Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Cameron Auto Parts

No description
by

on 9 December 2015

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Cameron Auto Parts

Cameron Auto Parts
Internationalization By Parts
No, Not Really
Expansion of scope of internationalization brings new risks as well as bigger rewards
Microcosm of Internationalization
Eb, Fahad, Jon, Will
Export
Licensing
Joint Venture
Subsidiary/Direct Investment
Export
Exporting Flexible Couplings
Issues Selling Product due to Design
Designed team was American and made for Americans
Hired a Canadian Engineer to modify the product for the Canadian Market
Began Selling Tons of Flexible Couplings After Modification
Cameron's Troubles
Running out of Cash Fast
Decided to Concentrate on Exporting
Already Exporting OEM Products Under Auto Pact
Canada was Chosen as the Point of Entry For New Products
No Tarrifs
Licensing
With Success Came New Challenges
Demand Kept Increasing
Europe Sending Unsolicited Orders
Cameron Swamped
Enter McTaggart
McTaggart, Scottish Company, Wished To Get In On Action
Could Sell To European Markets Much More Easily, Skipping Import Charges And Shipping
Offered Up-Front Setup Payment to Cameron Plus 3%/2% Royalty Deal
Risks And Rewards
Real World Analogue - Export
Heritage Glass' Kerney – Tennessee
Low Cost of Gas and Oil
60 percent to 70 percent of sales eventually coming from such regions as the Philippines, Europe and South America
Cash Cost to Cameron - None!
Fast Entry To Europe
Quick Scaling
Avoids Tariffs
Low Managment Overhead
Prospect For Profit -- Low (maybe) Cameron Didn't Know For Sure
Quality Risk - High
Real World - Licensing
Early Apple Foray Into Internationalization
Apple No Longer Makes Apple Products
Licenced To Foxconn To Simplify Business
More Profitable, But Technological Risk of Sweatshop Backlash
Joint Venture
How To Keep Growing?
New Ventures with McTaggart to Increase Cameron's Revenue
Cameron was ready for a Joint Venture with McTaggart because they showed promised return by selling flexibile coupling
Risks: Financial risks were lower
Real World - Joint Venture
Sony did Joint Venture with Ericson because to ramp up its smartphone efforts and defend its TV and PC manufacturing franchises by letting consumers connect with content "wherever they are, whenever they want.
This Joint Venture will provide speedy entry into Market to Sony
Ericson was not doing great in Communication and wireless business as compare to Nokia/Apple
Direct Investment/Subsidiary
Cameron’s French Proposal with Michelard
Why – International Presence
Where – Continental Europe
Investment Structure – $4 Million Dollars for 40% stake in the Michelard Company
CAMERON’S CHALLENGES
Finance - Capital Intensive
Managerial - Lack of Skill Set
Other - Cultural Shock
CAMERON’S BENEFITS
Quick Market Penetration
Profits - High Returns of Investment
Less Technological Risk
Ability to Exploit High Economies of scale is medium
Real World - Direct Investment
Home Depot Vs. IKEA In China
Capital intensive
Lack cultural understanding
One fit all business model do not work
Access to customer feedback is high for IKEA but not Home Depot
WHY CAMERON'S FRENCH DIRECT INVESTMENT
WILL FAIL
Short of cash
High administration cost
Lack of manufacturing experience
Problem with Michelard Financials
WHY CAMERON'S FRENCH DIRECT INVESTMENT
WILL FAIL
Taxes
Dividends
Currency exchange
McTaggart Is Mad!
Lack of understanding of the Market
Cameron, est. 1965
Cameron Shows Internationalization As Both Risk and Risk Avoidance Depending On Scope
Questions?
Full transcript