Introduction and description of Afrodec product
Afrodec is a medium sized business situated in Nigeria that specializes in the sale of authentic African decorative items. Afrodec provide range of items such as African themed furniture, paintings, carvings, rugs and other uniquely African decorative pieces. Afrodec was established in the mid nineteen sixties, in Lagos by a local artist and started trading using mobile vendors and market stalls. The business steadily grew, patronised mainly by the vast expatriate community of the colonial era, and in recent years affluent Nigerians seeking to celebrate their heritage. Afrodec obtain their material from two main sources, firstly it employs artists that work on the premises and secondly it buys art works produced in the rural areas by local craftsmen, and then distributes them in major towns and cities in its Afrodec stores. The products range from cheap artistic items, the average Nigerian can afford to more exclusive and expensive items created by celebrated African artists and crafts men. Afrodec currently have a total of 12 stores, spread across the major states in Nigeria and is operating profitably. Due to this domestic success, Afrodec have recently expressed a desire to expand operations internationally. This report is for the Managing Director of Afrodec and it contains advice on the best procedure in expanding the business internationally.
The internationalisation process
Regarding the internationalisation process, the management of Afrodec have a number of factors to consider. Firstly Afrodec must first ascertain the motives behind its desire to expand internationally. Meetings conducted with the managing Director have revealed a number of proactive and reactive motives in deciding to expand internationally. Managerial urge and the desire to increase profits are perhaps the strongest proactive motives for Afrodec. The major reactive motives gathered are; firstly, following the launch of the Afrodec...