International Logistics

Running head: INTERNATIONAL LOGISTICS
International Logistics
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INTERNATIONAL LOGISTICS
Executive summary:
An organization looking to expand its operations will have to consider financial, economic,
political and operational feasibilities of such expansion before taking any final decision.
Conducting a detailed investigation on the expansion strategy to assess the probable implications
on the overall performance of an organization is extremely important to the successful decision
making in respect to an expansion strategy. Yariba Cream, an ice cream company in Peru, is
looking to expand its business outside side South America. It is clear from the discussion here
that there are number of different options available to the company to expand its business.
However, selection of best possible strategy is key to the successful expansion of the company in
the future.

INTERNATIONAL LOGISTICS
Contents
Executive summary:........................................................................................................................1
Introduction:....................................................................................................................................3
Discussion with proper analysis:.....................................................................................................3
Joint venture:...................................................................................................................................5
Acquisition and conversion of a Medina based yoghurt:................................................................8
Expansion of operations in Peru to export the products to Egypt and other countries:.................10
Expansion through wholly owned subsidiaries:............................................................................13
Conclusion:....................................................................................................................................21
Recommendation:..........................................................................................................................21
References:....................................................................................................................................22

INTERNATIONAL LOGISTICS
Introduction:
As per the findings of the market research it is clear that Yariba Cream has a strong brand value
in the market. As a result the company has a potential to grow at a rapid speed through its
expansion in the future. Assessing the implications of expanding the business of the company in
MENA region is the objective of this document. The implications are not only financial and
economic but also of logistical and support complications involved in the expansion. A detailed
financial, economic and logistic feasibility study is conducted below to determine the expected
outcome of expanding the business of the company to the MENA region in the future.
Discussion with proper analysis:
An organization while decides to expand its business operations to a different country or
countries then apart from the financial and economic feasibility the logistic requirements and
feasibility are also to be considered with equal importance. Yariba Cream, here in after to be
referred to as YC only in this document, shall also consider the financial, economic and logistical
feasibilities of different expansion strategies available to the company to take correct decision
(Haryuni, 2017).
The company has following expansion options available in-front of it.
Joint venture:
Expansion through joint venture with the focus firmly on manufacturing low end ice creams with
low cost with a company located Marrakesh is an option to the company to expand its business
outside South America.
Acquisition and conversion of a Medina based yoghurt: