Assignment 3: Foreign Market Entry and Diversification

Assignment 3: Foreign Market Entry and Diversification

Strategic Management –BUS 599

Instructor: Dr. Tony Muscia

11/25/12

Abstract

The paper discusses and has supporting information regarding diversification of Palmetto Transportation Company that will be presented to the board of directors and business investors. Discussed is the strategy of diversification indicating the service product and industries for the diversification and how synergies may be gained from the diversified activity. Identification and discussion of the foreign market the company should enter. There is also discussion of the strategy it should use to enter the market. The paper tells about the challenges that Palmetto Transportation Company may face in the foreign market, and how it might respond strategically to minimize the impact of these challenges. The scenario of when it would not make sense for the company to diversity or expand into a foreign market and it provides support or proof for my rationale. Finally the papers assess how the company will create a business environment conducive to ethical behavior.

Palmetto Transportation Company is much diversified and will present its diversification to the board of directors and business investors. The Taxi Service: Taxis do provide service to and from the airport; however, you cannot book the trip in advance, forcing you to call them right before you want to travel. The level of service is inconsistent from taxi service to taxi service as well as from occasion to occasion. Taxis can also be quite expensive if you are going out to the suburbs.

Public Transportation: RTA provides rapid transit service to the airport. While this is an inexpensive alternative, there are several disadvantages. The service does not run all hours of the night. RTA forces you to change trains downtown to pick up the airport line. The rapid transit also requires you to manage your entire luggage yourself.

Airport Parking: Airport parking can be cost...