BUSA 3000 Study Guide - Quiz Guide: Peanut Butter, Cherry Blossom, Starbucks

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Document Summary

In the past few years, many companies decided to expand their business to overseas. Many of the production had been moving oversea to gain easier access to their supply. The two-major strategic motivations behind this action is to be closer to the supply sources they need for their products, and to gain new business method and new ideas. sources. This way they could gain flexibility in product sourcing and build a relationship with local resource companies to gain discount or better value supplies and factor of production. This is the best opportunities for them to lower the cost of supplies and increase the ability to make bigger quantities of products. For example, skippy the peanut butter company set up factories in china because china is the leading producer for peanut at the moment.