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Megan Akatu Jen Dougan Alyssa Ellis Tatsiana Stsepaniuk Kendra Tucker Fykes. Setting the Stage. Core Competencies Brand Awareness Infrastructure & International Experience History of Corporate Social Responsibility Company Footprint Retail Operations Manufacturing. Social Factors
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Megan Akatu Jen Dougan Alyssa Ellis TatsianaStsepaniuk Kendra Tucker Fykes
Setting the Stage • Core Competencies • Brand Awareness • Infrastructure & International Experience • History of Corporate Social Responsibility • Company Footprint • Retail Operations • Manufacturing • Social Factors • Political Stability • Economic Strength • Currency Status • Investment Friendly • Anti-Inflationary Goals • Low Debt to GDP, High Reserves Gap Inc. Brazil
Investing Directly • Foreign Direct Investment • More profitability and control than under franchising agreements • Builds goodwill and provides access to a growing market of consumers • Requires a large capital investment and additional currency risk • Retail Operations • Rio and Sao Paolo are centers for fashion and economic activity • Leverage existing relationship with Alpargatas • Introduce Altheta in Brazilian stores • Manufacturing • Local manufacturing expertise • Lease factory space and identify current distribution channels through local relationships
Weighing the Costs and Benefits Risks Advantages • Stable democracy • Strong demand for high-end, athletic apparel • Existing country competitive advantage in textile manufacturing • Future international events (World Cup 2014, Olympics 2016) • Existing partnerships with local suppliers • Currency risk • High transaction/set-up costs • Inexperience in South America (unknown distribution channels) • Unexpected shifts in consumer demand • Rising inflationary pressures