Ilko coffee international file


















Gallery: New beverage releases launched in March 01 April By Bill Bruce 28 March Categories Beverage Business. Share with your network:. Related topics: coffee distribution. Share 0. Print Email. Related Articles Sleepy Owl expands portfolio with premium instant coffee January 04, Drop us a line.

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By registering your email address, you declare that you are not in the European Union. In addition, firms that market and distribute products through a contractual agreement have less control over those operations and, naturally, must pay their distribution partner a fee for those services. Companies are starting to consider the environmental impact of where they locate their manufacturing facilities. For example, Olam International, a cashew producer, originally shipped nuts grown in Africa to Asia for processing.

Now, however, Olam has opened processing plants in Tanzania, Mozambique, and Nigeria. These locations are close to where the nuts are grown.

The result? Olam has lowered its processing and shipping costs by 25 percent while greatly reducing carbon emissions. Likewise, when Walmart enters a new market, it seeks to source produce for its food sections from local farms that are near its warehouses.

Walmart has learned that the savings it gets from lower transportation costs and the benefit of being able to restock in smaller quantities more than offset the lower prices it was getting from industrial farms located farther away. This practice is also a win-win for locals, who have the opportunity to sell to Walmart, which can increase their profits and let them grow and hire more people and pay better wages. This, in turn, helps all the businesses in the local community.

Firms export mostly to countries that are close to their facilities because of the lower transportation costs and the often greater similarity between geographic neighbors. For example, Mexico accounts for 40 percent of the goods exported from Texas. Even small firms can access critical information about foreign markets, examine a target market, research the competition, and create lists of potential customers.

Even applying for export and import licenses is becoming easier as more governments use the Internet to facilitate these processes. Because the cost of exporting is lower than that of the other entry modes, entrepreneurs and small businesses are most likely to use exporting as a way to get their products into markets around the globe.

Even with exporting, firms still face the challenges of currency exchange rates. While larger firms have specialists that manage the exchange rates, small businesses rarely have this expertise. One factor that has helped reduce the number of currencies that firms must deal with was the formation of the European Union EU and the move to a single currency, the euro, for the first time. As of , seventeen of the twenty-seven EU members use the euro, giving businesses access to million people with that single currency.

A company that wants to get into an international market quickly while taking only limited financial and legal risks might consider licensing agreements with foreign companies. An international licensing agreement allows a foreign company the licensee to sell the products of a producer the licensor or to use its intellectual property such as patents, trademarks, copyrights in exchange for royalty fees.

So you enter into a licensing agreement with a Japanese company that allows your licensee to manufacture coffee-flavored popcorn using your special process and to sell it in Japan under your brand name. In exchange, the Japanese licensee would pay you a royalty fee. Licensing essentially permits a company in the target country to use the property of the licensor. Such property is usually intangible, such as trademarks, patents, and production techniques.

The licensee pays a fee in exchange for the rights to use the intangible property and possibly for technical assistance as well. Because little investment on the part of the licensor is required, licensing has the potential to provide a very large return on investment.

However, because the licensee produces and markets the product, potential returns from manufacturing and marketing activities may be lost. Thus, licensing reduces cost and involves limited risk. However, it does not mitigate the substantial disadvantages associated with operating from a distance. As a rule, licensing strategies inhibit control and produce only moderate returns. Another popular way to expand overseas is to sell franchises. Under an international franchise agreement, a company the franchiser grants a foreign company the franchisee the right to use its brand name and to sell its products or services.

The franchisee is responsible for all operations but agrees to operate according to a business model established by the franchiser. In turn, the franchiser usually provides advertising, training, and new-product assistance.

Because of high domestic labor costs, many U. This arrangement is called international contract manufacturing or outsourcing. It will, however, retain control of product design and development and put its own label on the finished product. Contract manufacturing is quite common in the U. Thanks to twenty-first-century information technology, nonmanufacturing functions can also be outsourced to nations with lower labor costs.

For years, American insurance companies have processed much of their claims-related paperwork in Ireland. With a large, well-educated population with English language skills, India has become a center for software development and customer-call centers for American companies.

In the case of India, as you can see in Table 7. Links to an external site. Another way to enter a new market is through a strategic alliance with a local partner. A strategic alliance involves a contractual agreement between two or more enterprises stipulating that the involved parties will cooperate in a certain way for a certain time to achieve a common purpose.

To determine if the alliance approach is suitable for the firm, the firm must decide what value the partner could bring to the venture in terms of both tangible and intangible aspects. The advantages of partnering with a local firm are that the local firm likely understands the local culture, market, and ways of doing business better than an outside firm. Partners are especially valuable if they have a recognized, reputable brand name in the country or have existing relationships with customers that the firm might want to access.

For example, Cisco formed a strategic alliance with Fujitsu to develop routers for Japan. Strategic alliances and joint ventures have become increasingly popular in recent years. They allow companies to share the risks and resources required to enter international markets. And although returns also may have to be shared, they give a company a degree of flexibility not afforded by going it alone through direct investment.

There are several motivations for companies to consider a partnership as they expand globally, including a facilitating market entry, b risk and reward sharing, c technology sharing, d joint product development, and e conforming to government regulations. Other benefits include political connections and distribution channel access that may depend on relationships. What if a company wants to do business in a foreign country but lacks the expertise or resources?

In these cases, a firm might enter into a strategic alliance with a local company or even with the government itself. A strategic alliance is an agreement between two companies or a company and a nation to pool resources in order to achieve business goals that benefit both partners. For example, Viacom a leading global media company has a strategic alliance with Beijing Television to produce Chinese-language music and entertainment programming.

Alliances range in scope from informal cooperative agreements to joint ventures—alliances in which the partners fund a separate entity perhaps a partnership or a corporation to manage their joint operation.

Magazine publisher Hearst, for example, has joint ventures with companies in several countries. So, young women in Israel can read Cosmo Israel in Hebrew, and Russian women can pick up a Russian-language version of Cosmo that meets their needs. The U. This approach allows Hearst to sell the magazine in more than fifty countries.

Strategic alliances are also advantageous for small entrepreneurial firms that may be too small to make the needed investments to enter the new market themselves.

In addition, some countries require foreign-owned companies to partner with a local firm if they want to enter the market. For example, in Saudi Arabia, non-Saudi companies looking to do business in the country are required by law to have a Saudi partner.

This requirement is common in many Middle Eastern countries. Even without this type of regulation, a local partner often helps foreign firms bridge the differences that otherwise make doing business locally impossible.



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