CHANGE AND CONTINUITY IN CONTEMPORARY

Change and Continuity in Contemporary Business



Table of Contents

Executive Summary3

Task 15

Describe and analyse the primary internal and external influences on Brazil.5

Task 28

Critically evaluate the impact of globalisation8

(i) analyse how globalisation influences policies and decision making on Brasil Foods (BRF)8

ii) critically undertake internal and external analysis of Brasil Foods (BRF)11

SWOT Analysis11

(iii) examine how Brasil Foods (BRF) managed change and complexity.13

Conclusion and Recommendations16

References18

Appendix20

Change and Continuity in Contemporary Business

Executive Summary

Brasil Foods (BRF) is one of the biggest food companies in the planet. It is the top player in the international production of proteins, with a 9 percent stake of global trade, and the major exporter of chicken items. Brasil Foods (BRF) is the outright leader in ready meals, and frozen, and chilled processed food, accounting for over a 50% share of retail value sales in each of these product categories in 2010. According to company reports, Brasil Foods (BRF) has high penetration in most products categories in which it operates, and its products are present in around 90% of Brazilian households. However, the company has the potential to grow its brands in categories such as yoghurt, powder milk, ice cream and pasta. (Baaklini 2011, 153)

The manufacturer has a wide portfolio covering all types of consumer - children, teenagers and adults. The company also offers different positioning, from economy to premium, to cater to all income groups, with brands such as: Wilson, Turma da Mônica, etc. Its leading brands are Perdigão and Sadia. Sadia, historically, has the higher priced positioning, although both have strong nationwide distribution networks. Perdigão and Sadia are rated as the most valuable in the Brazilian food industry, according to trade surveys. Smaller brands like Rezende, Tekitos, Texas and Patitas aim for a stronger presence in regional areas and they are positioned to compete with economy brands.

Brasil Foods (BRF) operates 36 distribution centres and 60 plants throughout Brazil, consisting of 42 meat processing facilities, 14 dairy facilities, one soy bean crush plant, two margarine plants and one unit for pizza, pasta, desserts and other processed products. The company also operates three foreign factories: a dairy products site in Argentina; and Plusfood units in the UK and the Netherlands.

Task 1

Describe and analyse the primary internal and external influences on Brazil.

Brazil attained democracy in 1985, after a prolonged period of political instability caused by internal strife between the military and democratic forces. Since then, democracy has been largely maintained. However, the first popularly elected president, Fernando Collor de Mello, was impeached on charges of corruption in 1992. President Fernando Cordoso assumed power in 1994 and implemented economic reforms. During his reign, Brazil witnessed the world's largest instance of privatisation, when $100bn of state-owned assets were privatized. The infrastructure sector was bolstered considerably due to burgeoning private sector participation in public infrastructure development. Under former president Lula, the government continued with its program of privatisation and maintained prudent fiscal discipline. The government's expenditure on the construction of public infrastructure was significantly reduced in order to leave enough space ...