O International Business

Felipe de Sousa

12/08/2017

Professor Sweet

International Business

Final Project

The Final project is about the Country Brazil that is localized in South America and is the largest country on that continent, Brazil is Neighboring countries include Argentina, Bolivia, Colombia, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela. Brazil has a large extension of beaches, forests, and mountains and has a mixed ethnical group with whites, mullatos (mixed of black and white), black and Asian. The main focus of my final project introduces a Coffee shop in Brazil and exporter of coffee initially to USA, Chile, and Argentina where the subsidiaries will be installed. Being late mover into this market the coffee will face a competitor that is Starbucks a first move consolidate in all these markets.

Entering in a new market place requires a great knowledge and effort for any entrepreneur. The decision to allocate a coffee shop in Brazil was made due to the huge coffee market in the country, and the American influence in the biggest city in South America, Sao Paulo. Also, the cheap cost of coffee´s production, and the recent economic growth in the Brazilian agricultural market will support our strategy in that specific market. This business plan provides information and clarify the strategies to implement an American coffee shop store into the Brazilian culture analyzing the legal environment, the political regulations, and the logistic steps from collecting the coffee beans to last phase of selling the products in the store.

Sao Paulo is a megalopolis situated in Southeast region, where more than 26 million of people are willing to dedicate their life to business. There are many cities surrounding Sao Paulo complementing this agglomerate of small business market. The Brazilian society was developed with the cultural knowledge that small markets have a higher quality of goods, and usually the customer knows the owner of the business and is loyal to that specific product. The idea of opening a coffee shop right in the main business avenue of Sao Paulo, called Paulista Avenue, is a chance to introduce a new brand to the market with new products, and different style to approach the customer and maximize profits.

As an international entrepreneur having the benefits of being bilingual and Brazilian nationality facilitates on legal procedures to open this business in Brazil. According to the Brazilian Federal Government, the BNDES (National Bank of Development) incentives international investors to open their business in Brazil. They offer great loans with a very low interest rate, and the credit can be paid after the first year of the running business. Then, the introduction of the coffee shop in the society would count with a large loan from the Brazilian government using our strategy to run the business. Also in the legal environment aspect, the Brazilian government incentives the coffee farmers with taxes deductible inducements to encourage them to produce more, and invest more in their business. With a higher production of coffee, the price of the local coffee is extremely lower compared to the coffee market in other places creating then a great opportunity to innovation in that specific market.

The coffee shop being introduced in Brazil is in a major avenue in Downtown Sao Paulo. The store location is surrounded by three big universities and many business offices which will contribute to maximize profits and sells. There are few locations in Brazil that provides a quiet and comfortable place for a business meeting, or to meet with a study group, or even to have a coffee and go to work. Usually the Brazilian coffee shops are compared to an American bakery, where they sell sugar rolls, and different types of bread. Then, the introduction of this new style of coffee shop for the Brazilian population might create opportunity to open franchises, and expand the brand around the Brazilian territory, Argentina, Chile,

The strategy created to reach the customers is basically depending on the location where thousands of people are passing by, and the necessity of students to have a coffee beverage during their day to keep up studying. Also, the coffee shop will provide regular coffee beverages known in the American coffee menu, but with some specialties from the Brazilian menu. The bakery goods menu has some cultural differences. The famous bread cheese, and other types of products are offered to reach all the Brazilian population in that area. Furthermore, after installing the equipment, and purchasing the inventory for the business, we developed a marketing strategy to reach the customer about the daily deals, and student deals created to support the universities around. The comfortable and sophisticated environment gives to the customer a certain feeling to enjoy their coffee with more pleasure. Free high-speed Wi-fi catches the population attention for that location. The quality of the coffee beans and coffee beverages will attract customers to the coffee shop. As known by the Brazilian society, a proprietor or a manager is required full time in the storage to create the friendly environment with the customer, and subsequently to open the door for the loyal customer.

Looking into the market even Starbucks being pretty new in Brazil, opened the first store in 2006, they would be the first -mover in that case why? because they are very consolidated into the Brazilian market and since I would like to open a store in the USA they are a perfect competitor. Many people love Starbucks for the coffee, cappuccino, bakery but honestly for me that is not the reason, the real reason is the environment that makes the people enjoy being there talking with a friend or having a first date or a brief business meeting that is pretty common in Brazil. I would say that the late-mover I will work on the better-quality coffee than Starbucks, and this will be easier since the Brazilian coffee is really good and to be honest people prefer the Brazilian one. I have an idea that can be the differential of my coffee shop that has 3 business room that will be specially for a business meeting and can be rented per hour with different types of catering to be served to the customers, this place will be perfect for young business people who do not have an office and want to make an impression to close a deal or introduce a product.

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