Peru

Powerful Essays
Topics: Peru, Wine
Northumbria University

Global & International Business Contexts
(SM0269)

5th Sept 2014

Table of Contents

Peru Task 1
1. Introduction………………………………………………………………………………3
2. Factor Conditions
2.1 Physical resources………………………………………………………………….3
2.2 Infrastructure………………………………………………………………………...4
3. Demand Conditions
3.1 Home and Export Demand………………………………………………………...6
3.2 Buyer Sophistication………………………………………………………………..7
4. Related and Supporting Industries
4.1 Small and Medium size Enterprises (SMEs) in Peru……………………………8
4.2 Education…………………………………………………………………………….9
5. Firm strategy, Structure and Rivalry
5.1 Cultural impact on firm strategy and structure – Motivations and culture of their employees and manager’s by using HOFSTEDE………………………..10
5.2 Threat of New Entrants…………………………………………………………...12
6. Government
6.1 Corruption…………………………………………………………………………..13
6.2 Education policies…………………………………………………………………15
7. Chance
7.1 Political decisions by foreign government………………………………………16
7.2 Environmental Crisis………………………………………………………………16
Peru Task 2………………………………………………………………………………..18

Peru Task 1
1. Introduction
Peru is a developing country that is rich in their physical resources. Due to its geographical location and climate conditions, it is suitable to set up vineyard in the country. The continuation economy growth in Peru, give foreign company an opportunity to go into Peru to invest. This report will show the advantages and disadvantages of the entering the Peru’s wine industry.
2. Factor Conditions
2.1 Physical Resources
Peru is a great country for wine making and grapes growing due to its geographical location and diverse physical resources. The grape production is the key factor for Peru wine industry; it is a raw material for winemaking. The production of grape in Peru is good which is mainly due to its stony soil (Peru Embassy, 2014).
Vineyards are usually located in warm valleys where there is

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