Benchmarking Energy Efficiency of Dutch Industry †MyAssignmenthelp

Question: Discuss about the Benchmarking Energy Efficiency of Dutch Industry. Answer: Introduction In this report, detailed information regarding the market condition of the countries India and Brazil has been provided. Being the operational manager for the company CHEERS, a critical analysis of the risks and opportunities that adheres while extending the business in the two countries have been evaluated. The report contains the PESTLE analysis which provides detailed understanding of the market position in Brazil and India. An efficient strategy for entering the new market while considering the risks as well as opportunities factors has also been provided. The strategy critically contains organizational goals and objectives, resource requirement, degree of control required and risks in the target market for perfect entering in the new market. The political, legal regulations, as well as social factors, have also been provided significantly in the report. The government of Brazil is unstable and there is political instability in the country at present. The reason behind it is that the history of Brazil reflects that the situation of this country can change overnight and during elections, the political situations worsen up even more. However, the country is trying to achieve political stability in the country which requires a significant amount of time. Corruption is a huge issue in this country and also opening up a brewing company here will require maximum investment for paying government officials and representatives (Anderson, 2010, p.219). Due to higher tax rates when the product reaches to the customers the price of the product gradually increases which critically affects the company tending people towards substitution at a lower price. The population of this country is high and the differences between rich and poor are being steadily removed. Due to this difference, the consumption of alcohol gradually decrease and critically affect the brewing industry. The exports and imports of the country are adversely affected when it comes to the dollar (Arora et al. 2013, p.331). Domestic and international companies are treated equally. However, the tariff rates for importing are quite high as compared to other countries like Ireland, India, and Greece. Most of the youth generation do not have the financial potential to buy the high priced product. The economic inequality in this country among the population is quite high and more than 20 per cent of the population lives under the poverty marginal line. The middle-class people are still growing and attain low income. This will directly affect the brewing industry. However, this country positively takes part in FIFA world cup; still, it has to raise its status to compete. The key market has become much aware of social problems that are related to the consumption of alcohol. The reason could be the campaign that is organized by the government against binge drinking as well as drunken driving (Arrieta et al. 2010, p.645). Even though Brazil ranked 53rd in the world for its enhanced IT sector, it still lacks behind due to poor investment as well as weaker technological infrastructure. Its technological infrastructures are being developed steadily (Barnard, 2010, p.171). This creates a direct effect on the brewing industry for the production of alcohol which will lead to huge investments. The legal restrictions in this country are rapidly growing by closing down the demand for alcohol in public areas (Fogarty, 2010, p.472). Strategic alliances, acquisitions and licensing have critically occurred due to the competitors such as Heineken, who want to capture the entire market of Brazil. However, a slight chance for cross borders acquisitions and mergers has been growing in the market. The gross domestic product of this country is increasing steadily and the rules of communications have also been enhanced in this country. The Recycles law of packages is a huge initiation towards sustainable environment (Hawkins, 2010, p.141). PESTLE analysis India India has a federal public government and is the largest democratic country in the world. However, the country is concerned about antisocial behavior and drinking. The government uses the enhancing demand for alcohol by citizens for raising the indirect taxes revenues from the companies. Cross border shopping is allowed and is common in the country due to low harmonization (Helms and Nixon, 2010, p.249). The duty-free trading has been banned since 1999 which had a very low effect on the brewing industry. The influence of international market highly influences the domestic markets which enhance the profitability of foreign brewing companies. However, the country has strict social policies in terms of alcohol consumptions. The financial factors in India are enhancing consistently. The Gross Domestic Product is assessed at 2.965 trillion. It is also estimated that a non-stop development in per capita income. India's per capita income is relied upon to reach 2000 dollars before the finish of 2017-2018 This will prompt higher purchasing power in terms of the Indian purchasers. Rising utilization has been connected to an expansion in the relative moderateness of liquor which in turn will be affordable to purchase (Khaire and Wadhwani, 2010, p.1301). Price vacillation can be directed by worldwide item markets which give multinationals an additional advantage towards increasing cost differential in terms of on and off exchange or trade Asian budgetary crisis. It has also been estimated that there has additionally been a consistent increment in the utilization of beer in the country India. With an expansion in the buying power, the Indian purchaser which favored local alcohol which is far less expensive is currently ready to get an essence of the generally costly brew showcase of beer (Lamertz et al. 2005, p.840). The social pattern of brew utilization is changing and India has seen an expansion of 96 per cent beer consumption from the year 2008-2016 (Refer to Appendix A). Recently, there is an upsurge towards caf culture in terms of alcohol consumption. Growing consciousness of health is an additional advantage as people prefer diet or light beers. Underage drinking is increasing rapidly which has a huge impact on the brewing industry. The Indian brew Industry is warming up with a lot of remote players entering the Indian market. The mechanical skill and mastery will likewise enter the Indian market with an expansion in the rivalry. For instance, beer fermenting technology major Carlsberg has entered India and has set up assembling plant in India. Carlsberg Group, headquarters situated in Vesterbro, Denmark, and Copenhagen, has established the company Carlsberg India. It will begin generation in 2017. This will help get the innovative ability and increment the generation of beer. SABMiller has quite recently put in a request for the outline and development of two turnkey plants in India to Carlsberg (Li and Hitt, 2010, p.826). The new plants are anticipated Sonipat, in Haryana and for another area close Bangalore. The two bottling works will have a yearly limit of 2 million hectolitres each at the outset and may be broadened later. Accordingly, with European innovation entering the Indian brew showcase expanded gen eration and bringing down the cost of creation could assume a noteworthy part in the Indian brew showcase. The legal factors associated with the brewing industry of the country India are strictly based on three regulations (Moodie et al. 2013, p.671). Any company that wants to enter the Indian market has to follow each regulation strictly. The regulations are Licensing Act 2003, Beer orders and other changes to Competition Law 1990 and Private security industries Act 2003. The country is highly focused towards sustainability and follows the agenda in every aspect. It also associates with corporate social responsibility for making the country more sustainable (Mussatto et al. 2010, p.829). However, this country compels brewing industry to initiate the technique of eco-friendly combustion. Hence, opening up a brewing business in this country will require a huge investment. The selected destination country- India It is evident from the PESTLE analysis that the country India is best suited for the company to expand its market into the international market. The pace the company CHEERS is moving in the Australian market can be enhanced by entering into the market of India. The level of economic integration between home and host country will be smooth as the trade on and off between the countries will be at a reasonable cost due to price fluctuations in the host country (Pai et al. 2015, p.1422). The political environment of the country India is democratic and stable. Even cross border shopping is allowed in the country due to low harmonization as well as the impact on international brands over the domestic market is huge and well accepted. However, the taxation rate is high as the government of India takes the advantage of higher consumption rate of alcohol. This is the only drawback but this can be overcome as the profits that will be earned from this country will be huge. The legal environment of India is stable enough to enter the market as the brewing industries of India require only three licenses which can be obtained following the procedures of India (Pantani et al. 2012, p.1390). Therefore, India is the best-suited option for CHEERS to attain their momentum again as well as to flourish the market of India. It has been evident from several case studies that International beer companies stand a better place in a country like India. Countries like Brazil are in a state of decline and have a flat marketing system in the country. The proposed plan for enhancing the growth of the business CHEERS should be based on pricing strategy. The craft beer brand should be introduced in the market at a reasonable and premium price for a starter to compete for the local brands as well as existing international brands (Phylipsen et al. 2002, p.672). The company CHEERS has to segment the Indian market based on each class present in the economy in India. Even though the customers avail international brand rather than the cheapest alcohol brand, CHEERS must focus on its pricing strategy as it will significantly have many rivals in the brewing industry. Southern India is the major consumer of alcoholic beverages in comparison to north, west and east regions (Perkmann and Spicer, 2010, p.271). Most of the bre wing companies have maintained and captured the market of north, west and east regions. Therefore, the initial strategy of CHEERS should focus to tap the market of the south and eventually untapped the market of north and east. As the company CHEERS has critically sustained the Australian market within a few years, it will not be hard to capture the Indian market. Demographically, India is becoming younger and its age is changing rapidly. It is estimated that the youth population of India is raising day by day (Talbot, 2010, p.269). Hence, the company CHEERS must focus on the youth generation of the country. Most of the youth of India prefer diet beer or light beer which the company has to consider. It must ferment beer into two categories. The first category will be based on the people who prefer light or diet beer and the other category can be for the people who prefer strong beer or higher amount of alcohol. The pricing strategy will be based on the two categories which will be equivalent with the competitors for a starter. The income rate of the urban middle class is also rising. Therefore, the company can fix the rate strategically based on each income group so that each class of people can purchase. The lifestyle, culture as well as personality of the people of India are changing rapidly. People at present tend to purchase things that contain the tag of the international brand (Veliyath and Brouthers, 2010, p.3). Therefore, in terms of psychograph, the company is safe to enter the market of India at ease. In terms of long term strategy, the company CHEERS can plan to deploy a portfolio with brands in terms of new craft beer segments at various pricing strategy. The organizational goal and objective of the company CHEERS are to deploy its company in the overseas market India as it has the best marketing position other than Brazil. The company can uphold its position and momentum again with increasing profit margin. As the economic condition of India is not higher, therefore the company will have to invest much less as compared to Brazil or other countries. Even the workforce of this country can be hired and trained as required at a very reasonable investment. The tax rates of thi s country are high and the political condition is very much stable (Warner, 2010, p.31). However, the degree of control required is high as Indian market gathers a huge attention from various industries due to its political as well as economic stability. Every country has its own risks in its own ways. However, the risks in the target market of India are low as compared to Brazil even if it has higher political sensibility. The risks can be removed only if the company CHEERS strategically implement its procedures as well as considers the external environment of the country India. Conclusion In this report, is the operational manager for the company CHEERS, each detail about the external environment of the countries India and Brazil have been provided. However, after analyzing the market condition of each country, it has been observed that India is the best-suited place for the company CHEERS to enter and flourish its business. Even though the taxation rate is a serious issue, the company still has a huge opportunity to gain a large amount of customers. This, in turn, will critically enhance the profitability as well as sustainability of the company. A useful recommendation has also been provided which can help the company to form an appropriate strategy before entering the market. The company must mainly focus on its pricing strategy as well as delivering the product which will be accepted by the youth. The company must also focus on its brewing categories of beer for better acceptance in the market. There are huge opportunities in the market of India as the economic as well as sociological factors are in favor towards the entry of the company. However, the company must also consider the possible threats which will significantly arise due to the existing companies of the brewing industry. References Anderson, K., 2010. Excise and import taxes on wine versus beer and spirits: An international comparison.Economic Papers: A journal of applied economics and policy,29(2), pp.215-228. Arora, A., Bhaskar, A., Minten, B., Vandeplas, A. and Swinnen, J.F.M., 2011. Opening the Beer Gates: How Liberalization Caused Growth in Indias Beer Market.The Economics of Beer, pp.308-332. Arrieta, .A., Rodrguez-Mndez, M.L., De Saja, J.A., Blanco, C.A. and Nimubona, D., 2010. Prediction of bitterness and alcoholic strength in beer using an electronic tongue.Food Chemistry,123(3), pp.642-646. 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