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Assignment on Brasil food - Essay Example

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Assignment on Brasil Foods Executive Summary Brazil is among the four countries in the world that are experiencing economic boom, increasing middle-class wealth to the extent that they are referred to using a special acronym BRIC (Brazil, Russia, India and China)…
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Assignment on Brasil food
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Download file to see previous pages The paper specifically studies three things. First it studies Brazil as a country and the impact of its economy with regards to providing a competitive advantage to its home bred companies and industries. Porter’s Diamond Model is used extensively in this section. Secondly, the paper studies globalisation and specifically the rise of emerging markets, their characteristics and ways for multinational corporations to succeed in these high potential markets. The frameworks developed by Khanna and Palepu (2010) are used extensively in this section. The third section analyses the internal and external environments of Brasil Foods using the classical frameworks: PESTEL, SWOT and Porter’s five forces. The paper finds Brasil Foods to be a strong organisation with a sound business model, a strong home economy and sustainable core competencies that should enable it pursue its multinational strategy. The paper concludes by recommending that Brasil Foods begin its multinational strategy in the Middle East where it has an established base that it could use to advance into North Africa as well. China is also recommended. Table of Contents Executive Summary ii Table of Contents 1 1.Introduction 2 2.Literature review 2 3.Analysis 5 3.1.Internal and external influences on Brazil 5 3.2.Globalisation, emerging markets and Brasil Foods 7 3.3.Internal and external analysis of Brasil Foods 9 4.Conclusion and recommendations 11 References 13 Appendix A: PESTLE analysis 15 Appendix B: Five forces analysis 17 Appendix C: SWOT analysis 19 1. Introduction Brasil Foods seeks to replicate its domestic success internationally. Its international strategy so far has been to simply export commodities and low-value added goods to its foreign customers. However, for the company to realize the vision outlined in its strategic plan titled “BRF 2015”, the company’s international strategy has to move from being export-based to transnational where the company will need to produce, distribute and brand products within its target emerging markets. There are four broad factors at play that could influence the success or failure of Brasil Foods 2015 vision: the internal and external influences of the company’s host country – Brazil; the effect of globalisation; the strategies, structure, culture and capabilities of the company itself; and how it shall go about managing the complexity and change that shall arise out of its new international strategy. This paper looks at each of these factors and gives a concludes with some recommendations for the senior management of Brasil Foods to take into consideration as they seek to remodel their international strategy from export-based to a multinational strategy. 2. Literature review In looking at the internal and external influences of the company’s host country, Brazil, the immediate question that arises is whether Brazil provides an environment where Brasil Foods will be able to create and sustain competitive advantage against the world’s best competitors in the food industry. Porter (1990) proposed a diamond model that outlined four broad attributes of a nation that shape the environments in which local firms compete and that could either promote or impede the creation of competitive advantages for its local firms. The diamond model tackles a broad range of issues from the strength of Brazil’s domestic market, to level of local competitive rivalry, to the ...Download file to see next pagesRead More
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