...LOCATION AND PEOPLE ATTRACTIVENESS FOR OUTSOURCING Offshoring, when a company conducts activities outside its country of origin, took off in the late 1990s, and was mainly driven by an increased need for large-scale IT operations. Currently, many large companies have large parts of their service operations offshore, and analysts expect that midsize and small companies will follow. For hosting countries, attracting offshore activities is an important manner of boosting its economy, attracting know-how and building skills. As a result, countries are continuously trying to entice companies to offshore production to their premises. LOCATION ATTRACTIVENESS | | PEOPLE ATTRACTIVENESS | | INFRASTRUCTURE | HIGH | QUALITY OF POEPLE | MEDIUM | COUNTRY RISK | MEDIUM | COST OF HIRING PEOPLE | MEDIUM | TIME ZONE ATTRACTIVENESS | HIGH | TYPE OF SKILLS | LOW | | | ENGLISH PROFICIENCY | MEDIUM | TOTAL | HIGH | | LOW | Global Services Location Index The ‘Global Services Location Index’ (GSLI) 2014 by A.T. Kearney is the sixth edition of the report in which the consulting firm examines the offshoring landscape in 51* countries around the globe, and ranks the top destinations for global offshoring. To come to this ranking, three main categories were researched; financial attractiveness, people skills and availability, and business environment. The weight given to these metrics is based on their importance to the location decision. ‘Financial factors’ constitute for 40% of...
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...Brazil: An Investor’s Paradise A Proposal on Why Investors Should Be Considering Brazil Introduction Currently, there are four countries that are growing at rates much faster than the average, and will soon be poised to be major players in the world’s economy. Those countries are referred to as BRIC, which stands for Brazil, Russia, India, and China. There is much debate as to which will emerge on top as the dominant world force; however investors are starting to make their predictions clear. Every day, investors are pumping money into the Brazilian economy for a myriad of reasons. But before one can understand those reasons, it is essential to understand Brazil’s background. Part I: Country Background Brazil was originally colonized by Portugal during the early 1500’s. This is evident today, as the official language of Brazil is Portuguese. It is estimated to be approximately 8,514,877 square kilometers, and have a population of 199,321,413, making it the largest country in South America, and the fifth largest in the world in terms of both area and population. (https://international.ipums.org/international/enum_materials.shtml) The political system used is a Federal Republic, and the Head of State is Dilma Rousseff. (https://www.cia.gov/library/publications/the-world-factbook/geos/br.html) While there are several political parties in Brazil, none of them are technically in power. The strongest of the group though is the Worker’s Party. The current type of law practiced...
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...industry. At that point in time, Pizza Hut consisted of approximately 3,200 units (Tricon website 2001). By 1989, Pizza Hut had stores in fifty four countries and in the same year the company opened its first location in the state of São Paulo, Brazil. The parent company Pepsico grew later with the acquisition of Taco Bell and KFC, each brand expanding through the development of company-owned units and franchises throughout the world. In an effort to sharpen Pepsico’s focus, in 1997, it announced a plan to separate the company’s packaged goods and restaurant businesses. The new company was named Tricon Global Restaurants, and upon its formation became the world’s largest restaurant company in terms of units, and second in the world in terms of sales (Pepsico websitepress releases). The Tricon corporate philosophy promotes “A passion for putting a ‘YUM’ on people’s faces around the world… that special eating experience that makes you smile and creates lifelong customers” (Tricon website 2001). For all three of its restaurant chains Pizza Hut, Taco Bell, and KFC; Tricon focuses on franchisee support programs and training for their customer-focused operating system. Pizza Hut entered Brazil in 1989 through engineer Edmar de Souza, who opened a second location shortly thereafter. In 1990, businessman and owner of Fábrica de Produtos Alimenticios Vigor, Ricardo Mansur, bought the two...
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...Preparing to leave for Brazil my research topic influenced my packing and weighed heavily on my mind. The Zika virus was brought up to me every time I mentioned that I was going to Brazil. Family members, friends, and even coworkers stressed using bug spray and wearing long sleeves and pants to minimize the skin exposure to mosquitos. My thoughts mirrored their thoughts. I had some reservations about going to Brazil but it was one of the destinations on my long list of places to visit. I would have packed differently if the Zika virus wasn’t being discussed in the news on a regular basis. My suitcase was filled with long pants, long dresses, long shirts, and camisoles. I wanted to bring my sun dresses and shorts and tank tops as I knew that the weather would be perfect for these items. I purchased “Zika bracelets’ and Center for Disease and Control Prevention (CDC) approved mosquito repellent. I imagine other tourist going to Brazil had similar thoughts and feeling. My objective while in Brazil was to see how the announcement of the Zika virus has affected their economy in the...
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...YUM! BRANDS, PIZZA HUT, AND KFC Teaching Note Overview This case describes the evolution of the global fast-food industry and Yum! Brands, Inc.’s development of the Pizza Hut and KFC franchises worldwide. It focuses on international business risk assessment and develops a model of country evaluation that students can use to analyze international business and market entry decisions in a variety of industries, regions, and countries. Teaching Objectives 1. Develop skills in industry analysis 2. Develop skills in global industry analysis. 3. Develop knowledge of franchising and the costs and benefits of expanding globally using franchises versus company-owned stores. 4. Develop skills in international business risk analysis. 5. Develop skills in country portfolio evaluation and assessment. Suggestions for Using the Case This case has been used successfully in undergraduate, MBA, and Executive MBA classes in strategic management, marketing management, and international business. It can be used in undergraduate courses to develop student skills in industry structure analysis, strategy analysis, and international business risk assessment. The teaching note is designed to give students practice in each of these three areas. Instructors may choose to use the case to discuss only one of these three areas during a single class period or to cover all three areas over two class periods. The case can be also...
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...destination for opening a new “natural and organic foods” grocery market. The project focus revolved around achieving long-term success in a market for Whole Foods. The analysis was to determine the most lucrative candidate country in which to introduce a three-store market, keeping all stores no further than ten miles apart. Chronological Scope: To ensure the relevance of information presented in the report, only the most recent available data was analyzed. The indicator analysis covers years 2006 through 2009. Effective evaluation of indicators requires the comparison of the three countries within the same time frame for each individual indicator. Geographical Scope: The report compares and contrasts the following countries: ➢ Brazil ➢ South Korea ➢ Poland Functional Scope: This report provides an insight into the international market screening process for Whole Foods. It outlines specific procedures that were undertaken in order to evaluate each prospective expansion destination and eliminate the two least viable options. In order for Whole Foods to deem a market successful, it must be able to achieve and sustain the following factors: • Provide the highest quality of natural and organic products available • Satisfy and delight customers • Build a supportive and winning team • Create wealth through profits and growth • Promote the health of stakeholders through healthy eating education Ensuring a successful market introduction...
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...KUBOTA in Brazil Aaron Bair Josh Burns Hailey Duff Erin Franklin Kelsey Youngblut December 2, 2013 Table of Contents Introduction ................................................................................................................................................. 1 Executive Summary ..................................................................................................................................... 2 Feasibility Analysis ..................................................................................................................................... 4 Economic Analysis ...................................................................................................................................... 6 Political and Legal Environment Analysis .................................................................................................. 7 Cultural and Ethical Analysis ...................................................................................................................... 8 Resource Analysis ....................................................................................................................................... 9 SWOT Analysis .............................................................................................................................
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... It appears The McGrew Company has been utilizing the indirect exporting phase as its primary business model in Brazil. Rather than simply exporting its products to Brazilian distributers and selling it for a markup, McGrew could exercise different options. OPTIONS * Direct Exporting Direct exporting would allow for The McGrew Company to handle its own sales and marketing within the country of Brazil. This would enable manufacturing to continue to in its current location while also cutting mark-up costs from the local distributors. Employees within the current manufacturing location may handle the documentation such as billing, shipping, and other activities while a team in Brazil will work in a local parent-type company. This local Brazilian company will perform as a distributor however it will be owned and operated by the manufacture directly. By working this option you allow for the opportunity to cut cost without moving your manufacturing capital to a foreign country. * Turnkey Project This opportunity is facilitated by a contractor who will basically build a business from the ground up within the country of choice, in this case, Brazil. The name Turnkey project is taken literally in that the materials, equipment, land, building and personnel are put into place and the company begins operations before it is turned over to the main company. The McGrew business could potentially utilize a contractor to accomplish these steps. Both of the above options could...
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...“FDI Strategy: Clean Harbors’ Entry Into Brazil” Student: Class: ITB 305 Professor: “FDI Strategy: Clean Harbors’ Entry Into Brazil” According to Clean Harbor’s website, Clean Harbors “is the leading provider of environmental, energy and industrial services throughout North America” (Clean Harbors, n.d.), located in Norwell, Massachusetts. Clean Harbors serves a multitude of entities, including several Fortune 500 companies, thousands of private firms, and scores of government offices on federal, state, and local levels. Perhaps Clean Harbor’s largest area of expertise is the management and recycling of hazardous waste produced by various industries, most notably it’s used oil recycling through its Satety-Kleen subsidiary. The company currently has substantial operations throughout North America, including the United States, Mexico, Canada, and Puerto Rico. Founded in 1980, it employs a workforce of 13,180 employees as of December 31, 2012 (Clean Harbors, n.d.). In addition to the management and recycling of hazardous waste, Clean Harbors also offers hazardous material management and disposal services including the collection, packaging, recycling, treatment and disposal of hazardous and non-hazardous waste, and a wide variety of environmental cleanup services on customer sites or other locations on a scheduled or emergency response basis (Clean Harbors, n.d.). While Clean Harbors has enjoyed success in the markets it currently operates...
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...Comprehensive Environmental Analysis Paper Business ventures require research regarding various factors that can impact the proposed business. Global business ventures require even more analysis. A global business venture, such as this centered on leather and leather goods, requires strong analysis of the proposed host nation for the business. The company must consider social, political, economic, health, and production factors within the host nation. This analysis ensure that the firm considers every aspect of the business so that the venture is successful. Products / Service Descriptions Starting a new venture in Brazil on leather goods, they must start looking to “take advantage of differences in the cost, and quality of production” (Hill, 2009). This organization will specialize in high quality leather material to produce different types of products. Most organizations provide a flat finish on leather materials but this organization will provide different types of leather finishes as they are ready to gratify the consumers whether they like oil based finish or waxed finishes. This organization will solely produce the best finishes on leather materials in order to produce shoes, belts, handbags, luggage, and wallets. Their services will look for ways to adopt a cleaner environmental system to reduce future environmental cost, and introduced a sustainable waste management system for leather goods. The system will detect defective sections in our leather material...
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...Wal-mart. Wal-mart has failed to do this in many countries. For example, in Brazil and Germany, Wal-mart did not understand the local culture, and failed to transfer their products into these countries. In Brazil, there were many other discount stores in which food was available at cheaper prices. Wal-mart’s business model of selling low prices, having obsessive inventory control, and a having a large variety of merchandise failed in this market because Brazil already had their own discount chain stores which were successful there. As we have established, there are some companies that experience "issues" when deciding to move their products or services to a changing consumer market. Although these companies have shown success in domestic locations, it is evident that without consideration of the changing consumer, and the ability to adapt product and services, companies, as large as they may be in some locations, have an increased failure rate internationally. “US based Wal-Mart, the world's largest retailer, entered Brazil in 1995 by forming a 60:40 joint venture with one of the country's leading business conglomerates, Grupo Garantia (icmrindia.org).” The entry mode would be in association with Lojas Americanas, which is controlled by Grupo Garantia. Wal-Mart’s intention was to achieve the number one retailer position in the Brazilian retail market in a very short period of time. Shortly, after entering Brazil, Wal-Mart encountered several operational problems during the initial...
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...UNIVERSITY OF LA VERNE La Verne, CA Group Assignment: Panda Express Prepared by 05/21/2014 College of Business and Public Management Department of Business Administration Business overview In 1973, Andrew Cherng opened the first Panda inn in Pasadena, one of America's great ethnic melting pots. In 1983, He realized that Southern California offered an excellent market for fast food. So he launched Panda Express and opening the first Panda Express in a mall in Glendale, California. It proved to be a very successful beginning because the Panda Express was one of the few quick-service restaurants with full-service concept. The early Panda Express was usually located in shopping malls, but eventually they spread into other spots. They first in its home base of Southern California, then eastwardly, to the Western states of Nevada, Arizona, Colorado, and Utah and eventually to the East Coast. In 2007, Panda opens its 1000th location in Pasadena and achieves 1 billion in revenue. In 2013, Panda Express achieves with 23,000 employees and over 1600 stores in 51 States and abroad. ("Cherng. A," 2012). Panda’s annual sales is about 9.2 millions. Panda Express Motivation of Expanding Panda Express has already enter into the foreign market-Mexico in 2011. Until now, it has the Canada and Mexico foreign market. Panda Express has the goal that becoming the largest and a leader in the quick-service Asian restaurant and inspire everyone to better their lives. Panda Express...
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...growth. The speedy development fashioned challenges in making sure products were always fresh and obtainable. With this continuous growth, Nathan Mucher, Vice-President of Information Services realized that an long-drawn-out web presence would aid, and be a underpinning in their expansion proposals. The company was able to start escalating internationally in 2001. It opened its first store in the United Kingdom in 2003 at Harrod’s Department Store in Knightsbridge. Krispy Kreme is doing well in the United Kingdom and they ought to continue expanding into other countries, as well as other parts of the world. The best candidate for a entering new in a foreign country market at this time would be Brazil. This report will methodically examine the reasons why it would be a superior business decision for Krispy Kreme to enter into the Brazilian market. Mission & Vision One of Krispy Kreme’s main flaws is that it they do not have a clear mission and vision statement. The only affirmed purpose was to have a triumphant Krispy Kreme in every town in the United States. As a result, Krispy Kreme has experienced monetary difficulties. Krispy Kreme attempted to enlarge too quickly and is now paying for it financially. Krispy Kreme has now made a good decision to...
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...Comparative Location Analysis Belem, Brazil and Maracaibo, Venezuela located in South America are both examined in regards to the potential of sustaining a successful lumber industry. Although particular locations are portrayed as more favourable within the lumber industry, this industry has skills, technologies, and methods of operation that are adaptable to different temperatures, soil, humidity, labour skills, and economic conditions. Furthermore, after careful research that looks into the different aspects of the two cities location determinists, entry modes, exporting, globalization, transportation, and foreign direct investment. According to World Guides (2015), the exporting route on the Atlantic Ocean from the Amazon River to the harbour in Belem is an important piece in Brazil’s importing and exporting system. Therefore, due to the frequency of the imports and exports coming through the waters of Belem, this city must maintain a good level of infrastructure standard for roads to get the exports to and from the loading dock and to their desired destination in order to maintain a quality service that will keep exports up. The Para and Belem History (2013), states that Belem started expanding on the development of roads to help accommodate and direct the busy flow of people and the vehicles containing various goods that were coming to and from the river port. Road building promoted the use of the Belem/ Amazon River route for importing and exporting goods. Also...
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...people. Every society has to have its own cultural values despite to its population and location. Culture can also be seen as a relationship that brings different people together. Culture is of different types which include religion, socio-culture, dressing, language and greetings. The essay will be based on mainly the religion, language...
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