Sterling Marking Products Case Study

I recommend that Sterling should consider a to the full owned subsidiary as an gateway mode into the U. K. market. However, we need to fit U. K. laws permits 100 percent ownership and understand tax incentives applicability. In addition, as an organization we would need to internally develop a strategic road map in terms of our approach to international markets. The objective of the roadmap is to picture Sterling with some guidance and a broad approach to how we stock business on a global scale, considering recent interest in our product from firms in early(a) countries and possibility of pursuing those opportunities.As an organization, this is much indispensable to prevent some of the issues we experienced domestically while establishing our branches in Toronto and Windsor, as well as our recent challenges in the U. S. market with Julius Blumberg Inc.My recommendation for a fully owned subsidiary in the U. K. is based on the following(a) In Europe, U. K. is the only Europea n country where seals are legally necessitate for corporations, and the approximately populous country in that region (exhibit 1), this continues to make U. K.the most attractive market in Europe for sales, regardless of whether seals might no longer be prayd in the future. Also, establishing a presence in the U. K. get out place Sterling in a position to slowly penetrate other European market for future expansion. Based on a qualitative cost & benefit analysis (exhibit 2), a tout ensemble owned subsidiary provides the most advantage to Sterling. Although this requires the most capital and circumspection commitment, the benefits it offers offsets such costs including full profitability as opposed to a shared profit in case of a joint hypothesis (exhibit 3).Also, in terms of the goals, strategy, resources and organizational structure of Sterling, a subsidiary best enables the firm to reach its objectives (exhibit 4). Options open to Sterling with a subsidiary is all to pur chase a U. K. seal producer (Jordan) or build a branch as a Greenfield project. Buying out a topical anaesthetic producer will brook a speedy market entry and admission fee to local workers. This will also give Sterling access to current customers of the local seal producer. For this reasons, a buy-out subsidiary will be preferred over building a new branch.The U.S. market is also one that is in need of a turn around in terms of sales and profitability. Once our seven-month contract with Julius Blumberg Inc. is completed, I will advert we change our method of entry into the U. S. Market. Our trial with Bloomberg sales force shows that a direct sales approach dramatically increases sales in this market, and then we should continue to export and invest in a sales and scattering team locally in the U. S. to drive sales. This will also allow us to penetrate the market faster and minimize any special capital cost.In terms of interest shown in our product by other countries, I wil l suggest we research into sales opportunities in lacquer for the reasons that Japan has a high population and number of lawyers compared to most of the other countries, geographically Japan also allows us to establish a hub in Asia so that we can establish a footprint in this region. However, decision making on a method of entry into this market will require gathering special information and understanding the Japan market. This research will need to be done prior to deciding a corresponding method of entry as was suggested for the U. K. market.