Introduction

Nova Energy Drink is interested in expanding to Latin America as a prominent beverage

manufacturer and distributor in the United States. The company is now situated in Oregon, USA,
and as a result, it must examine the global business climate in order to build effective business
strategies that will assure its success in international markets. As a result, the company must
evaluate the primary elements that could effect its international market operations and adjust
plans to ensure success.

Brazil and Peru, both in South America, are the two countries chosen for Expansion. In
order to introduce its products into these market sectors, the research examines the marketing
environment in Peru and Brazil. It evaluates cultural dimensions, entrance hurdles, social
corporate responsibility, currency exchange, and firm management and infrastructure, among
other global business environmental aspects.

Hofstede’s Cultural Dimensions

Hofstede's Cultural Dimensions is a theoretical framework designed to aid in the understanding
of cultural differences between countries. It is critical in providing information about how
businesses are conducted in various cultures. Hofstede's Cultural Dimensions is used to assess
the national culture of Brazil-based on six dimensions that include the power distance,
Collectivism vs Individualism, uncertainty avoidance, femininity vs masculinity, short-term vs
long-term orientation and restraints vs indulgence.

 POWER DISTANCE
Inequality in societies is determined by the cultural dimension of power distance. It is the degree
to which less powerful people accept that power in organisations or communities is unequally
allocated.

Brazil has a large power gap, indicating that its culture embraces hierarchy and inequities. The
disparity in power distribution suggests that those in positions of power in society gain more than
others who are less powerful. It is crucial to respect the elderly in Brazilian culture. Similarly,
company executives assume full responsibility for management and decision-making.

Peru has a high power distance score, which indicates that power distribution is unequal. The
country is thought to score well on the power distance index at the organisational level. The
majority of businesses in the country have centralised management structures with compensation
differentials and supervisory personnel. Superiors are seen as tough to consult and reach by
subordinates.
  INDIVIDUALISM
Individualism addresses the fundamental question of how interdependent a society's individuals
are. People only care about themselves and their immediate family in a society with an
individualist cultural character.

Brazil is a collectivist culture in which people are organised into strong and cohesive groups.
This is a crucial component in a workplace environment where employees collaborate to achieve
a common goal.

Peru, like the majority of Latin American countries, exhibits collectivism. People usually choose
to work in large corporations because they value collaboration and teamwork. The problem
experienced in these organisations is addressed through cooperation and consultation with the
workforce irrespective of the status and seniority in the job.

 MASCULINITY
Masculinity is a cultural feature that implies that success, achievement, and competitiveness are
the primary motivators in society. A low masculinity score indicates that main values include
caring for one another as well as improving one's quality of life.

Brazil has a moderate masculinity score, indicating a healthy mix of competition and care for
one another. It signifies that Brazilians believe in both competition and caring for one another as
a means of ensuring a high quality of life.

Peru has a low masculinity score, indicating that it is a feminine civilization. Several cultural
misunderstandings and disputes have resulted as a result of this feature.

 UNCERTAINITY AVOIDANCE
The way society cope with an unclear future is the cultural factor of uncertainty avoidance. It
describes how various societies deal with anxiety and how people of a society feel threatened by
unfamiliar or unclear situations.

Brazil has a high ranking in terms of avoiding uncertainty. To eliminate confusion, it has strict
laws and a thorough legal framework. As a result, bureaucracy, rules, and laws play an important
part in ensuring that businesses stay safe.

Peru also receives good marks for uncertainty avoidance, indicating that the country has robust
norms and legal structures in place to help businesses deal with uncertainty. Individuals, on the
other hand, are hesitant to follow these rules, resulting in bureaucracy and corruption. These are
thought to be harmful to the operation of the businesses in the country.

 LONG – TERM ORIENTATION

Long-term orientation is a component that describes how a society retains ties to its history while
still looking to the future.

Based on a long-term perspective Brazil is seen as average, as it strikes a balance between

normative and programmatic approaches. This means that they both value education as a method
of achieving success while also emphasizing the importance of traditions. Peru, on the other
hand, receives a low score, indicating that it follows the norm. As a result, the establishing of
ultimate truth is a major priority for Peruvians.

 BARRIERS TO ENTRY
Barriers to entry are impediments or barriers that make it difficult or impossible for new
businesses to enter a foreign market. Several factors can operate as a barrier to entry, ranging
from cultural differences to government regulations. Several barriers to entry may impact Nova
Energy Drink's decision to grow into overseas markets such as Brazil and Peru.

Brazil is rapidly becoming an important market for many multinational corporations from the
United States and other countries across the world. However, the country is notorious for various
entry restrictions that prevent many foreign companies from succeeding. High taxation,
bureaucracy, and social inequality are all important impediments to entrance in Brazil.

Peru is regarded as one of Latin America's most promising markets, attracting the attention of
many multinational firms. As new businesses try to break into this industry, they should be
aware of some entrance barriers that may have an influence on their operations. The high level of
bureaucracy and language disparities may be significant impediments to entrance for Nova
Energy Drink in Peru.

 LANGUAGE BARRIER
Peru and Brazil are regarded as one of Latin America's most promising markets, attracting the
attention of many multinational firms. As new businesses try to break into this industry, they
should be aware of some entrance barriers that may have an influence on their operations. The
high level of
bureaucracy and language disparities may be significant impediments to entrance for Nova
Energy Drink in Peru and Brazil.

 SOCIAL CORPORTAE RESPONSIBILITY

Companies are increasingly paying attention to policies that ensure they are socially responsible.
Corporate social responsibility is a regulation business model that firms utilise to become
socially accountable to its stakeholders and the general public. When operating in overseas
markets, Nova Energy Drink must engage in socially responsible initiatives. To guarantee that it
engages in activities that benefit the relevant stakeholders, the organisation will employ a
number of tactics.

Nova Energy Drink will use a triple bottom line approach to address environmental and social
concerns in both Brazil and Peru as a socially responsible corporation.

 COMPANY MANAGEMENT AND INFRASTRUCTURE

Given the current competitive business environment, Nova Energy Drink will need to invest in
infrastructure that will enable it to turn a profit in the country for the long term. To ensure that it
accommodates the national cultures of foreign countries, the corporation should hire local staff.
Local staff, it is argued, are knowledgeable of domestic clients' needs and can devise appropriate
marketing tactics to assure success in these markets. In addition, the organisation should foster
an open working environment that fosters innovation and encourages employee motivation. It
should establish a centralised governance framework to ensure that the same standards are
applied throughout all markets in which it operates.