Question;For the past 7 years, Zip-6 has been produced and sold;in South Korea through a licensing agreement with the Korean beverage;firm Lotse Tsangsung through its Chang Dow Trading Co. subsidiary. Mr.;Jung Park, Lotse Tsangsung CEO recently visited Ravi and Keith in;Atlanta and revealed that his firm was about to acquire its leading;rival in the Korean market and as a result, wants to sell its Chang Dow;unit. Mr. Park has approached Ravi and Keith with two proposals. First;Lotse Tsangsung is willing to sell Zip-6 its Chang Dow subsidiary. This;would represent an acquisition for Zip-6 in the Korean market. Second;if the two firms cannot agree on terms for a purchase of Chang Dow;Lotse Tsangsung is willing to sell its licensing agreement back to Zip-6;which will effectively allow Zip-6 to produce and distribute its;products directly within Korea. This would involve a Greenfield Venture.;Based on your reading of the Greenfield Venture or Acquisition Section;in the Hill text on pages 434-438, your Assignment is to address the;following in your paper;Checklist;Discuss the pros of both options (acquisitions versus Greenfield ventures) for Zip-6Discuss the cons of both options (acquisitions versus Greenfield ventures) for Zip-6State your choice of options to pursue and your reasons for this choice;Respond in a minimum of one page in APA format to;this Assignment and submit it to your instructor through the Dropbox for;this unit.
Paper#57173 | Written in 18-Jul-2015Price : $25