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Mini Case 15.1 Mcgrew Company

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The McGrew Company

Mini case 15.1

Lorissa Talavera
Ronald Seeger
Bryan Quevedo

California Baptist University

Professor. Flaherty
BUS 334

August 4th, 2013

1. Assume you are Joan Beal. Prepare a list of all the options, and give the advantages and disadvantages of each.

It appears The McGrew Company has been utilizing the indirect exporting phase as its primary business model in Brazil. Rather than simply exporting its products to Brazilian distributers and selling it for a markup, McGrew could exercise different options.

OPTIONS * Direct Exporting
Direct exporting would allow for The McGrew Company to handle its own sales and marketing within the country of Brazil. This would enable manufacturing to continue to in its current location while also cutting mark-up costs from the local distributors. Employees within the current manufacturing location may handle the documentation such as billing, shipping, and other activities while a team in Brazil will work in a local parent-type company. This local Brazilian company will perform as a distributor however it will be owned and operated by the manufacture directly. By working this option you allow for the opportunity to cut cost without moving your manufacturing capital to a foreign country. * Turnkey Project This opportunity is facilitated by a contractor who will basically build a business from the ground up within the country of choice, in this case, Brazil. The name Turnkey project is taken literally in that the materials, equipment, land, building and personnel are put into place and the company begins operations before it is turned over to the main company. The McGrew business could potentially utilize a contractor to accomplish these steps. Both of the above options could work, however there are some disadvantages and associated risks

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