Aples

Alpes S.A.: A Joint Venture Proposal (A)

Group Case Study

Table of Contents

Issues 3

Internal Analysis 3

Value 3

Rarity 3

Inimitable and Non-Substitutability 4

Exploitability 4

External analysis 4

Five forces 4

Bargaining Power of Buyers 4

Threat of Substitutes 4

Bargaining Power of Suppliers 5

New Entrants 5

Rivalry 5

PESTAL 5

Political 5

Economic 6

Socio-cultural 6

Technological 6

Environmental 6

Legal 6

Criteria and Options 7

Recommendation 8

Implementation Plan 8

Contingency Plan 9

Appendix 10

Issues

        The Senior Vice President, Dennis Shaughnessy, for Corporate Development and general counsel for Charles River Laboratories (CRL) is looking to create a joint venture with a Mexican family run business to create a state of the art specific pathogen-free (SPF) egg farm. He hopes to get the board members and CEO in agreement with this proposition. Dennis believes that this joint venture would result in a long-term growth opportunity for Charles River Laboratories. As is expected of every new business venture, a lot of deliberation and research is needed before any action can be taken. Dennis brought the idea to the CEO Jim Fisher who expressed some concerns in regards to the new venture being a potential distraction from Specific Antigen-Free Avian Services (SPAFAS), Mexico’s unstable currency and uncertain market, the lack of finance to make any investment of their own and the fact that in approximately fifty years, Charles River Laboratories had never successfully conducted business in Mexico. Dennis knew that if he were to convince the CEO and board members to give this investment a chance, he would have to conduct a lot of research to try and resolve the key issues identified by the CEO.       

Internal Analysis

VRINE Analysis:

Value (High)

This venture would bring great value to both ALPES and Charles River Laboratories. Charles River Laboratories’ strategic growth objective was to...