Blue Ridge Spain Essay

Words: 1600
Pages: 7

Overall comments: need to tie narrative to terms/concepts from the book.
Should stratify comments into uncontrollable and controllable forces. (like Todd did)

Although Blue Ridge Restaurants had success with expansion and joint ventures in Australia, the UK, France, Italy, Brazil and Hong Kong through 1987, many differing factors were at play when Yannis Costas evaluated the market and strategy for the Spain in the 1ate 1990s. Factors described by D. A. Ball, et al, 1, considered relevant in a country screening and assessing market expansion, especially the xx screen, political and legal and the fourth screen, socio-cultural, were not favorable for an aggressive expansion in Spain.

The key issues in the Delta Foods expansion in
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To give the power of attorney to Francisco Alvarez without consultation of other member of joint venture represented unethical act.

While the culture and personality of the decision makers impact the important choices made in cases like this one, equally important are the countless spreadsheets and documents that contain the financial factors integral to the success or failure of an international business affair. The original development plan agreed to in 1998 (exhibit 2) was a far more conservative approach that would see approximately ten new stores per year opened in Spain. With an initial capital investment of around $1 million per store, and a lengthy 18-24 period between the time of investment and the construction of the location, the venture would be operating on very thin margins in the early years, with the hope that the continued expansion would lead to higher profits in the latter years of the plan.

Financial Analysis

Insert your sources/citings

Delta’s overly aggressive growth strategy set a goal at expanding at three times the pace of the 1998 agreement. Delta’s decision to utilize a consulting firm based in the U.S. might have been a contributing factor to this unrealistic goal. As Bell (2010) states, sometimes management needs to gather data in the potential market rather than