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Pacific Cares

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Submitted By freemanthecat
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Which overall growth strategy should Pacific Cares adopt? * GO WITH STEADY SCENARIO for next two years (2006 & 2007)

* The potential risk for the robust scenario is not worth it (comparative net margins don’t justify the risk – Exhibit 3). * Lack of confidence of the projections for the robust scenario add to the riskiness (“the CEO and Chairman only had 85% confidence in the 2006 projection and 75% confidence in the 2007 estimate.”) * 75% topline growth for the steady scenario is still quite respectable (any investor would be happy with that level of growth). * They’ve only been in business for 3 years. Pacific Cares is just ramping-up in many ways. It’s a good time to control growth, check the vision, and stay in alignment with ‘First do no harm’.

Should Pacific Cares enter the European market? Why or Why not? * TAKE THE ‘GET TO KNOW EUROPE MARKET’ APPROACH

* Ryan and Peter identified two high-potential options to enter into Europe. They should go with the first option.
-Run the tech support fulfillment team in shifts from North America and have employees travel to Europe for short stays = incremental advancement to become familiar with the market before making further commitment. * Pacific Cares needs to investigate the opportunity ‘across the pond’ thoroughly before becoming an international player. They can do this with option above. * Becoming an international business requires huge investment – need to hire international lawyers, accountants, etc. (‘burdensome infrastructure’) * To overcome the challenges of entering the market (culture, language, etc) possibly look to partner with someone or hire a consultant that can help ramp them up with the barriers. There is too much opportunity in Europe and not entering it will have long term effects. * The Long term effects – Most companies are multinational

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