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Final global business plan paper for company in Brazil - Essay Example

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The company A has a great opportunity to expand its operations in the South American region and establish their brand name. Brazil is undoubtedly the best option to start with considering plenty of factors which not only make Brazil a very lucrative and profitable market for Company A…
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Final global business plan paper for company in Brazil
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Final global business plan paper for company in Brazil

Download file to see previous pages... Whenever a company reaches out to new markets where there are always many factors that determine how well the company’s product is going to perform once it has been launched. As far as the energy drink Jackie O is concerned, factors look very favorable and suitable for a product launch in Brazil where political, economical, social and financial options are very healthy and growing.

As already indicated by the case study, the political scenario is quite stable and favorable for a foreign investment, Brazilian government and few other countries are trying to form an alliance among Latin American countries which would significantly create a positive impact on the political stability in the region. Furthermore, economic conditions of Brazil are likely to favor any foreign investment where economy of Brazil comes under top ten economies of the world with most gross domestic product (GDP) which is an indicator of their economic stability. Their government and policies have worked well with the macroeconomic indicators to keep the economy growing even in the times of recession when the entire world was crumpling. (Baer, 2007). Also, one of the most crucial factors that influence the launch of a product in a new market is the availability of finances and financial institutions. Company A does not only have the option of taking funds from US accounts but they can also finance their projects from the funds available at fully developed financial institutions like Banks in Brazil. For a product like energy drink, social factors will play an important role in determining the sales volume of the product (Grewal and Levy, 2009). There are some areas where problems might arise which include high inequality in the region, hunger and poverty with a high rate of epidemics including life threatening HIV, along with environmental issues like pollution and deforestation brought about by the recent development in the region particularly in urban areas. Brazil has a culture which includes people from many different ethnicities which would create a diversified market demand for the Company A, here is one important factor that Company A has to decide once they execute the plan for the launch of their product that whether to go with a generic product focusing all the strata of society or would they differentiating with respect to different taste according to the preference of different classes of people (Baer, 2007). Moreover, a plus factor for Company A is the use of eco friendly raw materials in the production process since many of the energy or carbonated drinks are not healthy or recommended by health experts as they provide a temporary uplift in the energy level and when the impact starts to decrease, the energy level falls way below the level it would have fallen had there been no intake of energy drink. The use of organic raw materials by Company A would make a healthy energy drink for the consumers and hence will give more energy without the crashing feeling (Brainard and Diaz, 2009). Apart from the socio and macro economic indicators, there are many other things that Company a needs to take into account which includes competitor analysis, exchange rate depreciation, taxation and regulatory laws. Company A must investigate the market to find out how many competitors are operating with their respective prices, they have to evaluate the expected fluctuation in the exchange rate which can either increase or decrease their profits. Also, a thorough and in depth analysis of taxation and regulatory laws are imperative since they vary from country to country and high depend on the ...Download file to see next pagesRead More
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