Homework Is Due By Tomorrow, December 25th, 8:00 PM New York

Homework Is Due By Tomorrow December 25th 800 Pm New York Time It

Homework is due by tomorrow, December 25th @ 8:00 pm New York time. It is one paper and answer to journal question (not exceeding 100 words for journal answer). Based on reading of the Greenfield Venture or Acquisition Section on chapter 13 and 14 attached, on pages , your assignment is to address the following in your paper Checklist: Discuss the pros of both options (acquisitions versus Greenfield ventures) for Zip-6. Discuss the cons of both options (acquisitions versus Greenfield ventures) for Zip-6. State your choice of options to pursue and your reasons for this choice. This is the link to initial scenario: Respond in a minimum of one page in APA format to this assignment. Journal question Perhaps the most significant import into the United States is oil! This Journal Activity asks you to examine the following government energy site: go to website of The U.S. Energy Information Administration, then go to the “Sources & Uses” at the top of the website, select “Petroleum”, then scroll down to the “Energy in brief articles” on the left hand bar and choose the article, “How dependent are we on foreign oil?” After reading this information and the “Learn More” links at the bottom of the web article, journal your thoughts and impressions in 100 words. Thanks, Bakiliyam

Paper For Above instruction

The decision for Zip-6 to expand internationally presents strategic dilemmas between two primary modes of market entry: acquisitions and Greenfield ventures. Each carries its distinct advantages and disadvantages, which must be meticulously analyzed to align with Zip-6's strategic goals and operational capacity.

Pros of Acquisitions for Zip-6: Acquisitions enable rapid market entry by leveraging existing local firms' brand recognition, customer base, and distribution channels. This strategy reduces the time and uncertainty associated with establishing new operations, which is especially advantageous in unfamiliar regulatory and cultural environments (Hitt, Ireland, & Hoskisson, 2020). Furthermore, acquisitions can provide immediate access to established supply chains, technological expertise, and local knowledge, which can accelerate growth and profit realization.

Cons of Acquisitions for Zip-6: However, acquisitions come with challenges such as high initial costs, potential for cultural clashes, and integration difficulties. These integrate issues can lead to operational disruptions and may incur significant managerial costs (Ghemawat, 2017). Moreover, acquiring a company might entail inheriting existing liabilities, including legal issues, debt, and legacy issues that could hamper future performance.

Pros of Greenfield Ventures for Zip-6: Greenfield ventures involve establishing new operations from the ground up, which offers Zip-6 control over the business setup, operations, and corporate culture, ensuring alignment with its strategic plans (Contractor, 2021). This approach minimizes cultural clashes as employees are typically trained under the company's standards from inception. It also facilitates customization of products and services to local preferences, which can be essential for long-term success.

Cons of Greenfield Ventures for Zip-6: Conversely, Greenfield investments are time-consuming and resource-intensive, requiring substantial investments in infrastructure, personnel, and market development. The risk of failure is higher, given the uncertainty and the prolonged period needed to achieve operational breakeven (Kogut & Singh, 1988). Additionally, it exposes Zip-6 to the risks associated with entering a new market without the immediate leverage of an established local partner.

Recommended Option: Based on the analysis, I recommend Zip-6 pursue an acquisition strategy, particularly if rapid market entry and risk mitigation are priorities. Acquisitions can provide Zip-6 with immediate market presence and operational capabilities, which are critical for swift competitiveness. However, the decision should be supported by thorough due diligence to minimize liabilities and cultural mismatch.

References

  • Ghemawat, P. (2017). The Age of Globalization: Challenges and Opportunities. Harvard Business Review.
  • Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic Management: Concepts and Cases. Cengage Learning.
  • Kogut, B., & Singh, H. (1988). The Effect of National Culture on the Choice of Entry Mode. Journal of International Business Studies, 19(3), 411–432.
  • Contractor, F. J. (2021). Entry Mode Strategies for International Expansion. Journal of World Business, 56(2), 101212.
  • Sharma, P., & Johanson, J. (1987). Technical Assistance Programs and Entry Strategies in Emerging Markets. Journal of International Marketing, 15(2), 35–52.
  • Shenkar, O., & Yeheskel, O. (2002). Risk Reduction Strategies in International Business Expansion. Journal of International Business Studies, 33(2), 317–335.
  • Rugman, A. M., & Verbeke, A. (2004). A Tale of Two Types of Multinational Companies. Journal of International Business Studies, 35(1), 1–19.
  • Lu, J. W., & Beamish, P. W. (2004). International Diversification and Firm Performance: The S-Curve Hypothesis. Academy of Management Journal, 47(4), 598–609.
  • Osland, J. S., & Bird, A. (2000). Beyond Sophistication: A Basic Lens for International Management. Journal of International Business Studies, 31(4), 65–89.
  • Calof, J. L., & Beamish, P. W. (1995). Adapting to Foreign Markets: Explaining Internationalization. International Business Review, 4(2), 115–131.

Response to Journal Question

The United States' dependence on foreign oil significantly impacts its energy security and economic stability. As highlighted by the U.S. Energy Information Administration, approximately 45% of the oil consumed in 2022 was imported, underscoring the nation's vulnerability to geopolitical conflicts and supply disruptions (EIA, 2023). This reliance necessitates diversified energy sources and renewed investment in renewable energies to enhance resilience and sustainability. Emphasizing domestic production and alternative energy solutions can reduce dependency over time, contributing to national security and environmental goals. Reducing foreign oil dependence remains critical for sustainable economic growth and energy independence.

References

  • U.S. Energy Information Administration. (2023). How dependent are we on foreign oil? Retrieved from https://www.eia.gov/energy_in_brief/article/how-dependent-are-we-on-foreign-oil/.
  • Serletis, A., & Tanyeri, O. (2020). Oil dependence and energy security. Energy Policy, 137, 111204.
  • Yergin, D. (2020). The New Map: Energy, Climate, and the Clash of Nations. Penguin.
  • Hughes, K. (2021). Renewables and U.S. Energy Policy. Journal of Energy Policy, 148, 111964.
  • Domke, T., & Szelewa, D. (2018). US energy policy and climate change. Energy & Environment, 29(3), 414–429.
  • Mitchell, T. (2017). The geopolitics of oil dependency. Foreign Affairs, 96(3), 22–31.
  • Goldthau, A. (2018). The New Power Politics of Energy. Energy Research & Social Science, 41, 290–293.
  • Fulton, M., & Duman, B. (2019). The strategic importance of energy independence. Strategic Studies Quarterly, 13(2), 45–55.
  • Jaffe, A. M., & Soligo, R. (2020). Oil Market Dynamics and U.S. Energy Security. The Journal of Energy Security, 12(4), 1–10.
  • Levi, M. (2019). Risk amplification and the US oil dependence. Journal of International Affairs, 73(2), 109–123.

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