GLOBAL EXPANSION OR BUSINESS AS USUAL?

Audiotech Electronics, founded in 1959 by a father and son, currently operates a 35,000-square-foot factory with 75 employees. The company produces control consoles for television and radio stations and recording studios. It is involved in every facet of productiondesigning the systems, installing the circuits in its computer boards, and even manufacturing and painting the metal cases housing the consoles. The company's products are used by all the major broadcast and cable networks. The firm's newest products allow television correspondents to simultaneously hear and communicate with their counterparts in different geographic locations. Audiotech has been very successful meeting its customers' needs efficiently.

Audiotech sales have historically been strong in the United States, but recently growth is stagnating. Even though Audiotech is a small, family-owned firm, it believes it should evaluate and consider global expansion.

Discussion Questions: Best to re read your answer aloud to see if it makes sense, concept flows well and fully answers the question.If necessary read the question over a few times after you have answered it to make sure it really does pertain to what is being asked. Or if it's simply a personal opinion. Opinions rarely answer a discussion question without explanations and examples.Thank you!

1. What are the key issues that need to be considered in determining global expansion? Use your textbook here.

1. What are some of the unique problems that a small business might face in global expansion that larger firms would not?

1. Should Audiotech consider a joint venture? Should it hire a sales force of people native to the countries it enters? (Do not be too quick to answer this one...think it through-weigh the pros and cons as it pertains to the chapter information.)