Changes In Business Plan Due To Venezuelas Accession To Mercosur Essay

Changes In Business Plan Due To Venezuelas Accession To Mercosur - Essay Example This business plan will look at the response of a coffee manufacturer as a result of Venezuela's acceptance as associate member in Mercosur. The first part will look at the benefits and drawbacks of the acceptance to the whole country. The next section will be looking more closely at the micro level by examining the results of Venezuela's accession to a local coffee manufacturer. Venezuela is expected by other MERCOSUR member nations to make "limitless contribution [to MERCOSUR] in the economic, commercial, cultural and political fields" (Bolduc 2006). Venezuela is currently one of the largest producer and exporter of oil globally. It should be noted that the petroleum industry accounts for almost one third of the country's gross domestic product and almost 80% of export revenue (Venezuela 2006). The trading partners of Venezuela will gain from the company's resources. It should be noted that MERCOSUR's goal is the reduction of trade barriers between member nations. Thus, Venezuela is expected to lower its tariff on oil which will boost the demand for its commodity. However, doing so will reduce the revenue of the government in the form of tariffs collected. It can be seen that the acceptance of Venezuela will facilitate the inflow and outflow of goods as trade barriers are reduced and even eliminated. Venezuela will enjoy the influx of lower priced commodities from its trading partners like Brazil. For instance, it should be noted that in order to support the higher demand for poultry products in the local market, Venezuela imports a huge portion of its poultry supply from Brazil. Trade liberalization also brings in more choices for local customers. The inflow of commodities is expected to give a higher level of utility to Venezuelans. However, trade liberalization is a double edged sword. Aside from providing the aforementioned benefits, trade liberalization can also harm the local industry as it creates more intense competition in the market. It can be seen that the flow of more competitive commodities from its trading partners local manufacturers by capturing their current market. For instance, lower priced bags from Argentina can easily capture the price sensitive segment in Venezuela to the detriment of the local bag manufacturers. Changes in Business Plan From being one of the highest coffee producers in the world, Venezuela's coffee production now slumped to only 1% of the world's total. This, together with the inefficiencies in the agricultural sector makes the prices of coffee beans to skyrocket. It should be noted tat Venezuela has been experiencing shortage of manufactured coffee in supermarkets and specialty shops because of the extremely high prices (Morsbach 2006). The acceptance of Venezuela in the MERCOSUR posts challenges and opportunities for a local manufacturing industry. It should be noted that the high price of coffee beans exacerbated by production inefficiencies disable local coffee manufacturers to produce higher quality and more competitively priced commodities. With the trade liberalization, coffee manufacturers can now source their coffee beans from other coffee producing countries like Brazil. It should be not

Business law Essay Example | Topics and Well Written Essays - 750 words - 1

Business law - Essay Example In essence, this plan draws funding from the employers of the employees registered under the plan where they pay premiums of up to a hundred and two percent (Andersen, Rice & Kominski 2011). Therefore, this health plan serves as a temporary reprieve for employees to continue accessing health care until they find another avenue for paying their premiums in the event that any of the above occurs. However, as much as the plan is the right of the employees, it is a mandatory that they make prior notification so as to make the act work for them (Andersen, Rice & Kominski 2011). In this regard, Fran’s Fries is a community located eatery that serves a greater fraction of the community. In essence, the eating joint’s location is on the central part of town where heavy trading and interaction occurs. Fran’s Fries boasts of matching up to big names like Mc Donald and Steers because of the level of service and products on offer. Sequentially, the brains behind this strategi cally placed is Fran who couples as the joint’s owner and manager. Fran has vast experience in the hospitality industry because of previous work engagements with a number of five star hotels. Therefore, the business is one that draws success from passion and remarkable inter employee relationship. Fran’s Fries has created employment for twenty employees who work in the kitchen and also in the front service. Before the economic recession of 2008, the business entity was at the top of the fast food market in the region, which necessitated the need for the management to make their employees live with comfort. According to Fran, business took a turn for the worse when the recession occurred as many of the eatery’s consumers lost their jobs and others opted to carry light foods from their homes rather than eat take-outs. Essentially, fast foods led to the popularity of the eating joint where management also incorporated health care plans for their employees and their families. Moreover, the COBRA policy also followed suit to which the manager did not foresee the occurring of the event. With the recession in sight, Fran had to lay off some workers periodically because the profits realized could not sustain the entire work force. In this regard, the challenge of having to pay for the premiums of the laid off employees faced the business the profit generation was not sufficient for the cause. Therefore, Fran had to battle with ensuring that the business stays afloat and also ensuring that the business complies with the COBRA act. Lucky for the business, they took up a policy that allowed the business to only pay the extended premiums for employees for a period not exceeding four months. However, the manager says that this was also strenuous for the business as the laying off occurred in phases rather than in one stride. This made the incurrence of loses a part of the business until the time that the business stopped the process. By the time the re cession was over, the business owner says that the business had slashed the work force by half, which almost brought Fran’s Fries to the knees. However, Fran insists that the employees that lost their work at Fran’s Fries benefitted from the COBRA policy because four months was enough time for them to find other means of maneuvering. For Fran, the process of ensuring that Fran’s Fries did not crumble was a humbling experience because the business learnt how to survive on