THE EXPRESSO LANE TO GLOBAL

MARKETS

Q1. Conduct a CAGE analysis of the seven countries under consideration to

help in decision for global expansion.

Ans.

BRAZIL CHINA GERMA INDI JAPA U U

NY A N K S
CULTURE High
interactio
n
relationsh
ip

Urban
Coffee
Culture
ADMINISTRA Successfu 43% of
TIVE l FDI populati
on lives
Second in urban
largest areas
consumer
of coffee
GEOGRAPHIC Only 11%
of
franchise
were
foreign
based

Brazil
was only
9054 km
away
from
Italy.
ECONOMIC Low per Projecte
capita d 10.7
consumpt %
ion growth
through
2015

Q2. What does analysis of CAGE and SWOT show you? Based on these
results which international market should Espressamente pursue next?

Q3. Create GE 9 cell and BCG Matrix What do you learn from them?
Ans.

GE Matrix

MARKET ATTRACTIVNESS
HIGH MEDIUM LOW
HIGH Brazil China,
COMPETITITVE
Germany
POSITION
MEDIUM US, UK Japan
LOW INDIA

BCG Matrix

Relative Market Share

HIGH LOW
Market HIGH Brazil, China, India, UK
Growth Japan
Low Germany, US

Q4. Which variables from the case are most important for Reale’s decision
making?

Q5. How Should Reale prioritize the foreign market?

Q6. What mode of entry should Reale consider? Should it be different based
on the market selected. What are the relevant organizational and
environmental variables that should impact the decision.

Ans 6. The market specific approach should be used for international operations
of the company.

There is a relevant impact of environmental variables and they are because

countries have different environmental factors and hence the approach has to be
different and in alignment with the environment. For example, the bureaucratic
hurdles are too many in china. so joint ventures or strategic alliances may prove
to be helpful in navigation of the Chinese customer's behaviour and the market
norms and preferences.

1. Political: The level of ease of doing business in a particular country helps to

make corporate level decisions. The rules and regulations define the success of
the business.

2. Economical: Various economic factors like the per capita income, disposable
income, GDP per capita etc help to determine the behaviour of the consumer and
their responses will affect the pace and rhythm decision of reale.

3. Social: The lifestyle of the people and the kind of social behaviour they engage
in will affect reale's decision.

4. Legal: Various rules and regulations ,for e.g., the rules in buying land will
largely affect the strategy of the business.