The Aussie Brave Company Harvard Case Solution & Analysis

The Aussie Brave Company Case Solution

Political Stability

Productive growth for the business gets slow during every election year, and during the 2007/08 disaster the economy plummeted to almost zero. Kenya's Central Bank has reduced the possible negative incurrences that could be resulted by the upcoming election economy, calling it a round happening that will exceed to long-term economic foundations..

The country has a market-orientated economy with a free FTP. Now the Government’s plans have been promoting the economic growth in order to secure the future by allowing local funding and encouraging the exports.(LEED-ND, 2006)

Corruption

In 2016, Kenya dropped by more 6 numbers and ranked itself at 145 out of 176 most corrupt countries in the world. Despite market changes; many researches show that the corruption is still existing to a larger scale and the firms operating in Kenya are notorious for bribery. Foreign investing firm usually find corruption a big threat when entering markets and while having their business introduction stages. Kenya's manufacturing district is also afflicted by corruption done byfirms and corrupt people.

 Market Risk

  1. There is an extreme rate of instability in Kenya.
  2. Climate changes can affect the businesses operating in Kenya.
  3. Poor management, lack of clarity in management of resources, lack of accountability are the causes of the national concern.
  4. Insufficient foundation to fund STI in schools and universities.
  5. The slow effect of new technologies in the country.

 

Quantifiable Market Opportunity

  1. New Innovation is going towards low cost products in Kenya, especially in the electrical department.
  2. An increased number of opportunities for the private and public firms all around the country.
  3. The increase in new technological advancement in the electric department has contributed to an increased energy across the country.

Brazil Political Stability

The government of Brazil takes care of its citizens and works tirelessly for their betterment. And, the government’s support is likely to increaseas more than 20m people are taken out of poverty, but sport groups have caused dispute, especially on how much it will cost in real. The government’s budget deficiency has reached to 11% of production, up from 4% in 2020. This, in return, cause severe impacts over the business operations in Brazil.

Investor’s believe that the business operations have been at the highest in Brazil and they are continuing to increase,as the Brazilian families are positive about rising personal income and financial status. (Albo, 2014)

Corruption

Corruption is the biggest barrier for any business in Brazil. Brazil is currently involved in a series of remarkable corruption cases. Corruption is most common in tax departments and public firms. The law in Brazil says that the firms are responsible of corrupt attempts by their workers.

Brazilian law makes no difference between bribery and gifting. In Brazil,giving gifts is illegal and unusual when you are doing business and developing any sort of relationships with firms. Businesses are advised to look in to the matter and are prohibited to exchange gifts etc. (Trompenaars, 1993)

Financial Risk

Financial risks in Brazil have increased, and cash in and out errors are again increasing as investment situations in the market has been very steady. This increases the clash with payment of the payer and how the businesses save themselves from massive threatening risks. Although a developing political atmosphere is supposed to have an increasing impact on growth;however, steady growth can decrease the overseas investment opportunities as well.

Conclusion

And for our construction business and farming; undergoing a market study would include going into the market, which is important for possible-domestic members,developing relationships and inspecting the market growth opportunities. Kenya has numerous strong business operating firms that can provide  a good platform for the business development, networking and competitive intelligence.

A strong advertising planning must be developed, e.g. visiting the country; the significance of building relationships with the locals and finding a good partner; the use of representatives and knowledge isthe key of having your business operate din overseas with success.

Kenya is one of the key paths to the East African Community (EAC), which is why many overseas companies are building their headquarters in Kenya.

When negotiating an agent or distribution agreement with a potential Kenyan partner; there are many considerations which should be given importance to.

Most importantly, it is suggested that you should take advice from the member of that country for market exploration and development planning........................

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