Product details

After eight years of trying to do business in China - including a major effort that was foiled four years earlier in a different part of the country - Hybrid Turkey''s management thought they had finally reached an agreement on a small contract for the sale of technology. After investing a great deal of effort in spelling out the necessary parameters for a successful turkey operation, they are suddenly asked to reduce the price of breeding stock they were proposing to provide to a cooperative in China. Hybrid management must decide whether to refuse a price change, change the price, or ''wash their hands'' of ever trying to do business in China. The company had already reduced prices below market levels and was uncertain whether/how to proceed in the negotiations. The case illustrates that a company''s strategy (in particular, in this instance, its market scope) should be consistent with both the environmental conditions and the firm''s resources/capabilities.