S ITUAT IONJCASE Agricon is a newly established company marketing new agricultural techniques from enhanced production and yield management to improved soil quality and management. The company understands that its greatest opportunities are in 'going global', but faces numerous questions and challenges in so doing. Agncon seeks to assist developing markets with improved agricultural sciences, and believes some of the research and testing can be outsourced, partly to local providers, as a means of cost control and knowledge transfer. The company is concerned about exposing its intellectual property, and is aware of some environmental 'pushback' related to emerging agriculture techniques. At the same time, Agricon appreciates that international business is now very collaborative. and understands the importance of developing solid sources of inputs as well as strong export markets. 5 marks 1. Agncon realizes that outsourcing and offshoring are key strategies for major multinationals as well as for specialist rms such as accountancy rms and consultancies. Which ofthe following should not be a consideration in assessing the t of an outsourcing option? a) Issues related to data security and communications with the outsourcing provider b) Job losses in the domestic market as a result of the decision to outsource or offshore c) Labour arbitrage opportunities and the advantages of lowcost resources d) An effective marketing and communication strategy related to the decision to outsource or offshore 5 Marks 2. Intellectual Property (IP) and its protection are critical considerations in the conduct of international business and in the selection of markets. What tradeoff should Agricon consider as a major factor pn'or to pursuing global markets? a. The choice between retaining legal advice or researching options through the World Intellectual Property Ofce (WIPO) to resolve lP disputes b. The n'sk of having IP compromised, versus the reward of entering highly lucrative markets which do not respect or enforce IP n'ghts c. The challenge of engaging in corporate espionage, to ensure that they possess the latest technology or most efcient processes as are employed by competitors d. The complexities related to inmarket distribution options (agents or other) for hightechnology and other lPsensitive products 15 Marks 3. You have been promoted to Export Development Manager for a manufacturer of energyefficient appliances, and have been assigned to open new export markets for your company. Using up to 3 sentences each describe 3 important factors you would consider as you began developing a new international business plan
