Market Entry Strategy for Entry Into the Romanian Poultry Market Formal Business Report

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Team HotWings
BISM 8900



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MARKET ENTRY STRATEGY FOR ENTRY INTO THE ROMANIAN POULTRY MARKET FORMAL BUSINESS REPORT

August 2009

Table of Contents

Letter of Acceptancev
Letter of Transmittalviii
Executive Summary1
Introduction2
Country Risk Analysis3
Economic Performance4
Economic System and Development4
Economic Strength7
Agriculture8
Inflation9
Trade Balance10
Employment14
Cultural Risk15
History15
Cultural Dimensions16
Education17
Language17
Legal Constrains18
Political Risks19
Political Structure19
Taxation19
Infrastructure20
Market Analysis21
Demand/Capacity22
Competition23
Production Sources25
Global Agriculture Information Network (GAIN) Report26
Market Risks Identified27
Origin Labeling Requirements27
Summary and Positioning within Global Marketplace28
Country and Market Risk Summary28
Summary and Positioning within Global29
Country Portfolio29
SWOT Analysis31
Strengths31
Weaknesses32
Opportunities32
Threats33
Strategies and Risks34
Broiler Welfare Directive34
Imports from Competitive Countries35
Domestic Poultry Production36
Strategies37
Strategic Recommendation39
References40
Davidova, S. and Thomson, K. J. (2003) Romanian Agriculture and Transition toward the EU. Lexington Books, Lanham. ISBN: 0-7391-0518-340 Appendix A43
Team Charter43
Appendix B52
Cultural Values Matrix52

Executive Summary

Romania is a developing Eastern European country with that has an established agricultural industry. Romania joined the European Union in 2007 which gives the agricultural industry access to EU arm subsidy programs, along with access to markets without tariff concerns.

Team HotWings has evaluated the conditions for the poultry processing industry in Romania. Considering the economic conditions in the country, the receptiveness Romania has for foreign investment along with the workforce and infrastructure improvements that are being made, Team HotWings recommends investment in the Romanian poultry industry.

This entry into the Romanian poultry market will be best served by forming joint venture partnerships with and established European processed poultry brand and with farming and processing facilities existing in Romania.

Introduction
On August 3, 2009 Team Hot Wings was formed to investigate and perform an analysis of implementing a poultry operation in the country of Romania. Our team performed an analysis of the characteristics of Romania as a country, the Romanian economy, trade in Romania, and a detailed market analysis for poultry in Romania.

Income levels within Romania have been low in comparison to the other nations within the European Union, but economic reform measures such as flat tax rates have been put in place and have stimulated economic growth indicators for the nation. Sources such as the World Bank consider Romania to be a country in a transition stage. With the abundance of available resources in the region and an economy currently in rebounding, Romania proves to be a potentially prosperous place for investment.

In the past Romania has placed a focus on industrial and manufacturing sectors, but with the available resources in the region and recent escalation in demand, Romania has began to shift focus to agriculture related sectors. With the evolution of fertilizers and agricultural chemicals, Romania has begun to turn their abundant landscape into arable farmland. Crops such as corn and sunflower seeds have become large exports for Romania. Similarly, Romanian farms have become recognized for their production of pork and poultry.

In 2005 & 2006 European Union poultry producers experienced a significant outbreak of the H5N1 Bird Flu virus that spread into production facilities across several nations. The H5N1 virus infected hundreds of consumers...
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