Preview

United States and Strategy

Satisfactory Essays
Open Document
Open Document
1340 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
United States and Strategy
eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China (use Key Country Matrix), listing both the advantages and disadvantages of its acquisition strategy (use Drivers (YIP) -CAGE Matrix). 30%
Assess the potential benefits and risks of eBay.s joint venture with Tom Online (use Global/Local Matrix)eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China (use Key Country Matrix), listing both the advantages and disadvantages of its acquisition strategy (use Drivers (YIP) -CAGE Matrix). 30%
Assess the potential benefits and risks of eBay.s joint venture with Tom Online (use Global/Local Matrix). 20% eBay will have a 49% stake in the new joint venture while Tom Online will have 51% ownership. Critically assess both companies, decisions on their respective percentage of stake (explain advantages and disadvantages of JV international strategy) 30%
Strategic recomendation on International Commercial Strategy for E-Bay: “Alliance, Acquisition or Abandon Strategy” (use QSPM to select strategy) 20% eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China (use Key Country Matrix), listing both the advantages and disadvantages of its acquisition strategy (use Drivers (YIP) -CAGE Matrix). 30%
Assess the potential benefits and risks of eBay.s joint venture with Tom Online (use Global/Local Matrix). 20% eBay will have a 49% stake in the new joint venture while Tom Online will have 51% ownership. Critically assess both companies, decisions on their respective percentage of

You May Also Find These Documents Helpful

  • Better Essays

    Gb519 Unit 4 Paper

    • 937 Words
    • 4 Pages

    The founder and CEO of EBI recently received a proposal from the vice president of Great Deal, Inc. (GDI), a large discount retailer. The vice president proposed a joint venture between his company and EBI, citing the growing demand for organic products and the superior distribution channels of his organization. Under this venture EBI would make some minor changes to the manufacturing process of some of its best-selling baby foods, which would then be packaged and sold by GDI. Under the agreement, EBI would receive $3.10 per jar of baby food and would provide GDI a limited right to advertise the product as manufactured for Great Deal by EBI. Initial calculations determined that the direct materials, direct labor, and other variable costs needed for the GDI order would be about $2 per unit as compared to the full cost of $3 (materials, labor, and overhead) for the equivalent EBI product. The CEO must decide whether or not to accept the proposed venture from…

    • 937 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Piedmond Case

    • 662 Words
    • 2 Pages

    I would like to thank you for providing me the opportunity to prepare your company’s Economic Feasibility Analysis worksheets. I have compiled the information that you provided into several useful and easy to read charts, diagrams, and explanations. In this memorandum you will find a summary of breakeven points using discount rates of 8, 10, 12, 14, and 16 percent, a breakeven chart comparing the net present value of all benefits to the net present value of all costs, and the internal rate of return. I also provide analysis of a couple of different scenarios, for example, a scenario summarizing the elimination of a staff position, and another scenario summarizing the elimination of a staff position and some increased site preparation costs. You will also find an analysis offering a convincing case, in the event that management can fund two projects, for the funding of custom order tracking system under multiple conditions.…

    • 662 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    John Lewis in China Report

    • 6732 Words
    • 27 Pages

    Disadvantages of a Joint Venture. 2013. Disadvantages of a Joint Venture. [ONLINE] Available at: http://www.seanmcpheat.com/marketing/joint-ventures/disadvantages-joint-venture. [Accessed 03 April 2013].…

    • 6732 Words
    • 27 Pages
    Powerful Essays
  • Good Essays

    Running Simulation Paper

    • 3567 Words
    • 15 Pages

    The Warehouse Facility Consolidation project is aim to improve the NH’s warehouse facilities and can save the company’s operating costs as well as increase the shipping speed. This project is in retail division with an NPV of 2.29, an IRR of 13.56%, and a payback period of 8.23 years and a payback index of 0.31. Also, this project was considered as a medium risk project with 9.25% discount rate. Expansion of Mail-order Catalog Business to Asia is a retail division project, it is considering expanding its mail-order to the Asian market. Although there two possibilities that might happen, succeed or fail, it viewed as a low risk project with very low lifetime project costs which is only 2.73 million. It had an IRR of 19.77%, a discount rate of 8.46%, and a payback period is more than 10 years and the profitability index of this project is 2.85. I choose this project is because the Asian market is a very big market, since the project is low risk and the cost of this project is very low, we think it is worth to try, because if this project is succeed, the company will earn more profit. The last project we selected for this year is Retail Store Expansion in Northeast. The NPV of this project is 5.34 and it had an IRR of 37.45%, a discount rate of 10.04% and a payback period is 5.33 years. We suggested…

    • 3567 Words
    • 15 Pages
    Good Essays
  • Good Essays

    Camar Automotive Hoist

    • 466 Words
    • 2 Pages

    Joint venture might be an unviable choice of CAH because Bar Maisse may not be willing to launch joint venture with CAH. CAH has insufficient information about Bar Maisse, CAH doesn¡¦t know whether Bar Maisse would seek to control the operation or not, that is, CAH will have limited control of operation and reputation. In addition, CAH should share profit with Bar Maisse, and the break-even quantity is 700(see exhibit 3) that is not easy to achieve in the short term because it took CAH six year to expanding sales from 23 to 700 in the US market. (from 1991 to 1997)…

    • 466 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Kate Spade Case

    • 636 Words
    • 3 Pages

    This company offered to buy 80% of Kate Spade in return for company stock. This company had a lot of department stores and specialty retail location in over 80 countries. If they made a contract, Kate Spade could use their useful resource. However, this company’s targeting market was not appropriate for Kate Spade. Their target price range was quite lower than Kate Spade was. Lowering the level of target was not the growing company should do and one of team member thought that this trade seemed look down on the team.…

    • 636 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    M. E. Sharpe Beamish, P. W. and Lupton, N. C. 2009. Managing Joint Ventures. Academy of Management…

    • 1312 Words
    • 16 Pages
    Powerful Essays
  • Better Essays

    The Timken Company 2

    • 1661 Words
    • 8 Pages

    In this case we analyst whether Timken should acquire Torrington company from Ingersoll-Rand by cash, issuing share to public or issuing share directly to IR. IR wanted to divest Torrington and Timken aim to acquire it. After merging with Torrington Timken will be world third largest company in bearing industry and Timken would gain more sales as Timken and Torrington has about 80% of overlapped customer. Moreover after the synergy they can reduces cost, increase market shares and have more production lines. As Timken leverage ratio is not good, so they couldn’t raise cash that needed to be paid for the acquiring because if they did so the investment-grade rating will be deceased. Timken rating now is BBB so they couldn’t risk it to go lower. As Timken stock price is 19$/share they would have to require a lot of shares for the public to gain enough money for the acquisition and there is a risk that Timken couldn’t sell all of shares. For the last option is by issuing share directly to IR would benefit Timken as it will change capital structure reduce debt more equity. But it wouldn’t happen either because this option will make IR take the risk for holding to Timken stocks while they already have plan to invest in other segment. Our group suggests that Timken should acquire Torrington by issuing share directly to IR and pay cash by doing this will cause a win-win situation.…

    • 1661 Words
    • 8 Pages
    Better Essays
  • Better Essays

    Q2. In what ways does Amazon, as a company, evidence the willingness and ability to collaborate?…

    • 1735 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    .be-first-or-nothing. strategy in other markets, for various reasons, it would be impossible to implement this strategy when penetrating Chinese market. So acquiring an already comparatively recognizable and well established brand seemed to be the best way to continue eBay’s expansion in Asia. Without a doubt, Each Net was the best candidate for acquisition at the time. When eBay acquired 33% shares of Each Net in 2002, it seemed to be hugely successful, because in year 2003 the value of Each Net had doubled and market share had rocketed to 85% - this initial success encouraged full acquisition of Each Net. As we know, the success did not turn out to be long-lasting, despite the fact that in first few years the performance of the company was brilliant. While acquisition of Each Net meant many advantages for eBay, it also implied serious disadvantages.…

    • 1642 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    PepsiCo’s equity joint venture is proposed to be with two local chinese companies. PepsiCo would hold 57.5% interest in the joint venture, while 37.5% by Second Food Factory and the remaining 5% by Beijing Chong Yin Industrial & Trading Company. Mr. Hawaux needs to determine the attractiveness of the project’s risk and return prospects.…

    • 928 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Grading Rubric

    • 514 Words
    • 3 Pages

    1. Identify the pros and cons of the partnership as a form of ownership.Weight: 15%…

    • 514 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Repsol YPF valuation

    • 1831 Words
    • 8 Pages

    1) How significant are the expected synergies and restructuring effects? Please prepare an estimate of the value of these.…

    • 1831 Words
    • 8 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Franchise - Case Study

    • 743 Words
    • 6 Pages

    2) Evaluate the benefits and drawbacks of running this franchise with a partner rather than doing it on…

    • 743 Words
    • 6 Pages
    Satisfactory Essays
  • Good Essays

    Ebay Analysis

    • 860 Words
    • 4 Pages

    Leadership in terms of ability to renew the Board and keep a sense of consistency…

    • 860 Words
    • 4 Pages
    Good Essays