Entry Mode: Assume that the company M.A.C Cosmetics is trying to expand its make
ID: 379048 • Letter: E
Question
Entry Mode: Assume that the company M.A.C Cosmetics is trying to expand its makeup business in Vietnam. In order to reduce the costs of making its makeup product, M.A.C Cosmetics will manufacture it in China and then export it to Vietnam in bulk where it will be packaged and ready to be sold. People will buy M.A.C Cosmetics makeup product in malls located in the major cities in Vietnam such as Ho Chi Minh City, Ha Noi, Hai Phong, and Can Tho. 1) If company M.A.C entry mode is exporting, discuss some of the benefits and disadvantages of this entry mode for M.A.C Cosmetics. Provide specific examples With statistical data for these advantages and disadvantages. 2) What are some of the characteristic of exporting? Would the cost be higher? Would the company’s control be lower? How? Give some examples with statistical data. 3) After the makeup product is manufactured in China and then exported to Vietnam in bulk, what are the procedures, strategies, and logistics that M.A.C Cosmetics should implement to package and distribute its products to be sold? Would the Vietnamese government have any constraints or regulations for these procedures and strategies? If there is any governmental constraints, how should M.A.C Cosmetics solve this with the Vietnamese government? Entry Mode: Assume that the company M.A.C Cosmetics is trying to expand its makeup business in Vietnam. In order to reduce the costs of making its makeup product, M.A.C Cosmetics will manufacture it in China and then export it to Vietnam in bulk where it will be packaged and ready to be sold. People will buy M.A.C Cosmetics makeup product in malls located in the major cities in Vietnam such as Ho Chi Minh City, Ha Noi, Hai Phong, and Can Tho. 1) If company M.A.C entry mode is exporting, discuss some of the benefits and disadvantages of this entry mode for M.A.C Cosmetics. Provide specific examples With statistical data for these advantages and disadvantages. 2) What are some of the characteristic of exporting? Would the cost be higher? Would the company’s control be lower? How? Give some examples with statistical data. 3) After the makeup product is manufactured in China and then exported to Vietnam in bulk, what are the procedures, strategies, and logistics that M.A.C Cosmetics should implement to package and distribute its products to be sold? Would the Vietnamese government have any constraints or regulations for these procedures and strategies? If there is any governmental constraints, how should M.A.C Cosmetics solve this with the Vietnamese government? Entry Mode: Assume that the company M.A.C Cosmetics is trying to expand its makeup business in Vietnam. In order to reduce the costs of making its makeup product, M.A.C Cosmetics will manufacture it in China and then export it to Vietnam in bulk where it will be packaged and ready to be sold. People will buy M.A.C Cosmetics makeup product in malls located in the major cities in Vietnam such as Ho Chi Minh City, Ha Noi, Hai Phong, and Can Tho. 1) If company M.A.C entry mode is exporting, discuss some of the benefits and disadvantages of this entry mode for M.A.C Cosmetics. Provide specific examples With statistical data for these advantages and disadvantages. 2) What are some of the characteristic of exporting? Would the cost be higher? Would the company’s control be lower? How? Give some examples with statistical data. 3) After the makeup product is manufactured in China and then exported to Vietnam in bulk, what are the procedures, strategies, and logistics that M.A.C Cosmetics should implement to package and distribute its products to be sold? Would the Vietnamese government have any constraints or regulations for these procedures and strategies? If there is any governmental constraints, how should M.A.C Cosmetics solve this with the Vietnamese government?Explanation / Answer
1) Since the Company will manufacture its cosmetic products in China and then export it to Vietnam in bulk where the products will be packged and marketed, the mode of entry is Exporting.Some of the Advantages of this type of international Business are:
1. Relatively low financial exposure
2. Permit Gradual Market Entry
3.Acquire Knowledge about the Local Market
4.Avoids Restrictions on Foreign Investment
However, some of the Disadvantages of this strategy are :
1. Vulnerability to Tariffs and NTBs
2.Logistical Complexities
3.Potential Conflicts with Distributors
4. Company may be viewed as outsider
2. Some Characteristics of Exporting are :
a) Ability to venture out and adapt quickly
b) Carrying High level of intelligence including cultural and emotional
c) Being objective and open to the people and environment
d) Having enough flexibility to focus on serving and helping others
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.