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    Contract manufacturing is becoming more popular as it allows companies to [1] reduce costs and time to market while also [2] increasing quality and consistency. Exporting is an efficient option for entering international markets as it [1] requires minimal investment and risk while allowing [2] production in bulk. Franchising offers [1] access to capital and effective management with [2] reduced employee needs and liability, allowing for [3] faster growth. Strategic alliances involve independent companies cooperating on business objectives like product development by [1] combining resources and capabilities to [2] generate mutual interests.

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    Contract manufacturing is becoming more popular as it allows companies to [1] reduce costs and time to market while also [2] increasing quality and consistency. Exporting is an efficient option for entering international markets as it [1] requires minimal investment and risk while allowing [2] production in bulk. Franchising offers [1] access to capital and effective management with [2] reduced employee needs and liability, allowing for [3] faster growth. Strategic alliances involve independent companies cooperating on business objectives like product development by [1] combining resources and capabilities to [2] generate mutual interests.

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    14 views2 pages

    Document

    Uploaded by

    John Jefferson Caoile
    Contract manufacturing is becoming more popular as it allows companies to [1] reduce costs and time to market while also [2] increasing quality and consistency. Exporting is an efficient option for entering international markets as it [1] requires minimal investment and risk while allowing [2] production in bulk. Franchising offers [1] access to capital and effective management with [2] reduced employee needs and liability, allowing for [3] faster growth. Strategic alliances involve independent companies cooperating on business objectives like product development by [1] combining resources and capabilities to [2] generate mutual interests.

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    of 2

    Directions: Read and answer the following questions.

    Post your answer here and corresponding points


    will be give.

    1. Describe contract manufacturing. Why is it becoming popular these days?


    Manufacturing companies today face tough scrutiny from consumers when it comes to the
    quality and durability of their products. This is especially true for electronics. Consumers today
    expect more options and features than ever before. It can be extremely difficult for
    manufacturing companies to keep up with demand.

    Lately, we’ve seen more companies choosing to outsource to a contract manufacturer. Although
    outsourcing isn’t a new concept for businesses around the world, the recent uptick in companies
    turning to contract manufacturing is. It makes sense when you consider the fact that using a
    contract manufacturer reduces costs and time to market. Outsourcing also helps increase the
    quality and consistency of products produced.

    2. Discuss the benefits of exporting.


    Exporting enables companies to diversify their portfolios and to weather changes in the
    domestic economy. Exporting helps small companies grow and become more competitive in all
    their markets.
    - You could significantly expand your markets, leaving you less dependent on any single
    one.
    - Greater production can lead to larger economies of scale and better margins.
    - research and development budget could work harder as you can change existing products
    to suit new markets.
    3. If you were a manager of a firm that manufactures shoes, which of these options would you
    choose to venture into international business and why? A- Exporting, B- Contract
    Manufacturing.

    Exporting is an efficient way to enter into international market. Further, the manager must consider it as
    -It requires less management as firm is not required to invest much time and money.

    There is a minimal risk in foreign transactions as much of investment is not required. The good can be
    produced in bulk and sent,

    In a self-manufacturing sector, the international company would contribute a larger portion of the
    equity. As a result, small and medium businesses consider it a viable choice for entering the
    international market.

    4. State the benefits of franchising over joint venture.


    THE BENEFITS OF FRANCHISING
    Capital.
    Motivated and Effective Management.
    Fewer Employees.
    Speed of Growth.
    Reduced Involvement in Day-to-Day Operations.
    Limited Risks and Liability.
    Increasing Brand Equity.
    5. Advertising and Promotion.Explain, with examples, the concept of strategic alliance.
    Strategic alliances are agreements between two or more independent companies to cooperate
    in the manufacturing, development, or sale of products and services, or other business
    objectives.

    For example, in a strategic alliance, Company A and Company B combine their respective resources,
    capabilities, and core competencies to generate mutual interests in designing, manufacturing, or
    distributing goods or services.

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