International Business-Odysseus Case

International Business-Odysseus Case - Odysseus, Inc: The...

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Odysseus, Inc: The Decision to Expand Internationally -Case is about the international expansion opportunities faced by a medium-sized company in the US called Odysseus Inc. -Europe is its principal foreign market and exports to it have been consistent but have never been more than a few percent of total turnover -Has 2 licensing agreements in the UK and France that have had good royalties -The president questions whether the royalties are “peanuts” compared to what they could have earned if they established their own operations via Foreign Direct Investment subsidiary in Europe -A company in Germany is up for acquisition -The company was founded as a small machine shop and is now has production in a huge factory -The management of the firm was still small and overstretched in just the US market and the president realized that sending any managers or engineers to Europe would incur an opportunity cost on US operations and he was not sure about the negotiations or cultural skills of his or his staffs Odysseus Product Line
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-The company produced coupling (device that permanently connects the sources of power to the place of its application) and clutches can be disengaged (mechanical components) that connect the source of mechanical power (engine) to the place where the power is needed -Odysseus manufactured 600 different sizes and types of 8 standard items -Demand in small batches of a few hundred pieces of each clutch or coupling operation was not a mass-production but rather batch production of a
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This note was uploaded on 04/21/2011 for the course INTERNATIO 220:335 taught by Professor Clare during the Spring '09 term at Rutgers.

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International Business-Odysseus Case - Odysseus, Inc: The...

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