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Using the data in Extract D and your own knowledge of business, evaluate and recommend whether Mindful Chef should seek a joint venture with Auchan, France or seek a global merger with companies such as Blue Apron, US. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Question 1
Using the data in Extract D and your own knowledge of business, evaluate and recommend whether Mindful Chef should seek a joint venture with Auchan, France or seek a... show full transcript
Worked Solution & Example Answer:Using the data in Extract D and your own knowledge of business, evaluate and recommend whether Mindful Chef should seek a joint venture with Auchan, France or seek a global merger with companies such as Blue Apron, US. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Step 1
Evaluate joint venture with Auchan, France
Answer
A joint venture with Auchan can provide Mindful Chef an opportunity to understand and adapt to the French market better. By collaborating with a local supermarket, they can leverage Auchan's established customer base and insights into local preferences, thereby minimizing risks associated with entering a new market alone. Additionally, maintaining separate brands may help preserve identity and focus on niche marketing. However, the risks of profit-sharing and potential conflicts in strategic decision-making must be considered. Joint ventures may also allow flexibility and exit strategies if the market does not perform as expected.
Step 2
Evaluate global merger with Blue Apron, US
Answer
A global merger with Blue Apron could present significant advantages such as increased market presence and shared resources, possibly leading to economies of scale. The combined entity could enhance product offerings and streamline operations, reducing costs. However, challenges may arise due to differences in corporate culture and operational practices. There could be difficulties in integration, potentially leading to inefficiencies. Additionally, the competitive nature of the industry and similar market conditions in the US may pose challenges for growth and differentiation.
Step 3
Recommendation
Answer
Considering the risks and benefits of both options, a joint venture with Auchan may be more favorable for Mindful Chef. This option allows a cautious approach to market entry with local support, reducing potential risks while gaining insight into customer preferences. A global merger, while potentially lucrative, may expose Mindful Chef to greater integration challenges and competition dynamics. Therefore, strategically evaluating market responses and focusing on direct consumer engagement in France through a joint venture may offer a more balanced approach toward sustainable growth.