International Business Plan Executive Summary Since its inception in 1853, Levis Strauss and Co. has made rapid strides and is a global player in the apparel industry today. The company earns half of its revenue from markets outside the United States. As a business strategy, the company wants to increase its global footprint and is therefore looking to expand in foreign markets…
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in the European country of Hungary. For this purpose, an assessment of the economic, social, political and legal environment of the country has been made. The paper also dwells on the requirements for success in the country from an individual’s perspective. Company Overview: About Levis Strauss & Co Levis Strauss & Co. made its humble beginning in 1853 when the Bavarian immigrant and founder of the company created the very first pair of jeans. At present, the company designs, markets and sells jeans, casual pants, tops, shorts, skirts, jackets, footwear et al. The company also has all related accessories for men, women and children in its product repertoire. The company boasts of popular brands like Levi’s, Dockers, Denizen, and Signature by Levi Strauss & Co. Over the years, the San Francisco headquartered company has grown steadily to become one of the global behemoths in the apparel industry. As on date, Levis Strauss & Co has operations in as many as 110 countries and generates close to 50 percent of its net revenues from markets outside the United States. Levi Strauss & Co conducts its operations outside the United States through foreign subsidiaries owned either directly or indirectly by it. The company’s global business is grouped into three geographic regions: Americas, Europe and Asia Pacific. The year wise (2009 through 2011) breakup of the net revenue earned by the company in these regions is shown in Table 1 below. Table 1: Region-wise Revenue for Levis Strauss & Co.* *Source: Annual Report of Levis Strauss & Co. The company’s brands are sold in 55,000 retail locations globally. Of these 2,300 retail locations house the brands of the company exclusively. As of November 27, 2011, the company had 498 company-operated stores located in 32 countries across the three regions. Of these there were 211 stores in the Americas, 178 stores in Europe and 109 stores in Asia Pacific. Additionally, there were another 1800 franchised, licensed, or other forms of brand-dedicated stores operated by independent third parties that sold Levis Strauss & Co. brands exclusively. Levis Strauss & Co has managed to build brands that people love and trust, in large measure, due to its responsible business practices. The company leaves no stone unturned to contribute to and respect the local communities in which it operates. As a business strategy, Levis Strauss & Co intends to grow its business profitably, spread out across consumer segments and price tiers and respond to marketplace dynamics while building on its competitive strengths. The company’s global footprint is a key factor in its long term growth and it must capitalize on it. Levis Strauss & Co has to focus on markets that provide lucrative growth opportunities. The company has to make full use of its massive global presence and local-market talent gain local market insights, adapt to local consumer trends and thus grow profitably. It is for this reason that the company is looking to expand in Hungary. Country Overview: About Hungary The history of Hungary dates back to as far as A.D. 1000 when the country became a Christian kingdom. It emerged as an independent country after World War I. It was in 1968; under the headship of Janos Kadar, that Hungary introduced the ‘Goulash Communism’ whereby it began to liberalize its economy and placed
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