Brazil Country Analysis
Brazil Analysis and Business Venture
Team B
MGT/448
February 18, 2013
The Brazilian Wine Industry
The wine industry is a very competitive market that relies heavily on brand lineage, country and region the grapes used to make the wine originated from, or the uniqueness of the wine. In comparison to the major wine producing countries such as France, United States, and Italy; Brazil is relatively new to the international wine industry. The country of Brazil has been producing wine for hundreds of years but has not made an appearance in the global industry until recently. The purpose of this comprehensive analysis is to discuss the region and country of Brazil along with our proposed global business venture in the country.
Regional …show more content…
Analysis
Brazil has worldwide allies but is recognized as one of the few nations in the world that does not currently have a regional alliance (but as you point out the country is amember of MERCOSUR). However, (former) Brazilian President Luiz da Silva in 2008 has looked to change that with his proposal of a full region alliance of all of South America, called the Latin Alliance (Washington Times, 2008).
Currently Brazil operates under the Mercosur, a form of economic integration that promotes trade, especially free trade, such as the exchange of goods, services and currency among its members. The members include Argentina, Paraguay, Uruguay, Venezuela, and Bolivia (Wikipedia, 2013).
The Brazilian physical environment is lush with vegetation, color, territory, natural resources, and available aquatic resources. All environments which positively facilitate trade potential for Brazil and the Region as a whole. South America is regarded a place where political instability holds true for most of the nations within the region, Brazil included (Heritage, 2013). As a result of the political instability economic conditions have also resulted in fluctuation in success, where financing and other financial relief can be hard to come by or even relyed upon in general for the region. However, the social conditions have looked up in the region for some nations as some nations have seen reductions in corruption with the increase in commerce, health care, and environmental acknowledgment (Heritage, 2013). Terrorism is not considered a factor (Internationalsos, 2013). You should update your understanding of Brazilian politics and the country’s global image. Project finance has not been a recent problem.)
Country Analysis
Brazil is one of the largest countries on the continent of South America. Over the years Brazil has had growth in the oil, natural gas, and electricity markets. The country is also one of the largest consumers of energy in South America. Brazil is most popularly known for having largest rainforest out of all of the destinations on the globe. Because of all of the plant life that belongs to the rain forest, Brazil produces the most Carbon Dioxide (?). Brazil has been having a large amount of environmental issues because the tearing down and building that has been going on in the rainforest. The deforestation has had an effect on the environment because of the plant and animal species that are becoming endangered. It also has an effect on the water and air quality in surrounding cities because of pollution. Brazil has a military but it is not used very often because the country does not have any enemies or threats to be concerned with. The country has a stable democratic political system, and has no cultural or ethnic conflicts. Political leaders like Lula De Silva implemented an economic plan and social reforms that helped them rank high on the UN Human Development Index. Brazil has the 10th largest economy on a global scale and has been effective in debt management, balancing trade, inflation control, and the country has also always kept their currency stable and has been consistent on the exporting of goods. Over the years Brazil has been able to avoid a U.S. like recession (?). Though some cities in Brazil like, Rio de Janeiro have a higher crime rate than other cities in Brazil it is still seen as a peaceful place. Some believe the reason for some crime is the 15% poverty rate. Political leaders are working to increase the employment rate and improve conditions in the poorer areas of Brazil.
Organization and Product Analysis
Team B winery was incorporated in Florida in January of 2005 with the idea to create high-end wines for the most particular wine enthusiast. The winery was formed by four friends out of necessity because the selection of fine wines at a fair price is scarce. The winery covers a total of six acres with four acres devoted to making grapes for Cabernet Sauvignon, and the remainder is used to make Merlot. Originally the group made wine as a hobby for personal consumption for themselves and their friends. It became popular among family and friends so they decided to pursue a business. Then in 2005 the company produced 85 cases of wine with 12 bottles per case at a retail price of $40 US per bottle. Since then the production numbers have been 250 cases per year consistently with the ability to make 500 cases if there was a demand. To create demand Team B decided to pursue sales in Brazil where the wine industry in comparison to the rest of the world is still in its infancy.
There is a big wine market in Brazilian weddings. The people of Brazil have extravagant weddings with gourmet wine, food and live music. The weddings themselves are an extravaganza that consists of a wedding party and a separate ceremony that both involve wine. Team B Winery wants to position themselves (itself) to gain a market share of the wine sales. Weddings are not the only festivities the people of Brazil celebrate with the accompaniment of wine. Brazilians enjoy celebrating every milestone in life not just weddings such as births, anniversaries, birthdays, holidays, deaths, and of course Carnival. Family time and celebrations consist of dancing, dressing up, enjoying a delicious meal with a bottle of wine. The consumption of wine is a ritual that is part of every aspect of Brazilian life. There are many holidays in which Brazilians celebrate, but one of the best known across the globe is Carnival, which lasts five days. Each day is spent dancing, conga music, and drinking high-end luxurious wine.
The food staples of Brazil are sausage, pig’s feet, ears and tails, beef and black beans. The winery will offer the 2007 Merlot to pair with the meats. The Merlot is Black Ripe Raspberry wine that boasts a small taste of spice to bring out the taste in the meat. If a more mellow wine is desired the 2008 White Zinfandel pairs well with the meat.
The first step in expansion into Brazil is hiring locals to manage and work the new bottling plant. To help with shipping costs and to keep quality high, the wine will be shipped in oak barrels from the U.S. winery and bottled in Brazil.
After analyzing both the region of South America and the country of Brazil itself, entry into the international wine industry will undoubtedly be difficult (why?). If successful, our global business venture has the potential to not only bring a greater awareness to the unfamiliar world of Brazilian wine (why would exporting US wine to Brazil increase the awareness of Brazilian wine?) but also to launch our wine company into the market of international wine producers.
References
Ball, J.
(2009). Investing in Brazil. Retrieved from http://www.investmentinternational.com/magazine/alternative-investments/investing-in-brazil-3057.html
Brazil. (2010) http://trade.gov/promotingtrade/westhemprosperity/brazil.pdf Retrieved February 16, 2013
Central Intelligence Agency. (2010) The World Fact Book. Retrieved from: https://www.cia.gov/library/publications/the-world-factbook/geos/br.html
Cultural Considerations for Families. (2010). Cultural Considerations for Families. Relocated Magazine. Retrieved February 16, 2013, from http://www.relocatemagazine.com/international-destinations/brazil-a-latin-america/504- cultural-considerations-for-families
Culture of Brazil. (2010). Countries and Their Cultures. Social, Health, and Environment. Every Culture. Retrieved February 16, 2013, from http://www.everyculture.com/Bo-Co/Brazil.html
Heritage. 2013. Retrieved from: http://www.heritage.org/index/country/brazil
Internationalsos. 2013. Retrieved from: http://www.internationalsos.com/demo/traveladvisory/traveladvisory_new.cfm
Washington Times. 2008. Retrieved from: http://www.washingtontimes.com/news/2008/jun/5/brazil-proposes-alliance-of-latin-american-nations/?page=all
Wikipedia. 2013. Retrieved from:
http://en.wikipedia.org/wiki/Mercosur
Team B
MGT/448
February 18, 2013
The Brazilian Wine Industry
The wine industry is a very competitive market that relies heavily on brand lineage, country and region the grapes used to make the wine originated from, or the uniqueness of the wine. In comparison to the major wine producing countries such as France, United States, and Italy; Brazil is relatively new to the international wine industry. The country of Brazil has been producing wine for hundreds of years but has not made an appearance in the global industry until recently. The purpose of this comprehensive analysis is to discuss the region and country of Brazil along with our proposed global business venture in the country.
Regional …show more content…
Analysis
Brazil has worldwide allies but is recognized as one of the few nations in the world that does not currently have a regional alliance (but as you point out the country is amember of MERCOSUR). However, (former) Brazilian President Luiz da Silva in 2008 has looked to change that with his proposal of a full region alliance of all of South America, called the Latin Alliance (Washington Times, 2008).
Currently Brazil operates under the Mercosur, a form of economic integration that promotes trade, especially free trade, such as the exchange of goods, services and currency among its members. The members include Argentina, Paraguay, Uruguay, Venezuela, and Bolivia (Wikipedia, 2013).
The Brazilian physical environment is lush with vegetation, color, territory, natural resources, and available aquatic resources. All environments which positively facilitate trade potential for Brazil and the Region as a whole. South America is regarded a place where political instability holds true for most of the nations within the region, Brazil included (Heritage, 2013). As a result of the political instability economic conditions have also resulted in fluctuation in success, where financing and other financial relief can be hard to come by or even relyed upon in general for the region. However, the social conditions have looked up in the region for some nations as some nations have seen reductions in corruption with the increase in commerce, health care, and environmental acknowledgment (Heritage, 2013). Terrorism is not considered a factor (Internationalsos, 2013). You should update your understanding of Brazilian politics and the country’s global image. Project finance has not been a recent problem.)
Country Analysis
Brazil is one of the largest countries on the continent of South America. Over the years Brazil has had growth in the oil, natural gas, and electricity markets. The country is also one of the largest consumers of energy in South America. Brazil is most popularly known for having largest rainforest out of all of the destinations on the globe. Because of all of the plant life that belongs to the rain forest, Brazil produces the most Carbon Dioxide (?). Brazil has been having a large amount of environmental issues because the tearing down and building that has been going on in the rainforest. The deforestation has had an effect on the environment because of the plant and animal species that are becoming endangered. It also has an effect on the water and air quality in surrounding cities because of pollution. Brazil has a military but it is not used very often because the country does not have any enemies or threats to be concerned with. The country has a stable democratic political system, and has no cultural or ethnic conflicts. Political leaders like Lula De Silva implemented an economic plan and social reforms that helped them rank high on the UN Human Development Index. Brazil has the 10th largest economy on a global scale and has been effective in debt management, balancing trade, inflation control, and the country has also always kept their currency stable and has been consistent on the exporting of goods. Over the years Brazil has been able to avoid a U.S. like recession (?). Though some cities in Brazil like, Rio de Janeiro have a higher crime rate than other cities in Brazil it is still seen as a peaceful place. Some believe the reason for some crime is the 15% poverty rate. Political leaders are working to increase the employment rate and improve conditions in the poorer areas of Brazil.
Organization and Product Analysis
Team B winery was incorporated in Florida in January of 2005 with the idea to create high-end wines for the most particular wine enthusiast. The winery was formed by four friends out of necessity because the selection of fine wines at a fair price is scarce. The winery covers a total of six acres with four acres devoted to making grapes for Cabernet Sauvignon, and the remainder is used to make Merlot. Originally the group made wine as a hobby for personal consumption for themselves and their friends. It became popular among family and friends so they decided to pursue a business. Then in 2005 the company produced 85 cases of wine with 12 bottles per case at a retail price of $40 US per bottle. Since then the production numbers have been 250 cases per year consistently with the ability to make 500 cases if there was a demand. To create demand Team B decided to pursue sales in Brazil where the wine industry in comparison to the rest of the world is still in its infancy.
There is a big wine market in Brazilian weddings. The people of Brazil have extravagant weddings with gourmet wine, food and live music. The weddings themselves are an extravaganza that consists of a wedding party and a separate ceremony that both involve wine. Team B Winery wants to position themselves (itself) to gain a market share of the wine sales. Weddings are not the only festivities the people of Brazil celebrate with the accompaniment of wine. Brazilians enjoy celebrating every milestone in life not just weddings such as births, anniversaries, birthdays, holidays, deaths, and of course Carnival. Family time and celebrations consist of dancing, dressing up, enjoying a delicious meal with a bottle of wine. The consumption of wine is a ritual that is part of every aspect of Brazilian life. There are many holidays in which Brazilians celebrate, but one of the best known across the globe is Carnival, which lasts five days. Each day is spent dancing, conga music, and drinking high-end luxurious wine.
The food staples of Brazil are sausage, pig’s feet, ears and tails, beef and black beans. The winery will offer the 2007 Merlot to pair with the meats. The Merlot is Black Ripe Raspberry wine that boasts a small taste of spice to bring out the taste in the meat. If a more mellow wine is desired the 2008 White Zinfandel pairs well with the meat.
The first step in expansion into Brazil is hiring locals to manage and work the new bottling plant. To help with shipping costs and to keep quality high, the wine will be shipped in oak barrels from the U.S. winery and bottled in Brazil.
After analyzing both the region of South America and the country of Brazil itself, entry into the international wine industry will undoubtedly be difficult (why?). If successful, our global business venture has the potential to not only bring a greater awareness to the unfamiliar world of Brazilian wine (why would exporting US wine to Brazil increase the awareness of Brazilian wine?) but also to launch our wine company into the market of international wine producers.
References
Ball, J.
(2009). Investing in Brazil. Retrieved from http://www.investmentinternational.com/magazine/alternative-investments/investing-in-brazil-3057.html
Brazil. (2010) http://trade.gov/promotingtrade/westhemprosperity/brazil.pdf Retrieved February 16, 2013
Central Intelligence Agency. (2010) The World Fact Book. Retrieved from: https://www.cia.gov/library/publications/the-world-factbook/geos/br.html
Cultural Considerations for Families. (2010). Cultural Considerations for Families. Relocated Magazine. Retrieved February 16, 2013, from http://www.relocatemagazine.com/international-destinations/brazil-a-latin-america/504- cultural-considerations-for-families
Culture of Brazil. (2010). Countries and Their Cultures. Social, Health, and Environment. Every Culture. Retrieved February 16, 2013, from http://www.everyculture.com/Bo-Co/Brazil.html
Heritage. 2013. Retrieved from: http://www.heritage.org/index/country/brazil
Internationalsos. 2013. Retrieved from: http://www.internationalsos.com/demo/traveladvisory/traveladvisory_new.cfm
Washington Times. 2008. Retrieved from: http://www.washingtontimes.com/news/2008/jun/5/brazil-proposes-alliance-of-latin-american-nations/?page=all
Wikipedia. 2013. Retrieved from:
http://en.wikipedia.org/wiki/Mercosur