Multinational companies often take time to evaluate the business environments of the countries into which they intend to expand their operations. Upon reviewing the opportunities and threats in the market, the company makes a comparative assessment of the different countries identified and the most applicable one is selected. In a bid to ascertain this argument, the paper intends to exhibit an in-depth review and research of the business environment in which a multinational company is expected to take its operations. From a professional perspective, the process of identifying the country and ascertaining that it is indeed a prime destination for the company in question requires that an overall PESTLE analysis of the country be conduct. Further, a reasonable marketing mix is to be developed in relations to the company’s expansion to the country of choice. Then, a detailed overview of the implications regarding the need for the company to cover a wider geographical scope will be highlighted. Financial analysis towards establishing the liquidity level of the company will be conducted towards ensuring that the company still possesses the potential to address any issues that may arise in as far as managing its financial obligations is concerned.
Identification of Company and Country Where the Company Will Expand
Brief Background Information of the Company
The company that is subject to expansion in this case is Wendy’s. Before making any attempts to identify the country that this company will and purposes to expand to, it is essential to first conduct a brief review of the company in as far as its international business reputation is concerned. First, Wendy is considered to be the world’s largest hamburger fast food chain. It has its roots in the United States and is headquartered in Ohio, US. The company has made frantic efforts to venture into different international economies one of them being Brazil back in the year 1992. There have been further attempts by the company to enter the same country but in this case using alternative channels including partnerships. However, there are intentions to make expansions in the company as a sign of intensive commitment to use its resources in developing a new market in the country. Today, Wendy’s Company system incorporates approximately 6, 500 independent franchises, as well as, company-operated restaurants in the United States and other countries globally. The company, has however, in the past tried to bring the brand and expand its operations in Brazil. The section intends to review the country briefly.
Identification of the Country and the Rationale for Choosing It
As stipulated above, the target country that the company intends to invest is Brazil. Brazil, from a geographical perspective is situated in the southern American Region. Most importantly, it is a country where investors face stiff challenges especially in light with the cultural background in the country. However, from a general perspective, the choice of the country as a suitable country that could be assessed on the feasibility of its being an investment destination. The rationale for choosing the country as a suitable destination for Wendy’s business operations is because the company has already attempted to invest in the country. The highest probability is that the company already understands the avenues where the company could have failed to successfully establish itself. Further, despite the fact that the country has constraining factors such as high level of investment in the fast food sector by other multinational companies, as well as, local investors, the company also provides a high population which has not been completely exhausted. From a statistical perspective, approximately 27 million since the year 2004 are considered to comprise classes A, B, C who are middle income earners. Their propensity to consume is encouraging implying that the company can take risk and invest. Ideally, taking the initiative to review the key factor of production which is the external environment of business operations.
Overview of Brazil’s Business Environment
The Brazilian business environment is, from an analytical perspective, quite challenging especially when the interested investor fails to come up with a strong strategy to handle the expectations in the market. The expectations are categorized into several categories. For instance, the consumers have their expectations in as far as the company’s services and products are concerned (Zervos 2016). Alternatively, there is the labor market where particular expectations such as the manner in which the personnel ought to be managed, as well as, privileges that are guaranteed to them. The section intends to provide an in-depth PESTLE analysis of the country. However, before conducting the analysis, it is necessary and sufficient to conduct a review of the logical considerations and the ethical expectations in the country. In consideration of the fact that the company subject to analysis is involved in franchising practices, a huge aspect of the country’s business environment will be affiliated with this particular market (Novais 2011). It is imperative to denote that the factors that affect most investment decisions in the country as similar.
Logical and Ethical Expectations
From a logical perspective, any attempts to invest in Brazil if followed by the need to deal with a series of issues. For instance, it is required that the investor be ready to accommodate the training costs. In the recent past, most interested franchisors attempting to invest in the country have often faced the challenge of having to factor in the issue of training (James 2016). Accordingly, the issue of administration is very highly regarded in the country especially in the context of offering training and handling the human resources. Brazil, like other countries such as China highly values the labor force in the country. The main impending challenge in as far as this is concerned is that the country does not have a sufficient base of skilled employees. Hence, as much as the management of the company requires to invest in the country, it is necessary for it to scale the employee base to better skills that will serve right the objectives of the company.
The country highly considers that the investors engage in socially responsible investment activities. The country, in its attempts to invest and foster the need for companies to act responsibly introduced the Corporate Sustainability Index. The aim of this strategic move in the ethics of busi