Reference no: EM133184801

Part 1) The owner of a small-based manufacturing firm believes that there is a market for handheld tools that are carefully crafted for local markets. After spending two months in Europe, the owner believes that she can create popular line of these tools for the European market.

1. What type of market entry strategy should she pursue?
2. Which type of organisation structure would be of most value to the firm in its initial efforts to internationalise? Justify your answer. (Given that this is a small firm, a localised strategy might be unrealistic because of the costs involved and the implications for the sort of controls recommended. Perhaps the structure of the organisation will have to be revisited.)

Part 2) After four years of operating in the EU market, the manager notices rising operating costs in the EU sub-units, but cannot identify the cause (performance ambiguity). She has hired your quality management firm to assess the situation. What types of controls would you recommend to mitigate the issue? (Your answer must include a clear understanding of performance ambiguity; Table 14.1 and your recommendation must engage with the four types of control systems.)