Scenario $3\mathrm{.}1.$

You are the Division Manager at the South American branch of a large cereal company. The company built the factory five years ago and is deciding whether to expand its capacity or keep it the same. In addition, the products the company sells are the same as those sold in the United States, and the company is evaluating whether to launch new products specific to the South American market. You have been asked to provide a recommendation on both ideas.

Refer to Scenario $3\mathrm{.}1.$ You first want to decide whether it would be profitable to launch the new products because that could affect whether factory capacity needs expansion. You start by looking at consumer research published by a regional marketing research firm. It discusses trends in the food industry, including preferences for flavors, package types, and pricing. You also read some business newspapers from some of the larger markets in Brazil, Chile, and Argentina. You are currently engaged in what activity