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Derrido American Film
Derrido is an American firm that has produced several successful animated TV series in the United States. It is considering contracting with one or more international companies as a way to market its products overseas. An executive at Derrido suggests that a contractual relationship will provide the company with a fair amount of control over how the foreign partner markets Derrido's product. One of Derrido's sales executives suggests that Derrido's particular type of business enables a contractual relationship to be an especially suitable way for the company to market its products internationally. Derrido's marketing director thinks that the company should craft a contractual agreement as an initial entry strategy, because the company might want to choose a more advanced entry strategy later. Another marketing executive points out that a contractual agreement will allow Derrido to blend in with the local market, and goes on to argue that this will be advantageous to the company.
Assume that you are owning the responsibility to conduct a role play with your international operations team in the company discussing the following issues:
· The benefits and challenges of engaging in international business
· Is Derrido an international firm and a multinational firm and why?
· Illustrate the three basic levels of involvement available for Derrido that decides to conduct business internationally.
· Why should Derrido when conducting international operations be concerned about exchange rate fluctuations?
· What are the reasons why Derrido might decide NOT to conduct business internationally?
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