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Blue Ridge Spain

In: Business and Management

Submitted By khata02
Words 1913
Pages 8
Table of Contents
Executive Summary 1
Dissolution of Blue Ridge Spain 1

Restructuring Management Based on Growth 2
LARGE GROWTH POTENTIAL 2 MEDIUM GROWTH POTENTIAL 2

SUSTAINABLE SIZE MARKETS 2

Growth Plans for Spain 3

Strategic Alternatives 3

EQUITY BASED STRATEGY 3

NONE-EQUITY BASED STRATEGY 4

Executive Summary

International business meshes across multiple domains most notably market entry strategies and sociocultural variances. Factoring in those two critical aspects and giving them the right amount of attention is the separating line between success and failure. Terralumen, Blue Ridge, and Delta are all successful companies; However, by not observing the basic requirements of international business, the security of this otherwise prosperous enterprise is at stake. Both Terralumen and Delta have shortcomings in the area of international business and Blue Ridge is the only stakeholder in this mix who has the necessary experience and expertise to manage this crisis and find a resolution. Considering the overall profitability of the Blue Ridge brand in Spain and existing investments by each joint venture member, the position from this white paper is to recommend a restructure of the business model to leverage the strengths within the joint venture organization and tailor the Blue Ridge total product more closely to the Spanish market.

Dissolution of Blue Ridge Spain

Delta and Blue Ridge do not have adequate knowledge of the market; this is supported by the fact that Management for the joint venture came from Terralumen and dissolution would result in loss of necessary expertise, which would hinder Delta’s ability to function effectively in Spain

Spanish people have a distrust of foreigners (BRS p.4), it took two years for Bennett to establish the joint venture with Terralumen (BRS p.5). Therefore if Delta…...

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