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case study ( mgt325) assinment1 – 20210628e
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. Students must mention question number clearly in their answer. Late submission will NOT be accepted. Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). ● Submissions without this cover page will NOT be accepted. Note: It is mandatory to support each answer with at least two scholarly, peer-reviewed journal.
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- 1. Justin Newberry MGT 328 Professor Flores Case Study 5: Market Entry Brazil & Yamato Corporation How to Do Business in Brazil First of all for Yamato Corporation, they must consider that business in Brazil is highly based on personal relationships and connections. In many cases in forming new contacts in the United States you might be able to walk up to a new business, introduce yourself and the corporation you represent, and negotiate a new business relationship. For example, imagine that Yamato wanted to establish a new client and sell some electronic scales to a new buyer in the United States. In order for this to happen, either Yamato or the buyer would typically approach the other directly without having previously known one another. Furthermore, since it is a domestic deal (which naturally will reduce the perceived risk on behalf of both parties) and the business culture is less hung up on developing and maintaining personal relationships, both parties will most likely be willing to go forth in the deal, perhaps getting caught up only on financial intricacies. In Brazil, however, strong emphasis and preference is placed on deals that promote strong personal relationships and connections. It is strongly recommended in order to facilitate international deals in Brazil, Yamato contact an intermediary (an agent) to contact the hopeful business partner and also travel down to Brazil and spend time developing and personally maintaining relationships and even friendships with these proposed business partners. Furthermore, it is recommended that they consider, at least to begin, a local partner to fulfill a substantial role in the deal or future business proposition in the form of a local office (Foreign Direct Investment [FDI]) or a joint venture. Upon demonstrating a high level of interest in involving local partners, culture, and opinion, Yamato will realize significant returns in the bottom
- 2. line. Furthermore, it is of utter importance that Yamato develop and maintain these relationships through one-on-one meetings face to face in Brazil. Although it is tempting and undoubtedly cheaper to take advantage of modern technology to facilitate deals and relationships and quite common to employ in the United States, Brazilians will appreciate and enjoy a face-to-face personal encounter to facilitate deals and develop a friendship with the company. Moreover with these personal contacts and partners in Brazil, Yamato will have the essential resources it needs in order to facilitate deals and work out difficulties with tariffs and import restrictions upon dealing with the Brazilian government, as the Brazilian government will look favorably upon the involvement of the local partner. Technical Requirements to Import Scales in Brazil Upon entering Brazil with their product, they will have to go through a series of technical inspections to verify conformance to standards in quality and safety necessary for the Brazilian economy to thrive. The government department that deals with this is called Inmetro (the National Institute of Metrology, Nominalization and Industrial Quality). All standards and specifications that must be met are set and maintained by Inmetro and upon entering Brazil with their electronic meat scales, Yamato must have one of Inmetro’s authorized delegates thoroughly inspect the scales. The inspection consists of the approval of the compliance model, visual examination, tests for measurement, flagging of check marks and seals, and a certificate of examination upon approval or disapproval. Main Competitors and Local Weight Scale Manufacturers There are various international competitors in the weight scale industry. One major company that Yamato Corporation has to worry about is Aviar, Incorporated. Aviar is from the United States and is well known for manufacturing traffic control equipment and scales used in
- 3. truck weighing facilities. Out of India, Transweigh Limited produces weighing controls, weighing conveyors, and weight measuring equipment. Also out of India and a much larger scale company, Citizen Scales manufactures electronic scales, medical scales and various other types of scales and balances for export worldwide. Scaletech Corporation out of the United States, manufactures various types of electronic scales and measuring devices, and is looking to begin exporting. A final and very significant competitor that Yamato should be aware of is A-1 Scale Service out of the United States. A-1 Scale Service specifically manufactures meat scales and subsequently would seem to be a significant competitor upon entering the Brazilian market. There doesn’t seem to be significant Brazilian presence in the manufacturing of commercial and industrial electronic scales, so entry into the Brazilian market seems that it will be generally accepted to meet demand in the country. Most Important Regions in Brazil’s Beef and Poultry Industry Brazil has one of the most important beef industries in the world, and their poultry industry is also rapidly on the rise. The cattle industry is heavily predominant in the central states of Mato Grosso, Mato Grosso do Sul, Goiás, and Minas. The poultry industry in Brazil is predominantly concentrated in the southern regions. Main Beef and Poultry Fairs for 2009 One of the best ways for Yamato to enter into the Brazilian market is by attending a trade show and getting their digital scales exposed to potential buyers. Some of the most promising trade fairs that could potentially pay off huge for Yamato in 2009 are as follows: Bahia Farm Show (Agricultural technology and business) – June 2-6, Feicorte (Meat production chain and exhibition of cattle breeds) – June 16-20, Expoagro (Agricultural exhibition in Mato Grosso [a big
- 4. cattle state]) – July 2-12, Ave Expo 2009 (International Poultry exhibition) – August 19-21, Technocarne (Technology and the processing of meat) – August 25-27. Import Requirements and Duties To import into Brazil, Yamato will have to pay an Industrial Product Tax between 5 and 15 percent. They will also have to pay a miscellaneous tax of 1 percent. Additionally they will also have to pay a Social Security tax of approximately 10 percent. In summary, therefore, Yamato will be looking at paying import duties of around 16 and 26 percent value of the scales they import. Conclusions on Market Entry Strategy After my market research, I have concluded that the best entry strategy into Brazil for Yamato Corporation is by setting up operations in Brazil (Foreign Direct Investment). There are many benefits in this situation for Yamato to establish operations in Brazil, the first of which include cultural and language benefits if Yamato decides to hire with a polycentric (hiring locals for local positions and keeping key higher positions in parent country staffed by parent country nationals) or geocentric approach (finding the best people to staff the right jobs and strategically placing them around the world in the organization). This is beneficial because the firm will not suffer from cultural myopia (when a business does not understand the scope of the cultural environment to which they are marketing their product). Although a fully geocentric approach may not be feasible due to immigration restrictions in the countries Yamato operates, opening operations in Brazil and hiring locals will give Yamato the tools and cultural knowledge it needs to avoid cultural myopia and better serve and understand the Brazilian market’s needs. Furthermore with local operations in Brazil, the local and federal governments will be much more welcoming since Yamato will create jobs for Brazilians. Usually governments will offer tax breaks to attract
- 5. such companies to do so in their borders, so it would be beneficial for Yamato to look into the tax and other benefits the government is willing to offer them for investing in Brazil. Moreover, without having to export into Brazil, Yamato will not have to face duties of up to 26% that they would have had to if they had chosen to export to Brazil. Being ISO 9002 and ISO 9001 2000 at the production facility in Akashi, Japan will mean that Yamato has substantial quality standards and if transferred and implemented correctly in Brazil as well, Yamato will not have much to worry about in terms of meeting the technical and quality requirements of Inmetro in Brazil. In order for this to happen, however, upon setting up operations in Brazil Yamato must apply some turn-key concepts and transfer some supervising personnel from the Akashi plant to the new plant in Brazil to educate the new workforce on the quality practices employed by Yamato. With all these strategy factors considered, Yamato should be able to successfully and profitably enter the Brazilian market as well as compete effectively against all other competitors in this market.
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Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.Students must mention question number
Reflecting on the case study, Godrej and the team experienced certain pros and cons to developing the Chotukool for India's rural poor
Using Times New Roman (size 12, double-spaced) font. Using APA style reference. Question (1) 750 words
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.Students must mention question number
Requirements: 1 | .doc file We are committed to performing high quality custom writing at prices that any student can afford
Justin Newberry MGT 328 Professor Flores Case Study 5: Market Entry Brazil & Yamato Corporation How to Do Business in Brazil First of all for Yamato Corporation, they must consider that business in Brazil is
Get Your Custom Essay on MGT 325 SEU Case Study Just from $13/Page Order Now Case StudyWeight:5marks undefinedStudents are supposed to read the Opening Case of Chapter-3 ‘Innovation in India: The Chotukool Project' (Page Number-43) of their […]