Earth-Rite Organic Foods (Scenario)
Earth-Rite Organic Foods Inc. is an MNE based in Sweden with subsidiaries located in numerous countries around the world. Earth-Rite has annual sales of $10 billion and employs more than 90,000 individuals worldwide. Earth-Rite currently dominates the organic food industry, but competitors are beginning to catch up because of a growing demand for organic produce. Earth-Rite is considering a collaborative venture with a small chain of organic grocery stores located in Brazil, a country where Earth-Rite has no stores.
-Which of the following would be the most important for Earth-Rite executives to determine when deciding whether to collaborate with the Brazilian grocery store chain?

Question

Quizplus · Accepted Answer

A collaborative venture can provide a quick way to enter a new market, which is crucial for Earth-Rite to maintain its dominance in the organic food industry as competitors are catching up. Rapid internationalization into Brazil, where Earth-Rite currently has no presence, could be strategically important.