CASE QUESTIONS AND ANSWERS

1) How did the Agonos family decide to make and market Kola Real? What business strategy did the
start-up company adopt? Was it successful? Explain
Base from what I've read, the Agonos family decide to make and market Kola Real because of the
reason that guerrillas were high jacking Coca-Cola trucks and disrupts the supply in Ayacucho. In order
to have enough supply of cola, they decided to make their own cola brand and sells it to their locality.
They adopt the business strategy of Mexico which is the aggressive pricing and marketing tactics but their
product is cheaper in nature and still on quality. With this kind of strategy, their business have been
expanded in neighboring Latin countries.

2) What motivated Kola Real to expand in Mexico? Who are its major competitors? How have those
competitors been affected by Kola Real? Why would competition hurt the profitability of Pepsi and Cola
even if the two companies were able to maintain their market share?
Base from what I've understand, Kola Real is motivated to expand in Mexico due to the reason that
guerrillas had just razed their family farm in Southern Peru and also for another reason that their locality
is pressured by the guerrillas. The major competitors of Kola Real are the Pepsi and Coca-Cola. These
two major competitors have been affected by Kola Real in terms of the profitability/sales. Although these
two companies were able to maintain their market share, Kola Real applies low-cost in their products

3) Compare and contrast Kola Real's distribution strategy, advertising, and its relationship with retailers
as compared to Pepsi and Coca-Cola. How its Kola Real's brand image perceived in comparison with
Pepsi and Coke
In terms of distribution strategy, Kola Real hires third parties for deliveries even with individuals
with dented pick-up trucks and words of mouth from penny picking housewives. In terms of
advertising, they do it on the occasional radio spot. In terms of relationship with retailers, they don't give
incentives but they give lower price for their products. While in Coca-cola and Pepsi, they maintain a
fleet of trucks of supply and they give incentives and also a higher price for their products.

4) Sometimes the companies face barriers to entry and marketing and manufacturing a product. Why
was the use of glass bottles a significant barrier to entry? Are there any other barriers to entry
illustrated in the article? How did Kola Real benefit when some of the barriers to entry were removed?
The use of glass bottles is a significant barrier to entry because in earlier times as mentioned in the
article, glass bottles are so expensive and with that kind of reason the company/organization cannot make
an innovation in terms of size. Also, contracts could be one of the barriers to entry since it can affect the
day to day operation of the company/organization. When these barriers were removed,
companies/organizations could provide good services to consumers

5) Despite its lean operation, what challenges does Kola Real face as it tries to compete with Pepsi and
Coca-Cola? Do you think the major companies should be worried. Explain
One of the challenges faced by the Kola Real is that some of their retailers are threatened by
Coca-Cola delivery boys not to put in their stall/store shelves the Big Cola produced by Kola Real. I think
the major companies should be worried because it might affect their business venture.
 CHAPTER QUESTIONS AND ANSWERS

1) Why are there different definitions of globalization?

Base from my analysis, there are different definitions of globalization because of the different
cultures of every country especially those who are influence by the colonizers and another one that can
contribute with this change is the modernization that usually takes place in a certain place/country. We all
know that globalization is a complex phenomenon so there are lot of people that has a different approach
when it comes to defining globalization

2) Discuss the roles and characteristics of an International Manager. How do these roles differ from those
a manager would possess while based in the US?
An international manager is the one who oversees the companies global operations. They are also
responsible for companies foreign business. As an international manager, they must know and understand
about operation, cultural challenges and governance. For their characteristics, they must be adaptive to
their workplace and open for new ideas for the betterment of the company/organization. These roles differ
from those manager based in the US in terms of supervision. For example, employees are motivate in
doing their tasks or jobs when they are less supervised.

3) How can a company develop managers to acquire international skills and perspectives?
For a company to develop managers with international skills and perspective, they must understand
and have a knowledge about trades, international operations and exposed them in an environment that can
assess their managerial skills like attending international events, gatherings, seminars/training,
workshops, and try to enhance their decision making skills in certain national issues.

4) What are the unique issues and concerns an international manager will face economically? Politically?
Legally?
These are the following challenges that an international manager will face like the currency rates,
international laws and regulations, language barriers, cultural differences, political risks and worldwide
environmental concerns

5) As a US Manager based in Taiwan or in Hong Kong, explain the specifics you would need to be aware
of to be successful
As a US Manager based in Taiwan or in Hong Kong, I need to learn their language to overcome the
language barrier, also I should socialize with them to enhance connection with others, and last but not the
least I should adapt with their culture.