Barta PLC is a UK company specialising in communication equipment and devices. Their product range includes mobile phones, tablets, laptop computers, WIFI routers, as well as equipment required by telecom service providers.
The company is reputed for the high quality of its products as well as high standard in customer care. It holds a large share of the UK market. This is partially attributed to low employee turnover and high morale. Employees are encouraged to participate in a generous share option scheme.
A distinguishing factor about Barta’s products is high degree of innovation.
The firm is considering to expand into the international market. It anticipates strong demand for communication equipment in countries in the Caribbean region. The Production Director has suggested that Barta should set up a subsidiary in Barbados, one of the larger islands in the Caribbean. Barbados is a populous country with a thriving economy.
1. What factors should Barta PLC consider in deciding about expanding into the international market? (8 marks)
2. Discuss the Production Director’s suggestion of setting up a foreign subsidiary.
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