Fort Peck BGEN 105 - Audiotech Electronics, founded

Audiotech Electronics, founded in 1959 by a father and son, currently operates a 35,000 square foot factory with 75 employees. The company produces control consoles for television and radio stations and recording studios. It is involved in every facet of production-designing the systems, installing the circuits in its computer boards, and even manufacturing and painting the metal cases housing the consoles. The company's products are used by al the major broadcast and cable networks. The firm's newest products allow television correspondents to simultaneously hear and communicate with their counterparts in difference geographic locations. Audiotech has been very successful meeting its customer's needs efficiently.

Audiotech sales have historically been strong in the United States, but recently, growth is stagnating. Even though Audiotech is a small, family owned firm, it believes it should evaluate and consider global expansion.

Discussion Questions:

1. What are the key issues that need to be considered in determining global expansion?

2. What are some of the unique problems that a small business might face in global expansion that larger firms would not?

3. Should Audiotech consider a joint venture? Should it hire a sales force of people native to the countries it enters?