parsley
1 tablespoon grated onion
2 cups chopped cooked meat
Salad greens
Dissolve gelatin in boiling water. Add cold water, salad dressing,
vinegar, salt, and pepper. Beat until smooth. Chill until slightly
thickened.
Whip until fluffy. Fold in celery, parsley, onion, and meat. Pour into
a 1-quart mold. Chill until firm.
Unmold on salad greens.
Variations
Souffle poultry salad.—Use 2 cups chopped cooked poultry as the
meat.
Souffle fish salad.—Use 2 cups flaked canned or cooked fish as
the meat.
Menu suggestion
Serve with broiled tomatoes, asparagus, and have apple pie with
cheese for dessert.
Stuffed prune salad

6 servings
½ cup creamed cottage cheese
1 to 2 tablespoons milk, if needed
1 to 2 teaspoons grated orange rind, as desired
¼ cup chopped peanuts
¼ teaspoon salt (if peanuts are unsalted)
18 chilled, pitted, cooked prunes
Salad greens
If cottage cheese is dry, soften it with milk. Mix in orange rind, 3
tablespoons peanuts, and salt; stuff into prunes.
Arrange prunes on salad greens and sprinkle with rest of peanuts.
Luncheon chef salad bowl
6 main-dish salads
2 medium heads lettuce
8 radishes, thinly sliced
4 green onions, with tops, thinly sliced
3 large ripe tomatoes, cut into 8 wedges each
3 cups cooked ham (about 1 pound), cut into 1-inch cubes
2 cups coarsely shredded Swiss cheese
Croutons (p. 56)
Salad dressing
Wash and drain lettuce. Reserve outer lettuce leaves; tear
remaining lettuce into bite-size pieces. Combine torn lettuce,
radishes, and green onions; toss lightly.
Line 6 individual salad bowls with lettuce leaves. For each salad,
use 2 cups lettuce mixture and top with 4 tomato wedges, ½ cup
ham cubes, and ⅓ cup shredded cheese. Top with croutons. Serve
with dressing of your choice.
Menu suggestion
Serve with garlic bread and have quick cherry cobbler for dessert.
Coleslaw
6 servings
1½ teaspoons salt
½ teaspoon dry mustard
White pepper, as desired
¼ cup sugar
2 tablespoons lemon juice
1 tablespoon tarragon vinegar
¼ cup table cream
3 cups coarsely shredded cabbage
¼ cup finely chopped green pepper
1 tablespoon chopped pimiento
½ cup finely chopped celery
Thoroughly mix all ingredients except vegetables.
Combine vegetables; mix well. Gently stir in the dressing. Chill
before serving.
Potato salad
6 servings
½ cup mayonnaise
1 teaspoon dry mustard
2½ teaspoons salt
2 tablespoons chopped green pepper
¾ cup finely chopped celery
¼ cup sweet pickle relish
1 tablespoon chopped pimiento
6 medium-size boiled potatoes, diced
3 hard-cooked eggs, chopped
Combine ingredients except potatoes and eggs; mix thoroughly.
Pour this mixture over potatoes and mix gently. Add chopped eggs.
Chill several hours before serving.
Variation
Pea salad.—Use 1 package (10 ounces) frozen peas, cooked and
drained, or 1 can (1 pound) peas, drained, in place of potatoes.
Reduce salt to 1 teaspoon. Add 1 cup process Cheddar cheese
cubes.
Basic french dressing

About 1 cup
⅔ cup salad oil
1½ teaspoons salt
½ teaspoon paprika
White pepper, as desired
Thoroughly mix all ingredients. Chill. Shake well just before
serving.
Variations
Sweet french dressing.—Increase vinegar to 2 tablespoons and
add ¼ cup sugar.
Italian dressing.—Use ¼ teaspoon white pepper. Add ¼ cup finely
chopped onion, 1 teaspoon finely chopped garlic, 2 tablespoons
sugar, ½ cup catsup, and ½ teaspoon oregano. Refrigerate, covered,
overnight to blend flavors. Strain to remove onion and garlic before
serving. About 1½ cups.
Roquefort (blue) cheese dressing

About 1 cup
1 cup mayonnaise
1 package (4 ounces) Roquefort or blue cheese, crumbled
2 tablespoons half-and-half or table cream
½ teaspoon tabasco sauce
Mix all ingredients.
Refrigerate until used.
Orange-honey french dressing

About 1¼ cups
¼ cup orange juice frozen concentrate
1 tablespoon vinegar
¼ cup honey
½ teaspoon salt
⅔ cup salad oil
Thoroughly mix all ingredients except salad oil.
Add the oil slowly while beating constantly with rotary or electric
beater.
Celery seed dressing

About 1 cup
⅓ cup sugar
1½ teaspoons salt
½ teaspoon paprika
1 teaspoon celery seed
⅔ cup salad oil
Thoroughly mix all ingredients except salad oil.
Add the oil slowly while beating constantly with rotary or electric
beater.
Thousand island dressing

About 2 cups
1 cup mayonnaise
¼ cup sweet pickle relish
2 tablespoons chili sauce
1 tablespoon chopped green pepper
1 tablespoon finely chopped onion
1 hard-cooked egg, finely chopped
Mix all ingredients except the egg. Gently mix in the chopped egg.
Soups
Steaming hot, hearty soups and chowders make delicious dishes
for luncheon or supper. When they contain substantial amounts of
fish, meat, milk, dry beans or peas, they are filling enough to be the
main part of your meal. Or you can serve soup with a salad or a
sandwich.
Turkey-vegetable soup
6 servings
1 small onion, chopped
2 tablespoons butter or margarine
2 cups water
2 chicken bouillon cubes
2 cups cooked turkey, diced
½ cup celery tops and pieces
1½ cups diced potatoes
1 cup diced carrots
2½ cups milk
2 tablespoons flour
1 teaspoon salt
⅛ teaspoon pepper
Cook onion in fat until tender. Add water, bouillon cubes, turkey,
and vegetables.
Boil gently, covered, until vegetables are tender.
Stir a little of the milk into the flour until mixture is smooth; add
remaining milk, salt, and pepper. Add milk mixture to soup.
Simmer, stirring occasionally to prevent sticking, until soup is
slightly thickened.
Variation
Chicken-vegetable soup.—Use chicken instead of turkey, and
chicken broth instead of water and bouillon cubes.
Menu suggestion
Serve with a cucumber salad, toast, and cherry pie.
Hearty vegetable soup

6 servings
1 cup cooked beef, cut in small pieces
6 cups beef broth
2 cups fresh or canned tomatoes
1 cup diced potatoes
¾ cup diced carrots
½ cup sliced onion
3 cups other uncooked vegetables (green peas, chopped cabbage,
diced celery, cut green beans, chopped green pepper, sliced okra,
diced turnips, cut corn)
1½ teaspoons salt
⅛ teaspoon pepper
Combine beef and broth in a large saucepan. Add remaining
ingredients.
Cook, covered, about 35 minutes, or until vegetables are tender.
Notes: In place of beef broth use 6 beef bouillon cubes and 6
cups water. (Liquid from canned or cooked vegetables may replace
some of the water.)
Canned or leftover vegetables may be used instead of uncooked
vegetables. Add to soup during last few minutes of cooking.
Menu suggestion
Serve with toasted cheese sandwiches and have fruit gelatin for
dessert.
Bean soup

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Case Study Solutions

International Marketing Edge (IMEDGE)

• identify the different problems faced by firms in international business when

1. Discuss the pros and cons of:

(a) Simultaneous versus incremental entry into international markets:

Incremental entry – pros:

(b) Concentrated versus diversified market entry strategies:

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See comments and tasks for Question 2(a).

Factors to be considered are:

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3. What factors would you consider if you were an Australian or New

Factors to consider include:

4. What would be the advantages and disadvantages of licensing the

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Licensing Minimal commitment of Less control over raw materials and

5. What aspects of an international market might cause you to settle on

If there is long-term economic uncertainty or political instability in the overseas

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Case Study Solutions

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What are the potential benefits of IMEDGE?

Model Answer - IMEDGE - Chapter 8

Using Cavusgil et al’s (2004)’ framework of foreign market opportunity assessment

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The Deus ex Machina Experience

In selecting their countries, students should:

1. Demonstrate an alignment of the country’s attractiveness with Deus ex

3. Based on the clusters and evaluation of market attractiveness, students can

Singapore and Czech Republic

• Based on market attractiveness and attraction of international tourists

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i. Recommended entry strategy

The market attractiveness analysis and alignment of Deus ex Machina’s strategy

• establishes measure of control of operations

The major downside would be the initial costs of setting up shops.

Key Information sources

1. A small Australian company manufactures gas barbeque grills. Have students

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2. A medium-sized New Zealand company produces a range of cheese products

Market entry options Advantages Disadvantages

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1. When discussing assessing market potential, students should critically evaluate

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A linked form of market entry should be contemplated in the following conditions:

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2. Discuss the five theoretical explanations for strategic alliances.

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3. Explain Williamson’s transaction cost approach.

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Quick cauliflower au gratin

Lima bean creole