Health & Tasty
Gary Coronel Ávila, (A01214396@itesm.mx)
EXECUTIVE SUMMARY
Before getting into the internationalization process, it is necessary to set strong bases in Ecuador and to establish standardized processes and quality standards. The business will start functioning in Guayaquil, to later expand to other important cities such as Quito and Cuenca.
Internationalization will also be achieved by going backward into the value chain. The idea is to use diet plans that already exist and that have been successfully been applied before, and to offer then as an option for our clients. Most of these diets plans have been design by foreign specialists, mainly Americans and British.
The internationalization process will start by a regionalization, taking the business to Colombia. The entry mode to this market will be by setting a wholly-owned subsidiary in Bogotá and as the business establishes, it will be possible to offer franchises so that it can function in other cities. During this stage, the organizational structure will move to a single matrix model.
The next stage will be given by the globalization of the business. The business will be taken to México, establishing two wholly-owned subsidiaries, one in México DF and one in Monterrey. The purpose of setting two subsidiaries is to cover the north and central area of the country. As in the case of Colombia, once the business has grown it will be possible to offer franchises in order to expand the business to other cities in México. To ease the management of the business at a global level, we will adapt the organizational structure to a regional one, establishing two regions: South America and North America.
For the selection of both countries, Colombia and México, we considered cultural and legal factors, as well as an evaluation of the risks related to political, economic, competitive and operational factors. The objective of entering into these markets is to increase sales, establish bases and get expertise for further expansions to other countries.