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Brazil can be a very suitable spot for agriculture and livestock agriculture; it is a country in process of developing with a population of roughly 35 million, perfect for ProForest to set up. ProForest should opt for Foreign Direct Investment (FDI) as this way, all the resources they invest into their new business will be their own. In FDI, the investor is to obtain a long lasting interest in the business in a foreign country. FDI includes all kinds of invested capital such as the reinvestment from profits, purchase of stocks and giving funds as a loan to a foreign organisation or its branch. Once ProForest is all set with the plant/building, they should find reliable traders of raw materials in the country. As importing from the parent country might not be the wisest decision, it can be costly and devastating for the ethical image of the company.
The company should also try and hire all of its employees are workers from Brazil, this way people will feel among their own and will possibly not show signs of retaliation etc. Another reason why they should choose to hire local workers is that the locals have already been living there and have idea about what kind of soil do certain areas have or what kind of feed do cattle need etc, these suggestions and recommendations can save the company a lot of money while doing research. Another factor that should be kept in mind while choosing what workers to hire is that foreign workers will need allowances and residences in Brazil which the local will not.
ProForest should also make their products available in Brazil as word of mouth plays a very big role in this. The workers will tell their friends relatives about where they work and when those people see the products of the firm in their local markets they will definitely want to opt for them. Apart from that, the recent rainforest fires have left people devastated and the constant deforestation for livestock does not please people either. ProForest should take the locals in confidence and educate them about the sustainable methods of farming they are using. They should also advertise their products in big towns and cities of Brazil but only on the basis of being sustainable.
Due to competitors, ProForest may feel a bit difficulty in getting stabled in the country as the already set up businesses will not like an outsider coming to their market. A simple task can be done about this though, start purchasing raw materials from them, even if it is slightly more expensive than the local market. This way the competitors will seize to see the threat and focus on the advantage they are gaining.
ProForest should try and situate their operations in an area where the workforce is good, so that people do not have to travel long distances in order to look for jobs. If they have their homes nearby then they would not even need traveling and daily allowances.