OPTIONAL Mini Case Analysis: Grade Support Bonus Assignment $(10$ pt$)$

Method of Entry in Brazil: The McGrew Corp.

$($Reference: Chapter Thirteen$)$

The McGrew Corp., a manufacturer of peanut combines, has for years exported very profitably a significant number of machines to brazil. However, a new national Brazilian firm has entered the market and started to manufacture and sell these machines in Brazil.

Roger Shaffy, the exclusive distributor for McGrew in Brazil, has told Mr$.$ Jim Allen, the CEO, that if McGrew expects to maintain its share of the market it will also have to manufacture locally.

Allen is in a quandary: The market is too good to lose, but McGrew has had no experience with foreign manufacturing operations. Further, because Brazilian sales and repairs have been handled by the distributor, McGrew does not have any firsthand marketing experience in Brazil.

Allen has made calculations showing that McGrew can make tremendous profit by manufacturing and marketing in Brazil as a national company. However, McGrew's lack of foreign marketing expertise in Brazil is particularly troubling to him!

Allen calls YOU, McGrew's Exports V$.$P$.,$ and ask you to study and evaluate the situation and submit to him a report that requires YOU:

$1.$ To identify three top VIABLE METHODS Of ENTRY and OPERATIONS in BRAZIL with a comparison showing, in general, the ONE main advantage and One main disadvantage of each method and:

$2.$ To propose the most recommended method of entry and operation in Brazil; and to succinctly explain why. METHODS OF ENTRY: exporting, licensing, franchising, joint ventures, direct investment $($including wholly owned subsidiaries$),$ acquisitions, and partnering