Whole Foods Market in Brazil

Group Members: Kelsey Bedard▪ Kayla Dello Iacono ▪ Nancy Mamlock ▪ Taylor Matthews

Background Information

Founders: John Mackey & Walter Robb Name: Whole Foods Market Inc. Location: Austin, Texas Founded: 1980 Company Annual Revenue: $12,917,000,000 Number of employees (FTEs): 56,700 Type of Business: Grocery store Countries: USA, Canada, UK

Major Products Organic & Natural

Seafood Meat and Poultry Specialty (beer, wine, cheese) Grocery Bakery Coffee, tea Floral items Nutritional Supplements/Vitamins Prepared Food/Catering Books Household Body Care Pet Products

Purpose of Whole Foods Market • Sell the highest quality natural and organic products

available • Satisfy, delight, and nourish customers • Support team member happiness and excellence • Create wealth through profits and growth • Serve and support the local and global communities • Practice and Advance environmental stewardship • Create ongoing win-win participation with supplies • Promote the health of their stakeholders through

healthy eating education • Create value for its stakeholders

Company Plans and Goals

• Expansion • Increase Profitability (in Organic Industry) • Increase Customer Demand

• Incorporation of organic foods in consumer diets • Trend towards healthier lifestyles • Parents buying organic food for their children • Avoidance of pesticides and toxins

Structure of Parent Company Whole Foods Co-CEOs-

John Mackey and Walter Robb

Region A Division: Whole Foods Market, United

States

Region B Division: Whole Food Markets, Canada

Headquarters and home Country Division: Austin,

Texas, USA

Region C Division: Whole Foods Market, United

Kingdom

Our Business Unit: Whole Foods Market, Brazil

Marketing

Finance Customer Service Sales Inventory

Perishables

Non-Perishables

Store Development

International Business Strategy

• Greenfield Strategy (in terms of FDI) • Localization to fit consumers’ tastes • Brand Recognition • Gain Market Share in Brazil • Create L/T Profitability and Growth

Organizational Structure

Organizational Structure Continued (bottom half under Store Manager)

Market Plan

Topics to Discuss • Market Share (gaining brand awareness

& recognition, loyal customers, etc) • Budget (for building this WFM in Brazil) • Adhering to all Brazilian financial/labor

laws • Focus on Return on Investment

Ways to Expand Market Share

• Brand Awareness/Brand Equity • Emphasis on high quality products • Emphasis on a healthy lifestyle • Minimizing costs; maximizing profits and

efficiency

Labor Laws

• Remuneration: employment contract • Wages and Salary: minimum wage is about 400

dollars per month. Two-thirds of all WFM employees must be Brazilian

• Rights of the Child and major International Labor Organization

• 13th Salary • Government Severance Indemnity Fund for

Employees • Working Conditions/Hours Worked: Can’t exceed

44hours per week

Financial Laws & Regulations

– Corporation Act (encouraging transparency and honest practices)

– Securities Act or CVM (protect against fraud and regulates capital markets in Brazil)

– National Financial System Law: creating CMN (National Monetary Council formulating monetary/credit policies) and BC (Central Bank of Brazil executing those policies)

– Brazilian GAAP

Geographic & Economic Interest

– Target all sectors of the population (especially upper and middle class)

– Large urban city (Rio de Janeiro which is hosting 2016 Olympics)

– Lots of undeveloped land to create the new WFM building

– Atlantic Ocean offers another mode of transportation

Financial Considerations & Demographics

• Economy on the rise – Biggest economy in South America – 7th biggest economy in the world – Highest GDP growth rates – Economy

• Employment Rate= over 68% (for people ages 15-64)

• Unemployment Rate= 4.3% • Gender= Women (59%), Men (81%) • FDI inflow= $65.3B

Labor Market & Competition

• Low unemployment rate (4.3%) • Labor Market in Brazil= 104,745,358 people (on the rise) • Large income disparity; either very rich or poor • Growing Middle Class • Competition stems from the “cheaper” grocery stores in Brazil • Substitutes= non-organic food, junk food

Cultural Differences

Cultural Factors:

United States

Brazil

Religion

Christianity major religion, 61.3% Protestant 23.9% Roman Catholic

Christianity major religion, 73.6% Roman Catholic 15.4% Protestant

Education

99% Literary

90.4% Literary

Economics

Developed country. 6.7% Rate of unemployment. 2.6% real GDP

Developing country, world’s seventh largest country. 4.3% Rate of unemployment. 3.7% Real GDP

Politics

Federal republic, consisting of three branches: legislative, executive, and judicial. Male president.

Federal republic, consisting of three branches: legislative, executive, and judicial. Dilma Rousself, country’s first female president as of 2011.

Family

About 2.6 people per household

About 3.1 people per household

Class Structure

Based on social class system. Upper class: 3%, Middle class: 40%, Lower class: 27%

Based on social class system. Sectioned A through E, Upper class (A&B): 5%, Middle class(C): 52% Lower class (D&E)

Languages

Common Languages: English and Spanish

Primary language: Portuguese

History

European roots

European roots

Natural Resources/ Geography

3,794,100 sq. miles, consisting of plains and mountainous regions. 27% of the world’s supply of coal

3.3million sq. miles, consisting of rainforests and agricultural land. Natural resources: iron ore, nickel, timber, oil, coffee, sugar, etc.

WFM Budget (3 years) Budget for First 3 years

Whole Foods Market Inc.For 2015 to 2017

(all numbers in millons)

Revenues 2015 2016 2017Sales $0 $0 $2,435,250Total Sales $0 $0 $2,435,250

Expenses 2015 2016 2017

Land $5,000,000 $0 $0Wages $1,440,000 $1,440,000 $2,000,000Marketing $0 $100,000 $175,000Maintenance $0 $0 $15,000Infrastructure $6,000,000 $1,000,000 $0Total expenses $12,440,000 $2,540,000 $2,190,000

Funds Needed from Parent Company ($12,440,000) ($2,540,000) $245,250

Balance Sheet (expected after year 3)

Total Assets= $1,982,700

Total Liabilities= $493,200

Total SE= $1,489,500

Whole Foods Market Inc. BrazilFor year ending 2017

ASSETS 2017Current AssetsCash $130,500Accounts receivables 84,600Inventory 186,300Prepaid expenses 41,850

Total Current Assets $443,250

Fixed AssetsProperty and equipment net accumulated depreciation $1,092,600Long term investments 135,900 Goodwill 305,550 Other assets 5,400

Total Net Fixed Assets $1,539,450TOTAL ASSETS $1,982,700

LIABILITIESCurrent LiabilitiesAccounts payable $111,150Accrued Payroll, bonus and benefits due 165,150 Other current Liabilities 196,200

Total Current Liabilities $472,500

Long-term LiabilitiesOther long-term liabilities $20,700

Total Long-term Liabilities $20,700

SHAREHOLDERS' EQUITYCapital stock $1,244,250Retained earnings $245,250

Total Shareholders' Equity $1,489,500TOTAL LIABILITIES & EQUITY $1,982,700

Pro-Forma Balance Sheet

Employing our Business Unit

3% 5% 5%

32%

16%

7%

26%

6%

International Business Development ChartExecutive Leadership Business Managers

Store Managers Cashiers

Inventory Clerks Custodians

Bakery and Meat Department Trainees

Measures of Success

Profitability Demand Ability to Expand Benefits to the Community

Questions?

1

Whole Foods Market Business Plan 04/24/2014

Professor Boyd Group two

By: Kelsey Bedard, Kayla Dello Iacono, Nancy Mamlock, and Taylor Matthews

2

1. Executive Summary The parent company, Whole Foods Market, has made a successful mark on consumers in the United States,

United Kingdom, and Canada. Founded in 1980 and based in Austin, Texas, the company currently generates annual revenue of $12,917,000,000 from its 371 stores. The company’s mission is to promote the vitality and well-being of all individuals. When they first opened their doors in 1980, there were there were fewer than half a dozen natural food markets located in the United States, making Whole Foods a unique commodity to the city. The company began expanding in 1988 with the acquisition of the Whole Food Company. They rapidly incorporated this method of acquiring previous health food stores into their system for expansion. From their very beginning, the company has held specific standards and values that it encourages at every stage of their operation. These values include the healthy quality of their food and the fair treatment of their employees and suppliers, as well as a commitment to giving back to the community. Today, the company does about 97% of its total sales from its 355 stores in the United States. Over the past three years the company has increased their sales, gross profit, operating income, and net income. During this same year, the company created 5,600 new jobs. Their success in the United States and their limited locations abroad has led us to believe that this company could thrive in Brazil. There are a number of things to be considered when deciding on an international business strategy. These factors include: arenas, differentiators, vehicles, staging, and economic logic. These key considerations are for the company pressures to reduce costs or pressures of local responsiveness. Whole Foods Market is focused on an international strategy considering these factors to reach their goals. These goals are centered around gaining brand recognition in Latin America, to inspire the target population to switch from regular grocery stores to our organic market, and to create long term profitability and growth. Currently, WFM does not have a formal international business strategy, but aims to locate its stores where there is a demand among an educated and interested population. United States international policies must be considered due to their impact in moving Whole Foods Market into Brazil. Labor laws, education levels, business relationships, and consumer spending must be considered for the international investment. Labor laws differ between the U.S and Brazil due to their standard of pay. Minimum wage is vastly different between the two countries; this may be beneficial to the United States, by gaining labor at a cheaper cost. Consideration must also be placed on the necessity of receiving a higher level of education in Brazil. Those who are more educated are more likely to eat healthier foods, resulting in the greater increase of people shopping at Whole Foods Market. The United States must adapt to the types of business relationships in Brazil, and be able to establish a strong relationship before business can begin. By understanding the spending abilities of consumers, WFM can establish a pricing index for their products in Brazil. While considering these unique policies, in order to ensure WFM transitions smoothly into Brazil, we should also examine cultural factors. Religious, political, family, class structure and history of the countries are very similar, posing no threats for the transition of Whole Foods. But education and economy must be considered. Also the language barrier must be overcome to run operations smoothly. Lastly, we must consider the difference in geography between the two regions. The goal of Whole Foods Market expanding into Brazil is to expand the brand status. While Brazil has recently seen rise in sales of organic foods, there is not yet a Whole Foods Market established there. The form of FDI Whole Foods Market must undertake is a Greenfield investment which will provide them with the flexibility of brand development as well as control; however it may be time consuming. Upon entry Whole Foods Market must consider where they must invest their money, while considering the culture of Brazil. It is important to be familiar with the conversion of currency, the taxes, level of corruption, and corporate social responsibility in Brazil. Whole Foods Market will receive funding from their profits made from their company in other locations. Since Whole Foods Market is becoming an international market, it is important to be aware of the differences between the financial reporting regulations in Brazil and the United States. Whole Foods Market will have to adhere to the Brazilian regulations, which include the “BR GAAP” accounting practice. The practice requires a company must prepare a balance sheet, income statement and a statement of retained earnings in n annual report. Whole Foods Market must collect and analyze their assets, liabilities, and stockholders’ equity. During the first year of operations it is expected that the balance sheet will show expenses and income at $1,982,700. The success of Whole Foods Market investment in Brazil will be measured by the profits made in the first three years of operations. Profits can be measured by the daily sales, counting the money at the end of each day to measure the achievement of the company. Additional revenue such as accounts and funds received as well as donations will increase the revenue of the company. We can decrease expenses by monitoring Whole Foods Markets over purchasing by inventory management, limiting the amount of spoiled perishable goods. By establishing a market within Brazil, Whole Foods Market can reach out to the community to expand its brand recognition and success. The revenue gained upon establishment in Brazil will determine the measure of success the business will obtain.

3

2. Parent Company Overview

Parent Company Highlights: Name: Whole Foods Market Inc. Location: Austin, Texas Founded: 1980 Company Annual Revenue: $12,917,000,000 Number of employees (FTEs): 56,700 Type of Business: Grocery store About Whole Foods Market:

Whole Foods Market is a publicly owned company that has grown and expanded over the last 34 years. They are the leading retailer of natural and organic foods. Their mission is to promote the vitality and well-being of all individuals. They have been listed by Fortune magazine as one of the 100 best companies to work for, and are 232th on the Fortune 500. The organization is the eighth largest food and drug retailer in America. Whole Foods has 371 stores throughout the United States, Canada, and the United Kingdom. Brief History of Whole Foods Market: Whole Foods Market was founded in Austin, Texas in 1980. Four local businesspeople decided to take the natural food industry and turn it into a marketable format. The four founders were John Mackey and Renee Lawson Hardy, who were the owners of Safer Way Natural Foods, and Craig Weller and Mark Skiles, who were the owners of Clarksville Natural Grocery. 1When the original store opened in 1980 the staff was comprised of only 19 people. At this time there were less than half a dozen natural food markets located in the United States. Therefore, when Whole Foods first opened their doors, they were an instant success. However, on Memorial Day 1981, a massive flood hit the city of Austin. Whole Foods store’s inventory was wiped out and had significant equipment damage. At the time Whole Foods Market did not have insurance coverage for flood damage. With the help of the community and leniency from creditors, vendors, and investors the store was able to re-open 28 days after the flood.2

In 1984, Whole Foods Market began to expand out of Austin. The expansion started in Huston and Dallas, Texas. Whole Foods Market eventually expanded out of Texas and into New Orleans. In 1988, Whole Foods Market purchased Whole Food Company. A year later the company opened its first West Coast market with a store in Palo Alto, California. The company was able to grow rapidly; because they not only built Whole Foods Market from the ground up but they also purchase other natural food chains.

As mentioned earlier, much of the growth of the company was accomplished through mergers and acquisitions. The first company Whole Foods Market acquired was the Whole Food Company, which was located in New Orleans. Whole Food acquired the store in May of 1988 and it became the sixth Whole Foods Market. The company found it was easy to merge or acquire companies that had similar missions and goals as they did. This method allowed the company to open stores faster. Whole Foods, has acquired companies from North Carolina and Massachusetts, to California and Colorado. The companies that Whole Foods Market acquired throughout the last 35 years were Whole Food Company, Wellspring Grocery, Bread & Circus, Mrs. Gooch’s, Fresh Fields, Bread of Life, Amrion, Merchant of Vino, Allegro Coffee, WholePeople.com, Nature’s Heartland, Food for thought, Harry’s Farmers Market, Select Fish, Fresh & Wild, and Wild Oats Markets.3 Purpose and Core Values:

Whole Foods Market’s purpose is to generate profits, while also wanting to create value for all their major stakeholders, each of which is linked interdependently. Through their core values they are able to reach their purpose:

• Sell the highest quality natural and organic products available • Satisfy, delight, and nourish customers • Support team member happiness and excellence • Create wealth through profits and growth • Serve and support the local and global communities • Practice and Advance environmental stewardship • Create ongoing win-win participation with supplies • Promote the health of their stakeholders through healthy eating education

4

Locations: Whole Foods Market has 371 stores located throughout the United States, Canada, and the United Kingdom. There are eight stores located in Canada and the United Kingdom. The rest of the 355 stores are located in the United States and the District of Columbia. There are Whole Foods Market locations in 40 states, plus one in the District of Columbia. Whole Foods Market is also in the process of opening seven more stores; six of these stores will be located in the United States, while the seventh one will be located in the United Kingdom. One of these stores will be their first Whole Foods Market in the state of Mississippi. Eventually, Whole Foods would like to have 1000 locations in the United States. Sales: The following chart is a breakdown of total sales by location for the years 2011, 2012, and 2013.

2013 2012 2011Sales:United States 96.7% 96.8% 96.9%Canada and United Kingdom 3.3% 3.2% 3.1%Total Sales 100% 100% 100% 4

As shown above, much of the company’s sales come from their United States, while a very little proportion comes from the United Kingdom and Canada. This is due to the fact that much of their business is done in the United States and not abroad.

The following chart shows the sales, gross profit, operating income and net operating income (in millions of dollars) for the past three fiscal years for Whole Foods Market.

2013 2012 2011Sales 12,917$ 11,699$ 10,108$ Gross Profit 4,629 4,156 3,537Operating Income 883 744 548Net Income 551$ 466$ 343$ 5

Over the past three years the company has increased their sales, gross profit, operating income, and net income. In fiscal year 2013 the company had 12.9 billion in sales, and total sales increased by 10.4% from the last fiscal year.6 Their continued growth depends on their ability to increase sales by opening new stores. Whole Foods Market’s sales growth was driven by a 6.9% comparable store sales, along with a 6.6% identical store sales increase over the prior year.7 Products: Whole Foods Market offers a broad selection of high-quality natural and organic products. The organization places a strong emphasis on perishable foods. Some of their product selection includes: produce and floral, grocery, meat, seafood, bakery, prepared foods and catering, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, and lifestyle products including books, household products, and pet products. In fiscal year 2013 Whole Foods Market estimated that 30% of their sales (outside of prepared foods and bakery items) were organic items. The following chart is a breakdown of product sales based on perishable, and non-perishables for fiscal years 2013, 2012 and 2011.

2013 2012 2011

Perishables: Prepared foods and

Bakery

19.0% 18.9% 18.80% Other Perishables 47.2 47.0 46.8%

Total Perishables

66.2 65.9 65.6 Non-perishables 33.8 34.1 33.4

Total sales 100.0% 100.0% 100.0%

5

Employees: Whole Foods Market as of September 2013 had approximately 78,400 team members (also known as their employees). The organization has approximately 56,700 full-time employees, 18,500 part-time employees, and 3,200 seasonal team members. In fiscal year 2013, 75% of all permanent positions were occupied by full-time team members.8 The company created 5,600 new jobs throughout the fiscal year 2013 Whole Foods Market also experienced less than ten percent voluntary turnover in fiscal year 2013. The organization creates an environment of empowerment, by encouraging team members to create careers at Whole Foods. Parent Company Strategic Plan and Goals: Fiscal year 2013 was another record breaking year for Whole Foods Market. Its sales approached 13 billion dollars and they were also able to open a number of stores throughout the United States, the United Kingdom, and Canada. Whole Foods Market is a Fortune 500 company and hopes to increase their standing on the 2014 list. Since the company continues to generate high profits, they will continue to expand and grow their brand. Whole Foods Market growth depends on increasing sales in identical stores or by opening new stores. Whole Foods Market will continue to open new stores in the United States, the United Kingdom, and Canada to continue to reach their growth goal. Whole Foods Market has also set long term goals for themselves. In 2011 the company announced that it would like to have a 1000 store locations in the United States. They also expect to have at least 35 stores in Canada, where they see a great opportunity for growth. In late 2011 when the goal was announced the company had about 300 store locations in the United States. Today, the company has about 400 stores located in the United States with a number of new locations on the way. Whole Foods has been trying to open a number of stores with the cash that they have on hand in order to speed up the process. Their growth strategy focuses on opening new stores in existing and new markets and operating those stores successfully. At this time Whole Foods Market’s goal is to expand rapidly while making a positive impact on the communities they operate in.

3. Parent Company Organization Chart The chart above breaks down the three regions that already exist within the Whole Foods Market. There are a

number of different divisions that are located within the regions. The regions that exist within the United States

Whole Foods Co-CEOs- John Mackey and Walter Robb

Region A Division: Whole Foods Market, United States

Region B Division: Whole Food Markets,

Canada

Headquarters and home Country

Division: Austin, Texas, USA

Region C Division: Whole Foods Market,

United Kingdom

Our Business Unit: Whole

Foods Market, Brazil

Marketing

Finance Customer Service Sales Inventory

Perishables

Non-Perishables

Store Development

6

include: Mid-Atlantic, Midwest, Southern Pacific, North Atlantic, Southwest, South, North East, Florida, Rocky Mountain, Pacific Northwest, and Northern California. Located at headquarters are a number of Vice Presidents that are in charge of different aspects of the Whole Foods operation. The Marketing Vice President is in charge of making sure that Whole Foods Market can effectively satisfy their consumers’ wants and needs. They are also in charge of planning, promotion, distribution, and pricing Whole Foods Market’s products. Moreover, the store development Vice President is in charge of store redesign, and the development of new stores. The finance department and CFO are in charge of presenting and reporting accurate and timely financial information about the company to their stakeholders. The customer services department is in charge of making sure that the customers’ needs are met and that they are satisfied with the products that the company is offering. In addition, the sales department is in charge of keeping track of revenue, whereas the inventory department (which has two Vice Presidents) is in charge of different aspects of inventory management (i.e. perishable and non-perishable food items.)

4. Parent Company international business strategy An international business strategy focuses on the environment of the firm itself and how managers take actions

to operate more effectively in the international business market. In the past few years we have seen a shift from localization strategy, to global strategy. Localization strategy is when local country managers have considerable autonomy over manufacturing and marketing of their products.9 On the other hand, global strategy is when corporate centers exercise more control over manufacturing, marketing, and product decisions.10

A strategy is the actions that mangers take to attain the goals of the firm.11In general many firms strive to maximize the value of the firm for all stakeholders. Management can increase the value of the firm through profitability and profit growth. An increase in the value of the firm can create returns for their stakeholders. In order for these plans to work efficiently, companies must design their internal operations to support their strategic plans. The textbook states “the strategy operations and organization of the firm must all be consistent with each other if it is to attain a competitive advantage and garner superior profitability.”12

Expanding globally gives firms the ability to increase their profitability, and profit growth. Firms that operate internationally can benefit in a number of ways. First, they can expand the market for their domestic products. Next, they can realize local economies by using individual value creation activities to those locations. They are also able to realize greater cost economies from experience. Finally, firms can earn greater returns by leveraging valuable skills developed in other foreign operations.

Firms face a number of competitive pressures that place conflicting demands on the firm in regards to cost reductions and local responsiveness. Firms respond to these pressures by trying to minimize the unit cost per product whether it’s through new technology, finding new efficiencies, etc. Moreover, when a firm responds to local responsiveness they have to differentiate their product. Differentiation allows a company to defy its competition and stand out, which is extremely important in today’s highly competitive market. Companies accomplish differentiation through innovation, and by altering their marketing strategy from country to country to meet the specific target audience’s wants and needs.

When companies operate in the international marketplace, they must first choose a strategy. Therefore, the four main strategies are global standardization strategy, localization strategy, transnational strategy, and international strategy. “The appropriateness of each strategy varies given the extent of pressure for cost reductions and local responsiveness.”13 The global standardization strategy “focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies; that is, their strategic goal is to pursue a low-cost strategy.”14 This strategy is most useful when there are strong pressures for cost reductions and the demands from local responsiveness are low. Firms use this strategy in the industrial goods industry where products often serve universal needs; not when they want to customize their products. The localization strategy “focuses on increasing profitability by customizing the firm’s goods or service so that they provide a good match to tastes and preferences in different national markets.”15 This strategy is used when there are differences in customer preferences across a global market, with the goal to create value in the consumer’s eye. However, companies cannot take advantage of lower cost strategies; instead this strategy is useful when the added value supports higher pricing in a market. Overall, it helps a company recoup higher costs and create additional demand and can also lead to substantially higher demand that can help a firm reduce costs through the use of economies of scale.16 It should be noted that organizations that employ this strategy must keep an eye on costs and create efficiencies wherever they can. However, it is important to note that as competitors emerge in the market, this strategy becomes less feasible. The third strategy known as the transitional strategy is defined as a “plan to exploit experience-based cost and location economies, transfer core competencies within the firm and pay attention to local responsiveness.”17 This strategy is used when firms face strong cost pressures and strong local responsiveness

7

pressures. Furthermore, firms that use this strategy are trying to lower costs by using learning effect, economies of scale, and location economies. At the same time they are also trying to differentiate their product throughout their global market. This strategy is not easy to implement because it places conflicting demands on a firm. Few if any enterprises have perfected the use of this strategy.18 Overall, changing a structure of a firm in order to build an organization that is capable of supporting a transitional strategy is very complex and challenging task.19 The final strategy a firm can implement is the international strategy. The international strategy tries “to create value by transferring core competencies to foreign markets where indigenous competitors lack those competencies.”20 This typically occurs when a company is producing a product with universal needs but they are not facing any significant competition in the market. These companies tend to centralize their product development functions in their domestic market.21 They also tend to establish marketing and manufacturing plants in the major geographic regions they conduct business in. Doing this can increase costs for a firm and therefore, they are not taking advantage of lower costs. Similar to localization strategy as competitors emerge, international strategies become less feasible. Over time business must have the ability to adjust their international strategy. This is because competitors emerge within their markets and if they are not proactive they can be pushed out of the market. Therefore, managers must take steps in order to be ahead of their competitors, so they are not pushed out of the market.

Our international business unit will be formed around five key statements which include: arenas, differentiators, vehicles, staging, and economic logic.22 An arena refers to where our company will be active; in our case our arena is Brazil and also potentially throughout Latin America. It is critical that our organization selects a good location where there is a demand for our “natural” and organic products, but no one is currently fulfilling that need. Thus, it’s of utmost importance to make sure that the area we pick will be profitable, not unprofitable. Another key statement is a vehicle, which refers to how our organization will get to the location. In other words, it is how we will supply our goods to the location; our options include the use of exporting, licensing, acquisitions and mergers or Greenfield investments. It is important to pick the right strategy, while keeping in mind tariffs, barriers to trade and foreign direct investment regulations. Differentiation refers to how our organization will gain market share within this new location, and how they will make its products unique compared to its competitor’s products. Key considerations will be the number of competitors in the market, and the demand for products. An organization will also consider their image, customization of products, price, and styling. Staging refers to the consideration of how fast we want to move into a location and also how we are going to implement our strategy. If we want to be the first in the market, our organization will have to move quickly and be the first to establish themselves in a particular area. They also might want to wait until another competitor has established themselves within a particular area if they know that particular organization’s research is excellent. It’s important for the organization to consider if they want to be the first to gain market share, then worrying about protecting it when a new competitor enters the market. However, they can wait to enter a market after a competitor and try to take market share away from them. Lastly, economic logic refers to how an organization will obtain their returns. Organizations can obtain returns in a number of ways which includes implementing economies of scale, lowering costs through scope and replication advantages, premium prices due to superior product, etc. The key considerations for the company here are pressures to reduce costs or pressures of local responsiveness. Therefore, a company must employ a strategy that meets the needs of their consumers.

It is clear that Whole Foods Market’s strategy is focused on international strategy, meaning they try to create value by transferring their core competences that their indigenous competitors lack. By locating a new unit in Brazil, Whole Foods Market sets out to achieve its main objectives and goals. The first goal is to gain brand recognition. The organization wants to be able to gain brand recognition in Brazil so that the target population understands its mission and purpose, and be able to identify its main attributes. Therefore, as they continue to expand throughout Latin America, consumers will know what Whole Food Market is. This will help generate higher sales and win over loyal customers. The next goal is for Whole Foods Market to gain market share. Brazil is considered an emerging economy, so as incomes rise, we expect to see a change where a population is looking at becoming healthier. Therefore, it is our goal for the target population to switch over from the traditional grocery stores to our “natural and organic” Whole Foods Market store. The final goal for Whole Foods Market is to create long term profitability and profit growth. Our long-term goal is to expand throughout Latin America, which in return will create more profitability for the firm. Therefore, by entering new markets that Whole Foods Market has never entered before, it has the opportunity to experience profit growth. Through the implementation of an international strategy, Whole Foods will be able to reach their goals. However, it is important to note that as more competition emerges Whole Foods will need to be proactive about adjusting their international strategy.

Unlike the majority of international companies Whole Foods Market does not have a formal international business strategy. Whole Foods conducts most of their business in the United States, though it does have eight stores

8

in Canada and nine stores in the United Kingdom; these two countries that have been known to operate like the United States. However, it is Whole Foods Market’s vision is to continue to grow into the future.23 Thus, with just under 400 stores in three countries, the company still has room to grow aboard. International the company is very strategic about where they place their stores. Whole Foods Market aims to locate themselves where there is already a demand among an educated and interested population.24 Whole Foods Market is extremely transparent when it comes to developing their stores, keeping a list of their developing project on their website. It should be noted that, at this time, there are more than 50 stores listed on the company website that are in the development stages.25 This helps prove that there are still markets that are left untapped, and the Whole Foods Market expansion has only just begun.

In the past few years Whole Foods has worked diligently to shed the “whole paycheck reputation.”26 They know in order to survive; they must offer their products at reasonable prices. The company once produced the Whole Kitchen and Whole Pantry lines. However, these were mid-priced product lines were phased out during the recession.27 They realized that during a recession, customers are less likely to spend money on mid-priced lines when there are cheaper alternatives. The company wants to attract customers to their locations even when times are tough. During the latest recession in the United States the company used a number of programs to help their customers save money such as offering organic and natural frozen foods, having “flash” sales on certain products, etc. These money saving methods can easily be used when abroad markets are facing similar struggles. Therefore, when the economies of abroad markets are down, they can still attract consumers to their stores to purchase their products.28 Overall, Whole Foods Market knows that in order to be a competitive force in the international market, they will need to keep their prices in line with their competitors.

Many people are unsure if Whole Foods can compete on the international level. Their sales today look similar to what they looked like in 2007. Today, like in 2007 the majority of their sales come from the United States and only a small portion of their sales comes from their stores aboard. A number of analysts feel that the grocery store isn’t the type of businesses that translates well overseas.29 However, others argue that it is just taking time for Whole Foods to obtain brand recognition overseas. Whole Foods will continue to search for new global opportunities. Over the past decade global consumer spending has increased over 250%.30 While consumer spending growth rates of the United States and Europe have not increased as rapidly. With new emerging economies throughout the world Whole Foods has numerous new markets they can enter.

An increase in consumer demand is usually accompanied by an increase in incomes. As incomes rise, we expect there to be an increase in education throughout the population too. We know that better education is tied to better health outcomes, and better health outcomes often occur when people are making smarter choices about what they are eating. These emerging economies are an excellent opportunity for Whole Foods Market to conduct foreign direct investment. Here consumers have more disposable income to spend. Though Whole Foods Market does not have a clear international business strategy, it is in the process of formulating one especially as they begin to target more emerging markets all around the world. This will involve conducting more research aboard and identifying potential markets that will increase company profits. In general, Whole Foods Market’s international business strategy must address their foreign direct investment abroad. By conducting research about Whole Foods and new emerging economies, we concluded that Brazil would be an excellent place for foreign direct investment.

Latin America has become an important region in the developing world for FDI inflows. In Latin America both Mexico and Brazil have received the majority of the FDI inflows.31With our company’s expansion into Latin America, we will be able to take advantage of their natural resources to increase our production possibilities. Developing strong relations in Latin America will be mutually beneficial by providing more job opportunities for the people in Latin America, while decreasing our costs of imports. Thus, Whole Foods Market will ensure a successful business relationship while implementing quality food and service in Latin America.

5. Business Unit organization chart

Below is a chart that represents the type of people that will be employed at this business unit:

9

The chart above shows the percentage of Whole Foods employees based on the jobs. As you can see, a

significant proportion of our work force will be made up of cashiers. This store will also have a significant number of inventory clerks. The reason why this organization has both significant cashiers and inventory clerks is because grocery stores are based on customer services. Whole Foods must have enough cashiers to checkout customers without them waiting in line for too long. They also must have enough inventory clerks to make sure the shelves are stocked with the products that the customers want. If the organization fails to have enough inventory clerks on staff the run the risk of not having their shelves stocked properly. This can lead to angry customers who will not return to shop at the establishment again.

We plan on having the corporate headquarters, housing the Brazilian WFM President and CFO and COO, to be located in the same building as our new Brazilian Whole Foods Market store. Our goal for the future is to continue to expand in South America; once we start expanding, we plan to move the corporate headquarters to a more central location.

As seen in our detailed, organizational chart (on page 9), our organizational structure consists of a variety of managers who play critical roles in the new Whole Foods Market store. Our development manager will be in charge of organizing the design of the store and looking for new locations to expand in South America. We will also have a store manager, evening manager, and two assistant managers; it should be noted that one manager will always be on duty. Our marketing manager, will be in charge of monitoring and analyzing market trends, managing our promotional material, preparing marketing plans and budgets, discovering new ways on how to improve existing products, developing a communication mix and distribution plan, and even more. There will also be accounting manager, purchasing manager, non-perishable manager, perishable manager and a human resource manager who will have daytime hours at the organization. There will also be a storage room manager, ensuring that inventory levels are where they need to be, and a floor manager who will ensure that the operations are running smoothly. At this Whole Foods Market location, we will need cashiers, inventory control clerk, customer service representatives, and custodial staff. To get this brand new Whole Foods Market started, we expect to need 50 cashiers, for two shifts a day. The store will want a high number to make sure we always have enough people on staff. The organization will have about 10 trainees learning about the different procedures within the store, in case we run into a problem. We will also have about 25 inventory clerk controls. The staff will also have a decent size bakery and meat department. Within this department we estimate between 30 and 40 employees. Finally, we foresee the need of having 10 custodial staff that will be in charge of cleaning the store at night and spills during the day. In the end each store will employee between 150 and 200 employees.

When we first enter Brazil we will only have one shop, however, within four years of opening our new location will plan on acquiring five other local stores that have similar missions to Whole Foods. After about four years our Whole Foods stores will be employing at least a 1,000 employees. The reason we will wait until after our first store is up in running to expand is because Whole Foods wants to make sure that consumers in the area will purchase their products prior to making bigger commitments. Below shows a breakdown of the organization’s unit business chart:

3% 5% 5%

32%

16%

7%

26%

6%

International Business Development ChartExecutive Leadership Business Managers

Store Managers Cashiers

Inventory Clerks Custodians

Bakery and Meat Department Trainees

10

President of Brazil Region

Marketing Manager

Perishable Manager

Accounting Manager

Development manager

Financial Officer

Operating Officer

Non-perishable Manager

Store Manager Human Resource

Purchasing Manager

Evening Manager

Assistant Manager

Assistant Manager

Storage Manager

Floor Manager

Cashiers

Inventory Control Clerk

Customer Service Representatives

Custodial Staff

Vice President

Bakery and Meat Department Staff

11

6. International business issues in the geographic region of Brazil: Brazil is often referred to as a “melting pot of nationalities,” similar to that of the United States. “Brazil was forged by the dreams and energy of European, Asian and Arab immigrants; by the hard labor of the Africans and by the love of its native Indians.”32 This idea that is nothing new to the United States, who welcomes immigrants from the same areas of the world. In the 18th century, the Portuguese colonized the area and the nation still observes much Portuguese tradition and culture, including their spoken language and architecture. This Portuguese heritage separates them from the multitude of countries on their borders, most of whom claim Spanish ancestry. Etiquette is a very important part of the culture of Brazil. Brazilians take their interactions very seriously, and all participants are expected to abide by certain expectations. For example, it is expected that at a dinner, in a meeting, or at an event, people are expected to take care to dress nicely. It is considered rude to under-dress. Likewise, “Manicures for women and formal dress for both sexes are expected within corporate situations.”33 It is also expected that if you are invited to any such events or dinners, that you arrive early, and in some cases, bring the hostess a small gift of thanks for their hospitality. However, make sure that the gift you are giving is not purple or black; these particular colors are typically associated with mourning.34

The country’s government structure is a federal republic, led by President Dilma Rousseff. Rousseff was elected in 2010; she is the first woman to ever be elected president in this country.35 Like the United States, Brazil’s government is composed of a legislative, executive, and judicial branch, working together to work as checks and balances. Overall, it is important to understand that “Brazil is a civil law country and its legal system, which has its origin in Roman law, was implemented by the Portuguese during the colonization period. The system is based on codes and legislation enacted primarily by the federal legislature power, and also by the legislatures from the states and municipalities.”36 According to a report by CNBC in 2011, the middle class is on the rise in Brazil which is having a strong impact on the economy and flow of capital in the country. Even though the middle class and the economy are steadily rising, “Poverty remains a huge problem, with roughly 15 percent of the population estimated as living in absolute poverty.”37 This highlights the fact that though the middle class is beginning to fill this gap between the lower and upper classes, the distance between them still remains. Additionally, there are new demands from this middle class as they seek to better their lives and use available resources. One such demand that is coming up insufficient is the educational system. Without improvements to this system, the nation will not be able to “create the kind of workers the economy needs.”38 During this period of improvement and increase, it is important for them to continue in a forward motion, or risk getting stuck in their pursuit. Brazil is one of the largest countries in South America, divided into 26 states. Within those 26 states, there is a diverse landscape stretching over a variety of landscapes bordering the coastline on its East side. Because of the vastness of the country’s geography, the land differs dramatically. The coastline is different from the Brazilian highlands and the Amazon Rainforest. The Amazon “is home to an estimated one-third of all known animal species and makes up about half of the world’s rainforests.”39 Running through this rainforest and much of the rest of the country, waterways, like the Amazon River, provide a sustaining flow of water to the country. These waterways and the tropical/sub-tropical climate of Brazil make the land ideal for growing and production. Some of their main exports include: iron ores, petroleum oils, raw sugar, soya beans, poultry, and coffee. The United States is their second most frequent trading partner; second only to China.40 These local resources make Brazil a prime Latin American location.

Rio de Janeiro’s popularity has grown since its selection to host the 2016 Olympic Games. The city has become a host to a number of international companies who wish to capitalize on this historic event. The games will increase tourism in the city in 2016 and beyond. This tourism and the remodeling of the city will provide a stream of jobs for the native residents of Rio, or Carioca people. As part of the city’s improvement plan in preparation for the Olympics, their public transportation system is being vastly extended to include more neighborhoods, and decrease travel time between more popular stops. Their new Bus Rapid Transit lines will run directly between the various games facilities and the local airport.41 With the exclusion of the actual duration of the Olympics, these new transit systems will spread out the flow of people on public transportation during everyday use. This system will allow Cariocas to move around their city more effectively and quickly, expanding the range of jobs in the range of their commute to via public transportation.

“In business, Brazilians tend to ‘deal’ with individuals, not companies. Therefore, you will need to establish a trusting relationship with them if you wish to gain their business. It is important that you do not try to rush them into making decisions or forming relationships.”42 Brazil has faced economic instability in the past, resulting in a more cautious approach in the present; they are known to take their time in making decisions. Their

12

requirements for establishing a ground for investing in Brazil are lengthy, requiring 15 different procedures to gain the approval of the government. Even when these requirements are agreed to, “Foreign investment in several sectors of the economy is limited by the government.”43 It is no easy process to open an internationally based company in their country. “Challenges include a highly complex and expensive tax and labor environment, burdensome bureaucracy, costly credit, lingering corruption and deep social imbalances.”44 Despite these difficulties in Brazil, the country’s future is projected to continue to be successful. “In 2010, the country’s economy grew 7.5%, making it the seventh-largest in the world, according to the World Bank. In 2011, Brazil’s GDP is expected to grow 4.5%, slower than last year but still a healthy pace.”45

7. Impact of patent company policies: Some United States international policies/processes must be considered for they pose unique impacts on

moving Whole Foods into Brazil. Particular policies that may have specific impacts include but are not limited to, policies regarding labor laws, education levels, business relationships and consumer spending.

The labor laws in the United States may have an impact on our company moving into Brazil. The United States and Brazil both have numerous labor laws to follow. We must understand the laws in place in Brazil in order to ensure our operations can run smoothly in Brazil, without conflicting with the laws in place in the United States. In the United States businesses must follow federal laws protecting employees. “The Fair Labor Standards Act (FLSA) prescribes standards for wages and overtime pay, which affect most private and public employment.”46 This act specifies wages including minimum wage and overtime pay, it also sets standards for leave and other special employment needs. In Brazil, businesses follow employment relations, “governed by the Brazilian Federal Constitution, the Brazilian Labor Code—‘CLT’ and Collective Labour Agreements.”47 They have wages and salary laws that specifies minimum wage as well as ensures all employees of equal value have an equal opportunity in pay. While the United States and Brazil both have similar laws relating to wages, the minimum wage rate is different between the two countries. In the United States the minimum wage is 7.25 dollars per hour, while in Brazil the minimum wage is 2.48 Brazilian real, which converts to 1.13 United States dollars. This is a very large difference in wage rates between the two countries and poses a unique impact when bringing Whole Foods into Brazil. This means our company can employ workers at a cheaper cost.

Another labor law to consider is “the 13th Salary” which is effective in Brazil. This law is also called the Christmas bonus and “it corresponds to a one month salary.”48 This 13th Salary does “not include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary,”49 which means that employees are still paid vacation time and sick leave in addition to this bonus payment. This is a unique law for our company to adjust to since there are no such laws in the United States. We will have to consider whether we want to pay employees extra, although it may not be a major change for our company’s expenditures since Brazil’s minimum wage is so low, the 13th Salary should be a low cost as well.

In addition to labor laws we should consider education levels between the United States and Brazil. In both the United States and Brazil there is a high percentage of literacy, 99% in the United States and 90.4% in Brazil. We may consider ways to improve Brazil’s literacy to be at the same level as the United States. We must also encourage greater levels of education. Whole Foods can predict that those who are more educated happen to be more health cautious. Whole Foods appeals to healthy consumers, therefore, we need consumers with higher level of education to purchase our products. By increasing the level of education we can also work to decrease the number of people unemployed. In the United States those with less than a high school diploma, were at 11% unemployment compared to those with a doctoral degree only had a 2.2% unemployment rate. Unemployment rates decrease as education increases. In Brazil school is a requirement for those aged “seven through fourteen, however this is seldom enforced, due to the fact that many children work to earn money for their families.”50 The fact that many are not receiving higher levels of education in Brazil may impact our business unit. We may consider offering training programs before employing workers for our company, or require our employees to have a certain level of education.

Business relationships are another process that has a unique impact on our business unit. The United States is an independent country where, “business relationships are formed between companies rather than between people.”51 On the contrary Brazil is more dependent and prefers to work on an intimate level of person-to-person business relationships. This may impact our move into Brazil because we will have to form a close relationship before we can begin business. In order to even start business in Brazil we must apply to their government, which can be a lengthy process, “since it involves as many as 15 different procedures.”52 This will be an impactful change to Whole Foods in the United States as they are used to a fast pace environment. Creating business relationships in Brazil will take time, however the benefits of having our company in Brazil may be worth the cost.

Lastly, the United States international business policy regarding consumer spending may impact moving Whole Foods into Brazil. The United States and Brazil both have an increase in consumer spending since 2008 and

13

it is continuing to grow today in 2014. This may be a good sign that the economy is functioning well. The United States has the Consumer Expenditure Survey, which is a program, “that provides information on the buying habits of American consumers.”53 It is helpful because it examines the economic stability of consumers and can, “regularly revise the Consumer Price Index market basket of goods and services and their relative importance.”54 This allows the United States to have an idea as to what price products should be charged at. This survey would be beneficial in Brazil, that way Whole Foods could know the rate to charge their products, since prices set in the United States may be too high in Brazil.

In order to ensure Whole Foods transitions smoothly into Brazil we must consider these unique policies as well as cultural factors displayed in the table below.

Cultural Factors:

United States

Brazil

Religion

Christianity major religion, 61.3% Protestant 23.9% Roman Catholic

Christianity major religion, 73.6% Roman Catholic 15.4% Protestant

Education

99% Literary

90.4% Literary

Economics

Developed country. 6.7% Rate of unemployment. 2.6% real GDP

Developing country, world’s seventh largest country. 4.3% Rate of unemployment. 3.7% Real GDP

Politics

Federal republic, consisting of three branches: legislative, executive, and judicial. Male president.

Federal republic, consisting of three branches: legislative, executive, and judicial. Dilma Rousself, country’s first female president as of 2011.

Family

About 2.6 people per household

About 3.1 people per household

Class Structure

Based on social class system. Upper class: 3%, Middle class: 40%, Lower class: 27%

Based on social class system. Sectioned A through E, Upper class (A&B): 5%, Middle class(C): 52% Lower class (D&E)

Languages

Common Languages: English and Spanish

Primary language: Portuguese

History

European roots

European roots

Natural Resources/ Geography

3,794,100 sq. miles, consisting of plains and mountainous regions. 27% of the world’s supply of coal

3.3million sq. miles, consisting of rainforests and agricultural land. Natural resources: iron ore, nickel, timber, oil, coffee, sugar, etc.

The table above displays the cultural factors that may impact Whole Foods ability to move from the United

States into Brazil. Religious, political, family, class structure and history of the countries are very similar between the two, posing no problems with the transition of Whole Foods. As previously mentioned the increase in a higher level of education will increase opportunities for employment in Brazil, which will be beneficial for Whole Foods when hiring employees. The economics in the United States differs from that of Brazil, in the fact the United States is a developed country, while Brazil is a developing country. However Whole Foods can take advantage of the developing country as a good time to enter the market. Portuguese is the primary language spoken in Brazil, while English and Spanish are common languages spoken in the United States. We will have to consider ways to avoid

14

this language barrier, by learning Portuguese or offering English lessons in Brazil. The cultural factor of geography/natural resources is a very appealing reason for Whole Foods to move into Brazil. Brazil has a large amount of land, rich in natural resources including, “gold, iron ore, timber, as well as a healthy export trade in coffee, sugar, etc.”55 These natural resources are ideal for an expanding grocery store, such as Whole Foods. But we must consider whether these natural resources will be readily available for our use. In order to ensure these cultural factors as well as previously mentioned policies do not interfere with moving Whole Foods into Brazil, we must gain knowledge and plan for the future.

8. Foreign Direct Investment:

By bringing a Whole Foods Market store into Latin America, we hope to gain brand status. Having Brazilians know what WFM is and what it stands for will allowing Whole Foods to gain brand status, giving them the opportunity to become popular and spread throughout Latin America. Currently, countries, like Brazil, are seen as emerging economies meaning that Brazil’s middle class is on the rise; thus, their incomes are increasing and they have more disposable income. In the past few years, Brazil has seen a significant rise in organic food sales, and a significant part of Brazil’s economy consists of agriculture. A number of farms throughout Brazil are committed to producing organic food. This gives Whole Foods Market an opportunity to partner with a number of suppliers that they could potentially purchase some of their ingredients/products from. Whole Foods Market also has the opportunity to take advantage of Organics Brasil. “Organics Brasil is a program designed to promote worldwide Brazilian organic and sustainable producers, maintained by Apex-Brasil – Brazilian Trade and Investment Promotion Agency, executive department of Brazilian Ministry of Trade and Industry.”56 In general Whole Foods Market does not have a lot of brand recognition compared to most supermarkets, they do very little advertising; most of it is word-of-mouth advertising. However, operating in a country, like Brazil, which has seen an increase in demand for organic products will help the Whole Foods Market store gain more brand recognition and brand following in both Brazil and throughout the world.

Foreign direct investment (FDI) is “the direct investment in business operations in a foreign country.”57 Therefore, Whole Foods will be undertaking a Greenfield investment in Brazil. A Greenfield investment occurs when an entity establishes new operations in a foreign country.58 When Whole Foods Market develops a new location, its investments are either classified as Greenfield investments or acquisitions and mergers. However, since this will be Whole Food’s first location in Brazil, Whole Foods Market is better off establishing themselves with their own stores by using Greenfield investments. In general, Latin America has become an important region in the developing world for FDI inflows. In Latin America, both Mexico and Brazil have received a majority of the FDI inflows. Therefore, it will be beneficial for Whole Foods to set up their new store location in Brazil.

There are a number of advantages that Whole Foods will experience by undertaking a Greenfield investment. First, Greenfield investment provides the organization with maximum design flexibility to meet their specific requirements. This means that Whole Foods will be able to design their store to meet the requirements they have set. Next, the construction of a new will facility will reduce the required maintenance on the building. With new construction the company will not need to worry about problems, such as outdated infrastructure needing to be repaired. Also, Whole Foods Market will have greater control over all aspects of their business which can include their brand, staff, and public image. They also have the ability to transfer skills that give them competitive advantages in their market such as their management techniques. In addition, Whole Foods Market will have control over all of their core competencies. Establishing their own structure will also allow them to implement their best long-term strategy; this will ensure that their building and corporate structure can meet their current and future needs. There will also be press opportunities for the company to take advantage of, allowing Whole Foods Market to establish brand recognition in their new emerging market.

Even though Greenfield investments have a number of advantages, we must also take into consideration some of its disadvantages. Greenfield investments typically take more time and money to complete then acquisitions or mergers. The entry process may take years depending on the FDI regulations in the country. Also, the site that they chose to build their store on may not be fully developed and the organization might incur some additional development costs. Finally, competition in the country may be difficult to overcome. In this case, Whole Foods Market may have trouble becoming a competitive force in the market since they are not established in Brazil. However, it is clear that in this case the costs outweigh the benefits and Whole Foods should undertake a Greenfield investment in Brazil.

Brazil is open to and encourages FDI.59 It has been reported by the United Nations on Trade and Development World Investment Report that Brazil is the fifth most attractive country for FDI.60 Brazil has constantly been the largest FDI recipient in Latin America and in the past, the United States has been a major

15

investor in Brazil. More specifically, the country of Brazil is considered to be a friendly environment for foreign direct investment. However, though there are complex tax and regulatory requirements that exists within the country, Brazil has been known to give tax breaks to companies that are involved in foreign direct investment. Overall, the government rarely makes distinctions between foreign and national capital in the form of direct investment. Land: We estimate that it will cost approximately five million dollars for the land in Brazil. We have allocated for this amount in our budget because we need a large piece of land to support our building, and extra space to add a parking lot for employees and customers. In addition, we also wanted to make sure there was enough money budgeted just in case the land in undeveloped; leaving funds available for additional costs such as water and tie into sewer system or septic tanks. Facility:

Based on extensive research and looking at the real estate currently on the market, we determined that it will cost approximately 5 million dollars to build the Whole Foods Market facility. This cost includes all materials that will be needed to build the physical building, in addition to all the materials needed within the stores (i.e. freezers, shelves, slicers, display cases and many other materials.) Labor: In order to build the store location, we estimate that it will take a workforce of about 200 workers. With 200 workers Whole Foods would hopefully be able to get this store location up and running within a two year period. In Brazil the minimum wage is about 400 dollars per month. Therefore, the budget for labor would be about $2,880,000 dollars. Once the new Whole Foods Market store is up and running, we will have about 50 people working for the organization. Employees will include both men and women of working age, and at least 100 of the 150 employees will be Brazilian citizens. It is important to note that Brazil is part of the U.N convention on the Rights of the Child and major International Labor Organization conventions converting the prohibition of child labor, forced labor and discrimination. In Brazil, the labor code is extremely detailed and generous to workers. Brazilian employers are required to pay a 13th month of salary to employees at the end of the year.61 The country also has labor courts that are responsible for resolving cases involving unfair dismissal, working conditions, salary disputes, and other complaints. These courts also have the power to impose an agreement on employers and unions if negotiations break down and either side asks the court for help.62 In many instances these labor courts are used to determine wages and working conditions for all industries throughout the country. Recently, both labor and management have become more flexible and more collective bargaining is used. Since Whole Foods Market will be a firm that is employing more than three people, they will need to follow some specific labor rules. More specifically, Brazilian employees at Whole Foods Market must constitute at least two-thirds of all employees working there; they must also receive at least two-thirds of total payroll. Whole Foods organization will also bring benefits to the country. By investing in Brazil, Whole Foods Market will create an employment effect. This means that the organization will be hiring people to work in their store. They will also have a crew to build their store. Whole Foods will also give a number of suppliers in the area more business because they will be ordering their products from them. Whole Foods also runs a number of programs that can benefit the community they operate in. Fees, licenses, etc.

• Check the company Name with Juce SP o less than a day and no charge can be done online

• Pay registration fees o takes one day R$75 ($31.40)

• Register at Juce SP to obtain NIRE and CNPJ o takes 7 days and is part of the registration fee above

• Obtain the INSS (National Institute of Social Security) o 5 days and no charge

• Register to ICMS o 1 day and no charge

• Register with the Municipal Taxpayers’ registry o 1 day no charge

16

• Apply and obtain digital certification (token ) for the use of e-voice o 2 days and costs vary from R$450.00 to R$600.00 ($188.37 to $251.16)

• Apply to the municipality for an operations permit o 90 days and no charge

• Register and pay TFE o 1 day and R$425.46 ($178.10)

• Register the employees in the social integration program o 1 day and no charge

• Open a special fund for unemployment in bank o 1 day and no charge

• Notify the ministry of labor o 1 day and no charge

• Registration with the Patronal Union and with the Employees Union o 5 days and Annual Fee to be paid depending on the union

Conversion and Transfer Policies: The currency in Brazil is the Brazilian Real. In the past, there have been few restrictions on converting

funds associated with foreign investments in this country.63 Whole Foods Market’s investors would be able to covert the Real within the unified foreign exchange market. Here the buy and sell rates are determined by the market forces supply and demand. All exchange transactions must be reported to the Central Bank after they have occurred, so Whole Foods Market must register the investment with the Central Bank within 30 days of the inflow of resources to the country. At this time, Whole Foods Markets would need to find a local representative in Brazil in order to find a Brazilian financial administrator. The organization will also need to get any and all foreign loans approved by the Central Bank. However, the process is very easy, and most loans are approved automatically. Taxes and Incentives:

The Brazilian government has a number of tax incentives and attractive financing through the National Bank for Economic and Social development. 64The National Bank for Economic and Social development is there to encourage both domestic and foreign investments. Over the last 15 years the Federal government has increased these foreign investment incentives. Both state and municipal governments continue to provide tax and other incentives for investments within their regions. In the less developed parts of the country the Brazilian government extends a number of tax benefits. The individual states of Brazil offer a number of ad hoc tax benefits and infrastructure support to companies in order to attract them to their area.65 However, it is important to note that these benefits have spurred “fiscal war”. In November 2012 Congress put an end to these fiscal wars by setting an interstate tax rate on goods at four percent for all states. This limits the ability to offer special tax incentives to attract investments away from other states. Incentives throughout Brazil included deferment or reduction of the state based value-added tax (VAT), free land, or free building. It’s also important to note that the Brazilian corporate tax rate is 15 percent. There is also a surtax of 10 percent that is applicable if profits exceed R$240,000 a year. Corruption:

In 2012, Brazil ranked 69th out of 174 in the Transparency International's Corruption Perceptions Index. 66With regards to major emerging economies Brazil ranked ahead of China (80th), India (94th), and Russia (133rd), and tied with South Africa (69th).[ii] Corruption scandals are common in Brazilian political life. Brazil is a member of the Organization for Economic Cooperation and Development Anti-Bribery Convention. They were also one of the founders, of the intergovernmental Open Government Partnership, which seeks to help governments increase transparency.67 Brazil has implemented a number of laws, regulations and penalties to help combat corruption. However, the effectiveness of these regulations has been inconsistent. In Brazil bribery is illegal and a bribe by a local company to foreign officials is considered a criminal act. Federal government authorities typically investigate allegations of corruption; however, they are not consistently enforced. Many companies have reported problems in business dealing with authorities, particularly at the municipal level. Funding and responsibility:

17

The funding for this project will be derived from the profits made at Whole Foods Market’s other locations (in the United States, Canada, and the United Kingdom). The person in charge of this foreign direct investment project is the development manager, who is a resident of Brazil. He/she must be an expert of Brazil and Latin America who can help us identify the best places to expand our company. He/she should also understand the culture and how business transactions take place, and can help identify the members of society that we must get in contact with in order to get our organization started in Brazil. Their job is to identify the best place to open a Whole Foods Market in Brazil. He/she will also continue to be a part of the operations by conducting research so that the company can open more locations throughout Latin America. This manager will help us make valuable contact throughout Brazil that will help Whole Foods in the future. Corporate Social Responsibility: Many sector corporations of significant size in Brazil pursue corporate social responsibility activities, such as local education, health and other important programs. Corporate social responsibility is the commitment by a business to contribute to the economic development while improving the quality of life for the workforce and their families as well as the community and society at large.68 Furthermore, the consumers in Brazil as a whole have accepted corporate social responsibilities and hold companies accountable for their business practices. For example, Whole Foods Market, like many organizations before them, will hold community member meetings before they start construction on a new store to review what the benefits of the store will bring to the community. Whole Foods Market will also conduct this meeting to let the community know what their intentions are, and what they hope to accomplish with this new location. Whole Foods Market takes pride in serving its community that it is in. In total, Whole Foods Market’s community giving exceeds five percent of their total net profit each year.69 Whole Foods Market has a number of programs that help benefit the communities they are working in. For example, the Whole Planet Foundation works with the poor in developing-world communities that supply Whole Foods Markets with their products. Whole Kids Foundation supports schools by improving the nutrition and wellness of the children. While Whole Cities Foundation helps bring fresh, nutritious food, and broader access to healthy eating education to underserved communities. Whole Foods also has a local producer Loan Program that provides up to 10 million dollars in low interest loans to small local producers. Brazil would be a great place for Whole Foods to use their community programs in order to help the local residents. How the plan is measured: We will measure our plan in four ways. The first way would be the profitability of the store. If the store has the ability to be profitable, Whole Foods will know that Brazil can support their organization. They will also know that there is a demand for their product there. Another measure will be the overall benefit Whole Food Market receives from operating in Brazil. For example, they can identify new organic farmers that can become part of their long-term supply chain. The next measure is Whole Foods’ ability to expand throughout Brazil and the rest of Latin America. Being able to build more stores in Latin America gives the organization the ability to be more profitable, while experiencing profit growth. The final measure would be looking at the benefits to the community. These benefits include higher employment rates, healthier lifestyles and education about healthy choices. 3 year Budget:

Budget for First 3 yearsWhole Foods Market Inc.

For 2015 to 2017(all numbers in millons)

Revenues 2015 2016 2017Sales $0 $0 $2,435,250Total Sales $0 $0 $2,435,250

Expenses 2015 2016 2017

Land $5,000,000 $0 $0Wages $1,440,000 $1,440,000 $2,000,000Marketing $0 $100,000 $175,000Maintenance $0 $0 $15,000Infrastructure $6,000,000 $1,000,000 $0Total expenses $12,440,000 $2,540,000 $2,190,000

Funds Needed from Parent Company ($12,440,000) ($2,540,000) $245,250

18

As you can see above, we plan on needing about 12.5 million dollars in funds for the first year to finance the new Brazilian Whole Foods Market store. However, during the second year of construction, the funds we will need from our parent company will significantly decrease. The reason for this decrease is due to a reduction in costs for infrastructure and land (since the land was purchased in year 1 and most of the construction will be completed). In year three our Whole Foods location will be up and running. This location is expected to make a profit of $245,250 dollars in 2017; thus, no longer needing any funds from our parent company.

9. International Business Metrics Report When collecting and analyzing data, it is extremely important to be aware of the financial reporting

regulations in Brazil. Since Whole Foods Market in located in the United States, they follow completely different financial reporting regulations than in Brazil. Even though our store is part of the larger Whole Foods Market organization, they will still be expected to produce timely and reliable financial statements adhering to the Brazilian regulations. This will be crucial when the store is just starting out because stakeholders want to know if the new location is a failure or success. It will also help indicate if there is more room to expand throughout Latin America or if Whole Foods Market should close down this location.

The accounting practices in Brazil, which are referred to as “BR GAAP,” are based on the corporate law which was updated in 2008. 70In Brazil, official financial records must be written in Portuguese and the Brazilian currency must be used. However, other languages and currencies can also be used for management purposes. It is required that the company prepares an annual statement that includes a balance sheet, income statement, and a statement of retained earnings.71They must also include a statement that identifies the source and application of funds and general notes about the financial statements. Companies subject to the control of the Brazilian Securities Commission must also have their financial statements audited72 and must publish two years of comparative financial statements in the official Gazette and in at least one well known newspaper; this encourages transparency of the workplace. Finally, if the company is deemed to be large then the organization must be audited by an independent auditor.

This Whole Foods location will have a number of systems in place to efficiently and accurately collect data, and analyze it. Cash will be collected at the end of each day from the safe and brought to the bank. The accounting manager will be in charge of reconciling the cash receipts with cash from each draw that is brought to him at the end of a cashier’s shift. This serves as a checkpoint to ensure the cashier’s math was correct, and that no cash was taken. Then the cash will be recorded in the general ledger. The cash that is not needed for the draws will be brought to the bank at the end of each day. At the end of the each month the accounting manager reconciles the general ledger with the bank statements. This allows us to properly keep track of the cash the organization has. When this Whole Foods location first starts out they will keep all cash in Brazilian currency for the time being. However, at year end currency will be converted based on market factors, for corporate financial statements.

The accounts receivable will be kept in a master file within the computer system. Every time the organization allows another company to purchase merchandise on credit, it must update accounts receivable; this includes taking the information about the other company along with the terms of the agreement. Twice a month the accounting manager will be in charge of reviewing the accounts to identify delinquent accounts. If it is over 120 days past due the accounting manager must pass this information on to the vice president. The vice president then will decide if the account should be forwarded to the collecting agency. The account manager will then adjust accounts receivable entry to reflect the delinquent accounts. In general three percent of accounts receivable is considered bad debt and will never be collected. This is important to keep track of because we don’t want this location having too many delinquent accounts; a large number of delinquent accounts can cause the organization to lose substantial funds.

Inventory will be kept track of by a computer program. This program will allow us to know when levels are too low and when merchandise should be reordered. The program will also allow both the perishables manager and the non-perishables to track trends over time. They will identify which products are selling well and which ones they shouldn’t reorder. The storeroom manager will be in charge of informing upper management what needs to be reordered after he receives the notification that inventory is low. The perishables and non-perishables managers will be in charge of improving purchase orders. At this time both these managers have the ability to make the necessary adjustments. They can also identify new products they would like to bring into the store to sell. In general, this Whole Foods Market location will not want to have a lot of inventory on hand. However, we should expect to see a high inventory turnover rate. In addition, inventory should be checked upon receiving the goods by using blind counting. Once the goods are counted, they must report back to the storeroom manger or the perishable and non-perishable managers to make sure that the quantity received was the quantity that was ordered.

19

The organization’s “Good Will” consists of their donations to the society that they are operating in. This also reflects the organization’s social responsibility. The organization has a number of programs that they run and this store in Brazil will be implementing a number of these policies. The number is comprised of the money they spend in order to educate the community, along with donations of food and money to help the community prosper. Good Will is a significant part of the Whole Foods culture.

The last significant part of the balance sheet is the “Accounts Payable” section; this section accounts for the organizations that the Brazilian Whole Foods Market owes money to for the goods that they have purchased. In general, there will be an accounts payable file located in the general ledger, but also the computer, which allows us to know which vendors we owe money to. In addition, each week the accounting manager will update the folder and he/she will update it by identifying new accounts that need to be paid based on orders we placed that week. He/she will also need to identify the bills that will be due within the next two weeks. Once the accounting manager has identified the bills, he/she must confirm that the organization has the cash on hand in order to write a check. This is important because the organization doesn’t want to write checks that bounce because it can create additional fees. Once he has completed this task he sends the proper documentation to the President of the Region. He/she will then need to approve the charges and then sign the checks to be shipped to the vendors. Finally, the accounts payable must be monitored constantly, so that the organization does not create any bad debt.

Below is the Pro-Forma Balance Sheet for the Brazilian Whole Foods first year of operations:

Whole Foods Market Inc. BrazilFor year ending 2017

ASSETS 2017Current AssetsCash $130,500Accounts receivables 84,600Inventory 186,300Prepaid expenses 41,850

Total Current Assets $443,250

Fixed AssetsProperty and equipment net accumulated depreciation $1,092,600Long term investments 135,900 Goodwill 305,550 Other assets 5,400

Total Net Fixed Assets $1,539,450TOTAL ASSETS $1,982,700

LIABILITIESCurrent LiabilitiesAccounts payable $111,150Accrued Payroll, bonus and benefits due 165,150 Other current Liabilities 196,200

Total Current Liabilities $472,500

Long-term LiabilitiesOther long-term liabilities $20,700

Total Long-term Liabilities $20,700

SHAREHOLDERS' EQUITYCapital stock $1,244,250Retained earnings $245,250

Total Shareholders' Equity $1,489,500TOTAL LIABILITIES & EQUITY $1,982,700

Pro-Forma Balance Sheet

20

10. International Business Plan Success The success of our company will be the most obvious desired outcome of our business venture in Brazil.

This success will be determined by the efficiency of the business and the ability of its leaders to adapt to their net environment and practices. Using the data at different stages of the operating of the business, changes can be made to make the business run more effectively and profitably. This data will be an indication of whether or not we chose to enter into the right foreign market.

Cash will be collected from each cash drawer at the end of each business day. That money will be counted, reported, and deposited by the accounting manager. The increase in daily sales over time will be a measure of achievement for the company. This sales success will also be measurable through the monthly bank statements recorded and double checked by the same accounting manager. This monthly income will be an accurate indication of the popularity of the company and the traffic that it stimulates. Keeping these numbers growing over time will give us evidence that we have been able to fruitfully attract and maintain the interest of local consumers. This data is proof that we are an important part of the local business infrastructure.

This total of sales will be contrasted with the company’s amount payable. The accounting manager’s weekly updates of vendors who need to be paid will be an indication of how much is being spent on inventory versus how much is being made from the sales of this inventory. Inventory management and observation will be a very important factor in ensuring profit and eliminating unnecessary spending on goods. Adjustments can be made to these inventory orders based on sales trends in the store. This will be an effective way to track and lessen the amount of spoilage of perishable goods due to over-purchasing.

Another factor to consider when measuring the success of the company is the rate of accounts receivable that are collected. With more of these accounts and funds received, the business’s income will grow and there will be far less of a loss from delinquent accounts. The accounting manager’s twice-monthly checks on these outstanding accounts will provide ample opportunity to seek the collection of these payments from buyers. The data generated by the accounting manager’s reports will be useful in determining how much (if any) capital is being lost due to these deals with outside companies.

Whole Foods is dedicated to giving back to the community and participating in charity giving. The amount that can be given each year will be important to upholding the social responsibility of the business. The higher the amount that is available for donations, the more profitable the project will be deemed. The company aims to increase the employment rate of their location as well as promote healthier lifestyles and choices through the quality of their products. The employment rate is certainly measurable in collaboration with the local government.

Another important factor to considering the overall success of Whole Foods is the welfare of their employees. This can be tracked through a record of the amount that is paid out in wages every month. This will also be examined by looking at the number of new hires in the store versus the number of employees leaving their Whole Foods jobs to seek other work. These statistical analyses can also be supplemented with practical evaluations of the company provided by their employees. This will give a truer indication of the satisfaction of the employees. On a larger level, the long-term benefits of the Brazil location to the parent Whole Foods Company is also important to considering its success. From their influence in Latin America, the Brazilian company will be required to develop contracts with new suppliers and farmers that can benefit all the Whole Foods locations across the globe. These contracts can be valued to contribute to the branch’s total worth in the global establishment of the company. These partnerships and relationships developed in Brazil may also open doors for further development in Latin America. All in all, the measure of success of the business will ultimately be determined by the income of the business over the course of the first few years. The revenue acquired over this time will generate a depiction of the popularity of the company in the foreign market and a look at the potential for growth in that market. The true moment of success for the company will be making a profit that breaks their reliance on funds from the parent company. We have predicted that we will be able to achieve this goal within the first three years of business in Brazil.

1 Whole Foods Market Home Page. (n.d.). Whole Foods Market. Retrieved April 9, 2014, from http://www.wholefoodsmarket.com/ 2 (Whole Foods, 2014) 3 (Whole Foods, 2014) 4 (Whole Foods, 2014) 5 (Whole Foods, 2014) 6 (Whole Foods, 2014) 7 (Whole Foods, 2014) 8 (Whole Foods, 2014)

21

9 Hill, C. W. (2005). International business: competing in the global marketplace (5th ed.). Boston, Mass.: McGraw-Hill/Irwin. 10 (Hill, 2005) 11 (Hill, 2005) 12(Hill, 2005) 13 (Hill, 2005) 14 (Hill, 2005) 15 (Hill, 2005) 16 (Hill, 2005) 17 (Hill, 2005) 18 (Hill, 2005) 19 (Hill, 2005) 20 (Hill, 2005) 21 (Hill, 2005) 22 Carpenter, M. A., & Dunung, J. P. (2013). International business: opportunities and challenges in a flattening world. Irvington, N.Y.: Flat World Knowledge. 23 Roberson, A., Zelezen, A., Brahmavar, A., Pilipenko, B., Gandhi, K., & Werner, M. (n.d.). Competitive strategy at Whole Foods Market. Thunderbird School of Global Management. Retrieved April 10, 2014, from http://www.thunderbird.edu/blog/faculty/washburn/2010/12/13/whole-foods-market-%25e2%2580%2593-competitive-strategy 24 (Roberson, Zelezen, Brahmavar, Pilipenko, Gandhi, Werner, 2012) 25 (Roberson, Zelezen, Brahmavar, Pilipenko, Gandhi, Werner, 2012) 26 (Roberson, Zelezen, Brahmavar, Pilipenko, Gandhi, Werner, 2012) 27 t(Roberson, Zelezen, Brahmavar, Pilipenko, Gandhi, Werner, 2012) 28 (Roberson, Zelezen, Brahmavar, Pilipenko, Gandhi, Werner, 2012) 29 Bleeker, E. (2012, March 23). Can Whole Foods Find International Growth?. DailyFinance.com. Retrieved April 10, 2014, from http://www.dailyfinance.com/2012/03/23/can-whole-foods-find-international-growth/ 30 (Bleeker, 2012) 31 (Hill, 2005) 32 The Diversity of Brazilian Culture. (n.d.).Brazilian Culture. Retrieved April 10, 2014, from http://www.brazil-travelnet.com/brazilian_culture.html 33 Brazil Culture. (n.d.). Brazil Culture. Retrieved April 10, 2014, from http://www.brazil.org.za/brazil-culture.html#.Uw-T13l5jPx 34 (Brazil Culture, 2011) 35 Profile: Brazil's President Dilma Rousseff. (2013, June 22). BBC News. Retrieved April 10, 2014, from http://www.bbc.co.uk/news/world-latin-america-11446466 36 Library of Congress. (2014, February 28). BrazilFederative Republic of Brazil / República Federativa do Brasil. Guide to Law Online: Brazil. Retrieved April 10, 2014, from 37 Domm, P. (2011, April 28). Growing Middle Class Fuels Brazil's Economy.CNBC.com. Retrieved April 10, 2014, from http://www.cnbc.com/id/42785493 38 ( Domm, 2011) 39 Brazil Geography Introduction. (n.d.).Brazil Geography. Retrieved April 10, 2014, from http://www.brazil.org.za/brazil-geography-into.html#.UwwXiHl5jPw 40 Simoes, A. (2014, March 7). The Observatory of Economic Complexity.OEC: Brazil (BRA) Profile of Exports, Imports and Trade Partners. Retrieved April 10, 2014, from http://atlas.media.mit.edu/country/bra/ 41 Transportation . (n.d.). A more connected city. Retrieved April 10, 2014, from http://www.rio2016.com/en/rio-de-janeiro/transport 42 (Brazil Culture, 2011) 43 Heritage Foundation. (n.d.). Brazil.Economy: Facts, Population, GDP, Inflation, Business, Trade, Corruption. Retrieved April 8, 2014, from http://www.heritage.org/index/country/brazil 44 James, G. (n.d.). Business Basics in Brazil. Business Basics in Brazil. Retrieved April 10, 2014, from http://www.journalofaccountancy.com/Issues/2011 45 (James, 2011) 46 Office of the Secretary. (n.d.). Summary of the Major Laws of the Department of Labor. U.S. Department of Labor. Retrieved April 9, 2014, from http://www.dol.gov/opa/aboutdol/lawsprog.htm 47 Global Connections. (n.d.). Country Guide: Brazil. HSBC Global Connections. Retrieved April 10, 2014, from https://globalconnections.hsbc.com/global/en/tools-data/country-guides/br-march-2013/human-resources-and-employment-law 48 ( Global Connections, 2012) 49 Robles, C. (n.d.). REVISED GUIDELINES ON THE IMPLEMENTATION OF THE 13TH MONTH PAY LAW - CHAN ROBLES VIRTUAL LAW LIBRARY. REVISED GUIDELINES ON THE IMPLEMENTATION OF THE 13TH MONTH PAY LAW - CHAN ROBLES VIRTUAL LAW LIBRARY. Retrieved April 10, 2014, from http://www.chanrobles.com/revised13thmon 50 Brazil Education. (n.d.). Brazil Education. Retrieved April 10, 2014, from http://www.brazil.org.za/brazil-education.html 51Cultural Etiquette. (n.d.). e Diplomat. Retrieved April 10, 2014, from http://www.ediplomat.com/np/cultural_etiqu 52 (James, 2011) 53 Consumer Expenditure Survey. (n.d.). U.S. Bureau of Labor Statistics. Retrieved April 10, 2014, from http://www.bls.gov/cex/ 54 (Consumer Expenditure Survey, 2014) 55 About Brazil. (n.d.). Landcorp International. Retrieved April 10, 2014, from http://www.landcorpinternational.com/invest-in-brazil/about-brazil 56 Welcome to Organics Brasil. (n.d.).Organics Brasil. Retrieved April 10, 2014, from http://www.organicsbrasil.org/en 57 (Hill, 2005) 58 (Hill, 2005)

22

59 Bureau of Economic and Business Affairs. (n.d.). 2013 Investment Climate Statement - Brazil. U.S. Department of State. Retrieved April 9, 2014, from http://www.state.gov/e/eb/rls/othr/ics/2013/20 60 (Bureau of Economic and Business Affairs, 2013) 61 (Bureau of Economic and Business Affairs, 2013) 62 (Bureau of Economic and Business Affairs, 2013) 63(Bureau of Economic and Business Affairs, 2013) 64 (Bureau of Economic and Business Affairs, 2013) 65 (Bureau of Economic and Business Affairs, 2013) 66 (Bureau of Economic and Business Affairs, 2013) 67 (Bureau of Economic and Business Affairs, 2013) 68 http://www.wbcsd.org/work-program/business-role/previous-work/corporate-social-responsibility.aspx 69 (Whole Foods, 2014) 70 HSBC Global Connections. (n.d.). Country Guide: Brazil. HSBC Global Connections. Retrieved April 10, 2014, from https://globalconnections.hsbc.com/global/en/tools-data/country-guides/br-march-2013/audit-and-accountancy 71 Ernest and Young Terco. (n.d.). Doing Business in Brazil . Doing Business in Brazil . Retrieved April 9, 2014, from http://www.ey.com/Publication/vwLUAssets 72 (Ernest and Young Terco, 2011)

Bibliography

Roberson, A., Zelezen, A., Brahmavar, A., Pilipenko, B., Gandhi, K., & Werner, M. (n.d.). Competitive strategy at Whole Foods Market. Thunderbird School of Global Management. Retrieved April 10, 2014, from

http://www.thunderbird.edu/blog/faculty/washburn/2010/12/13/whole-foods-market-%25e2%2580%2593-competitive-strategy

Simoes, A. (2014, March 7). The Observatory of Economic Complexity. OEC: Brazil (BRA) Profile of Exports,

Imports and Trade Partners. Retrieved April 10, 2014, from http://atlas.media.mit.edu/country/bra/

About Brazil. (n.d.). Landcorp International. Retrieved April 10, 2014, from http://www.landcorpinternational.com/invest-in-brazil/about-brazil

Bleeker, E. (2012, March 23). Can Whole Foods Find International Growth?. DailyFinance.com. Retrieved April

10, 2014, from http://www.dailyfinance.com/2012/03/23/can-whole-foods-find-international-growth/

Brazil Culture. (n.d.). Brazil Culture. Retrieved April 10, 2014, from http://www.brazil.org.za/brazil-culture.html#.Uw-T13l5jPx

Brazil Education. (n.d.). Brazil Education. Retrieved April 10, 2014, from http://www.brazil.org.za/brazil-

education.html

Brazil Geography Introduction. (n.d.). Brazil Geography. Retrieved April 10, 2014, from http://www.brazil.org.za/brazil-geography-into.html#.UwwXiHl5jPw

of Economic and Business Affairs. (n.d.). 2013 Investment Climate Statement - Brazil. U.S. Department of State. Retrieved April 9, 2014, from http://www.state.gov/e/eb/rls/othr/ics/2013/204608.htm

Carpenter, M. A., & Dunung, J. P. (2013). International business: opportunities and challenges in a flattening

world. Irvington, N.Y.: Flat World Knowledge.

Cultural Etiquette. (n.d.). e Diplomat. Retrieved April 10, 2014, from http://www.ediplomat.com/np/cultural_etiquette/ce_us.htm.

Domm, P. (2011, April 28). Growing Middle Class Fuels Brazil's Economy. CNBC.com. Retrieved April 10, 2014,

from http://www.cnbc.com/id/42785493

Ernest and Young Terco. (n.d.). Doing Business in Brazil . Doing Business in Brazil . Retrieved April 9, 2014, from http://www.ey.com/Publication/vwLUAssets/Doing_business_in_Brazil_2011/$FILE/Doing%20Business%20in%2

0Brazil%202011.pdf

23

Global Connections. (n.d.). Country Guide: Brazil. HSBC Global Connections. Retrieved April 10, 2014, from https://globalconnections.hsbc.com/global/en/tools-data/country-guides/br-march-2013/human-resources-and-

employment-law

Global Connections. (n.d.). Country Guide: Brazil. HSBC Global Connections. Retrieved April 10, 2014, from https://globalconnections.hsbc.com/global/en/tools-data/country-guides/br-march-2013/audit-and-accountancy

Hill, C. W. (2005). International business: competing in the global marketplace (5th ed.). Boston, Mass.: McGraw-Hill/Irwin.

James, G. (n.d.). Business Basics in Brazil. Business Basics in Brazil. Retrieved April 10, 2014, from

http://www.journalofaccountancy.com/Issues/2011/Nov/20114143.htm

Latest CE News Releases. (n.d.). U.S. Bureau of Labor Statistics. Retrieved April 10, 2014, from http://www.bls.gov/cex/

Library of Congress. (2014, February 28). BrazilFederative Republic of Brazil / Republica Federativa do Brasil.

Guide to Law Online: Brazil. Retrieved April 10, 2014, from http://www.loc.gov/law/help/guide/nations/brazil.php

Office of the Secretary. (n.d.). Summary of the Major Laws of the Department of Labor. U.S. Department of Labor. Retrieved April 9, 2014, from http://www.dol.gov/opa/aboutdol/lawsprog.htm

Profile: Brazil's President Dilma Rousseff. (2013, June 22). BBC News. Retrieved April 10, 2014, from

http://www.bbc.co.uk/news/world-latin-america-11446466

Robles, C. (n.d.). REVISED GUIDELINES ON THE IMPLEMENTATION OF THE 13TH MONTH PAY LAW - CHAN ROBLES VIRTUAL LAW LIBRARY. REVISED GUIDELINES ON THE IMPLEMENTATION OF THE

13TH MONTH PAY LAW - CHAN ROBLES VIRTUAL LAW LIBRARY. Retrieved April 10, 2014, from http://www.chanrobles.com/revised13thmonthpayguidelines.htm

Heritage Foundation. (n.d.). Brazil. Economy: Facts, Population, GDP, Inflation, Business, Trade, Corruption. Retrieved April 8, 2014, from http://www.heritage.org/index/country/brazil

Transportation . (n.d.). A more connected city. Retrieved April 10, 2014, from http://www.rio2016.com/en/rio-de-

janeiro/transport

Welcome to Organics Brasil. (n.d.). Organics Brasil. Retrieved April 10, 2014, from http://www.organicsbrasil.org/en

Whole Foods Market home page. (n.d.). Whole Foods Market. Retrieved April 9, 2014, from

http://www.wholefoodsmarket.com/

The Diversity of Brazilian Culture. (n.d.). Brazilian Culture. Retrieved April 10, 2014, from http://www.brazil-travelnet.com/brazilian_culture.html