Environmental Analysis: Argentina

1642 words - 7 pages

IntroductionGlobalization and regional integration has opened up the world to global business ventures. As countries begin to saturate their existing market, they are looking for new opportunities to expand and grow. Energy drink maker Red Bull has decided to expand their operations and introduce a new caffeine-free and sugar-free energy drink into Argentina. In order make this expansion successful, Red Bull must conduct an environmental analysis of the area. This paper provides some insight into the global, regional, and country analysis required by Red Bull. In addition, this paper will describe the Red Bull organization and the product being introduced.Global current events analysisIn order for Red Bull to become a competing force in the Argentina market, several factors have to be analyzed. Current events in the world are significant to the preparation of expanding a product, particularly internationally. Environment, terrorism, health, and finance are the issues Red Bull is going to focus on for the expansion. The environments of the world are important factors that can drastically affect any move or decision made by a nation. Factors such as a hurricane with strong winds and water can change the way people live, and the products people purchase. Overpopulation is another environmental aspect threatening to reach the stage where there are simply too many people for the planet to support (ThinkQuest, 1999).Military conflicts between other countries can cause many political and economical issues with alliances between nations. Product manufacturing can also aid environmental problems by polluting the soil upon which vegetation and agriculture are produced. Terrorism is also a problem that plagues the health and well-being of people and causes many issues and concerns that can make air and land travel a nightmare.Health is another topic sensitive to the way people purchase a product. An item or medicine consumed today may be deemed hazardous to your health in future years. This causes more awareness by consumers when purchasing a product to be consumed or digested.Finance issues in the world must also be considered when expanding a product into a different nation. Not all countries are financially sound. Some countries are poorer than others. An item may be manufactured or produced for less in one country; however when selling that product, poorer countries may not have a strong enough demand for a product not of necessity to survive. Higher oil prices are another world issue causing many companies to strategize differently. Considerations must be made for a product that has to be exported to another country and weigh the supply with the demand to determine if an expansion is worth the time, money, and effort.Region Analysis - South AmericaThe South America region consists of the following countries Ecuador, Colombia, Venezuela, Guyana, Suriname, Peru, Brazil, Bolivia, Paraguay, Chile, Uruguay, and Argentina. South America, the world's fourth...

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