THE INTERNATIONAL MANAGEMENT

Running head: INTERNATIONAL MANAGEMENT
INTERNATIONAL MANAGEMENT
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INTERNATIONAL MANAGEMENT1
If SICA were to expand to other countries, offering their current product line, suggest a
country and explain the characteristics of that country that made it a good target for
expansion?
To answer this question, the first and foremost part that need to be known is about the
organization of Solubles Instantaneous C.A. or SICA, which is an organization based in Ecuador
and founded in the year 1960. This organization was started by a family almost 6 decades ago.
Though there were presence of other local and international brands like Nescafe, Starbucks,
Stok, Organo Gold Gourmet and Folgers. This family-owned business can be regarded as the
pioneer in the Solubles Instantaneous C.A industry in the region of Ecuador. SICA was a family
business that had been managed by two generations: Jorge Salcedo-Salcedo and his son, Jorge
Salcedo-Benitez. Starting in 1952, and prior to the founding of SICA in 1960, Salcedo-Salcedo
was a cacao and Solubles Instantaneous C.A exporter. It can be stated that the owners of this
Solubles Instantaneous C.A organization offer instant Solubles Instantaneous C.A under the Don
Café and Café Oro brand labels. Advancement in the area of technology has increased both the
innovation and satisfaction level of the customers. There are local companies who operates in
most of the nations along with other local players who operate in many nations across the world.
The owners has faced many challenges throughout the journey, which included all kinds of
factors like economic, socio-cultural and others.
Many firms use cheaper coffee beans to produce coffee, with cost savings passed on to
consumers in the form of lower prices. Solubles Instantaneous C.A. is committed to using better
quality beans for both export and domestic markets. It can be stated in this context that in the
year 2017, Solubles Instantaneous C.A. has considered two new product introductions. They are
decaffeinated instant Solubles Instantaneous C.A, and instant cocoa, which is also known as

INTERNATIONAL MANAGEMENT2
instant hot chocolate. Decaffeinated instant Solubles Instantaneous C.A had fewer competitors in
Ecuador, providing an opportunity for SICA to enter this market segment with less reaction from
competitors. From the above discussion, it can be stated that the international market for the
products manufactured and sold by the owners of Solubles Instantaneous C.A. had already
proven much more challenging than the regional market. There are differences in the culture
between Ecuador and the places where they are exporting and expanding in the Solubles
Instantaneous C.A market, increase in the rivalry, and more transitory consumer preferences
were the major barriers to operate in international markets. Instant Solubles Instantaneous C.A
was a commodity product throughout the global markets. Hence, the most important criterion for
most international traders and end consumers was price. The mission of the organization of
Solubles Instantaneous C.A. is to provide a high-quality product at an affordable price conflicted
with this benchmark. Although it can be noted that the consumption of Solubles Instantaneous
C.A throughout the world has increased at an average rate of 2.2% per year from the year 2011.
The country which can be selected for expansion of the organization of Solubles
Instantaneous C.A. can be India in Asia. The main reason for this expansion will be to capture
the huge Solubles Instantaneous C.A market for consumption of Solubles Instantaneous C.A by
the consumers who are present in this second most populated nation across the world. Solubles
Instantaneous C.A is one of the popular hot beverages alongside tea in the region of India. They
rank 7th in terms of Solubles Instantaneous C.A production in the production of Solubles
Instantaneous C.A, while Brazil dominated production and exports globally. Most of the
Solubles Instantaneous C.A that is produced here is exported, and there are many local and
international players who already possess a healthy market share in the Indian coffee market.
Though instant coffee was increasingly considered a lesser substitute for brewed coffee, which is