The managers of Loyola Corp. recently had a meeting to discuss new opportunities in Europe as a
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The managers of Loyola Corp. recently had a meeting to discuss new opportunities in Europe as a result of the recent integration among Eastern European countries.
They decided not to penetrate new markets because of their present focus on expanding market share in the United States. Loyola’s financial managers have developed forecasts for earnings based on the 12 percent market share (defined here as its percentage of total European sales) that Loyola currently has in Eastern Europe. Is 12 percent an appropriate estimate for next year’s Eastern European market share? If not, does it likely overestimate or underestimate the actual Eastern European market share next year?
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