Introduction:
The analysis of this assignment will be covering the positioning strategies of Kassatly Chtaura and the expansion criteria’s must be considered before taking a decision to expanding the business abroad, We will illustrate the options given in the case (Saudi Arabia or Angola) in terms of Cultural, Administrative, Geographic and Economic analysis, I will explain the third option for expanding in internally,
Q.1 A
The Goal:
When Akram Kassatly founded a small bottling company in 1974 with a big dream of following …show more content…
Access to raw materials and human resources in relation to the labors, skills and product changes, Governmental and regulatory barriers like foreign investments, currency repatriation etc. Intellectual property and quality control issues in regards to protection of the trademarks , names and service marks, Dispute resolution explicitly of the law for the resolution, Use of a local liaison which plays a big role in reducing the gap between …show more content…
Given the option of Saudi Arabia to expand the business through non-alcoholic line will provide the company a great opportunity to leverage the sales of the company although the alcoholic option is deleted from Saudi Arabia due to religious considerations, the big number of sales 5.2 billion is very much attractive for investors, And the option of Angola would be attractive too for having the chance to operate with both lines alcoholic and non-alcoholic with the risk of weak infrastructure and some political instability, If I was at the place of one of the family members I would go for the option of Lebanon for the following reasons, Kassatly core activity is the alcoholic business and being in the largest area in Lebanon of producing vegetables, the family business home land, and having Beirut declared the best capital of the night life will give the business of the family a great opportunities in terms of product development and diversification to meeting the changing of markets demand, The Kassatly family will not have to consume the full cash savings because the bank is giving facilities to investors as an encouragement for investing localy,