KEY ISSUES The vice president, Dennis Shaughnessy, for Corporate Development and general counsel for CRL is ready to give a proposal to the board of directors of CRL on the joint venture of CRL with the company ALPES S.A, a family owned company operating in the Mexican market. The purpose of this joint venture will be to create a state of art specific pathogen-free (SPF) egg farm and will require CRL to invest $2 million. This investment will help CRL to exploit the opportunities to improve its growth and to increase its share in SPAFAS market of the USA. (I added this part)
The proposal of the joint venture in the Mexican market has raised concerns about whether CRL should go for the venture or not. There are many issues which have…show more content… Instead of being negatively affected by the import competition, ALPES has doubled its production to satisfy the increasing demand.
Economic: The rising demand gives an opportunity to the growth of industry, which also enables APLES to seek for expansion. However, the industry in Mexico needs to deal with some unfavorable economic factors, such as unstable currency, uncertain market, economic instability, and local corruption.
Social: According to the U.S. Department of Agriculture, people’s health has been seriously threatened by the contaminated poultry since there are over four million sicknesses and more than 3,000 deaths infected with bacteria every year. Thus, it is important for the poultry to be vaccinated against the pathogens. Such an issue should be considered as the worldwide societal issue. Besides, isolation and poverty in Mexico should be concerned as it related to low (should be a concern as it relates to) standards of the Mexican farms. Moreover, ALPES succeeds to retain honest and hard-working employees to handle the
