The Foley Company, a manufacturer of soybean harvesters,
has for years sold a substantial number of machines in Brazil.
n firm has begun to manufacture them,
ributor has told Jesse Osborne, Foley's
share of the
in @ quendary. The market is too good to lose, but Foley has
had no experiance with foreign manufacturing operations,
Because Brazilian sales and repairs have been handled by
the distributor, no one in Foley has had any firsthand experi=
ence in that country.
Osborne has made some rough calculations that
cate the firm can make money by manufacturing in Br
the firm’s lack of marketing expertise in the country troubles
him, He calls in Joanne Poe, the export manager, and asks
Minicase: Method of Entry—The Foley Company
her to prepare a list ofall the options open to Foley, with their
advantages and disadvantages. Osborne also asks Poe to
indicate her recommendation.
Questions:
1. Assume you aie Joanne Poe. Prepare a lst ofall the options
available to Foley, and give the advantages and gisadvan-
tages of each.
2. Which of the options would you recommend? Why?
3. Assuming that the president's calculations are correct and
that a factory to produce he number of machines that
Foley now exports to Brazil will offer a satisfactory return on
invastment, what special information about Brazil will you
want to gather?