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1 – 2 of 2Beat Hans Wafler and Rian Beise-Zee
The case authentically illustrates a common problem encountered within the business scope of an agent who is representing a European food ingredients manufacturer in an emerging…
Abstract
Subject area
The case authentically illustrates a common problem encountered within the business scope of an agent who is representing a European food ingredients manufacturer in an emerging market. The case describes the kind of legal set-up and contracts that are necessary to safeguard the long-term prospective of the business for both parties, the agent and overseas supplier. It explains what each party has to observe in case of a termination of the agency agreement.
Study level/applicability
This is a longitudinal case study of a market entry by a European food ingredients manufacturer through a foreign-owned third agent. The authors studied how sales developed over the first few years and then concentrated the investigation on the fact that after the sales volume was reached, the overseas manufacturer wants to cancel the agency agreement and do the business directly without getting the agent involved.
Case overview
This case describes and explains a common problem encountered frequently by overseas manufacturers who want to enter an emerging market through a third-party agent representation. The overseas supplier uses the agent’s service and solid reputation to enter an emerging market with limited exposure to costs and risk. The agent works towards guarding the relationship with the overseas supplier for as long as possible. The development of the relationship illustrates what kind of conditions have to be stipulated in advance to provide an acceptable solution to both parties concerned once they part ways.
Expected learning outcomes
This research is based on a European food ingredients manufacturer, who was expanding its business in different Asian emerging markets, namely, Vietnam and Cambodia. The agent was a long-time established trading house who acted frequently as agent for overseas companies that wanted to get a foothold in these promising Asian emerging markets.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 5: International Business
Details
Keywords
Learning outcomes are as follows: to appreciate the people challenges imbedded in an acquisition; to assess and analyse the impact of an acquisition process; to propose…
Abstract
Learning outcomes
Learning outcomes are as follows: to appreciate the people challenges imbedded in an acquisition; to assess and analyse the impact of an acquisition process; to propose appropriate strategies for managing an acquisition; to explore the advantages and disadvantages of mergers and acquisitions; to describe the main reasons for the failure of M&As.
Case overview/synopsis
Often mergers and acquisitions fail because of the inability to either manage or consider organisational and people management issues. It has also been acknowledged that during a process of extreme change or transition, such as a merger and acquisition (M&A), employees view the past as a time of safety and security with the future appearing as uncertain and confused. This teaching case study highlights these challenges and the change processes imbedded in an acquisition. The acquiring firm is Marshall Foods, a well-established branded continental distribution company with a strong emphasis on nutritional whole food products based in South Africa, and the target firm is Tru-Foods For You, a small Cape Town online company that sold natural and organic foods. The case study explores the challenges faced by the Tru-Foods For You owner and staff as a result of the acquisition process. The case describes the background to the acquisition, the processes during this phase and the resultant outcomes.
Complexity academic level
Business students who are studying at postgraduate or MBA level and executive short courses in strategy and change management.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 11: Strategy.
Details