1. Recall that Budgy Smugglers products are 100% made in Sydney, Australia, despite options to reduce costs...

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1. Recall that Budgy Smuggler’s products are 100% made in Sydney, Australia, despite options to reduce costs by manufacturing else where. Knowing this, which basic force (or forces) do you believe best represent(s) the company’s motives for global expansion? Why?

2. As a company grows and demand for its products expands, the increased product volume allows for greater efficiency and sometimes cost cutting. Identify what this benefit is called, explain what it is, and discuss how it relates to international expansion.

3. Adam Linforth and his co-workers learned many lessons when starting Budgy Smuggler that later allowed them to improve and continue to grow. For example, Linforthcame to believe that before expanding internationally and “taking over the world,” he needed to build a strong local presence and generate demand closer to home first. This strategy laid the foundation for the company’s international expansion plan, but perhaps it was not optimal for the company.Was this a wise strategy, or do you believe it slowed down the eventual expansion of the business? Build a case for both strategies and determine which option is most compelling.

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Small Business Management Launching And Growing Entrepreneurial Ventures

ISBN: 9780357718803

20th Edition

Authors: Justin G. Longenecker, J. William Petty, Leslie E. Palich, Frank Hoy

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