Asked by Amanda Jones on May 08, 2024
Verified
Maggie's Drugstores has 46 stores in the United States and wants to expand globally. Maggie's wants to achieve the highest possible returns and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Maggie's Drugstores is most likely
A) exporting.
B) a strategic alliance.
C) a joint venture.
D) direct investment.
E) franchising.
Direct Investment
Investment made to acquire a lasting interest in or effective control over an enterprise operating in a foreign economy.
Global Entry Strategy
The plan and methods a company uses to enter international markets, including exporting, licensing, franchising, or establishing joint ventures and wholly owned subsidiaries.
Highest Possible Returns
The maximum profit or gain that can be achieved from an investment, reflecting the best outcome from financial decisions.
- Acknowledge the monetary and risk factors influencing the selection of market entry tactics.
Verified Answer
AS
Annie SimonMay 12, 2024
Final Answer :
D
Explanation :
Direct investment allows Maggie's Drugstores to maintain complete control over its stores, which is a priority for the company. While exporting or franchising may provide some level of global expansion, it would not offer the level of control Maggie's desires. A joint venture or strategic alliance could also be potential options, but they may not provide the same level of control as direct investment. Therefore, direct investment is the best global entry strategy for Maggie's Drugstores to achieve the highest possible returns with complete control over its stores.
Learning Objectives
- Acknowledge the monetary and risk factors influencing the selection of market entry tactics.