Business Plan: Slow Wing Aircraft Operations in Brazil
This business plan examines the feasibility of establishing a wholly owned subsidiary for Slow Wing Aircraft in Belo Horizonte, Brazil. It provides an environmental assessment of Brazil's economy, aircraft manufacturing sector, and trade infrastructure, then outlines a comprehensive supply chain and logistics management plan. Key topics include supplier availability, third-party logistics providers, just-in-time inventory management, inbound and outbound transportation, warehouse strategy, customer relationship management, and supply chain integration. The plan also addresses cross-cultural differences between the United States and Brazil using Hofstede's cultural dimensions framework, and concludes with recommended next steps for establishing successful secondary operations.
- Executive Summary: Brazil opportunity, risks, and Belo Horizonte rationale
- Supply Chain Plan: Supplier availability, third-party providers, and procurement
- Sourcing, Procurement, and Forecasting Strategy: Poirier's supply chain levels and forecasting principles
- Inventory, Transportation, and Warehouse Strategy: JIT inventory, trade costs, and warehousing requirements
- Outsourcing, CRM, and Supply Chain Integration: 3PL outsourcing, CRM technology, and integration goals
- Performance Management and Cross-Cultural Considerations: Hofstede dimensions and psychic distance in Brazil
- Next Steps and Conclusion: Action sequence and feasibility conclusions
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What makes this paper effective
- The plan integrates multiple supply chain frameworks — particularly Poirier's five-level supply chain evolution model — to anchor strategic recommendations in recognized theory rather than opinion alone.
- It balances optimism about Brazil's economic strengths with candid acknowledgment of risks such as economic instability, piracy, and cross-cultural friction, giving the plan credibility and practical depth.
- Quantitative data (World Bank trade cost and timing tables) is presented alongside qualitative analysis, strengthening the argument for Belo Horizonte with concrete evidence.
Key academic technique demonstrated
The paper demonstrates effective use of synthesized multi-source citation to build a layered argument. Rather than relying on a single authority, each strategic recommendation — inventory management, forecasting, CRM, performance management — is grounded in multiple academic and industry sources that collectively reinforce the conclusion. This technique, common in graduate-level business writing, shows command of the literature and prevents over-reliance on any single viewpoint.
Structure breakdown
The paper follows a formal business plan structure: an executive summary frames the opportunity and risks, a detailed supply chain plan covers nine discrete functional areas (each treated as a subsection), a next-steps section translates recommendations into an action sequence, and a conclusion synthesizes findings. Appendices provide supporting reference material (Hofstede's dimensions and a Brazil map), keeping the main body focused and readable.
Executive Summary
This business plan provides an environmental assessment of Brazil and identifies major logistics and supply chain management issues associated with setting up a wholly owned subsidiary there. Recommendations concerning the best city in which to establish a manufacturing and supply chain operation to meet the long-term goals of the company are provided, along with a high-level logistics and supply chain management plan supporting the recommended location of Belo Horizonte. Belo Horizonte is situated near several port cities, including Santos and Tubarão, and is currently the headquarters of aircraft manufacturer Aero Bravo, among others.
Today, Brazil is the fourth-largest aircraft producer in the world (Fisher, 2002), and its economy is the largest in South America (Brazil, 2009). Notwithstanding the geographic distances involved between Brazil and the United States, the country is becoming an increasingly important exporter of goods of all types and is well situated to take advantage of new opportunities for establishing strategic alliances with U.S. companies. In spite of its attractiveness as a potential site for Slow Wing's secondary operations, there are considerations that must be taken into account in order for such a venture to be successful.
Although Brazil has enjoyed a strong economic run, there is always the inherent risk of economic instability that may jeopardize even the most thoughtful approach to establishing operations abroad. As Hoffman, Kamm, Frederick, and Petry (1999) emphasize, "Multinational corporations considering doing business in Brazil must weigh the risks inherent in economic instability. Firms which decide to do business in Brazil generally have sufficient resources to commit long term, with the flexibility to leave returns for future balance sheets" (p. 95). Furthermore, as a leading economy in South America, there are important cross-cultural differences between the U.S. and Brazil that will affect the rate at which Slow Wing will be able to form strategic alliances and build the supply chain envisioned by this initiative. In this regard, Hoffman and his associates emphasize, "Multinational corporations should not assume that the relative speed of transition which is typical for ventures in, and with firms in, the industrialized world will be the same when working in industrializing countries" (p. 95). Finally, Drake (2004) cites several examples of American firms seeking to establish operations in Brazil and concludes, "Doing business in Brazil is potentially costly and dangerous" (p. 1147). Therefore, Slow Wing's approach to establishing secondary operations in Brazil must proceed in a thoughtful and cautious manner, taking the following issues into consideration as the plan proceeds.
Supply Chain Plan
Availability and Quality of Suppliers
As noted in the executive summary, Brazil's economy is larger by far than those of other South American countries and is characterized by mature manufacturing and service sectors (Brazil, 2009). It is also the world's third-largest aircraft manufacturer (Fisher, 2002). Furthermore, Brazil's exports have been increasing for the past fifteen years and are expected to continue to grow despite the global economic downturn (Brazil, 2009). According to Reddy and Reddy (2001), many transportation-related manufacturers in Brazil are well experienced in providing customer-centric products that will be of value to Slow Wing. These authors report, "Firms have been shifting more manufacturing responsibility to their suppliers. For example, VW in Brazil has production facilities where the suppliers run the assembly line. Innovative steps like this can allow even a firm in the traditional manufacturing industries to be customer-centered" (p. 85). The geographic distances involved notwithstanding, Brazil enjoys modern port facilities, and the availability and quality of the suppliers needed for this initiative are deemed sufficient for the company's needs (Brazil, 2009; Fisher, 2002).
Availability and Quality of Third-Party Service Providers
Brazil has more third-party service providers than any other country in South or Central America today. There are currently 14 third-party service providers in Brazil, compared to five in Colombia, seven in Argentina, five in Chile, two in Bolivia, three each in Ecuador and Paraguay, four in Venezuela, and one in Uruguay (Third party service providers, 2009).
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