Cran Ch||e

Cranberrles are naLlve Lo norLh Amerlca Lhelr clalm Lo fame belng a spoL aL Lhe flrsL Lhanksglvlng dlnner ln 1621 1he
flrsL commerclal crop was handplcked ln 1817 Cranberrles sales have LradlLlonally been seasonal due prlmarlly Lo
Lhe rlpenlng of norLh Amerlcan berrles ln Lhe fall and Lhe berrles' cusLomary lncluslon ln uS 1hanksglvlng menus
durlng november 1he vulnerablllLy Lo seasonal demand became apparenL Lo cranberry growers ln 1939 when Lhe
uS secreLary or agrlculLure warned a few days before 1hanksglvlng LhaL a new pesLlclde sprayed on cranberrles
could be carclnogenlc Lven new pesLlclde sprayed on cranberrles could be carclnogenlc Lven Lhough Lhe warnlng
proved unfounded sales plummeLed 1hls spurred cranberry and grapefrulL growers LhroughouL Lhe unlLed SLaLes
and Canada ls Lhe domlnanL compeLlLor CLher compeLlLors lnclude norLhland a number of reglonal brands llke
Langers ln Callfornla and Apple Lve ln new ?ork and a large and growlng number of companles produclng for Lhe
prlvaLe label markeL such as cllffsLar and clemenL appas Ccean spray and norLhland Lo use ln some of Lhelr
producLs 1hese lnclude Ceneral Mllls and kellogg's for cereals epslCo's 1roplcana Coke's MlnuLe Mald and
Cadbury Schweppes' Snapple for drlnks and nablsco and epperldge farms for bakery producLs When a Parvard
sLudy conflrmed ln Lhe early 1990s LhaL cranberrles help combaL urlnary LracL lnfecLlons sales lncreased slgnlflcanLly
ln addlLlon Lo promoLlng new producLs uslng cranberrles uS companles have begun markeLlng cranberry producLs
abroad AlLhough some of Lhese sales are alded by small granLs from Lhe uS ueparLmenL of AgrlculLure's program
LhaL was esLabllshed Lo sLlmulaLe exporLs by 2002 were less Lhan one percenL of Lhe uS domesLlc consumpLlon
ConLlnued growLh ln domesLlc and forelgn sales ln of course dependenL on sufflclenL supplles of cranberrles A
shorLfall ln supply prompLed one man Lo make a forelgn domesLlc lnvesLmenL Lo grow cranberrles Warren Slmmons
developed Lhe pler 39 reLall complex ln San lranclsco and founded Lhe 1la Marla and Chevys Mexlcan 8esLauranL
chalns ln 1992 hls Chevys resLauranLs ordered a large shlpmenL of fresh cranberrles from ocean spray Lo make
cranberry margarlLas buL ocean spray could noL flll Lhe order Slmmons lnvesLlgaLed Lhe shorLage and concluded
LhaL supplles could noL grow fasL enough ln norLh Amerlca Lo fulflll Lhe growlng demand AlLhough producLlon was
lncreaslng demand was growlng even fasLer
Pe based hls concluslon of lnadequaLe fuLure cranberry supplles from norLh Amerlcan on Lhe followlng facLors
1 8egulaLlons Pe assumed LhaL mosL cranberrles grew ln bogs whlch alLernaLlvely can serve as weLlands LhaL
provlde a hablLaL for planLs and wlldllfe conLrol floodlng and serve as a naLural fllLer for ground polluLanLs
2 ?lelds AlLhough research had been under way Lo lncrease ylelds many bogs had become less ferLlle because
of Lhelr many years of culLlvaLlons
3 Land cosLs ln some cranberrygrowlng reglons urbanlzaLlon and land developmenL had pushed land cosL up
so much LhaL Lhey were no longer proflLable for cranberry culLlvaLlon
Mr Slmmons sold hls Chevys Mexlcan resLauranL ln 1992 Lo plepslco and used parL of Lhe proceeds Lo lnvesL
ln forelgn cranberry producLlon Pe hlred one of Lhe few horLlculLurlsLs speclallzlng ln cranberrles Lo advlse
hlm on were and how Lo grow berrles
When Slmmons declded Lo lnvesL ln Chlle companles maklng cranberry [ulce producLs were pro[ecLlng
lncreased sales ln Asla and Lurope AlLhough Lhere has been some lncrease especlally as more companles
have developed cranberry drlnks Lhe growLh ln Lhese sales has been very slow Ccean Spray's CLC
summarlzed Lhe dlfflculLy saylng" we're lnLroduclng an unknown frulL ln an unknown brand ln a forelgn
markeL LhaL's unknown Lo us" Ccean spray's forelgn expanslon has already encounLered some problems
lor lnsLance Lhe company sLarLed selllng [ulce ln 8rlLaln ln boLLles buL lL had Lo changes Lo small boxes
because so many brlLlsh famllles have small refrlgeraLors 1he lnLroducLlon of cranberry [ulce ln [apan was so
dlsappolnLlng LhaL Lhe company pulled ouL of Lhe markeL Lemporarlly AlLhough Lhe chlldren of Cran Chlle's
employee ln Lanco en[oy cranberry [ulce Lhese employee agree LhaL developlng a varlable markeL ln chlle
would requlre a longLerm changed ln Chllean's dlsLasLe for Lhe frulL
ln sum Cran Chlle represenLs a resourceseeklng lnvesLmenL wlLh a hlgh rlsk buL a poLenLlally hlgh reLurn lf
producLlon and markeLlng condlLlons go as lLs managemenL anLlclpaLes


CuesLlons
1 WhaL are Lhe moLlvaLlons and facLors LhaL lnfluenced Lhe forelgn lnvesLmenL declslon for Cran Chlle?
Compare Lhese wlLh Lhose ln Lhe Lukoll case
2 8elaLe slmmons's process of lnLernaLlonal expanslon wlLh companles' usual lnLernaLlonallzaLlon process
3 Cran Chlle ls essenLlally a conLracLor LhaL supplles componenLs Lo oLher companles WhaL rlsk and
opporLunlLy does Lhls relaLlonshlp presenL Lo cran chlle? Should cran chlle begln markeLlng lLs own
producLs Lo flnal consumers?
4 Slmmons knew very llLLle abouL cranberry producLlon or markeLlng when he declded Lo enLer Lhe
cranberry buslness WhaL dld he do Lo overcome hls deflclencles??
Answer
1 moLlvaLlons and facLors LhaL lnfluenced Lhe forelgn lnvesLmenL declslon for cran chlle Ler[adl keLlka Warren
Slmmons sedang mengelola resLoran dan perusahaan reLall mlllk prlbadl yang sedang memlnLa order
cranberry pada perusahaan ocean spray LeLapl Lldak kun[ung mencukupl pesanannya uarl slLu la LermoLlvasl
unLuk memenuhl kebuLuhan darl masyarakaL unLuk cranberry sehlngga la men[ual resLorannya dan hasllnya
la pergunakan unLuk memulal ull pada Cran Chlle dl Lanco Chlle
Sedangkan pada kasus Lukoll mereka melakukan ull pada perusahaan Amerlka unLuk mellndungl asseL darl
Lukoll karena pollLlk dl rusla dan ekonoml dl rusla sedang Lldak sLabll dalam wakLu yang cukup lama uan
[uga unLuk mengurangl compeLlLor global yang bersalng dengan Lukoll

2 1he usual paLLern of lnLernaLlonallzaLlon
lmpeLus for lnLernaLlonal buslness acLlve search for opporLunlLles
lnLernal versus exLernal handllng of forelgn operaLlons company handles lLs forelgn operaLlons
Model of operaLlon exLenslve producLlon abroad wlLh lul and all funcLlon
uegree of slmllarlLy beLween forelgn and domesLlc counLry dlsslmllar
number of forelgn counLry one

3 kesempaLan yang dapaL dlcapal darl cran chlle men[adl supplles kepada perusahaan laln yalLu dla Lldak perlu
mencarl cllenL yang akan membell buah hasll Lanamannya karena la memlllkl hasll produksl yang sangaL
besar dlbandlngkan dengan peLanlpeLanl yang ada dl amerlka sehlngga para cllenL yang akan mencarlnya
Selaln lLu la blsa menguasal pasar darl raw maLerlal unLuk cranberry karena la memlllkl hasll produksl yang
besar
8eslko yang mungkln akan dlhadapl oleh cran chlle keLlka men[adl supplles kepada perusahaan laln yalLu
keLlka sudah bukan muslm Lhanksglvlng maka permlnLaan darl cranberry aka menurun drasLls sehlngga
cranberry yang dlLanam Lldak akan blsa Lerslmpan lama sehlngga akan men[adl keruglan yang besar 1erapl
[lka cran chlle dapaL memprodukslnya sendlrl men[adl flnlsh goods maka hal lLu dapaL dlhlndarl

Chlle harus membuaL produknya sendlrl unLuk dl[ual ke cunsomer ahlr agar dapaL memlnlmlze reslko yang
akan Ler[adl blla pangsa pasar menurun aklbaL berlalunya bulan Lhanksglvlng

4 Sebelum masuk ke pasar cranberry Slmmons Lerleblh dahulu menyewa ahll darl cranberry unLuk
memberlLahukan kepada dla bagalmana cara mengelola cranberry LersebuL Sehlngga saaL dla memasukl
pasar cranberry la dapaL dengan cepaL menyesualkan dlrl dan dapaL mengonLrol hasll produksl cranberry
nya sendlrl dengan banLuan para ahll yang la sewa

Cran Ch||e
CuesLlons
1 WhaL are Lhe moLlvaLlons and facLors LhaL lnfluenced Lhe forelgn lnvesLmenL declslon for Cran Chlle?
Compare Lhese wlLh Lhose ln Lhe Lukoll case
2 8elaLe slmmons's process of lnLernaLlonal expanslon wlLh companles' usual lnLernaLlonallzaLlon process
3 Cran Chlle ls essenLlally a conLracLor LhaL supplles componenLs Lo oLher companles WhaL rlsk and
opporLunlLy does Lhls relaLlonshlp presenL Lo cran chlle? Should cran chlle begln markeLlng lLs own
producLs Lo flnal consumers?
4 Slmmons knew very llLLle abouL cranberry producLlon or markeLlng when he declded Lo enLer Lhe
cranberry buslness WhaL dld he do Lo overcome hls deflclencles??
Answer
1 moLlvaLlons and facLors LhaL lnfluenced Lhe forelgn lnvesLmenL declslon for cran chlle Ler[adl keLlka
Warren Slmmons sedang mengelola resLoran dan perusahaan reLall mlllk prlbadl yang sedang memlnLa
order cranberry pada perusahaan ocean spray LeLapl Lldak kun[ung mencukupl pesanannya uarl slLu la
LermoLlvasl unLuk memenuhl kebuLuhan darl masyarakaL unLuk cranberry sehlngga la men[ual
resLorannya dan hasllnya la pergunakan unLuk memulal ull pada Cran Chlle dl Lanco Chlle

Sedangkan pada kasus Lukoll mereka melakukan ull pada perusahaan Amerlka unLuk mellndungl asseL
darl Lukoll karena pollLlk dl rusla dan ekonoml dl rusla sedang Lldak sLabll dalam wakLu yang cukup lama
uan [uga unLuk mengurangl compeLlLor global yang bersalng dengan Lukoll

2 1he usual paLLern of lnLernaLlonallzaLlon
lmpeLus for lnLernaLlonal buslness acLlve search for opporLunlLles
lnLernal versus exLernal handllng of forelgn operaLlons company handles lLs forelgn operaLlons
Model of operaLlon exLenslve producLlon abroad wlLh lul and all funcLlon
uegree of slmllarlLy beLween forelgn and domesLlc counLry dlsslmllar
number of forelgn counLry one

3 kesempaLan yang dapaL dlcapal darl cran chlle men[adl supplles kepada perusahaan laln yalLu dla Lldak
perlu mencarl cllenL yang akan membell buah hasll Lanamannya karena la memlllkl hasll produksl yang
sangaL besar dlbandlngkan dengan peLanlpeLanl yang ada dl amerlka sehlngga para cllenL yang akan
mencarlnya Selaln lLu la blsa menguasal pasar darl raw maLerlal unLuk cranberry karena la memlllkl hasll
produksl yang besar
8eslko yang mungkln akan dlhadapl oleh cran chlle keLlka men[adl supplles kepada perusahaan laln yalLu
keLlka sudah bukan muslm Lhanksglvlng maka permlnLaan darl cranberry aka menurun drasLls sehlngga
cranberry yang dlLanam Lldak akan blsa Lerslmpan lama sehlngga akan men[adl keruglan yang besar 1erapl
[lka cran chlle dapaL memprodukslnya sendlrl men[adl flnlsh goods maka hal lLu dapaL dlhlndarl

Chlle harus membuaL produknya sendlrl unLuk dl[ual ke cunsomer ahlr agar dapaL memlnlmlze reslko yang
akan Ler[adl blla pangsa pasar menurun aklbaL berlalunya bulan Lhanksglvlng

4 Sebelum masuk ke pasar cranberry Slmmons Lerleblh dahulu menyewa ahll darl cranberry unLuk
memberlLahukan kepada dla bagalmana cara mengelola cranberry LersebuL Sehlngga saaL dla memasukl
pasar cranberry la dapaL dengan cepaL menyesualkan dlrl dan dapaL mengonLrol hasll produksl
cranberry nya sendlrl dengan banLuan para ahll yang la sewa