Hank and Dean are managers at a large grocery chain. The company has found a great deal of success in the United States and now plans to expand into France. They are discussing how the company should proceed. “There are a number of French grocery stores that are willing to sell,” Hank notes. “If we bought these stores and converted them to our brand, they would come complete with equipment and an existing customer base. Even more importantly, these stores have employees who already understand their customers and French culture. This will help greatly as we transition to this new market.” Dean disagrees. “We do not want to inherit employees, equipment, or a location from a company that could not succeed,” he insists. “Instead, we should maintain control over every single aspect of our overseas venture. The only way to do this is to build and supply our own stores.” Question: Dean’s argument relies upon which of the following assumptions? A) It will not be difficult for the company to establish its own stores in France. B) The company already has a strong understanding of French culture. C) French employees are not as skilled as those in the United States. D) Purchasing a French company will cost as much as building new stores.

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Hank and Dean are managers at a large grocery chain. The company has found a great deal of success in the United States and now plans to expand into France. They are discussing how the company should proceed.

“There are a number of French grocery stores that are willing to sell,” Hank notes. “If we bought these stores and converted them to our brand, they would come complete with equipment and an existing customer base.

Even more importantly, these stores have employees who already understand their customers and French culture. This will help greatly as we transition to this new market.”

Dean disagrees. “We do not want to inherit employees, equipment, or a location from a company that could not succeed,” he insists. “Instead, we should maintain control over every single aspect of our overseas venture.

The only way to do this is to build and supply our own stores.”

Question: Dean’s argument relies upon which of the following assumptions?

A) It will not be difficult for the company to establish its own stores in France.

B) The company already has a strong understanding of French culture.

C) French employees are not as skilled as those in the United States.

D) Purchasing a French company will cost as much as building new stores.

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