Millers international Ltd, a U.S. originated multinational firm that manufactures processed food including butter, margarine, jams, ice cream, frozen pizza, pre-cooked dinners, pre-mixed bakery products and UHT soups, had expanded its business into the Sri Lankan market successfully through several factors. Such as their management approach, the entry modes chosen, the target market chosen and their international marketing strategy approach. The adaptations that Millers took are the results of their careful exploration of the Sri Lankan market condition and thus, were able to make a significant impact as is indicated by their current strong presence in the Sri Lankan market.
"The most stimulating proactive motivation to becoming involved in international marketing is profit advantage. Management may perceive international sales as a potential source of higher profit margins or of more added-on profits." (Czinkota and Ronkainen, page 269) Millers took a pro-active strategic approach to management as it tried to take a long-term view to achieve higher profit margins from foreign markets.
It is committed and willing to continue as operating investors, even in depressed sectors and regions, in the belief that well managed businesses will regain their profitability. As a result of their pro-active approach, they had successfully overcome short-term economic downturn and enabled the company to expand into new markets around the world especially in Asia.
Millers was able to adapt to a pro-active approach due to their financial and technological strengths. Their financial strength is evident when it stated that they would only have the right amount of capital in place at the right time to conduct their businesses at a lower cost than their competitors. This means they started their business small, enabling themselves to continuously maintain financial strength to support the existing businesses and be prepared to pursue other opportunities for future growth once...