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Authors: - Various
Published by: Allied Business Academies
Originally published in: "Journal of the International Academy for Case Studies", 2015
Revision date: 28-Sep-2018
Length: 12 pages
Data source: Published sources

Abstract

The primary subject matter of this case concerns developing an internationalization strategy for a growing business, Sprinkles Cupcakes. The business owners, Candace and Charles Nelson have grown their business from one store in 2005 to 17 stores in the US and 1 in the Middle East under a licensing agreement. Their innovations include using the highest quality ingredients (eg sweet cream butter, bittersweet Belgian chocolate, pure Madagascar vanilla, fresh bananas, carrots, real strawberries, and natural citrus zests) baked fresh daily in small batches, and the creation of a 24-hour cupcake ATM machine. Questions that students should consider include how should Sprinkles continue to grow their business? What types of internationalization strategy could they consider? Should they focus on domestic growth first? Which countries could they target for growth? What changes if any could/should they make to their business/product when they expand internationally? What considerations should they take into account if licensing or entering wholly owned operations when expanding internationally? The case has a difficulty level appropriate for a junior or senior level course, although it may be used at a first-year graduate level, depending on the amount and complexity of the background information that is assigned. The case requires one hour (if the goal is class discussion only) to three hours (if the instructor's goals involve presentations by individuals or teams of students). This is relevant topic to students studying international business and how to successfully create and implement an internationalization strategy.

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Abstract

The primary subject matter of this case concerns developing an internationalization strategy for a growing business, Sprinkles Cupcakes. The business owners, Candace and Charles Nelson have grown their business from one store in 2005 to 17 stores in the US and 1 in the Middle East under a licensing agreement. Their innovations include using the highest quality ingredients (eg sweet cream butter, bittersweet Belgian chocolate, pure Madagascar vanilla, fresh bananas, carrots, real strawberries, and natural citrus zests) baked fresh daily in small batches, and the creation of a 24-hour cupcake ATM machine. Questions that students should consider include how should Sprinkles continue to grow their business? What types of internationalization strategy could they consider? Should they focus on domestic growth first? Which countries could they target for growth? What changes if any could/should they make to their business/product when they expand internationally? What considerations should they take into account if licensing or entering wholly owned operations when expanding internationally? The case has a difficulty level appropriate for a junior or senior level course, although it may be used at a first-year graduate level, depending on the amount and complexity of the background information that is assigned. The case requires one hour (if the goal is class discussion only) to three hours (if the instructor's goals involve presentations by individuals or teams of students). This is relevant topic to students studying international business and how to successfully create and implement an internationalization strategy.

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