Several factors contribute to the success of Clover in the US. The established and vast supplier network allows Clover to operate efficiently across the country. The stability of the US government and financial markets lets them operate safely and with confidence. Clovers agricultural branch benefits enormously from the United States’ bountiful farm land, rising productivity, and an ever expanding global market for exports. Being located in the US is easily justifiable, its where a large majority of their operations exist. The potential in these untapped markets is to great for Clover to continue business as usual. They need to expand into some of these higher risk, yet higher return geolocations.
2.) According to data on the internet and other sources, is an increased penetration abroad, especially in agricultural machines justified? What theories of globalization would support such a move by clover?
The potential for future expansion in doing business abroad is great, although it would be most logical to move your way into that country with the branch that shows the most upside, that being agricultural. It would be crucial for Clover to start in a developed Euro country and gradually lay a framework to expand from that point. This would reduce the risk involved in operating abroad, while at the same time start developing enormous foreign opportunities. The Firm-Level Product Cycle Theory supports my claim that Clover needs expansion. The theory basically states that a company can get so large it becomes stagnant domestically and it cant grow anymore. The firm must therefore export in foreign markets.
3.)What are ways in which Clover can contain costs? Explain the advantages and disadvantages of alternative methods of production and distribution.
Clover can put a limit on employee