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Case Study: Play It Safe at Home or Take a Risk Abroad

In: Business and Management

Submitted By PhilipAu
Words 728
Pages 3
AE 5A Writing Assignmaent
Academic Essay: Case Study
Final Draft of Philip

For a company to develop, it is necessary to expand its scale of business, which is following opportunity and risk. All companies face the risk that could let them failed into transfer in new environment and new market, including lease-to-own stores. Lease-to-own is a pattern of shopping usually used in U.S. which provides goods to rent till own within a contract date. One of the dilemmas facing lease-to-own chain is whether to expand the businese by building retail stores overseas, where is a strange environment to them. This dilemma is the key point of Michael Chu’s case study, ‘Play it safe at home, or take a risk abroad?’(2012).

This case focuses on a American lease-to-own chain company, Coe’s, which sells household items and furniture, and its CEO, Stan Windham. At this moment, he and his father have built one thousand stores business in America that the company is considering of expanding abroad, Europe or Mexico. Aubrey Merrin, a mannager of south Tuscon store, and a cashier lady of a convenience store, both meet Windham in one day and suggested him to extend his business to Mexico. On another hand, the CFO of Coe’s, Carl Amirault, who is trusted by Windham, argues that Mexico is a worse choice than putting more stores domestically. Also, he points out the failure case of Puerto Rico should be treated as a lesson. The CEO now needs to make a decision whether to extend to Mexico or maintain business in America.

Two experienced experts, Carlos Danel, the executive vice president and cofounder of a Mexican bank, and Robert C. Loudermilk Jr., the former president and CEO of Aaron’s, both give their viewpoint and advice on this case. Both of these experts suggest that Coe’s should expand their business to Mexico carefully. However, some of details they mentioned have divergence....

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