The Anderson Company, a manufacturer of soybean harvesters, has for years sold a substantial number of machines in Spain firm has began to manufacture then and Foley's local distributor has told Mark Cooper, Anderson's president that if Anderson expects to maintain its share of the market, it will also have to manufacture locally. Cooper is in a quandary. The market is too good to loss, but Anderson has had no experience with foreign manufacturing operations: because Spain sales and repairs have been handled by the distribute no one in
Andeesin has had any firsthand experience in that country:
Cooper has made some rough calculations that indicate the firm can make money by manufacturing in Soain but the firms lack of marketing expertise in the country troubles him. He calls in Martha Wade, the export manager and ask her to prepare a list of all the options open to Anderson, with their advantages and disadvantages. Cooper also asks Martha to indicate her recommendations.
1. Assume you are Martha Wade. Prepare a list of all the options available to Anderson, and give the advantages and disadvantages of each.
2. Which of the options would you recommend? Why?
3. Assuming that the president's calculations are correct and that a factory to produce locally the number of machines that Anderson now exports to Spain will offer a satisfactory return on investment, what special information about Spain, will you want to gather?