Drinks Are Famous Across Whole Australia †Myassignmenthelp.Com

Question: Discuss About The Drinks Are Famous Across Whole Australia? Answer: Introduction As Cheers beers are planning to expand their business in the international market for achieving adequate growth, Indian and Brazilian brewery market is suggested by the newly appointed operations manager to the management of the Cheers organization. They have shown their interest and asked him to review the risks and opportunities in those countries brewery industry so that appropriate steps could be taken for the expansion of the business. As Indian is one of the emerging market and government over there is also planning to invite various multinational and small companies to invest in their country to enhance the employment opportunities for Indians. Expansion of the organization will be beneficial for the organization because beer consumption is increased rapidly there. Apart from this, there are already various companies available which are producing and delivering beer. Promotion and advertisement of alcoholic products are also banned there. While researching for Brazil, it is ob served that chances for establishing the position in the brewery industry are a bit difficult task because since very long period, only one company i.e. Standard Lager beer is enjoying the success. Monopoly type of situation has been developed in Brazil as 98% of market share is being covered by this organization only. To review the additional risk and opportunities factors, appropriate techniques and methods will be discussed further in this report. Risks and Opportunities Analysis There are various kinds of risks are available while expanding the business into the international market and in terms of alcoholic and tobacco products, the same process for expanding the business becomes the bit more complicated. Lot of legal, political, social and other factors needs to be considered by Cheers beers before taking decision for enhancing their business. Political risk, financial risk, cross-cultural risk and commercial risk are the types of risks that an organization needs to suffer while expanding its business in the international market. Below some of these risks will be analyzed in relevance with India and Brazil market conditions (Haimes, 2015). Apart from these risks factors, operations manager needs to evaluate certain factors such as cultural factors, environmental conditions of the particular place, etc. Political Risk involves various kinds of factors such as government invention in international business organizations, imposing taxes over their activities, etc. There are some countries where alcohol consumption and distribution is prohibited. In India, alcohol consumption is banned in some states i.e. Gujarat, Bihar, Nagaland, etc. (Wheelen Hunger, 2011). Apart from the ban on the consumption of alcoholic products, advertisement and promotion of the same are also prohibited. Reviewing this issue, Cheers organization may face some issues while entering into India brewery market due to change in the legal and political policies while comparing Australian and Indian system. Traditionally Indians were not used to with beer consumption, through rice, they used to manufacture beer. But today, it is estimated that in previou s year i.e. in 2016, per capita beer composition is reached to the level of 57 liters. There is a number of beer brands are available in Indian brewery market and amongst them, many are local and international as well. So, Indian brewery market would be a challenging market for Cheers beer to set up their distinctive place (Taylor, et. al., 2010). While estimating the risks factors for Brazil, it was found that the whole market share is being covered by only one beer brand since a very long period i.e. Standard Lager Beer. Many companies have tried to enter the Brazilian brewery market but they were not able to survive in front of Standard Lager beer brand. Apart from this, a consumption of alcohol is at its peak and various issues have been occurred due to consumption of alcohol. Many times, unique campaigns have been conducted to spread the awareness in Brazil in relevance with the objectives of do not drink and drive, etc. because this is the major reason for accidents occurring in Brazil (Shield, et. al., 2013). Due to these issues, Cheers beers may need to develop some strong techniques to settle down in the aggressive competitive environment of Brazilian brewery market. As major accidents reason is consumption of alcohol so, a government of Brazil may take some severe steps to stop this such as the ban on consumption of alcohol or impose huge taxes over the alcoholic drinks, etc. These decisions may create the situation where an organization needs to shut down their business and face losses (Kim Mauborgne, 2014). Opportunities in the Indian and Brazilian brewery industry Global market opportunity Apart from risks and uncertainties, these two countries are selected with a view to analyzing the opportunities which could help the Cheers organization to increase their growth factor. The operational manager has performed some methods through which opportunities could be determined. Indian market is an emerging market at the huge rate (Pietrobelli Rabellotti, 2011). Recently, various MNCs and other corporations from all over the world is in any kind of industry have set up their business outlets in India. The government of India has taken various step for inviting MNCs from across the globe with a view to getting involved in the developed countries and apart from this, investment from abroad organizations in the country will also generate various employment opportunities (Holden, 2011). Currency and Exchange Rates This is the major source of evaluating the opportunities of particular industry or country. Under this approach, a difference is found in the prices of sellers and buyers when cross border transactions are involved. 150 types of currencies are being used across the globe. The decrease in the price of the currency of India and Brazil will lead to losing situation and vice versa (Lane Shambaugh, 2010). Types of Economies The world has been segregated in three types of economies i.e. advanced economy, developing an economy and emerging economy. 35 countries including Japan, US, and the UK are included in the advanced economies, 120 countries are still struggling for converting them into developed countries such as Bangladesh, Nigeria, Zaire, etc. (Kiss, Danis Cavusgil, 2012). Apart from these economies, India, China, Brazil and other 37 countries are included in the emerging economies. From the perceptive of investment, these markets are chosen to be the best as ROI is huge in these places. Cheers beer has the opportunity to setup its place in the selected countries because both these are the part of emerging economy (Successive, et. al., 2014). Emerging markets as target markets Australia is trading with many Asian countries since 2003 and China are on the peak place in trading relevance with goods and services. For manufacturing purpose, Brazil is the location where most of the natural resources are available (Somdaka, 2014). Large reserves of raw materials are available in the lands of Brazil and Cheers beer could take the advantage of this resource. Import of raw materials used in the production of beer will consume more cost then utilization of available resources locally (Sheth, 2011). Low-cost wages Labour cost in the emerging market is quite less in comparison to the labor cost incurred in the advanced economies. Indian and Brazilian markets are filled with this advantage. Except this, India is the third most emerging markets across the globe. China and Indonesia are in the first and second position respectively whereas; Brazil stands very below (Li, 2011). Competition Competition is involved in every industry and in every country. While reviewing the competition in India, it is found that various brands already exist in the Indian brewery market. This could be taken as the advantage because Cheers beer is selling craft beer which is not much famous in the Indian market. Apart from being famous, adequate competitive strategies could be adopted to survive and to develop an effective position in the competitive brewery Indian market. While reviewing the Brazilian market, a number of organizations available in the brewery industry are quite less. But Standard Lager beer is the most popular beer brand in the whole Brazil and neither company is able to set up their image as their competitor since a very long time (Ramamurti, 2012). Cheers beers have the opportunity to create its image in the Brazilian market through adopting unique techniques. Below is the analysis of competition available in Indian and Brazilian brewery market through Porters five forc es: The threat of New Comers: This threat will be faced the existing firms of the particular country. Especially the local brands because they are still selling beers in Indian market without upgrading their techniques and methods for producing beers. Cheers organization needs to face big competition in India but as India and Brazil both are emerging markets and India is one of the favorite locations for international brands. As Cheers beer brand is very famous across the whole Australia and it is a favorable choice of tourists also (Hoenen Hansen, 2013). The threat of Substitutes: Various substitutes are available in the Indian as well as in Brazilian market in relevance with beer. As per recent survey report, consumption of whiskey and other alcoholic drinks is much more in comparison to the consumption of beer. In Brazilian market, beer consumption is much high in relevance with other alcoholic drinks (Swinnen, 2011). Consumers bargaining Power: This act could be faced by the Cheers organization in the Indian market because there are a number of beer brands and other alcoholic drinks manufacturing and distributing organizations exist. The consumer will get the choice of selecting the beer of one brand amongst the huge choices available whereas, this option will not be available for consumers in Brazil as one or two beer brands are selling their beer in the Brazil. Suppliers' Bargaining Power: The same scenario will be developed in the suppliers bargaining power because Indian market has a variety of suppliers involved in the distribution of raw materials required for producing beer (David, 2011). Industrial Rivalry: This approach involves that Cheers beer will be able to promote its products in Brazil without any restriction whereas, a government of India has banned the alcoholic products promotion across the country, as well as some states of India, are prohibited to consume alcoholic drinks. Selected Destination Indian market would be the best for Cheers beer in comparison to the Brazilian brewery market. This is due to the factors involved in the Indian market such as invitation from the Indian government for making a foreign investment to increase the employment opportunities, low-cost labor available, etc. Apart from these factors, Indian industry is the most emerging markets across the globe and it is standing on the third highest emerging country across the globe after China and Indonesia. It means Cheers beer will get the more opportunities to settle their brands goodwill in comparison to the Brazilian market. The major reason for dropping the idea of the Brazilian market for business expansion is the market share of Standard Lager beer (Seidenstricker, Linder Schmitz, 2014). Proposed Entry in India While developing the proposed entry strategy for Cheers beer in India, various factors need to be evaluated which could help the organization to build an effective market entry strategy. The crucial factors which should be discussed are primary competitors, trade barriers, legal policies, political considerations, etc. Common market entry strategies are fulfilling the legal and political considerations and developed an outlet and start performing their activities whereas, effective market entry strategy includes the analyzing the appropriate place across the whole country which will help the organization to develop its distinctive image in the competitive environment. Cheers beer needs to start their activities from Mumbai which is the most favorite places across the globe as well as in India and it is also known as the financial capital of India. This city is situated in the state of Maharashtra and most of the celebrities used to live in this city (Sukumaran, 2012). Other states and cities of India adopt the style being practiced in Mumbai. This is the major reason for making an entry from this city. Most of the international organizations start their business in India from this city only and later on, they have achieved the separate place in all over the country. Operational manager of the organization has suggested the Cheers organization to conduct some activities i.e. market research, demand analysis, supply chain analysis, competitors analysis, etc. All these factors will help the organization to develop its distinctive image in the country. Apart from this, an organization has adopted the pricing strategy by reviewing the price of the most popular beer brands in India. As India as the market for every type of consumer hence; a price of the product should remain at the constant rate which could attract more number of consumers from all mediums. United Breweries is the biggest brand under which Kingfisher, UB Export, etc. are beer brands, SA BMiller is another organization involved in the brewery market and Haywards, Fosters, etc. are popular beer brands in India. Apart from United Breweries and SABMiller, Carlsberg, Mohan Meakin, etc. are some of the other brands available in the Indian brewery market. Amongst them, United Breweries is sharing the highest market share of 51.1% across the country hence; this should be treated as the primary competitor for Cheers beers (D'Aversa, 2016). Conclusion This report concludes the idea of expansion of the Cheers beer which is an Australian organization appoints an operational manager with a view to achieving certain rate of growth. For this purpose, operational manager conducted some methods to evaluate certain risks and opportunities for the Cheers beers in the brewery markets of India and Brazil. As per the research, an adequate market was selected and selection criteria were on the basis of meeting with the expected objectives by the management of the organization. It was found that Indian market is one of the most emerging markets across the globe and Brazil also share the place in the list of emerging markets of the globe. As Cheers beer is an Australian beer manufacturing company which is involved in the production of craft beer so before launching its products in the new environment, certain methods needs to be conducted such as market research which will help the organization to estimate the demand for their products, etc. References D'Aversa, A., 2016, Brewing Better Law: Two Proposals to Encourage Innovation in America's Craft Beer Industry,U. Pa. L. Rev.,165, p.1465. 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