Cameron Autoparts Harvard Case
BRIEF: Assume that you are a consultant to Alex Cameron and give a critical assessment of his situation with respect to his licensing and joint venture arrangements. Use this assessment to advise him on the steps he can take to manage his current and future international operations more effectively. A good advice will either follow a clear plan from internationalization or would show evidence for it.
Problem statement - focus the attention of team on the same variables
• what is the problem? license to france - or internationalization: australia/new zealand/india
• who has the problem/who is the client?
• what form can the resolution be?
This report aims to give a critical analysis of the situation with which Cameron Autoparts is currently in and the decisions which Alex took with reference to the licensing agreement with Mctaggart and the joint venture to Australia.
Situation analysis
• micro - joint venture and licensing decisions
• macro factors affecting the company - japan holding increasing share of the market in the 90s, potential competition? german/dutch markets? australia? financial situation of the french company...
• seeing the potential in europe alex took out a european patent - costs $30000
• licensing agreement - mctaggart - new foreign customer
• reasons for licensing for mctaggart- already a demand for the product - cant build the market in scotland on the basis of shipments - expensive for mctaggart - shipment costs - currency values/freight and insurance costs add 10%, doesnt know how long shipments to arrive
• for alex - good way to penetrate the uk market swiftly via mctaggarts sales force.
• terms of the agreement - 3% on first million in sales and 2% thereafter, free technology flowback clause. mctaggart to become exclusive agents for the uk market. 5 year deal.
• pros - creates a market, no financial risk involved, cameron company doesnt have the financial resources to directly enter the markets. mctaggart is
Problem statement - focus the attention of team on the same variables
• what is the problem? license to france - or internationalization: australia/new zealand/india
• who has the problem/who is the client?
• what form can the resolution be?
This report aims to give a critical analysis of the situation with which Cameron Autoparts is currently in and the decisions which Alex took with reference to the licensing agreement with Mctaggart and the joint venture to Australia.
Situation analysis
• micro - joint venture and licensing decisions
• macro factors affecting the company - japan holding increasing share of the market in the 90s, potential competition? german/dutch markets? australia? financial situation of the french company...
• seeing the potential in europe alex took out a european patent - costs $30000
• licensing agreement - mctaggart - new foreign customer
• reasons for licensing for mctaggart- already a demand for the product - cant build the market in scotland on the basis of shipments - expensive for mctaggart - shipment costs - currency values/freight and insurance costs add 10%, doesnt know how long shipments to arrive
• for alex - good way to penetrate the uk market swiftly via mctaggarts sales force.
• terms of the agreement - 3% on first million in sales and 2% thereafter, free technology flowback clause. mctaggart to become exclusive agents for the uk market. 5 year deal.
• pros - creates a market, no financial risk involved, cameron company doesnt have the financial resources to directly enter the markets. mctaggart is