Highlights
Learning Objectives
1 To evaluate a company’s domestic and international growth plans,including strategy, target markets, competitive advantages, and potential challenges
2 To consider Brazil’s future role in meeting global food demand, and
3 To assess the implications of the Perdigão-Sadia merger for Brazilian society, thereby promoting broader discussion of national antitrust policy, and the optimal balance between (a) the benefits of large, internationally strong companies (“national champions”) and (b) the potential downside for domestic consumers.
Word count: 1500 words
About the TMA
In July 2011, the management of Brasil Foods, a leading Brazilian branded foods producer and animal protein exporter, is evaluating strategies for international and
domestic growth. The team has just received approval from Brazil’s antitrust authorities to complete the merger of Perdigão and Sadia, the two massive food producers that had combined to form Brasil Foods in 2009. Now, the team is free to focus on their ambitious plan to double revenues by 2025. Domestically, the plan calls for Brasil Foods to maintain its allowed retail market share and expand its presence in the fast-growing foodservice sector. Internationally, the plan sets out a vision of Brasil Foods evolving from an exporter to a true multinational food company.
The team believes their operational expertise and scale, combined with Brazil’s booming economy and vast agricultural resources form the ideal platform for achieving their vision. Yet, amid a wealth of possibilities, they face tough choices, such as which emerging markets to pursue first. They also face serious personnel issues, including integrating employees from Perdigão and Sadia—longtime industry rivals—and developing an international team that understands foreign markets. (case study attached)
Tasks
1.As CEO of Brasil Foods, What is your initial reaction to this company? What are its strengths and weaknesses? Why does vertical integration and having its own
distribution network matter for Brasil Foods? (500 words,)
2.For Brasil Foods, what benefits and drawbacks result from the merger of Perdigão and Sadia?
Instructions
The answers should not exceed 1500 words, excluding the reference list. Make sure you note the total number of words in a parenthesis at the end of each
question.
Support your answers with references to academic journal articles and provide a full reference list at the end of each question. Use the Harvard referencing
system.
Pay special attention to the correct and precise use of terminology and models. You do not need to define the terms or describe the models, but if you use terms and models not found in your course material you should cite the source.
Review the academic literature to identify the strengths and limitations of the theories you discuss and critically assess the arguments made in the literature vis-à-vis the facts of the case you discuss. Use the literature review to support the opinions you express.
Do use tables, diagrams, models and maps to illustrate your conceptualisations as much as you can. Redraw models with your own data and avoid using visuals borrowed from online or other sources. If you must use infographics or artwork that is not designed by you, then you should clearly indicate your source.
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