...Emerging markets Recent history The four BRICs The BRIC’s roller coaster. 2009 Sales dropped in 50%, stabilize in 2010 Annual growth of 15% per year through 2014 Russia China The largest one. Share in 53% in 2008 Share is expected to be 61% in 2014 Brazil The most mature and stable market. Probably remain the second largest to 2014 Outpace both Brazil and China in growth India Summary • • • • • • The 4 BRICs are different There is no standard BRIC car Brazilian favor sporty hatchback Russians – western sedans and SUV Indian seeks ultra-low-cost minicars China – affordable luxury style sedans Brazil • The largest South America’s largest economy • Population close to 200 mln • GDP per capita of US$ 10 300 • The rapid growth of China’s economy has dramatically increased export demand for Brazil’s raw materials Brazil, history • • • • 10 years ago was a less confident place Economic crisis, history of inflation Political disarray with deep structural problems Seemed destined to remain a country with a great unrealized potential Brazil now • Quiet optimism that the country has been set on a more stable path • Still high level of poverty and corruption • But a sense of underlying progress with evidence in official statistics • Incomes are up • The gap between Brazil’s rich and poor has closed a little Brazil now • Locals treat the improvements due to just departing president Luiz Iinacio Lula da Silva (ince 2002) • The country...
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...1. 1. Executive Summary Telkom South Africa aims to provide Wi-Fi and internet services targeted to end users in Brazil. This plan seeks to generate a significant increase in company sales and profits from the delivery of infrastructure to strategic align with international partners. The highlight of this plan are the targeted rollout sites as well as the amount of users we anticipate using the Wi-Fi service. The targeted gross margin and sales revenue for the first 5 years of this plan are presented in the charts and tables later in this plan We still need to do. These figures represent the key prospects available for public Wi-Fi Service in Brazil. These targets are attainable through a proactive approach and by partnering with the 2014 Brazil Soccer World Cup organizing comity. The following business plan has been created on the basis of extensive market research which showed that there will be an massive demand for public internet services. With Brazil’s mountainous topography and dense popupated landscape it is almost impossible to cover large areas with GSM masts. Therefore it is economically viable to rollout smaller areas with local Wi-Fi access. Consumers demand high speed internet connectivity which technologies like 802.11 b and n will give them. There are multiple other benefits going with Wi-Fi rather than GSM. One such benefit is that the consumer can experience speed greater than 50mb/s without having to own a 4G LTE device. Wi-Fi is much...
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...a summer-long effort of developing the Brazilian market for Crosswell International (U.S.). Crosswell’s president and CEO, Hector Lans, is convinced that Precious Ultra Thin Baby Diapers will be a big seller in Brazil. In their role as brokers for Crosswell, the Mathieuxs have been exploring a number of different distribution channels in the Brazilian market. To date, the distributor response to Precious diapers has been enthusiastic, particularly in light of Precious diapers’ superior quality compared to locally manufactured alternatives. The problem, however, is the price. Brazilians base many purchasing decisions — at least in regard to disposable diapers — on cost, not on quality. The Mathieuxs find that distributors do not believe they can compete in the market with the relatively high prices offered by Crosswell, even with higher quality diapers. After much debate over how to improve the price competitiveness of Precious diapers, the Mathieuxs believe they may have found a solution. Their proposal is to combine extended credit terms to local distributors with Brazil’s high domestic interest rates to effectively lower the diapers’ price to Brazilian consumers. The Brazilian Diaper Market Until the latter part of the 1980s, most Brazilians had never heard of a disposable diaper, and not surprisingly, the disposable hygiene market in Brazil was virtually non-existent. By 1995, however, the personal care market was booming. This growth was largely a result of ...
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...concluding a summer-long effort of developing the Brazilian market for Crosswell International (U.S.). Crosswell’s president and CEO, Hector Lans, is convinced that Precious Ultra Thin Baby Diapers will be a big seller in Brazil. In their role as brokers for Crosswell, the Mathieuxs have been exploring a number of different distribution channels in the Brazilian market. To date, the distributor response to Precious diapers has been enthusiastic, particularly in light of Precious diapers’ superior quality compared to locally manufactured alternatives. The problem, however, is the price. Brazilians base many purchasing decisions — at least in regard to disposable diapers — on cost, not on quality. The Mathieuxs find that distributors do not believe they can compete in the market with the relatively high prices offered by Crosswell, even with higher quality diapers. After much debate over how to improve the price competitiveness of Precious diapers, the Mathieuxs believe they may have found a solution. Their proposal is to combine extended credit terms to local distributors with Brazil’s high domestic interest rates to effectively lower the diapers’ price to Brazilian consumers. The Brazilian Diaper Market Until the latter part of the 1980s, most Brazilians had never heard of a disposable diaper, and not surprisingly, the disposable hygiene market in Brazil was virtually non-existent. By 1995, however, the personal care market was booming. This growth was largely a result of new-found...
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...(A) 2005-11-10 In early 2001, Richard Esposito, newly appointed vice-president of finance for Wiley International, had instituted a new format for the evaluation of offshore capital projects. Henceforth, all proposals with a total cost exceeding the equivalent of US$1 million were to be submitted to Chicago headquarters for approval by the Capital Budget Review Committee (CBRC) headed by Esposito. Among the first offshore proposals submitted to Esposito was a request from Wiley’s Brazilian division for the equivalent of $12.9 million to expand production of fractional horsepower motors. Because the forecasted internal rate of return provided by the division manager in Brazil was 19.7 per cent and this well exceeded the company’s hurdle rate of nine per cent, the division manager for Brazil strongly recommended that Esposito approve the expenditure. Since this was the first proposal...
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...Pestle Analysis of the Brazil – Political Analysis – Brazil is currently a country with a stable, proactive government and there is virtually no political instability at the moment. However, things can easily change, as they did throughout the modern history of Brazil. Political conditions can become volatile, and this threat remains from election to election. Business conditions that change rapidly and social extremes that exist don't add to country's attractiveness. Corruption is still a big issue in Brazil. Opening an operation in Brazil may require additional payments to government officials, which can present a big obstacle to entering a market. According to Transparency International, Brazil holds 70th place in level of corruption among 180 countries, higher then such economies as Cuba, Turkey and Bulgaria. Economic Environment – Due to large population and inflow of FDI, Brazil has extremely high potential for growth. The gap between rich and poor is decreasing gradually, and there is a significant trend of growing middle class. Good news is that Central bank has inflation under control and the risk of domestic currency devaluation is low. Brazil's currency, the real, was introduced in 1994, and is largely seen as a success. Currently, it is considered to be overvalued against the dollar, which hurts exports and helps imports. Government is clear when it states that it has equal treatment for both foreign and domestic enterprises. There is abundance of unskilled...
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...RESEARCH AND INNOVATION POLICY OF BRAZIL 1. Some Numbers: • Total area - 8.5 million km² • Population - 191 million • GDP (2010) - 3,7 US$ trillion • Investment in R&D - 1.25 % GDP in 2010 • Scientists and researchers - 231,000 in 2010 (headcount) • Scientific papers - 2.7 % of world scientific production • world's sixth largest by nominal GDP • eighth largest by purchasing power parity. • moderately free markets and an inward-oriented economy. • the largest in Latin American nations ere. • one of the fastest-growing major economies in the world with an average annual GDP growth rate of over 5 percent • together with Mexico, has been at the forefront of the Latin American multinationals phenomenon by which, thanks to superior technology and organization, local companies have successfully turned global. 2. Overview Brazil has many times in its history praised to be the land of the future. First, Brazil with population of 190 million, the past eight years “Bolsa Familia” social program have lifted over 40 million Brazilians out of poverty and into middle class. This creates interesting platform for creating context related innovations and scaling bottom-of-the-pyramid innovations (disruptive and reverse) globally. Second, Brazil was almost non-effected by financial crisis 2008, a signal for strong and stable macro-economic policies. This means that Brazil, first time in its history, is becoming an interesting country for long term investment...
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...Sample 1 Brazil Foods Situational Analysis In 2011, Brazil Foods CEO starts one of the most important phases of his career and his company’s expansion. After approval by CADE for the merger of Perdigão and Sadia, newborn Brazil Foods must now define its domestic/international strategy to achieve the 2015 objectives. Where are we now? Brazilian Market The Brazilian economy is growing, and that is being felt in the food sector. As people move to the big cities to work, they have both more disposable income, and less time to cook. These conditions are boosting demand for frozen foods & quick meals. Agricultural reforms and investment have transformed brazils unfertile plains into good land for harvesting as well as growing cattle. These market conditions lay big opportunities and growth chances for BRF, which are further explained in the following SWOT analysis: Strengths...
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...April 2014 Eli Talmor Luiz Henrique Spinardi Campos Steven Stolk Cetip and Advent International: Private Equity in Brazil It was a typically balmy summer afternoon on 9 March 2012 on busy Faria Lima in São Paulo, Brazil. Patrice Etlin and Mario Malta of Advent International, a global private equity firm, were meeting a former colleague, Martin Escobari, for lunch (see Exhibit 1 for bios). The conversation between them soon turned to the recent stock price performance of Cetip SA, Brazil’s largest custodian for private debt, and an investment they had worked on together for Advent. The stock had traded at R$33 per share throughout the day, well above the R$25.50 for which Advent had sold its remaining stake to IntercontinentalExchange (ICE) only nine months previously. Advent had first contacted Cetip in early 2007, before the outbreak of the global financial crisis, seeking to acquire a stake in the company. Two years later, following a failed IPO and having fended off competition from several other private equity players, Advent completed its investment. During its two years of ownership, Advent helped Cetip in its transition from a non-profit mutual organisation, with more than 600 financial institutions as members, into a listed business with a strong growth profile. Following its demutualisation in 2008, the company reinforced its management team, implemented best-practice corporate governance, instilled a culture of innovation and performance improvement and subsequently...
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...| Education | | | | | | | | | | | Tertiary attainment in population aged 25-64 | % | .. | .. | .. | .. | .. | .. | 10.9 | .. | | Expenditure per student: non-tertiary, 2008 prices | USD constant PPPs | .. | .. | .. | .. | .. | 2 097.7 | .. | .. | | Expenditure per student: tertiary, 2008 prices | USD constant PPPs | .. | .. | .. | .. | .. | 11 610.3 | .. | .. | | Employment | | | | | | | | | | | Employment rate in population aged 15-24 | % | 50.8 | 52.4 | 52.7 | 52.6 | 52.9 | 53.4 | 51.5 | .. | | Employment rate in population aged 25-54 | % | 74.0 | 75.4 | 75.9 | 76.3 | 76.1 | 77.0 | 76.9 | .. | | Employment rate in population aged 55-64 | % | 52.2 | 52.6 | 54.1 | 54.1 | 53.7 | 55.1 | 53.8 | .. | | Incidence of part-time employment | % | 18.0 | 18.2 | 19.0 | 19.2 | 18.3 | 18.1 | 17.8 | .. | | Self-employment rate: total civilian employment | % | .. | .. | .. | .. | .. | .. | .. | .. | | Self-employment rate, men: male civilian employment | % | .. | .. | .. | .. | .. | .. | .. | .. | | Self-employment rate, women: female civilian employment | % | .. | .. | .. | .. | .. | .. | .. | .. | | Unemployment | | | | | | | | | | | Unemployment rate: total civilian labour force | % | 12.3 | 11.5 | 9.8 | 10.0 | 9.3 | 7.9 | 8.1 | 6.7 | | Unemployment rate, men: male civilian labour force | %...
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...Sweet Brazilian Bioethanol Industry International Case Study Rodel M. Adriano March 31, 2013 Economics for Managers 551 Curtin University of Technology Graduate School of Business International Case Study – Assessment 2 Page 1 of 14 TABLE OF CONTENTS I. INTRODUCTION ............................................................................................................................................ 4 A. Analysis of the Ethanol Subsidy .............................................................................................................. 5 B. 1973 oil crisis............................................................................................................................................... 5 C. 2000s Energy Crisis................................................................................................................................... 7 II. III. IV. V. PRESENT COMPETITIVENESS OF BIOETHANOL ............................................................................................ 7 OTHER ALTERNATIVE FUELS ..................................................................................................................... 11 CONCLUSIONS ............................................................................................................................................ 12 REFERENCES ..................................................................................................................................................
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...plant in Britain. In order to be best positioned moving forward, we recommend expanding into Latin America and Asia Pacific to better fulfill CEO Elon Musk’s primary goal to commercialize electric vehicles all the way to mass market. As we predict slow growth for the standard auto industry, we believe the electric vehicle industry is extremely attractive for several reasons, including high oil prices, less greenhouse gas emissions and government incentives. Our best estimates suggest the electric vehicle industry will have average growth rates of 35 – 40% over the next 10 years. International expansion, if done correctly, can help improve upon Tesla’s current strategic position in order to become the global leader in electric vehicles. We have determined that the optimal points of entry for the market are in Brazil and Singapore. In addition to gained access to the two fastest growing regions in the segment, the two locations are attractive for many political, economic, financial, cost, and market reasons. In Brazil, we recommend that Tesla create an office for operations, including a team for supply chain management and a team for sales. In Singapore, we included a supply chain management team, a sales team, and also recommended the opening of a global R&D hub. In addition, these locations will be responsible for managing regional dealers, developing...
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...components and less accessories), consumer tastes and so on. 4 The strategy of manufacturing for the local market has not required significant technological activity. The share of engineers working in the assembly industry in Brazil in the industry total employment is an indicator supporting such argument. In the 1980s, it was less than 1% (Quadros, 1993). By the early 2000s, the share had quadrupled. Major changes in the Brazilian automotive market and industry occurred in the early 1990s. These changes implied a significant redefinition in the local PD strategies of car assemblers. Two elements influenced these changes: trade liberalisation and government policies specifically focused on the automobile sector. 2.2 Trade liberalisation and growth in local demand The process of trade and investment liberalisation in the Brazilian economy started in the early 1990s, following the inauguration of the government of the first elected President after military rule. Brazilian assemblers were not prepared to face the competition of imported vehicles. The sudden explosion in vehicle imports intensified domestic competition and showed the need to update products and improve productivity and quality standards in local car and truck manufacturing. This has triggered an escalation in investment by assemblers. Total investment in the assembly industry in Brazil rose from US$5.4 billion, in the 1980s, to US$16.6 billion, in the 1990s, according to the Brazilian...
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...ASSESSMENT 1: Internationalization of Business Tutor: Dr Gabor Horvath Date of submission: 16 December 2011 University of Glamorgan Year: 2011/2012 Introduction: This report deals with the internationalization of Elecdyne, a Japanese company, based in Tokyo. Elecdyne has manufactured a broad range of electronic products since 1990. Currently, it employs 100 staff, which produces products such as mp3 players, televisions and hifi equipment. In the moment, Elecdyne supplies products only to the Japanese market; nonetheless it has failed to grow its business in the last two years. With high wages compared to other countries, lack of R&D staff and the licenses that must be paid, Elecdyne is finding it increasingly difficult to compete. Therefore, Elecdyne wishes to internationalize in another country. This report analyses three different countries (France, China, Japan) by using appropriate frameworks and data collected from different resources. I. The global environment: First, a company must understand the global environment on the industry. I decided to choose STEEP framework because it is simple, general and it permits to analyse the broad factors that have an impact on the industry (Rugman & Collinson, 2009). (Task Group Z) STEEP ANALYSIS: Social | Social networking | | Internet is a new way of communication. Companies can share and collect information about customers and competitors.Social networks like Facebook and...
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...Assignment | Due Date | 26 March 2013 | Date Submitted | 26 March 2013 | Submitted by | Surbhi Sardana | | | Executive Summary Brazil is the 5th largest country in the world, with an area of 8.515 km2, and a population of over 200 million. Brazil is a country with large natural resources and a large labor pool. It has managed to exploit these to become South America's leading economic power and regional leader, and one of the first in the area to begin an economic recovery. Highly unequal income distribution and crime remain pressing problems. Over 25% of population is still below the poverty limit. Brazil has its work cut out for itself where it has to be all set to host both the 2014 World Soccer Cup and the 2016 Olympic Games (Focus2move website). We begin this report by providing a summary of the economic activities taking place in Brazil that are likely to affect the future. Then, the report is divided into three parts; the first highlighting the macro-economic factors that will help forecast the future demand for passenger automobiles in the local market, the second highlighting the macro-economic factors that will help forecast the future demand for export of passenger automobiles and the final part highlighting the macro-economic factors that help forecast the future demand for import of passenger automobiles. Brazil was not immune to the global financial crisis of 2008-2009, as its real GDP decreased slightly by 0.3% in 2009. However, the economy quickly...
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