Contemplate and assess all options

Contemplate and assess all options to salvage the foreign business. Exiting is painful-both for the company and other stakeholders (local employees, distributors, custom-ers). Before making any moves, it is crucial to analyze why results are below expectations and to consider possible alternatives that might save the business. Original targets in terms of market share, return on investment, or payback period may have been too ambitious. costs could be squeezed by, for instance, sourcing locally rather than importing materials or using local staff instead of expatriates. Repositioning or retargeting the business can offer a solution. NutraSweet's foray into China provides a good example. When NutraSweet's consumer division first entered the China market, it targeted the mass market, sales were far below expectation. Instead of simply exiting the China market, which was one of the options being contemplated, NutraSweet decided to lower its sales targets, pursue the diabetics niche market, and position its brand as a medical product.
Incremental exit. Short of a full exit, an intermediate options is an incremental exit strategy. Firms could "mothball" their operations and restart them when demand or