Kassatly Chtaura: Time to Expand Abroad?
(10 pages of text)
In April 2013, Kassatly Chtaura, a family-owned producer of both alcoholic and non-alcoholic beverages headquartered in Chtaura, Lebanon, faces a dilemma. It is doing very well in terms of revenues and market share and has succeeded in building a strong cash flow. However, the past year’s figures show little growth, and the family is concerned that sales of its syrups, juices, ready-to-drink beverages and wines have reached a plateau. Should the company expand its distribution network or build a new factory and move some operations to Saudi Arabia or Angola? These are promising markets, but they are in distant locations with different cultures. Or should it stay put and expand its operations by introducing a new product, beer? Adding to its successful portfolio will complement its business strengths in Lebanon, especially when bolstered by one of its highly successful advertising campaigns, and accomplish a family dream. Given the uncertain political situation in Lebanon, is it time to invest in international markets?
The case can be taught in an advanced undergraduate or graduate course in international business management, strategic management, entrepreneurship, small business management or family business management. Its objectives are to:
- Review the quantitative and qualitative factors that play a role in the growth strategies, market entry (particularly country/market analysis) and challenges that a typical medium-size family business confronts.
- Introduce concepts of product development, market development and strategic fit.
- Discuss whether the enterprise is ready to internationalize or will have more success by expanding in the local market.
- Discuss how opportunities can still exist in markets characterized by political instability such as Lebanon.
Lebanon, Medium, 2013
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