Thunder Rock Is a Small Microbrewery on the Outskirts of Toronto.Sales

question 57

Essay

Thunder Rock is a small microbrewery on the outskirts of Toronto.Sales have grown rapidly in the last two years mainly through word of mouth.Thunder Rock has a small brewery that is producing at full capacity at the moment.Thunder Rock has been written up in many business publications as an example of a well-run small business.As a result of the publicity they have received a lot of attention from venture capitalists and companies that want to buy them out.Thunder Rock wants to grow their business but is unsure which direction they want to take.They could expand in the Canadian market,but it is saturated with many microbreweries already.China is a huge untapped market that does not have a lot of foreign beers yet.There are a couple of large Chinese breweries like Tsingtao,that dominate the market but there are many foreigners now living in China that have a different taste for beer than Tsingtao.a.Describe in detail what would be your recommendation for how they should enter the Chinese market.b.Explain the reasons why you chose this entry strategy and the advantages and disadvantages compared to other possible methods a business might enter a country.

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Definitions:

Inversely Related

A relationship between two variables in which one increases as the other decreases, and vice versa.

Independent Variable

In research and experimentation, the variable that is manipulated or changed to observe its effects on a dependent variable.

Dependent Variable

In an experiment or study, it is the variable that is tested and measured, and it is expected to change as a result of changes in the independent variable.

Straight Line

In the context of graphs, a linear representation that exhibits a constant rate of change between two variables.