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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 the joint venture with Auchan, France
Answer
A joint venture would allow Mindful Chef to enter the French market while understanding local consumer preferences and culture. This strategy could enable both companies to mitigate risks associated with global expansion by leveraging each other's operational capabilities. Furthermore, retaining individual brand identities may help maintain customer loyalty without the immediate pressure of merging cultures. However, the potential for conflicting business practices and strategic goals must also be considered.
Step 2
Evaluate the global merger with Blue Apron, US
Answer
A global merger with Blue Apron could provide significant synergies, including shared resources and reduced operational costs. Combining established market presence might enhance competitive positioning, especially against firms like Gousto. However, integrating corporate cultures and aligning business strategies can pose challenges. The merger could streamline operations, but may also lead to diminished returns if not managed effectively. The ever-changing market dynamics necessitate careful evaluation of how such a merger would align with long-term objectives.
Step 3
Recommendation
Answer
Considering the pros and cons of both options, a joint venture with Auchan appears to be a more prudent choice for Mindful Chef at this stage. This strategy allows for cautious market entry, reduces risks, and maintains operational flexibility. As the company establishes its presence in France, it can later consider a merger if market conditions are favorable. Additionally, this approach enables more immediate responsiveness to consumer preferences and industry challenges.