Venezuela's Humanitarian Crisis
Venezuela's situation might be described as a humanitarian crisis because so much has happened during the election period in 2016. Poverty has increased, the economy has depreciated, and the political crisis has worsened. With this in mind, this country ranks as one of the worst in South America (Fraser& Barbara, 336). This is a great chance for Forcier to travel to that country and do research and provide knowledge that may be valuable in planning for future changes in Venezuela. In addition, the company will be able to provide assistance to the affected areas. Franchising will be the best market entry which Forcier will use in Venezuela.
Operating Costs in Venezuela
Below are some of the operating costs that Forcier will have to deal with in Venezuela:
The traveling expenses of around $10 billion
Sales and marketing cost will be $ 7.1 billion
Advertising cost($1.0 billion)
Insurance cost.(2.2 billion)
Utility cost.($ 4 billion)
The extended list below shows the operating cost estimates with some description of how the costs were estimated.
The traveling expenses of around $7.1 billion - this is the highest estimated cost because the airlines are not going to be used due to the increased violence and threats of violence by the citizens. Thus the Company will have to use other means of transport which in the long run will be expensive (McCarthy& Michael, 130).
Sales and marketing cost will be $ 5.0 billion - the sales and marketing cost also is highly estimated because more money will be used to convince investors and other interested parties because they already know that the country is facing an economic and political crisis.
Advertising cost ($2.2 billion) - the advertising cost is estimated to be slightly low due to the minimum advertisements which will be done because Forcier is already known all over the world. Thus they will not need to advertise themselves so much.
Insurance cost (1.0 billion) - this estimate is the lowest because Forcier in Venezuela aims to survey the current disaster in that country. Thus most likely the insurance charges will be lesser.
Utility cost. ($ 4 billion) - This cost is slightly higher because Forcier members will need to use electricity, clean water, sewers and heat in case of cold seasons. These utilities are likely to be charged high because the country is straining to regain back to its economic status.
In this case, Venezuela is the franchiser which has granted Forcier (franchisee) the right to use its trade name and specific business system and processes to provide accurate information which could end the current problems in that country. In the process of collecting data and providing aids to the victims, they will encounter the operating costs which I have described above. For every operation, there must be some expenses, and I have given the explanations for the figures which are estimated. According to IMF world economy, the GDP of Venezuela in the year 2015 was $344.33 US dollars, and in 2016 it was 236.443 which was a significant decrease due to the disasters in that country (Roberts& Michael, 7). Forcier will enable the Venezuelans to pull their economy up again.
Work cited
Fraser, Barbara. "Science under siege: how Venezuela's economic crisis is affecting researchers." Nature News535.7612 (2016): 336.
McCarthy, Michael. "Venezuela's Crisis: Beyond Economic Explanations." Georgetown Journal of International Affairs18.2 (2017): 129-136.
Roberts, Michael. "Venezuela: Near the end?." Guardian (Sydney) 1734 (2016): 7.
