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Case Study Kassatly Chtaura

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Q2:Various considerations Kassatly Chtaura management should consider in business expansion decisions, and its implications of suggested strategy.
There are several factors needs to be considered in business expansion of Kassatly Chtaura management. Company had started more than 20 year back and it stood in bad and good times in Lebanon. Even though there was political and civil unrest, management strongly believed that it lasts only few days and business has to continue and grow. Although business has profit and brand reputation from its operations from Lebanon, civil war and political instability as affected its business. Also the consumer market for RTD and beverage sector is not the high. So considering about business expansion to Saudi Arabia or Angola who exports products from Kassatly Chtaura was in management's mind.
Business expansion consideration and its strategy implications
Factors such as the costs, social situation understanding the culture, competition, labor force, rules and regulations, targeted audience, availability of labor force etc needs to be considered in business expansion plans. Company has already factory setup in Lebanon and all products are exported from Lebanon. Problem mainly lies in the region instability to do business operations at times cause …show more content…

Also most of the raw materials for making the RTD and beverage products for the company were exported from other countries which create significant overhead with higher operating costs(United States Department of State,2016). Consumer market for RTD and beverage products are less and business cannot grow after reach certain level of peak stage. So company was forced to think about new business opportunities and starting factories in Saudi Arabia or

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