"Gerber Products Company Investing in the New Poland"

I. INTRODUCTION

Gerber, a U.S company producing jarred baby food, was considering in 1991 whether they should acquire Alima SA, oneness of Polands largest and most successful food processing plants. With this business deal, Gerber expected to prepare a low-cost base for its European operation as a platform for growing commercialises of Central and Eastern Europe.

Because the deal could help to have the aging plant modernized and win its sagging export trade while bringing unsaid currency at the same time, Poland government was happy to adjacent the deal.

On October 1st,1991, Gerber signed a Purchase and Sale agreement in which the company committed to work with the Poland government in terminate problems such as property ownership and taxation. However, after this agreement, Polands political relation changed and Gerber faced threats from the new government that they would unable to deliver the promises make previously on October. Although most conditions of the deal were attractive to Gerber, it moldiness reevaluate the merits of investing in Poland chthonian such an shot situation.

II. BACKGROUND

1. Gerber Products Company

Founded in 1928, Gerber was located in a small town of Fremont, Michigan. It has a large variety of jarred baby foods with about clxv products. Besides, the company also makes basic baby apparel under its own product name and childrens wear under familiar Brown label.

Fruits and vegetables used in production are fully grown within Fremont, and there is a nut manufacturer providing glass for baby foods jars.

Gerbers philosophy is providing a child with nutritional food, doing everything we hind end to deserve and maintain the confidence mothers have in our products.

In 1991, Gerbers market share in U.S was 72%, its main competitors--Heinz and Beech-nut shared the rest. At that time there was only 4% of U.S houses that have babies and Gerber reached...

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