a) Aubree Multinational Corporation plans to penetrate either the Canadian market or two other Caribbean Countries (Haiti and Guyana). What factors deserve to be considered in deciding which market is more feasible?
Aubree Multinational Corporation is a large manufacturer and distributor of pharmaceutical
supplies. It is based in the United States (New York-Headquarters), Trinidad, Jamaica and the
United Kingdom. It sends supplies to various companies throughout the four countries. It markets
its supplies through periodic mass mailings of catalogues to those companies. Its clients can also
make orders over the phone and they ship the supplies upon demand.
The main competition for Aubree Multinational Corporation in the United States comes from one
U.S. firm and one Canadian firm. A British firm has a small share of the U.S. market but is at a
disadvantage because of its distance. The British firm’s marketing and transportation costs in the
U.S. market are relatively high. In Jamaica and Trinidad, they have approximately 80% of the
market share.
a) Aubree Multinational Corporation plans to penetrate either the Canadian market or two other
Caribbean Countries (Haiti and Guyana). What factors deserve to be considered in deciding which
market is more feasible?
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Given that one-third of the company sales are exported to the United Kingdom and invoices for
exports are in US dollars, the demand for its exports is highly sensitive to the value of the British
pound. In order to maintain its inventory at a proper level, it must forecast the total demand for its
products which is somewhat dependent on the forecasted value of the pound. separate
demand-related factors from the supply-related factors, that may influence exchange rate
movements. Include any possible government-related factors and be specific. (Tie your description
to the specific Aubree Multinational Corporation case background provided here).
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