244 Final

2

Zhengke Hou

Dr. Chen Ferguson

CMR 244

9/16/2018

The country that Procter & Gamble Co seeks to venture into is Brazil. The decision is influenced by the economic, social and economic structures in the country (Hallward &Driemeier 2015). In any market penetration strategy, there is the need to focus on the economic, social and political support structures. Brazil accounts for 3, 32% of the global GDP. In the past years, the GDP has registered steady growth and recorded a 0.2% rise in 2018. Brazil is regarded as having the 9th largest economy in the globe. It also has improved purchasing power parity. In the Latin American region, the country has the highest economy.

The improved economic structures would lower the cost of production and offer Procter & Gamble Co. critical supports services. Such support includes financial and insurance services. The country has stable political structures that are guided by the rule of law. In the past, the government has been pr-active in fighting corruption and supporting both local and foreign ventures. Stability means that there are fewer chances of recording business disruptions. Under the social factors, the country has a high population which provides both a large labor pool and the market for the produced commodities.

There is also the option of engaging either skilled or semi-skilled labor. The increased access to labor implies that the cost of labor would be lower as compared to other countries. The legal structures have put in place policies and regulations that regulate business operations thus maintain business stability (Peng, 2016). It holds that venturing into the market would offer enormous prospects for the Procter & Gamble Co. The company would register improved revenue earnings while equally reducing the operational costs. It would also place Procter & Gamble Co. in an improved position to venture into the unexploited Latin American market.

References

Hallward-Driemeier, M., & Pritchett, L. (2015). How business is done in the developing world: Deals versus rules. Journal of Economic Perspectives29(3), 121-40.

Peng, M. W. (2016). Global business. Cengage Learning.