Basil Foods Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Basil Foods Case Solution

Furthermore, to support this option;the demand for frozen food and meat is greater in China, as according to records in 2010; Chinese consumers spent 19 million on frozen and processed food. Whereas 73.3 billion were spent on chilled processed meat. According to the market share records; brasil foods is dominating in chilled and frozen meat if brasil foods pursue to go for Chinese market, then it would increase its expected sales, asan increase in China’s population will increase the demand for protein consumption. The threats that cage analysis indicated for China and Brazil is cultural and geographic. To overcome these threats; basil food needs to focus on fine language translation and shipment cost control.

AAA Analysis was done based on the decisions made based on analysis. While operating its business in China; the company will get to achieve its 5 years expected sales target of 50 million sales. While in other countries like Iran, India, South Africa; brasil foods would require more investment and resources to achieve its objective. In the context of economic attractiveness, each country has enough potential like GDP growth, foreign investment, and supporting business climate, but still, the demand in China grabbed all the attention. Other factors are also involved in selecting China over the other mentioned countries. In China, brasil will make its production and distribution along with which, the horizontal integration will help brasil foods inachievingthe economies of scale and the economies of scope.

WBMH Analysis

WBMH analysis answers few questions and helps to decide for the business. We will discuss these below in a table

Why

Bring/ Build

Meet

How

This why ask business the objective of going into the global market. So for Brasil foods, the objective of basil foods is discussed below:

· To expand its business and go global

· Become a multinational company.

· To double its sales and revenues.

· The motivation behind this decision is the available resources and potential customers in the global market.

Ad per the global market demand of frozen and chilled meat basil foods will bring its products to the global market and fulfill the customers' demand. The global market will bring economies of scale and more sales to our company.

When brasil foods decided to go into the global market, then it made this decision to achieve its objectives of more sales and being multinational so this decision will help them to cover their way towards success and become a multinational company

To enter into the global market company must research the demand of the products and availability of resources, along with that companies need to check the favorable conditions of doing business in the market

In the case of doing business in Mexico, India, South Africa, and Iran; basil foods will not get that many returns, no doubts these countries have enough potential for global business, but despite these potentials, the Chinese market supports the basil foods objectives and also provides much supportive environment for them to operate their business in China as compared to the other countries. The main reason for deciding to do business in China was the demand for frozen and chilled meat. Whereas in other countries like India and Iran; the cultural differences are very high and the poor infrastructure has also served as a factor to avoid expanding in such markets.

Recommendations

After these three analysis frameworks; we would recommend basil foods to operate its business in China in order to achieve their goal of having 50 million sale in in five. To keep up with the analysis;China is a potential market for basil foods to reach the target level of 50 million sales. Further in the international market; basil foods should expand through this merger and should build a production and distribution center in China to cut the shipment costs.

Due to economies of scale in China, it would help in reducing the cost. Whereas; further, I would recommend basil foods to keep exporting to other countries and to keep an eye on the changing trends and demands of the potential customers. As in the future, these changing trends and demands can open the doors of future opportunities of expanding in the international markets.

Any vertical or horizontal Integration

The multinational companies like Unilever and Nestle, are successful because they continue to come up with new product and services. Likewise, it is important for the companies to bring innovation in product offer in order to move intothe international market to capture the market share. In the case of basil foods, if the company wants to be a multinational company, then it is important for it to expand its business vertically and horizontally.Basil foods has integrated its business vertically from the very start of the business, as it has expanded its business vertically at a greater scale. But now, to grow in the international market; I would suggest basil foods to grow its business horizontally as companies opt for horizontal integration to increase the size of the company.

Companies go for horizontal integration to create product differentiation. When companies go into the international market they must in curlow cost.Horizontal integration help the companies to enjoy the economies of scale. It tends to reduce the cost of production. Acquiring the small companies in the ocean will reduce the competition in the market and it will help the companies to focus on the main rivalry in the industry through the acquisition of small businesses having the same business nature. If we take a look at the journey of these multinational companies; they have moved towards success through horizontal integration. Further, the advantages of horizontal integration for basil foods are discussed below:

Horizontal integration will reduce the market competition.
Horizontal integration will help the basil foods to take the advantage of marketing activities in the international market.
Horizontal integration will help the basil foods in achieving the economies of scale and economies of scope and reduction of production cost.

At this stage of basil food, this strategy will facilitate the company in achieving the goal of being a multinational company...........................

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