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THE GLOBAL BUSINESS MANAGEMENT

   

Added on  2022-08-08

21 Pages4448 Words44 Views
Business DevelopmentMechanical EngineeringPolitical Science
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Running head: GLOBAL BUSINESS MANAGEMENT
GLOBAL BUSINESS MANAGEMENT
Name of the student
Name of the university
Author note
THE GLOBAL BUSINESS MANAGEMENT_1

GLOBAL BUSINESS MANAGEMENT1
Executive Summary
The purpose of undertaking the research is to identify the growth prospects that are being
encountered by the concerned organization, Cheers, in India or Brazil. In this connection, the
report enlisted the macro- economic factors that might be encountered by the organization in the
respective nations, Brazil and India. The assessment of the macro- economic factors and the
opportunities and threats that are associated with the same allowed in deciding the best nation for
the growth and expansion of the venture. The assessment of the opportunities and threats
specifically aimed at identifying the common modifications in accordance with the changing
preference patterns of the customers. The report also enlisted the market entry mode for the
concerned organization as Joint venture, while making an expansion in the Indian markets. The
assessment of the market entry mode and the marketing strategies focused on understanding the
growth related objectives of the venture. The most important part of the operational planning of
the organization is the staffing strategy that was enumerated by the end of the report. The
staffing policy that might be considered by the organization is polycentric as it would support in
empowering the changes as per the business objectives. Therefore, the purpose of undertaking
the report is to develop a positive understanding of the different steps that might be considered
by the concerned organization while acting in accordance with the growth related strategies.
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GLOBAL BUSINESS MANAGEMENT2
Table of Contents
Introduction......................................................................................................................................3
Analysis of risks and opportunities..................................................................................................3
PEST analysis..............................................................................................................................3
The destination country- India.......................................................................................................12
Proposed entry mode for the organization in India.......................................................................13
The marketing strategy that might be adopted by the company....................................................14
Product.......................................................................................................................................14
Price...........................................................................................................................................14
Distribution................................................................................................................................15
Human resource strategy that should be adopted by the company................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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Introduction
The development of a startup and its expansion in the different markets supports in
improving its sustenance related factors. The business partners, graduates from the Southern
Cross University, took the initiative of developing a venture that would propose craft beers in
accordance with the demand of the customers in Australia. After six years of the venture’s
establishment, CHEERS, drew a maximized margin which enabled the venture in improving the
rate of operations. However, the organizational partners have been looking out for different
alternatives for improving their growth in the foreign markets. In this connection, the business
partners chose India and Brazil as alternatives of which one might be taken as the nation for
market expansion. Therefore, the report would take the initiative of identifying the risks and
opportunities that the organization might encounter while increasing the rate of growth and
expansion in the foreign markets.
Analysis of risks and opportunities
PEST analysis
Factors India Brazil
Political The political stability index
of India is rising and would
provide adequate support
for the foreign organizations
to make investments in the
economy. Prime Minister
Narendra Modi proclaimed
Political stability in Brazil is
one of the major factors that
attract the attention of the
foreign organizations. The
increased political stability
in Brazil and lower levels of
Government intervention in
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GLOBAL BUSINESS MANAGEMENT4
that the nation is prepared
for different FDIs with the
purpose of improving the
economic situation of the
nation (The Hindu 2019).
The political stability and
predictability of the
legislations in India would
act as an empowerment for
the foreign organizations to
make their market growth
The minimized intervention
of the government in the
different business level
practices might affect the
capability of the
organizations in increasing
the effectiveness of the
venture while making
expansion in the Indian
economy
The transparency of the
legislations and the clarity
the different business
practices would improve the
rate of development that are
being planned by the
organizations (Shahzad et
al. 2019). Moreover, it has
been observed from the
Global Competitive report
of World Economic Forum
that Brazil ranked 125th in
implying greater trade
openness to the foreign
investments (Weforum.org
2019). It would allow the
business in making dynamic
growth and expansion in the
Brazilian markets.
The clarity of legal
imposition play an
important role in Brazil
(Stona, Morais and Triches
2018). Most of the
government impositions, in
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GLOBAL BUSINESS MANAGEMENT5
of expression would allow
the organization in making
expansion while adhering to
the legislative frameworks
that are being made by India
the form of regulatory
bindings are predictable and
clear which would enable
the growth of the
organizations.
However, there is a growing
threat of corruption in
practice which might
challenge the organizational
operations while increasing
the risk context for their
growth in Brazil.
Economic The GDP rate has slowed in
India with fluctuations in
the market economy.
However, there are chances
of improvement in the
economy due to the growing
investments that are being
made by the foreign
companies. It has been
observed that the nation
held the fifth position in the
Brazil ranks 71st globally as
per the 2019 report of the
World Economic Forum
(Weforum.org 2019). The
growing GDP of the nation
might be attributed to the
increased foreign
investments that are made
by the international
companies in Brazil. The
GDP in Brazil is expected
THE GLOBAL BUSINESS MANAGEMENT_6

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