Analysis of Market Entry Mode for CHEERS in India and Brazil

Running head: GLOBAL BUSINESS MANAGEMENT
GLOBAL BUSINESS MANAGEMENT
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1GLOBAL BUSINESS MANAGEMENT
Executive Summary
The report is built on the analysis of a market entry mode that can be used by an Australian
craft beer manufacturing organization named CHEERS. The analysis is related to
consideration of two countries for expansion, namely, India and Brazil. The risks that are
related to business operations in the two countries and the opportunities that are provided to
the company have been considered in the report. The report has also provided a detailed
analysis of the human resource based strategy and marketing strategy that can be
implemented by CHEERS in order to operate in India. The strategies that have been
suggested in the report can be implemented in an effective way in order to rise the levels of
presence of the organization in the food and beverage based industry. The employees will be
provided highest levels of importance by the organization in order to develop its operations in
the beverage based industry. The structure that can be developed by the organization has also
been suggested in the report. CHEERS will be able to expand its operations in the industry
with the help of appropriate stages of proper knowledge based on the market in which the
organization can operate.

2GLOBAL BUSINESS MANAGEMENT
Table of Contents
Introduction....................................................................................................................3
Analysis of the risks and opportunities in Brazil and India...........................................3
Risks and opportunities for CHEERS in Brazil.........................................................3
Risks and opportunities for CHEERS in India...........................................................5
The selected destination country....................................................................................7
Discuss and justify the proposed mode of entry for chosen country.............................7
Suggest and justify the marketing strategy to be adopted by the company...................8
Suggest and justify the human resource strategy to be adopted by the company..........9
Conclusion......................................................................................................................9
References....................................................................................................................11
Appendices...................................................................................................................14

3GLOBAL BUSINESS MANAGEMENT
Introduction
CHEERS is a start-up brewing based organization that was established in the year
2010 and has been able to form a consumer base in the Australian market. The organization
mainly offers craft beers to the customers and the choice of product is based on the ways by
which CHEERS can differentiate itself from the competitors. The business has depicted
significant levels of growth within six years of its establishment in the industry. The report
will be mainly based on the ways by which the organization can plan to expand its operations
in different regions and countries (Barros, Hernangómez and Martin-Cruz 2016). The two
countries that have been considered for analysis based on expansion related plans are Brazil
and India.
The report will provide a detailed analysis that are related to the opportunities and
risks offered by the two countries. The market entry mode that can be implemented in the
country, the marketing strategies and human resource based strategies will be analysed in
detail. The analysis will be able to provide a detailed picture that will be helpful for CHEERS
to take a decision.
Analysis of the risks and opportunities in Brazil and India
Risks and opportunities for CHEERS in Brazil
Cultural risks in Brazil – The population in Brazil is affected by the levels of
inequality in the society. More than 20% of the total population of the country has been living
under the poverty line for the last few years and the unequal distribution based on income.
The country consists of considerable number of wealthy people and on the other hand huge
number of people belong to the minimal income group (Williams and Kedir 2016). The
growth levels of middle class people in the country is also a major factor that affects the