Global Business Plan
...12, 2007
Global Business Plan
Orange R Us has been in business for a while and has made very strategic business decisions. When the company decided to export out of the country to Mexico, the company had to perform some research. The company performed many task such as a country risk and strategic planning analysis, devise a business plan and a marketing strategy.
Oranges R Us, a company located in Tampa, Florida, produces high quality and nutritional orange juice. Since being in business for over fifteen years, the company is venturing into the international market. After thorough research of Mexico’s politics, economy, social environment, and the risks in each, ORU has decided to choose this country to export their product.
Mexico is a member of the North American Free Trade Agreement, also known as NAFTA. This agreement removes most barriers to trade and investment among the United States, Canada, and Mexico (usda.com, 2007). Since Mexico is a trading partner with the United States, ORU feels confident that exporting their product to Mexico is the right choice for their company.
ORU’s selection of Mexico to begin exporting their product to is a good choice because of the close proximity of the countries. Likewise, since the U.S. and Mexico are trading partners, ORU will not have to worry about double taxation when exporting to Mexico. Mexico’s economy has been doing progressively well over the past few years, so there is tentatively minimal risk of doing business with the country from an economic standpoint. In addition, the social environment in Mexico is similar to the United States, so exporting orange juice should be a smooth transaction. Orange juice is consumed in Mexico, so providing high quality product should prove to sell in the country.
Analysis of Mexico
The country of Mexico and the United States share a border of...
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