Al Baba Sweets: An Expansion Opportunity
(8 pages of text)
In 2018, Al Baba Sweets was a major player in the Arabic sweets and confectionery industry in Lebanon. However, in the midst of a rough patch in the country’s economy, the company was suffering from decreasing revenues. Any major decision concerning the future of the third-generation family business would have to be made carefully. New, smaller competitors were entering the market alongside the industry’s large, long-time players. The company had to decide what its next steps would be. Should Al Baba Sweets branch out to other countries? If so, which modes of entry should they use? What other possibilities were there to enhance and expand operations?
This case is intended for use in an undergraduate- or graduate-level course on strategic management, or international business.
By working through the case and assignment questions, students will have the opportunity to do the following:
- Analyze Al Baba Sweets’ strategic place in the market relative to its competitors.
- Assess the value that the company’s products have in the eyes of local customers.
- Evaluate and critique a company’s vision and mission.
- Conduct a comprehensive SWOT (strengths, weaknesses, opportunities, and threats) analysis of the company.
- Discuss of the multiple growth strategies that Al Baba Sweets could pursue.
- Develop and analyze several strategic options.
- Create an expansion plan by first comparing and contrasting different countries’ conditions for doing business.
Accommodation & Food Services
Lebanon, Small, 2018
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