Sterling Marking Products
MEMO
To: James Ondracek From: Sumei Rey CC: Grigorios Livanis Date: July 27th 2014 Re: Foreign Market Entry Proposal – Mark Maker To achieve Sterling’s objective of increasing revenue and to capitalize on opportunities in foreign markets, particularly the UK, it is critical to develop a strategy on foreign market entry. While I understand management’s concerns regarding focusing on new product innovation and managing a foreign branch, I am confident that these can be addressed and that revenues can increase.
After analyzing various costs, benefits, and firm factors, I recommend that we proceed with a wholly owned subsidiary in the UK, while continuing to research opportunities in other markets (Exhibit 1). A subsidiary would contribute additional profits of over $1.4 million in the first year, while allowing us to maintain our focus on a quality product, customer service and employee satisfaction (Exhibit 2). Additionally, our experience in the US taught us that a lack of involvement in marketing and selling activities could result in lower sales, despite strong market potential. We need to maintain control
To: James Ondracek From: Sumei Rey CC: Grigorios Livanis Date: July 27th 2014 Re: Foreign Market Entry Proposal – Mark Maker To achieve Sterling’s objective of increasing revenue and to capitalize on opportunities in foreign markets, particularly the UK, it is critical to develop a strategy on foreign market entry. While I understand management’s concerns regarding focusing on new product innovation and managing a foreign branch, I am confident that these can be addressed and that revenues can increase.
After analyzing various costs, benefits, and firm factors, I recommend that we proceed with a wholly owned subsidiary in the UK, while continuing to research opportunities in other markets (Exhibit 1). A subsidiary would contribute additional profits of over $1.4 million in the first year, while allowing us to maintain our focus on a quality product, customer service and employee satisfaction (Exhibit 2). Additionally, our experience in the US taught us that a lack of involvement in marketing and selling activities could result in lower sales, despite strong market potential. We need to maintain control