1. ARCOR How to withstand in turbulence …..

2. Case Brief Argentina economic crisis Growing markets like India China Rivals Products – Normal, Luxury Choc Arcor in crisis Globalization strategy

3. Need to globalise Confectionary industry globalised Producers dependent on Non Domestic market

4. Challenge Demand Cocoa Price volatility Others were inexpensive Developed countries had supplier base

5. Production Locate near source of supply Larger capital investment Cost of production 9 million dollar

6. Argentina Crisis Financial Crisis 1999 Growing public debt Contracting economy Higher interest rates Devaluation of economy

7. Arcor in crisis Raised employee wages by 20% Arcor had net debts of 360 million dollar Post devaluation Leverage ratio of 42% Others were 177%

8. Strategy Reducing / Repricing – Shortening of collection window Came up with packing strategies Cashing on local landscape disarray

9. Choice of Product Moderately AttractiveMost Attractive LATIN AMERICA ASIA Least Attractive EUROPE Moderately NORT AMERICA CANADA L Degree of local adaptati on H L Expected payoff from globalization H

10. Choice of Market Phased in NORTH AMERICA CANADA Rapid Entry LATIN AMERICA ASIA IgnoreOpportunistic EUROPE H Strategic imp of market L L Firms Ability to exploit market H

11. Greenfield or Cross Border Greenfields or CBGreenfield LATIN AMERICA CB NORTH AMERICA CANADA Greenfield or CB H Market growth rate L L Uniqueness of corporate culture H

12. Mode of entry LATIN AMERICA CANADA NORTH AMERICA ASIA 100% Exports Local Production 100% Degree of ownershi p 0