Module 2 M2 Project Approval Input Question 1

Module 2 M2 Project Approval Input Question 1. 1. What is the full legal name of the US public company that you will use in your course project? (Points : 5)

The assignment requires identifying the full legal name of a US public company to be used in a course project. Additionally, the project involves analyzing the mode of entry strategy into the Turkish tobacco industry, specifically focusing on R.J. Reynolds.

Paper For Above instruction

For this project, I have chosen R.J. Reynolds Tobacco Company as the focal US public company. R.J. Reynolds is a major player in the global tobacco industry and offers a compelling case for exploring international market entry strategies. Its extensive portfolio of tobacco products and strategic expansion initiatives make it a suitable candidate for analyzing foreign market entry modes, especially into Turkey.

Introduction

International business expansion often involves selecting the appropriate mode of entry into target markets. In the case of R.J. Reynolds, entering Turkey’s tobacco industry presents unique challenges and opportunities. The strategic choice of entry mode can significantly influence the company's success, market share, and long-term viability in the Turkish market.

Company Overview

R.J. Reynolds Tobacco Company, headquartered in Winston-Salem, North Carolina, is a prominent American tobacco company founded in 1875. It is renowned for its flagship cigarette brand, Camel, and other notable products. As a publicly traded company (NYSE: RAI), R.J. Reynolds has a substantial global presence, with operations in multiple countries and a focus on innovation and market growth.

Mode of Entry Strategy into Turkey

The Turkish tobacco market is distinct due to its traditional consumption patterns, regulatory environment, and regional market dynamics. To establish a foothold, R.J. Reynolds could consider several entry options, such as establishing a wholly owned subsidiary, forming joint ventures, licensing agreements, or franchising. Given the strategic objectives and regulatory landscape, a joint venture or a wholly owned subsidiary would be most appropriate.

Preferred Mode of Entry

Considering the complexities of the Turkish tobacco industry, a joint venture with a local Turkish tobacco company appears to be the most strategic approach. This mode offers several advantages:

  • Regulatory Compliance: Local partners are usually more familiar with Turkish laws and regulations, easing the compliance process.
  • Market Access and Distribution: Local partners can provide established distribution channels and consumer insights.
  • Cultural Compatibility: Partnering with a local entity helps navigate cultural nuances and consumer preferences.

Partnership Considerations

The partnership would include a mutually beneficial alliance with a well-established Turkish tobacco company, such as Tekel, which historically held a significant market share. This partnership would allow R.J. Reynolds to leverage existing market infrastructure, brand recognition, and local expertise.

Reasons Behind the Choice

The decision to pursue a joint venture balances risk mitigation with market penetration opportunities. Licensing or franchising might limit control and profitability, while a wholly owned subsidiary would require substantial investment and understanding of the local legal environment. A joint venture provides a strategic middle ground, combining local knowledge with R.J. Reynolds’ expertise in tobacco manufacturing and marketing.

Conclusion

In conclusion, R.J. Reynolds, a renowned American tobacco company, is an ideal candidate for this project. Its entry into Turkey's tobacco industry via a joint venture offers a strategic path to navigate regulatory, cultural, and market dynamics effectively. This approach optimizes the opportunities for growth while managing potential risks inherent in international market expansion.

References

  • Carpenter, M. P. (2019). International Business Strategy. Routledge.
  • Ghemawat, P. (2007). Redefining Global Strategy: Crossing Borders in a World Where Differences Still Matter. Harvard Business Review Press.
  • Hollensen, S. (2015). Global Marketing. Pearson Education.
  • Knight, G. A., & Cavusgil, S. T. (2004). Innovation, organizational capabilities, and the born-global firm. Journal of International Business Studies, 35(2), 124–141.
  • Nelson, R. R., & Winter, S. G. (1982). An Evolutionary Theory of Economic Change. Harvard University Press.
  • R.J. Reynolds Tobacco Company. (2023). Company Overview. Retrieved from https://www.rjreynolds.com/about
  • Shi, W., & Cavusgil, T. (2020). International Market Entry Strategies. Journal of International Marketing, 28(3), 56–69.
  • Thompson, A. A., & Strickland, A. J. (2018). Crafting & Executing Strategy. McGraw-Hill Education.
  • World Health Organization. (2022). Tobacco Control in Turkey: Policy and Regulation. WHO Publications.
  • Yin, R. K. (2018). Case Study Research and Applications: Design and Methods. Sage Publications.

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