BARRETT FARM FOODS: A SMALL FIRM'S INTERNATIONAL LAUNCH

The general manager of Australian company Barrett Farm Foods, Philip Austin, returned from the Cologne, Germany food and beverage fairly optimistic about entering the European market through exports.

With sales of USD $215 million last year, Barrett, based in Melbourne, Victoria, is the sixth largest food company in Australia, selling both bulk agricultural commodities and processed food.

Austrade, the Australian government's trade promotion agency, was encouraging companies to increase exports of processed food to increase value added (new jobs, higher GDP, etc.) and help Australia solve its trade balance problems.

The case explores Austin's deliberations as he tries to reason out European market expansion through exports.Answer below questions:

1. Why did Barrett choose exporting as its entry strategy for Europe, as opposed to foreign direct investment or licensing?

2. What advantages does exporting provide to Barrett?

3. What are the potential drawbacks of exporting for Barrett?

Some useful hints:

https://prezi.com/8vvazhrlx422/barrett-farm-foods-a-small-firms-international-launch/

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