Brasil Foods- Case Study

TABLE OF CONTENTS

Introduction1

Discussions1

Brasil Foods BRF- Company Profile1

Pork processor Brasil Foods reports strong 2011 revenue3

Production Costs4

Fourth Quarter4

Fact4

Case Brief6

Brazil Foods History6

Perdigao8

Sadia10

Sadia and Perdigao Merger of Close to a Resolution11

Sadia and Perdigao Merger12

The Authorities Intervene Before a Possible Monopoly13

Activities14

Problem Statement and Plan of Analysis14

Problem Diagnosed14

Plan of Analysis15

Internal Sources of Finance15

Personal Savings of the Stakeholders15

Relatives or friends of the Stakeholders16

Banks16

Non-bank Financial Institutions16

Leasing Companies16

Factoring Companies17

Suppliers17

Issue of Shares17

Bond Issue17

Swaps or Barter With Other Businesses18

Partners18

Investor18

Export Sales18

a) Export Factoring integral: more coverage of bankruptcy financing18

b) Export Factoring Insolvency coverage only19

Foreign Acquisition19

Retained Earnings21

Analysis and Findings24

Acquisition26

Failure of mergers and acquisitions29

Increasing Brand Loyalty29

Brand loyalty and involvement in the purchase31

Advantages of Brand Loyalty31

The cost of attracting new consumers found six times greater than the cost of32

Theories against the Brand Loyalty32

Increase Market Share33

Features34

Products and Brands36

Proposed Solution to Problem38

Conclusions39

References42

Brasil Foods- Case Study

Introduction

BRF Brasil Foods is a leading food companies worldwide with brands such as Perdigao, Sadia, and the possibility to coordinate Batavo and a portfolio of over 3,000 products.

Thus, the following essay is the case study about the BRF Brasil Foods and its operations. The essay is the case analysis for the strategic plans that Brasil Foods aims to achieve in 2015 by increasing its sales and the challenges and problems it faces by it.

Discussions

Brasil Foods BRF- Company Profile

Brazil Foods is also called as BRF. Brazil Foods SA (BRF) is a Brazil-based company engaged in the food processing industry. The Company is involved in the raising, production and slaughtering of poultry, pork and beef, as well as in the processing and sale of fresh meat, processed products, milk, dairy, pasta, frozen vegetables and soybean derivatives.

The Company's products portfolio includes whole chickens and cuts of chicken, turkey, pork and beef, hams, mortadellas, sausages and other smoked products, burgers, nuggets and meatballs, frozen lasagnas, pizzas, cheese breads, pies and vegetables, milk, dairy products and desserts, juices, soy milk and soy juices, margarines, soy bean and refined soy flour, used also as animal feed. During the last quarter of 2011, the Company's activities started to be segregated into four operating segments: domestic market, foreign market, food service and dairy products.

The company recorded revenues of BRL22, 681.2 million (12,835.3 million) during the year ended December 2010 (fiscal 2010), an increase of 42.6% over 2009.The operating profit of the company was BRL1, 484.5 million (840.1 million dollars) during of fiscal 2010, an increase of 1820.4% over 2009.The net profit was BRL804.9 million ($ 455.5 million) in fiscal 2010, an increase of 578.7% by compared to 2009.

The BRF was approved by the Administrative Council for Economic Defense (Cade) on July 13, 2011. The deal was conditional upon meeting a Statement of Commitment Performance (TCD) for the sale of a pool of assets consisting of ten plants of processed food and feed four, two pig slaughterhouses and two birds, 12 farms matrices poultry, poultry hatcheries two and eight distribution centers.

The term also stipulates the divestiture of brands Rao, Wilson, Texas, Tekitos, patitas, Healthy Choice, Elegant Light, Fiesta, Freski, Trust, Doriana and ...