In this exercise, we want to apply the four types of global strategy. Imagine your group works…

In this exercise, we want to apply the four types of global strategy. Imagine your group works for Clif Bar ( Founded in 1992, the firm makes nutritious, all-natural food and drinks for sport and healthy snacking. Clif Bar is a privately held company with some 400 employees. About 20 percent of the company is owned by the employees through an employee-stock-ownership program (ESOP). The vast majority of Clif Bar’s sales are in the United States. The firm has some distribution set up in Canada (since 1996) and the United Kingdom (since 2007). As of 2015, Clif Bar sells limited products only in eight other countries: Austria, Australia, France, Germany, Ireland, Japan, New Zealand, and Switzerland. Review the company’s website for more information about the firm and its products.

1. Apply the CAGE distance framework to the six foreign countries where Clif Bar is operating. What is the relative distance of each to the United States? Rank the order of the six countries in terms of relative distance.

2. Given the results from the CAGE model, do the six chosen countries make sense? Why or why not?

3. Can you recommend three or four other countries Clif Bar should enter? Support your recommendations.

4. What entrance strategy should the firm employ in expanding the business to new countries? Why?


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