A CASE ANALYSIS OF THE FREE RANGE COKMPANY’S INTERNATIONAL AMBITIONS (Slide 1) Strategizing approaches to globalization has long been at issue for an organization with intentions on increasing its international presence. While local farms were disappearing around the country, Euell Gibbons, a Free Range Foods executive, convinced the company’s founder a great opportunity exists in selling organic dairy products while maintaining an eco-friendly, socially responsible presence. Although, the company was not solely interested in making a profit, the profits did provide a means to furthering the goal of making sure the planet and its resources would continue to be available free range is also willing to pay more for organic ingredients in order …show more content…
There are several strategies that may be considered, however the two we have chosen to discuss are Outsourcing and Franchising. Both strategies can be effective in gaining entry into international markets and both come with distinct advantages and disadvantages. Outsourcing: The first global strategy Free Range should consider is that of outsourcing. Outsourcing is described as, “the increasing tendency of firms to subcontract parts of their production process to other firms that are often based overseas.”(Cole, et. al., 2012) and is not without its advantages and disadvantages. Advantages: The first advantage of outsourcing would be seen in cost saving through the reduced cost of operations and labor. “Because wages are smaller, payroll taxes are also smaller. There are far fewer unions in these countries, so there is a reduced risk of workers going on strike as well.” (O’Brien, 2014). Because there are fewer work regulations for international companies, such as increases that we would normally require for overtime pay, time and money are saved automatically. Additionally, outsourcing will give Free Range the ability to develop new competencies and focus on employee core proficiencies. The company manages access to the company’s expertise and specialized services while provided training and assistance to the company providing outsourcing