Proposed Venezuela Expansion Project
When AIU decided to expand our business to another country we decided to take it to Venezuela. Due to the potential for growth Venezuela seemed like the perfect place to start our expansion with doughnuts. Since Venezuelans receives a steady income from their main export, Petroleum, imported goods are very common. This being the case it is my strong belief that importing doughnuts would be our best bet. If we begin by introducing only one product to the market we will be able to see how well we will do here without putting more money than necessary on the line. If our product does well in Venezuela then we will begin to slowly expand our business over there by adding products every so often.
The Pros and Cons of taking the donut to Venezuela
In An effort to make a more informed decision in regard to the possibility of taking the donut to Venezuela we have studied and gathered data they may prove useful. While the country of Venezuela has increased spending over the past few years, the stability of the economy and the political environment raise questions as to the viability of introducing our product.
The GDP of Venezuela has gone from approximately 155 million in 2004 to almost 241 million in 2008. The consumer expenditure has also increased over the same time period, doubling from 54 million to 110 million. The annual gross income and annual disposable income have also increased in 2004 the annual gross income reached 90 million dollars. Four years later the number sat at 161 million. The annual disposable income went from 85 million to 144 million over the same time period. For our purposes, the most important number is the increase in the national expenditure on food, which increased by 5 ...