Bean, is analyzing the risk of each of the following options for expanding into a foreign market: 1. It could partner with Olé, a local bakery chain, to create a new company together (requiring Bean to manage a partner relationship). 2. It could ship the product to be sold by a wide array of coffee shops (involving high shipping costs). 3. It could sell the name and format of the company to individual business people to operate on their own (giving Bean limited control over stores and lowering its potential profits). 4. It could open, manage, and operate its own stores. 5. It could collaborate with a group of food chains to boost branding (though Bean might harm its reputation through negative brand associations).

Question

Pamela Watkins

Business

23 February, 03:47

Bean, is analyzing the risk of each of the following options for expanding into a foreign market: 1. It could partner with Olé, a local bakery chain, to create a new company together (requiring Bean to manage a partner relationship). 2. It could ship the product to be sold by a wide array of coffee shops (involving high shipping costs). 3. It could sell the name and format of the company to individual business people to operate on their own (giving Bean limited control over stores and lowering its potential profits). 4. It could open, manage, and operate its own stores. 5. It could collaborate with a group of food chains to boost branding (though Bean might harm its reputation through negative brand associations).

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1. It could partner with Olé, a local bakery chain, to create a new company together (requiring Bean to manage a partner relationship).

Explanation:

There are a variety of options that can be taken by the company. For example, the risks and stakes are high. However, without much risk, there would be no business at all. Therefore, the risk that Bean is taking is very high. The main issue is how the entity will manage the business risk and contain it.

The potential solution is to partner with Olé and form a double franchise. Though the partnership will b required, the shilding from the economic turbulence will be better. In addition, Bean will be shadowed under Olé.