Brazil

The Amazon Rainforest, A huge tropical rainforest if not, the largest rainforest, occupies with the drainage of the “Amazonia” or the amazon river. It is located in the Southern America. It compromises around 40 percent of the whole Brazil’s area. It is limited by the Guiana Highlands toward the north, the Andes Mountains toward the west, the Brazilian central plateau toward the south, and the Atlantic Ocean toward the east.

Here is a summary of what consists of in the Amazon Rainforest, why is it so important to keep it safe and growing. Amazonia is the biggest river basin on the plane. The Rainforest extends from a 200 mile long front along to Atlantic to a belt 1,200 miles wide where the marshes meet the Andean lower regions. The enormous degree and extraordinary coherence of this rainforest is an impression of the high precipitation, high stickiness, and drearily high temperatures that prevail in the place.

The Amazon Rainforest is the world’s most extravagant and most-shifted organic repository, containing a few million types of plants, insects, flying creatures, and different types of life, many are still unrecorded by science. The rich vegetation incorporates a wide assortment of trees, including numerous types of myrtle, shrub, palm, and acacia, just as brazil nut, rosewood, and elastic tree. Brilliant timber is outfitted by the mahogany and the Amazonian cedar.Significant natural life incorporates red deer, capybara, puma, manatee, ungulate and numerous different kinds of rodents, and a few sorts of monkeys.

This beautiful place, the Amazon, full of amazing creatures, plants and etc. is still burning (as of September 5, 2019). It all started in August, about 66,000 flames attacked the Amazon rainforest, a lot of it the consequence of man-made deforestation. After at first dismissing millions foreign attention, President of Brazil, Jair Bolsonaro, recently prohibited the use of flames to clear the region, also those in the rainforest, for 60 consecutive days.

For me, in my opinion, I think it is very sad to see that the President of Brazil, Jai Bolsonaro, has to get the world’s attention to stop the burning of the Amazon Rainforest. It became the tipping point. He had to make a decision to whether stop the fire or continue burning the Amazon. The President’s decision is late. It will take a lot of time to restore the burned plants, trees, habitat. Sad thing is, the animals that have died by burning cannot be returned.

If I was the President of Brazil, I wouldn’t even hesitate to stop the burning of Amazon. I should know the importance of this place and Jair Bolsonaro made the decision after the whole world knew that Amazon was burning. But Jair Bolsonaro’s decision making is not the only problem. The fire did not start “naturally” according to scientist that studied the event. They accuse of Jair Bolsonaro for starting it but he says that the reason there was a fire because it’s the time of the year where farmers clear for their land.

Some say that Bolsonaro and his minister for the environment as been dismantling or destroying the environment. Statistics made by the environmentalist shows that since the past 6 to 12 months. The deforestation rate increased up to 88%. It increased so high that if it continues for a year or more, I believe that Brazil would have problems about the environment. Many countries have started funding projects to stop deforestation in the country Brazil.

Brazil is the largest of the Latin American countries, located in the South American continent. Brazil’s unequal development has given rise to two areas of spatial inequality. These are called the Core and the Periphery.

The core is a relatively wealthy area, and is seen as the industrial hub of economics and industry. The Periphery however is less economically developed, and is characterised by a declining or stagnant economy. This prominent division has been caused by many reasons. The Core’s success has resulted in it overheating, and outward migration has resulted in the periphery’s problems getting worse. Government Strategies were then designed to improve the spread of development across Brazil. John Friedmann’s model, shown above, shows us how Brazil has developed and its inequalities.

The Core is in the South East of Brazil and is an area of industry, with high levels of technology, capital and investment. Unlike the North the South is fortunate to have a warm, temperate climate with a distinct cooler season along the coast. Development is easier in these Southern conditions, compared to the difficult climates of areas such as Sertio, in the North, where there are frequent droughts. Also the Core’s location is beneficial too, being near the coast; large ports are possible and ports such as Santos in Sao Paulo are very important for importing and exporting for Brazil.

These ports are built close to mineral resources and industry, for products to be exported. The core is home to huge reserves of iron and sizeable reserves of gold and gemstones, including emerald, topaz and aquamarine. These are mainly found in Minas Gerais, and rich minerals such as these are very beneficial to an area and they bring great revenue. Sao Paulo, Belo Horizonte and Rio de Janeiro are three cities that make up Brazil’s industrial triangle, which is the centre of its industry. Sao Paulo is home to approximately one-third of the Brazilian GDP, with its economy based on machinery and automobile industry.

Rio de Janeiro had the second largest economy after Sao Paulo and is home to the country’s largest bank – Banco de Brazil. Belo Horizonte has become an international reference in information technology and Biotechnology. The Core has a good infrastructure, with efficient roads and railways that attract development. There is a large market for consumer goods and services, with a thriving work force, created by the large population. The South East of Brazil was the centre of trade in the country’s colonial history too. Brazil was a Portuguese colony for over 300 years and the Portuguese exploited the land and exported minerals to Europe.

The Southeast of the country was their centre of trade, so ports began to grow to export raw materials e. g. Santos and Rio de Janeiro. This was the start of the core’s advanced development that left the peripheral areas behind in development. Foreign investment has accelerated the Core’s development, with Germany as an example. Germany has invested $10 billion in Brazil, as 15% of its total foreign investment. There are now 1,024 German companies present in Brazil. Now German executives are being replaced by Brazilians to take over and run the companies.

This will benefit the country even further, as its people become wealthier. As well as Germany, the united States have invested too, and Sao Paulo is considered to headquarter more American Companies than any other city outside of the U. S. The Car Industry has been a catalyst for development. With Ford, General Motors and VW in Brazil, hundreds of component suppliers have been attracted. Near to VW’s plant for bus and trucks, is Volta Redonda, Brazil’s main steel industry. This thrives from the car industry in Brazil and brings 1800 more jobs and $250 million of investment to Brazil.

The Periphery is quiet different, located in the Centre West of Brazil. The Peripheral areas often suffer from declining industries, creating a negative image, which is unfavourable to new development in relation to the core. Low productivity and reduced demand for minerals has left the periphery less favourable in comparison with the core. Young and ambitious workers often leave the periphery to move the core, where there are greater job opportunities. This adds to the problems that the periphery faces, with a reduced work force and an aging population. The North has never been prosperous and has always been thinly populated.

The development of Brazil’s peripheral region has been stunted by its many problems. Environmentally, the peripheral areas in the North- East suffer epic droughts. This area is struck by mild droughts every 3years and a severe one every 12. Any remaining water is unsafe to drink and cholera strikes in epidemics. The temperatures through the dry season can reach 42C and the temperatures and dry conditions make development very difficult and slow. The land available for growing crops is scarce and the soil is generally poor, thus meaning farmers that are dependant on one crop can’t grow it, are struggle for food for their livestock.

The people often have no or little education and can only get jobs in unskilled sectors and industry is mainly in agriculture. Most people are dependant on cottage industries and specific crops. The Northeast is the poorest region of Brazil, with the worst HDI rates of the country, mainly in the rural areas, which suffer from long periods without rain. This is somewhat ironic since the Northeast, during Brazil’s colonial era when sugar production was higher, was the most prosperous region in all of South America.

Health care is very bad, malnutrition is common in people living in these areas and child labor is a concern, as is child prostitution in major cities. Prostitution in the major cities has become an enormous problem, caused largely by the low Brazilian minimum wage as well as sexual tourism. In contrast to the situation occurring in the other Brazilian regions where social problems are worse in bigger cities, social problems in the Northeast regions are worse in the rural and small communities of the interior, lessening in bigger cities near the coast.

With a lack of mineral resources and a poor infrastructure the Northeast of Brazil’s development was very slow, especially with little energy resource to aid it. The quality of life in the Peripheral areas was low and the higher wages in the core appear much more favourable. The Core has its Problems too, overcrowding of people and competition for business, resulted in the core overheating. People move to the Southeast to improve their quality of life. However so many people now live and work in the big cities of the core that this begins to create its own problems.

Since not enough housing can be provided for all these people or indeed afforded, people make their homes on unreclaimed public land. This resulted in a high occurrence of Shanty Towns or Favelas. These areas of irregular and poor quality housing are often crowded onto hillsides. Landslides in such areas, caused primarily by heavy rainfall but worsened by deforestation, are frequent. In recent decades, favelas have been troubled by drug-related crime and gang warfare. There are rumors that common social codes in favelas forbid residents from engaging in criminal activity while inside their own favela.

Favelas are often considered a disgrace and an eyesore for local people within Brazil. The overcrowding caused by in-migration in the cities results in congestion and air pollution. This is worsened by the industrial pollution from manufacturing companies and from petrochemicals. Competition from other companies has resulted in closures of existing ones, meaning jobs are lost. Also wage rate were seen to be lower elsewhere so some businesses have chosen to move, to pay lower rates. The port of Santos had noticeably higher holding charges than other major ports; commerce was lost here as companies left.

Under Unemployment is an issue in Brazil, this is where people hold jobs that don’t contribute to the country’s productivity. These are jobs in the informal sector such as, camelos, street vendors and prostitution. The minimum Monthly wage is R$200, although about 30million people in Brazil are not even making that much. The Brazilian government designed strategies to spread development across Brazil, with the Amazon region and the Northeast as the main problem areas. To begin the alterations a nationwide transport network was built, this included the Amazonian Highway.

This re-encouraged mining and other economic activities to develop in the Amazon region. Two main approaches were used to tackle regional differences. These were the top-down and the bottom-up approaches. The top down approach is central around the government’s decisions and doesn’t really involve the people. Governments often concentrate their development resources in Growth poles, such as Brasilia and Recife, with the hope that economic growth will take place and spread to surrounding areas.

Also growth corridors are often designated, that are designed to encourage industrial investment. These are often positioned along major roads that connect major urban areas and provide good access. In the Northeast there has now been heavy investment from new industries using power from the Sao Francisco River and the capital city was moved from Rio de Janeiro to a new city Brasilia. These are Top-down approaches, where government decisions try to overcome the disparity between the rich and the poor.

Bottom-up approaches are centered on the people, helping them to help themselves. Local communities are consulted about the best ways to improve their quality of life, and they together plan the best methods. The government offered incentives to encourage businesses like Grendene to move away from the core. In this case the shoe company Grendene, worth $100billion, moved to the North East. The Capital of Brazil used to be Rio de Janeiro but in 1960 the Brazilian government decided to build a new capital inland, Brasilia, in an effort to develop the interior of Brazil.

Brasilia acted like a magnet and changed migration patterns, and encouraged economic development in different areas. Many specific strategies were also implemented. Two regional development agencies were set up in 1959 called SUDENE and SUDAM, and they were responsible for managing the economic and social development of the country. SUDENE in the Northeast and SUDAM in the North; organized programmes such as; road building, the installation of power stations, building schools and developing ports. The work of SUDENE linked with the Northeastern pact of 1996 many improvements were made.

The infrastructure in terms of irrigation, energy supply, transport and communications were improved. Canals were formed to link up rivers, dams were built and the drinking water was improved. Also efforts were made to modernise agriculture, to promote subsistence farming and cottage industry, to avoid the worst effects of droughts. Beer brewing plants were moved from Rio de Janeiro to Cearo, the Antarctica and Kaiser breweries created new jobs and revenue. This followed other industries moving to the northeast to lower labour costs and tax breaks.

Also the state Maranhao has begun to attract companies from Taiwan, with and expected benefit of $1 billion. This move is to find cheaper labour and the abundance of raw materials in the area. Brazil now has a good tourism industry set up, with visitors coming to the beautiful locations along the north east coasts especially. Although progress has certainly been made, the regional programmes have not lived up to their entire expectations. Sustainable growth wasn’t always considered and tax incentives made quick short term solutions.

Further development in the Northern areas of Brazil has meant huge areas of forest land have been cleared under the grounds of land improvement, but deforestation is posing a larger threat. Global climate change has resulted in stricter rules, which could hinder their progress. The increasing debt of the country has meant that there is less and less capital available for investment. The gap between the core and the peripheral regions in Brazil has certain closed a little but there is certainly more to be done.

The economy of Brazil is the tenth largest economy in the world in terms of gross domestic product. This populous country is also considered to have the largest economy in Latin America. Brazil’s economy is characterized as export-oriented and has a free market because of its expansive and well-developed agricultural, mining, manufacturing, and service sectors (“CIA World Fact Book,” 2008). In 1999, Brazil had an economic crisis that led to the devaluation of the real. But with austerity measures implemented by the government, the country was able to keep the inflation target and minimize overwhelming national debt (“Brazil’s Economy,” 2008).

Having overcome the 2001-2003 financial turmoil, capital inflows have regained its strength and the currency appreciated. The appreciation has slowed export volume growth, but since 2004, Brazil’s growth has yielded increases in employment and real wages. This was made possible by Luiz Inacio Lula da Silva’s regime to promote market growth and economic reforms. The resilience of Brazil’s economy is derived from the three pillars of economic program namely: floating exchange rate, an inflation-targeting regime, and a tight fiscal policy. (“CIA World Fact Book,” 2008).

Moreover, Economists predict that Brazil’s economy will grow by an annual average of 4. 1% in 2008-12, slightly below the average of 4. 4% for 2004-07. Domestic demand will make a much stronger contribution amid continuing real income gains and deepening domestic financial markets. Capital inflows will remain firm and the exchange rate will depreciate only modestly in 2008-12. The trade surplus will depreciate as domestic demand growth draws in imports, and the current-account is expected to record a small deficit in 2009-10 (Economic Intelligence Unit, 2008).

The economy of Brazil seems stable and looks like it will have a productive year despite its history on fiscal profligacy. Both the government and civil society are making a difference in the economy by addressing key issues on labor conditions, land, forest and biodiversity, consumer rights, transparency and accountability (“Brazil: Country of Inequalities and Diversities,” n. d. ). Also, investors and merchants would be enticed to Brazil’s immense natural and human resources which are integral parts of any form of business.

More so, Brazil’s recovery from its economic crisis and the improvement of its economic status signifies that they can be power players in the world market. Cost of Transporting Materials and Goods Brazil can be access by land, water or air. Land transportation has become more effective wherein 85% of Brazilians and their products are transported by road. The highways have modern design and link all the state capitals by paved roads. The Brazilian government is continuously employing ways on how to improve the roads because majority of the populace depend on it for their daily transactions.

This development of the highways illustrates the progress that has occurred over the last three decades. In terms of railway systems, efforts are intensified to connect the inland regions to coastal areas and even to Brazil’s neighboring countries such as Argentina, Uruguay, and Paraguay. In addition, air and sea ports have also improved the links between the urban area to the rural area (Spagnola, 2001). Transportation of materials and products in Brazil would be problem free since all means are available in this country.

Every part of Brazil is connected with itself and the whole world making business transactions easier and faster. Country Image Brazil is widely-known as South America’s giant. A land endowed with pristine beaches, virgin forests and manic metropolises that are inhabited by a multicultural society. Music and dancing are also integral parts of the country that attract foreigners to experience their cultural festivities in which led to the tourism boom. However, the wide gap of the rich and the poor and the harsh social conditions in urban cities are also known characteristics of Brazil (“Brazil: Overview,” 2007).

This country seems to have two opposing qualities. While it is a land of staggering beauty, it is also tainted with poverty and grief. It is a place where modern industry and commerce has prospered alongside prejudice, poverty and injustice (“Brazil: Country of Inequalities and Diversities,” n. d. ). In comparison with China and India who are considered as emerging giants, Brazil is significantly smaller in the size of both its population and its economy. However, the country is influential—“punching above its weight”—in international affairs.

Brazil has a lot of things to offer to the world, ranging from innovative social models like participatory democracy and the World Social Forum, to leadership on trade reform, and the rich diversity of its people and environment. Meanwhile, the principal issue of inequality will continue to affect the country’s social, political, economic and environmental progress. Solving the centuries-old divide in income, power and assets between the upper class and the masses will require serious and persistent efforts on the part of government, civil society and businessmen (“Brazil: Country of Inequalities and Diversities,” n. d. ).

Though the image of Brazil is seen in two different lights, it has still managed to showcase a unified country where investors, diplomats, scholars, and tourists can experience its social cultural and ecological biodiversity. Many facets of Brazil as a nation such as the economy, tourism, culture and political affairs were boosted because of these public perceptions. In conclusion, Brazil in terms of image have openly embraced both its good and bad side that generated a positive international country image. References

Brazil: country of inequalities and diversities. (n. d. ). SustainAbility. Retrieved February 14, 2008, from http://www. sustainability. com/sa-services/emerging_article. asp? id=420 Brazil’s economy. (2008, February 13). The Economist. Retrieved February 13, 2008, from http://www. economist. com/research/backgrounders/displayBackgrounder. cfm? bg=616685 Brazil: overview. (2007). Lonely Planet World Guide. Retrieved February 13, 2008, from http://www. lonelyplanet. com/worldguide/brazil/ Central Intelligence Agency. (2008, February 12).

Brazil. The World Fact Book. Retrieved February 13, 2008, from https://www. cia. gov/library/publications/the-world-factbook/geos/br. html#Econ Economist Intelligence Unit. (2008, January 24). Brazil Economic Data. The Economist. Retrieved from February 13, 2008, from http://www. economist. com/countries/Brazil/profile. cfm? folder=Profile%2DEconomic %20Data Spagnola, M. (2001, April). Transportation. Brazil – A Cultural Treasure Chest. Retrieved February 13, 2008, from http://www. fmpsd. ab. ca/schools/df/Brazil/mtransportation. htm

Executive Summary

This paper analyzes the market situation of the major U. S. fast-food firms in Latin America in 2004 from the perspective of the KFC Corporation. By analyzing political, economic, cultural, logistical, and competitive forces, a potential strategy for KFC to successfully establish a strong position in Central and South America is proposed. Through a thorough analysis, it was determined that KFC should establish wholly-owned subsidiaries in Mexico and Brazil to manage operations in Central and South America, respectively.

After a strong position is established in these countries, KFC should then open franchises in Central America, Argentina, Colombia, Venezuela, and Chile.

Expanding into Latin America

From 1993 to 2002, KFC dominated the chicken segment of the U. S. fast-food market. Their market share, however, decreased by 13. 4% over that 10 year period. As the fast-food market matured, firms began to focus on globalization to continue growth. By early 2004, 56% of KFC’s restaurants were outside of the U. S.

Their initial focus was on Mexico, Puerto Rico, and the Caribbean, where they established dominance among competitors. Their struggle was in expanding beyond those markets. In their attempt to expand into Central and South America, KFC was met with many challenges. Many Latin American markets had not adopted the fast-food concept and preferred a more leisurely dining experience. The intense competition with major U. S. fast-food chains made it very risky to enter a new market. The geographic distance from the corporate offices made it difficult to control standards and quality.

To continue growth, KFC would have to develop a strategy to overcome these obstacles and expand into these markets.

Strengthening position in Central America

KFC initially expanded into Mexico, Puerto Rico, and the Caribbean due to geographic proximity and existing political and economic ties to the U. S. They were able to establish dominance in these markets because they had first-mover advantage and the local cultures accepted the fast-food concept. To further expand into Central America, KFC will have to develop a strategy to leverage their strong positions in Mexico and the Caribbean.

They will have to consider factors such as the business model, global integration, national responsiveness, and mitigating risk.

Breaking into South America

KFC had attempted to enter Brazil, with limited success. Political, economic, and cultural challenges had prevented KFC from gaining a foothold, and subsequently forced them to pull out of the market. Other countries in South America had little competitive presence, but had significant barriers to entry. In addition, the farther away the countries are from the corporate offices, the more expensive and logistically difficult the operation becomes.

To enter these markets, KFC would have to carefully weigh its options to establish a presence and mitigate risk.

Analysis

Basic economic characteristics

Latin America is home to more than 550 million people. It has an aggregate GDP of more than $4 trillion.

Competition

In general, Central America and Brazil are the markets most penetrated by the large U.S. fast-food chains. McDonald’s is the dominant competitor in Latin America, with 584 stores in Brazil, 261 stores in Mexico, and 203 stores in Argentina. KFC follows with 274 stores in Mexico and 134 stores in the Caribbean. Burger King operates 163 stores in Puerto Rico and 154 stores in Mexico. For KFC, the highest levels of competitive rivalry are in Central America and Brazil.

Most of South America, with the exception of Brazil, has relatively low penetration. The threat of new entrants is high within any market, as all of the major competitors are vying for the same markets. The threat of substitute products is also generally high, since fast-food chains must compete with established local restaurants that already cater to the local tastes and customs. The bargaining power of customers is medium in more developed countries such as Brazil, Mexico, and Argentina where customers are less price sensitive.

In less developed Latin American countries, however, the bargaining power is high where most customers cannot afford high prices. The bargaining power of suppliers is medium in most countries where there aren’t a large amount of imports, but high in countries like Mexico and Brazil.

Cultures begin to change as the world becomes a global market. While they do maintain local tastes and values, people begin to separate from traditions and become more modern. As economies become more developed, people begin to adopt the on-the-go lifestyle that we are accustomed to in the U. S. As countries like the U. S. drive globalization to foreign markets, trade barriers are often removed and countries begin to adopt foreign firms.

Relative strength of firms

As previously stated, McDonald’s has the strongest position with 1,605 stores in Latin America.

KFC follows with 650 stores, followed by Burger King and Wendy’s. McDonald’s is dominant in South America, while KFC controls Central America.

Rivals’ next moves

The most significant acquisition of note is McDonald’s purchase of Boston Market in 2000. Boston Market caters to the growing trend for healthy fast-food, as well as the casual, sit-down atmosphere that is popular in Latin America. While Boston Market does not have any presence in Latin America, McDonald’s could decide to leverage existing resources to expand there.

Critical success factors

All franchise corporations are concerned with standards and consistency between units. While certain factors can differ from one region to the next, a general level of consistency is needed with regards to product quality and taste. It is critical that service and cleanliness are upheld to a high level of quality. Particularly in Latin American markets, the menus may need to be diversified and incorporate local flavors. With the great distance between Latin American markets and corporate headquarters, effectively executing logistics, distribution, and operations is critical to success.

Effectively managing resources and keeping costs low will also be critical when entering new markets. With the political and economic events that may occur, the firm must be resilient to changes in the economy and trade regulations. Firms should seek to establish relationships with local governments in order to protect their interests abroad.

• Strategic planning for foreign market entry
• Identifying company’s objective in foreign market entry

The first step in developing KFC’s Latin American strategy is to identify the objectives for entering new markets.

Some reasons to enter new markets would be to exploit an untapped market, obtain a competitive advantage, secure essential raw materials and distribution channels, and cutting costs by employing inexpensive labor. Currently, KFC has a large presence in Mexico and the Caribbean. This gives them a launching point to enter nearby markets.

This region has a considerably sized market, relatively low penetration, and proximity to KFC’s large presence in Mexico, making it ideal for entry. Brazil is the largest and most coveted market in Latin America. Unfortunately, McDonald’s has a large competitive advantage with 584 stores. KFC has failed in the past to enter this market, but the opportunity is still there. Establishing a position in this market would allow KFC to power investments in other South American markets. While they may not be able to dominate the market, it is a strategic location that would act as the locus for all South American operations.

Argentina and Chile have $445B and $161B GDP, respectively, making them large attractive markets. They also have the highest GDP per capita in Latin America. While McDonald’s has a relatively strong position in these countries, there should still be opportunity for KFC to capitalize on. Other South American countries, such as Paraguay, and Uruguay, Have little competitive presence and a relatively low GDP. These countries may not have strategic value to the company. 2. Preliminary country screening After determining the objectives for each country, an analysis of advantages and attractiveness can be performed.

To determine national competitive advantages, Porter’s diamond model is used, shown in Figure 3. Mexico, Brazil, Argentina, Colombia, and Chile stand out as the most developed Latin American countries. This indicates that advanced factor endowments such as infrastructure, skilled labor, and technology should be readily available. Demand conditions should also be most favorable in the countries with the highest GDP, as an active economy tends to increase demand for on-the-go meals. The most significant supporting industry is the poultry industry.

From the results of the analysis performed, KFC should operate company-owned units in Mexico, Puerto Rico, and the Caribbean where it already has a strong position. It should then open franchises in Central American markets to mitigate risk until a strong position can be established, at which point KFC should buy back the successful franchises. KFC should develop a wholly-owned subsidiary in Brazil and aggressively establish a strong foothold. This is not only one of the most attractive markets; it is also a critical strategic location to be the headquarters of South American operations.

Once a strong position is established in Brazil, KFC should open franchises or joint-ventures in Colombia, Argentina, Venezuela, and Chile. Given the relatively low scores, KFC should not consider expanding further into Peru, Ecuador, Paraguay, or Uruguay. Although KFC already has operations in Peru and Ecuador, they are not strategically valuable and should be closed or sold if they are not consistently profitable.

Corporate strategy

At the corporate level, KFC should focus on developing wholly-owned subsidiaries to act as the regional headquarters in Mexico and Brazil.

This would allow KFC to centralize control over standards, quality, process, and distribution within those regions. This tiered structure would lessen the burden on KFC’s U. S. corporate management and provide more specialized attention to those local markets. To offset regional events that may affect all of Latin America, KFC should also consider entering markets in Europe and Asia. If an economic catastrophe were to hit Brazil, for instance, markets in all nearby countries would be severely impacted as well. The Yum!

Corporation should also consider strategies to expand its other brands into Latin America as well to leverage KFC’s success. The multibrand strategy that has been so successful in the U. S. may prove successful in Latin America as well. 2. Business strategy At the business level, KFC should develop aggressive marketing strategies in countries where competitors have a strong presence. In Brazil, for instance, KFC will have to fiercely battle McDonald’s to gain market share. In less developed countries, KFC should enter cautiously and focus on mitigating risk.

KFC should leverage their strong global brand and target the younger generation. Through internet marketing, KFC should be able to reach the young, modern generation that has a higher acceptance for the fast-food model. KFC should implement a transnational strategy in Latin America. While quality, service, and products should remain consistent throughout Latin America, KFC should develop unique strategies for marketing, pricing, and business models in each region. KFC should launch company-owned stores in high growth markets and enter the rest with franchises or joint-ventures until a strong position is established.

In high growth markets, company-owned businesses would allow fixed costs to be spread across multiple restaurants, subsequently allowing for lower prices and increased margins. Franchising would leverage the expertise of local entrepreneurs with understanding of the local customs, language, and marketing strategies. This would help to mitigate the risk of entering unknown markets.

Functional strategy

Regional franchises should interface with the wholly-owned subsidiaries in Mexico and Brazil. These subsidiaries would control management, distribution, standards, quality assurance, and advertising for their associated franchises.

The Central and South American subsidiaries should focus on developing close ties with the governments in their regions. They should lobby to remove trade barriers between nations in order to streamline distribution. They should also focus on developing ties with the local communities in order to gain acceptance from local culture. KFC should develop specialized marketing campaigns for each region, depending on the similarities in culture. They should focus on targeting the young, career-minded demographic through internet marketing.

Depending on the lifestyle habits of those individuals, they should also target them through appropriate media advertising.

Conclusion

KFC is one of the dominant players in the global fast-food industry. They have sufficient resources to launch an aggressive strategy into Latin America. By leveraging their strong position in Mexico, KFC can successfully establish a strong position in Central America. By outsourcing management of Central American firms to a wholly-owned subsidiary in Mexico, KFC will be able to streamline operations and maintain control over franchisees.

Although it will be difficult, establishing a foothold in Brazil is KFC’s best strategic option for entering South America. By aggressively marketing the younger demographic, KFC should be able to gain a considerable market share, even though McDonald’s maintains the dominant position. Once they have been successful in Brazil and a wholly-owned subsidiary is established, KFC can then begin to expand further into South America. By implementing this general strategy and addressing the factors and risks discussed in the analysis, KFC should be able to gain substantial market share and continue to grow the firm.

Brazil is the second largest producer ot soy in the world Brazil’s soy production mirrors the US and ADM’s agribusiness production model. Genetically modified plants are used and pesticide protected. The soy industry has been profitable helping to strengthen Brazil’s economy. However, soy production in Brazil has been the source of contention from groups like Greenpeace due to the destruction of Amazon Rainforest lands to grow soy as a commodity crop. Numerous active protests by Greenpeace to draw attention to forestation losses have led to laws in Brazil directed at this problem. PPA”‘s or Permanent Preserve areas have been instituted as Sustainability Law requirements for soy farms in Brazil. Europe was Brazil’s top soy buyer until protests and attention came to the fact that the Amazon was affected by this industry. Ships carrying soy to Europe from Brazil were blockaded by Greenpeace. The European market for Brazil’s soy also hinges on the use of Monsanto’s genetically modified product. European soy consumers have banded against these products outlining their case against genetically modified soy. Their purpose is to keep Brazil’s soy products GMO free.

Increasingly, Brazilians do produce Monsanto GMO soy products and can sell this product easily to China. European response to this is to partner with farmers in Brazil, who do not produce GM products, much like fair trade organizations. Soy and Agribusiness have come under a great deal of criticism. Much of this is environmental, political, economic, and social. ADM’s founders formed the industry with seemingly good intentions. “Solving the world’s hunger” and “Supermarket to the World” are motto’s that demonstrate the intention of the corporation.

They have enjoyed a great deal of success and profitability churning out products that do, in fact, feed the world. However utilizing genetically modified plants and pesticides reduce the gamble a farmer makes; degrading the environment and employing less people to care for plants. Due to agro-industrialization “soybean production is almost entirely mechanized”. People are not employed in the task of farming but rather the science of genetic modification in the US and Brazil. ADM manages almost every part of the soy commodity chain their corporation constitutes over 70% of US soybean production.

They work with US soy farmers and are involved with Latin American soy production. They have more than two hundred sixty five processing plants for raw materials like soy. Soy is sold and shipped by ADM, but it is also processed into many component products. Novasoy, a trademarked product of ADM, is a non GM derivative. Clarisoy is a protein product also marketed to manufactures like General Mills etc… In their cosmetic marketing of soy ADM describes: “Nature provides some of the world’s best personal care ingredients.

ADM taps that potential, offering vegetable-based lipids, natural antioxidants and soy ingredients that can give your products enhanced erformance”. Scientific advancements with agricultural products like soy are American staples of industry. Genetic modification for better or worse was an early advance and became successful economically. Now the science for agricultural products is geared to sustainability issues. Industry support for education and scientific advancement led to the development of the soy crayon that is better for the environment. Soy is a more sustainable resource than petroleum.

The same can be said of soy derived fuels. This lessens the use of petroleum. Ford has a history of interest in plant derived resources for industrial products in the forties Ford built what is sometimes reterred to as a “soy car”. Soy ?ber was part ot a polymer ne developed for the body of this vehicle. It was not popular at the time, due to taxpayer dollars being invested in this type of research, and WWII insured that his agricultural industrial plans were put aside, however the modern day company picked up on this cue and developed foam for car seats that are used in new models.

They have also egun using soy in place of petroleum on tires and expect to have a more sustainable car tire. The social trend and movement in soy agriculture is opposition to genetic modification and agribusiness. ADM has responded with organic and non GM products, they are a business and their success is contingent upon consumer demand. For those who consume soy products packaging and advertising like that of Silk soymilk products announce that they are free of GMO. The market for this type of product is growing as the issue of agriculture and agricultural products becomes more prominent.

The historical context of the development of the soy commodity chain is interesting because the plant is Chinese in its origin and had little place in the Western world until this century. Currently, it is almost entirely produced in the Americas and exported in large quantities to its place of origin. As a Northern American, I am familiar with agribusiness. I saw ADM’s “Supermarket to the World” commercials every Sunday in my childhood. I accepted that that this was a wholesome company, after researching this I understand the criticisms and consequences although I do elieve the founders of this system had good intentions.

1 International Baccalaureate History of the Americas HL Required Summer Reading Study Guide Born in Blood and Fire: A Concise History of Latin America By John Charles Chasteen Foreign Affairs November/December 2000 states: Born in Blood and Fire is a briskly written yet sophisticated introduction to Latin America that will be greatly welcomed by non-specialists and experts alike. Chasteen paints on a very broad canvas, but he succeeds in capturing with enviable conciseness the major ingredients of Latin America’s uniqueness and complexity.

Especially welcome is his graceful integration of Brazil into the overall picture, which general histories of Latin America often lack. He first takes the reader from the European conquest through the colonial consolidation by Spain and Portugal before looking at the role of indigenous communities in the new order imposed by the Europeans and African slavery’s social and cultural consequences. He then follows with the independence movements and the uneven attempts at nation-building in the nineteenth century; race, ethnicity, religious and liberal ideologies, and the roles of key individuals are also covered.

Chasteen concludes with the recent return to economic liberalism, this time in the context of open elections, continuing poverty, and social exclusion of large segments of the population. A stellar performance! Summer Reading Directions: The answers to these questions should be well thought out, typed, 12 point font, single spaced, New Times Roman. The completed review sheet is a summer long process that is not designed and should not be attempted at the last minute. This assignment will be due on the first full school day of the 2011 – 2012 academic school year.

These questions will prepare you for the first 2 day examination made up of 96 multiple choice questions and 57 matching terms. This is the first grade of the course and will set the study tempo for the remainder of the school year. 2 Study Guide/ Discussion Questions John Charles Chasteen’s Born in Blood and Fire: A Concise History of Latin America. Chapter 1 – First Stop, the Present 1. 2. 3. 4. According to Chasteen, what is the unifying theme or unifying conflict that characterizes Latin American history? Is this a good choice? What might be some strengths or weaknesses of this focus?

Why do Cuba and Brazil have such high populations of African Americans? Define “liberalism” as Chasteen uses the term: What are the different attitudes toward Latin Americans that have been common in the U. S. during the twentieth century? Chapter 2 – Encounter (1492-1600) 1. 2. 3. 4. 5. 6. What were some of the ways the historical and cultural context of the Iberian peninsula shaped the attitudes and practices of Europeans who first sailed to the Americas? Compare the Portuguese colonization of Brazil with the Spanish Colonization of what would become Mexico and Peru.

Important similarities and differences? What larger significance does Chasteen see in the name change from “Island of the True Cross” to “Brazil”? What three areas of Africa provided the majority of Black slaves for the Americas? Members of which European country became the most active slave traders? From Chasteen’s perspective, what were the key factors that enabled vastly outnumbered Spanish forces to conquer the Aztec and Inca empires? In what specific ways do Las Casas’s life and values stand in contrast to those of the majority of Spaniards who came to the Americas?

Briefly define or identify the following terms: Encomienda Tupi Pedro Alvarez Cabral Moors Francisco Pizarro Malinche (Marina) Salvador (Bahia) Chapter 3 – Colonial Crucible (1600-1810) 1. 2. 3. 4. In what ways did economic realities contribute to the prosperity and influence of colonial Spanish America in comparison to colonial Brazil? Name the four viceroyalties and their capitals that came to exist in Spanish America: What does Chasteen mean on p. 77 when he says that “transculturation and hegemony often went together” in Latin America?

Do you think he’s right? Name four areas that Chasteen considers peripheral areas or “backwaters” of colonial Latin America: 3 5. Compare attitudes toward race in Latin America as described in this chapter with attitudes in the U. S. as you understand them. What significant similarities or differences do you see? Briefly define or identify the following terms: Sor Juana de la Cruz “honor” in Latin America Gracias al sacar Quilombos and Palenques Potosi Zumbi Rebellion of Gonzalo Pizarro Tupac Amaru II Engenho Aleijadinho

Chapter 4 – Independence (1810-1825) 1. 2. 3. 4. In what ways did events in Europe affect the movements for independence in Latin America? According to Chasteen, which independence movements in Spanish America were actually popular revolutions? Which were primarily “revolutions from above”? How did the Brazilian independence movement compare with those in Spanish America? What impact did the independence movements have on patterns of colonialism in Spanish America?

Briefly define or identify the following terms: Creoles Jose Maria Morelos Llaneros Simon Bolivar Jose Antonio Paez Peninsulars Vicente Guerrero and Augustin de Iturbide Nativism Battle of Ayacucho Miguel Hidalgo Pedro I Chapter 5 – Postcolonial Blues (1825-1850) 1. 2. 3. 4. 5. Why did liberalism in Latin America seem to collapse in the years following the wars of independence? What were some of the main characteristics of a caudillo? What factors helped Brazil maintain its territorial unity during the years when many regions of Spanish America were splintering into numerous new nations?

In what ways does Chasteen suggest the social structure in Latin America remained the same after independence? How did it change? Who were the main “outsiders” involved in Latin America during this period? This outside involvement was particularly notable in the two former centers of colonial power, Mexico and Peru. What shape did it take in each place? Briefly define or identify the following terms: Juan Manuel de Rosas “El Supremo” Caste War of Yucatan Antonio Lopez de Santa Anna The regency years “el pueblo” Rafael Carrera “La Nina” Central American Republic 4

Chapter 6 – Progress (1850-1880) 1. 2. 3. 4. 5. What were some of the significant aspects of liberalism emphasized by the key Latin American liberals mentioned in this section (be as specific as possible)? Why did Maximilian fail to reinstate conservative rule in Mexico? Based on Chasteen’s examples, what seems to have been the most common way for women to become public figures during the nineteenth century (the few, that is, who did become public figures)? Give two examples. Liberals in Argentina agreed on the traditional tenets of Latin American liberalism. What issue divided them?

Compare the way Argentine and Brazilian liberals confronted what they considered the “national tragedy” of racially mixed societies. Do leaders in one of these countries seem to be less racist in their thinking than leaders of the other? Briefly explain the issues and significance of the following wars (and note the dates when each took place): The Triple Alliance War The War of the Pacific The Chaco War Briefly define or identify the following terms: Benito Juarez Birds Without a Nest (1889) “Golden Law” William Walker Ten Years War Domingo Faustino Sarmiento 6.

Chapter 7 – Neocolonialism (1880-1930) 1. Describe the “great export boom” that marked Progress for Latin America between 1870-1930. What were its most important characteristics? Which crops or exports seemed most beneficial to Latin Americans and why? Which one seemed most harmful? Compare the governments of Mexico and Brazil during the neocolonial period: Based on this chapter how do the ideas of neocolonialism and “importing Progress” relate to one another? Early in the chapter, Chasteen suggests that the concept of neocolonialism is both an internal and an external phenomenon.

What does he mean, and, after reading the chapter, would you agree with that analysis? Describe the rise of U. S. influence in Latin America: Why did the South Cone region of Latin America attract the majority of the new immigrants? 2. 3. 4. 5. 6. Briefly define or identify the following terms: “banana republics” Ruben Dario Porfiriato Cientificos Rebellion in the Backlands Paulina Luisi Roosevelt Corollary to the Monroe Doctrine Cesar Augusto Sandino Positivism Pan o palo Jose Marti Jose Enrique Rodo 5 Chapter 8 – Nationalism (1910-1945) 1. 2. 3. . 5. Based on the chapter, what were the most important aspects of nationalism in Latin America? Why did nationalism emerge in the early decades of the twentieth century? Compare and contrast nationalism in Mexico with that in Argentina and Uruguay and also with Brazil. Did nationalism in any one of these countries seem more thoroughgoing than in the others? Why? Why did import-substitution industrialization (ISI) provide greater benefits for countries such as Brazil, Mexico, and Argentina than for places like the Dominican Republic or Honduras?

Why did the wave of nationalism seem to have very little impact on Central America? Briefly define or identify the following terms: Constitution of 1917 Pancho Villa Constitutionalists Diego Rivera and Batllismo Hipolito Yrigoyen Victor Raul Haya de la Torre Indigenismo ISI Getulio Vargas Estado Novo Heitor Villa Lobos Lazaro Cardenas “Good Neighbor Policy” Mexico’s “declaration of economic independence” Populists Juan and Evita Peron Emiliano Zapata Chapter 9 – Revolution (1945-1960) 1. 2. 3. 4. 5. Why would Brasilia represent the “perfect symbol of the ost-Vargas moment in Brazil” and the PRI the perfect symbol for Mexico at the same time (252)? Chapter 8 talked about the popularity of Roosevelt’s Good Neighbor Policy. Why did relations between the U. S. and major Latin American countries begin to sour in the post-WWII years? Why did the U. S. tolerate the National Revolutionary Movement (MNR) in Bolivia while it actively supported a proxy force to oust Arbenz in Guatemala? Based on this textbook, would you say the Cuban revolution was more an expression of Marxism or of nationalism? Why? What were the goals of liberation theology?

Briefly define or identify the following terms: Raul Prebish Jacobo Arbenz Che Guevara Bay of Pigs (1961) Declaration of Caracas (1954) Pablo Naruda Fulgencio Batista Cuban Missile Crisis (1962) Juan Jose Arevalo Jorge Luis Borges Granma Paulo Freire 6 Chapter 10 – Reaction (1960-1990) 1. 2. 3. 4. 5. 6. 7. 8. On what basis does Chasteen argue that the Soviet Union was not involved in Latin American Marxist movements outside of Cuba during the 1960s and 1970s? Why did rule by military juntas become widespread in Latin America by the mid-1970s?

What did the Brazilian generals mean when they said that the cake had to rise before it could be sliced? Why didn’t the poor ever get their slice? How did the Argentine experience of military rule differ from that of Brazil? What were the most important factors that contributed to the overthrow of the Popular Unity government in Chile? In which countries of Latin America were “dirty wars” most intense and devastating? What were the main factors that fueled guerilla wars in Nicaragua and El Salvador? Why does Chasteen place Colombia in the “countercurrents” section at the end of the chapter?

What was different about Colombia? Briefly define or identify the following terms: “national security doctrine” Alliance for Progress Gabriel Garcia Marquez Las Madres de la Plaza de Mayo Tupamaros Salvador Allende Augusto Pinochet Tlatelolco massacre “dirty war” Somoza family Sandinista National Liberation Front (FSLN) Contras Daniel Ortega Violeta Chamorro “fourteen families” Oscar Romero Farabundo Marti National Liberation Front (FMLN) La Violencia Pablo Escobar and the Medillin Cartel M-19 U. S. School of the Americas Chapter 11 – Neoliberalism (1990- ? ) 1. 2. 3. 4.

Why did neoliberalism become the popular political/economic ideology for Latin America during the 1990s? Compare neoliberalism with the liberalism with the liberal reforms that swept the region from 1870-1930—in what important ways are they similar? How do they differ? What insights does the Chilean success story provide into the strengths and weaknesses of neoliberalism? What are the primary environmental issues surrounding the Amazonian rain forest? Briefly define or identify the following terms: Neoliberalism MERCOSUR Zapatistas NAFTA Maquiladora Candomble, Umbanda, Santeria

In his article “ Time Talk, with an Accent” Robert Levine discusses about culture shock when he lived in Brazil and understand Brazilian people’s habit about time. When he began his scientific journey in his early career as a professor of psychology at Federal University in Niteroi, Brazil and he found the hardest part of his life about punctual time rather than different language, his own privacy, and standards of cleanliness issues.

As it described in article Robert Levine was a young American, that always cling on with timing in every hours, every minutes, and every seconds. He was taught to move fast in every way he did. In fact, Brazil has another thought of time, to slow down and do it later. It started when he lessons began in 10 o’clock, only a few students showed up, and another came late with smiled and relaxed, some of them greeted him with innocent, some of them apologized, some of them just came a minute when class came to end.

At that time, he realized that brazilian timepieces are inaccurate, and it seemed nobody care beside him. Furthermore, time made him to wait about one and half hour when he wanted to see his chefe. Until his chefe called him to come in and chatted for a few minutes because she had to run for another appointment at the same time. Robert Levine learned that she is a type person who like to make a lots of appointment for the same time and to be late for all of them.

Another time case, he had to wait for his appointment with his landlord, he planned to came back after twenty minutes. In fact, he found out the landlord gotten tired of waiting for him. Angry, frustrated, bewildered, and fascinated made him understand about how Brazilians’ beliefs and rules about punctuality. In the end, there are drastic differences from culture to culture, city to city, and neighbor to neighbor. He explained only time can tell those differences.