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Bus8580 International Business Strategy

At that moment, Barny remembers everything he learned from the Americans when they were in the factory in Maracanaú: “from products to how they estimated the costs. Nevertheless, it wouldn’t make any sense to compete with the same products. The products that Hatteras buys from China are cheaper. It would be smarter to compete with design, quality, innovation, with products that are not yet sold in the US. And we learned a lot from the Americans. If it weren’t for this exclusivity agreement […] they wanted to sell us their share, but since we don’t have enough working capital, how can we pay them?” Barny questions, “Working capital is hard to come by because of the global crisis. They offered to sell their 49.5% for the same price they paid when they entered the partnership. That’s absurd,” he exclaims, outraged. “Because in the meantime they caused us a huge loss due to the lack of orders. So, how am I going to buy at the same price? You come in with no risk and you get out with no risk? Perfect, isn’t it?” 

Sources: (1) Authors’ interviews;

(2) L. Barin Cruz & D. M. Boehe, 2008, CSR in the global market place: Towards sustainable global value chains, Management Decision, 46(1): 1187–1209; (3) Forst Stewardship Council, http://www.fsc.org; 

(4) Internal documents provided by Jobek GmbH, http://www.jobek.com.br.  to pay a premium for socially and environmentally responsible products. Will the joint venture survive?

1. What are the differences between the concepts of corporate social responsibility used by Hatteras and Jobek?

2. Based on your evaluation, what should Jobek do?

Describe Jobek’s current competitive environment. What changes do you foresee in the future? How do you think they will influence Jobek?

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