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Global Business Environment

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1. What types of exit strategies would be most appropriate for your global venture, an Athletic Footwear business? Some strategies to consider include divestiture of assets, handing over to a joint venture partner, diversification, shutting down operation, and contingencies for your global venture.

2. Make final recommendations about the feasibility of this global venture an Athletic Footwear business. Would you recommend proceeding with this global venture? Explain why or why not.

Organize the solution in terms of an introduction, body, and summary/conclusion.

Need references in APA Format.

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The response addresses the queries posted in 1275 words with references.

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The response addresses the queries posted in 1275 words with references.

//In this paper, we will discuss appropriate exit strategies for the global venture, of an athletic footwear company. We will also make recommendations in the paper regarding the viability of the aforesaid venture. We will first proceed with the introduction of exit strategies.//

Introduction

The African continent has an enormous potential for the aforesaid global venture of athletic footwear. But due to varied reasons, the company may plan to wrap up its operations in the African market. The possible reasons, which may force the company to consider the "exit mode" may primarily be due to the cultural differences arising in the organization. Another probable reason may be attributed to the fact that the availability of natural resources such as energy and water are scarce and they could pose to be a stumbling block in the business operations.

An exit strategy should always be devised well in advance, so that any unfavorable situations could be escaped by the company and in addition to this, the quantum of capital invested for the plans, may be well recovered. The management may need to consider one of the various exit strategies that will most suit them according to their business plan.

The other reasons well attributed for the exit may be due to certain governmental, legal, and economic factors (Jeannet, & Hennessey, 2005). A formulation of effective exit strategy will help the global venture to wrap up its business plans due to the presence of unfavorable conditions in the particular market and will help the company to recover some of the invested capital (Capron, Mitchell & Swaminathan, 2001).

//After giving a short introduction; the next section will now discuss the various exit strategies that this global venture could consider. Also, the best strategy that the company should follow ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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