...oing Business in Brazil * Market Overview * Market Challenges * Market Opportunities * Market Entry Strategy Market Overview The Federative Republic of Brazil is Latin America's biggest economy and is the fifth largest country in the world in terms of land mass and population with about 192 million people. Brazil’s economy, the 6th largest in the world, grew 2.7% in 2011. Growth slowed due to reduced demand for Brazilian exports in Europe and Asia, despite solid domestic demand and a growing middle class. During the past decade, the country has maintained macroeconomic policies that controlled inflation and promoted economic growth. Inflation was at 6.5% in 2011, and urban unemployment reached a historic low of 6.0%. Interest rates, though high compared to the rest of the world, remained historically low at the Central Bank benchmark rate of 8.0% as of July 2012. In 2011, the U.S. was Brazil’s largest source of imports followed by China, Argentina, Germany, and South Korea. U.S. merchandise exports to Brazil in 2011 were US$42.9 billion, and U.S. imports from Brazil were US$31.3 billion. Market Challenges Brazil has a large and diversified economy that offers U.S. companies many opportunities to export their goods and services, and U.S. exports are increasing rapidly. Doing business in Brazil requires intimate knowledge of the local environment, including both the explicit as well as implicit costs of doing business (referred to as the “Custo Brasil”)...
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...Cultural Aspects of Doing Business in Brazil When doing business in global environment, being aware of impact of cultural differences is one of the keys to international business success. Since cultural differences will affect you and your business success directly. Accordingly, knowing the cultural differences between target country where to startup business and home country is a significance factor to sustain the business. Here are some facts about Brazilian Cultures’ components. Brazil’s official name is Federative Republic of Brazil but even its citizens do not prefer using whole name. According to last research the population is roughly 200 million and estimated to be growing at about 1.6 percent per year. Young population has a significance share over population. Since 62% of Brazilians are under 29 years of age. Brazil has six climatic regions: tropical rainforest, tropical wet and dry, tropical monsoon, hot semiarid, humid subtropical and subtropical highland. Although most of Brazil lies in the tropics, more than 60 percent of the populations live in areas which are cooled either by altitude, sea winds or polar fronts. While the coastal cities of Rio de Janeiro, Recife and Salvador can get extremely hot, plateau cities such as São Paulo, Brasília and Belo Horizonte have mild climates, and the southern cities of Porto Alegre and Curitiba have mild winters. It is extremely important to know for foreign businessman because climate is as important as culture. For example...
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...either align with our country or what Tim may have to do in order to market his coffee appropriately as Tim would not want to have to keep his supplier a secret if a consumer asks where he gets his coffee from. The country I have chosen to buy coffee from would be Brazil. According to an article in Business Week, Brazil is the largest coffee producing country in the world (Businessweek.com). Brazil produces many different types of coffee beans and will potentially sell over 48.6 million bags of coffee in the year 2013 (businessweek.com). I have chose Brazil because since 1988 they have came a long way with environmental standards and also their trade policies when it comes to exporting goods. In 2011, Brazil was the U. S. largest source of imports and has many opportunities for growth for companies that want to do business in this country (export.gov). The Strauss Company located in Brazil would be the company I would use to get my coffee imported from. In 2000, the Strauss Company acquired Café Très Coracoes which is located in Brazil and in 2005 became the 2nd largest coffee company in Brazil (export.gov). This is the company I would chose do to the fact that they took a chance as well in the coffee market in Brazil and it paid off. This company knows what it takes to be successful and if you build a good relationship with them they could pass on...
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...strange and quite different from what you are used to in Canada. One of the major differences is that Brazil is a collectivistic culture as measured on Hofstede’s Individualism Index, in contrast to Canada’s individualistic culture (Hofstede, 2014). Brazil’s collectivist nature will have many impacts on your daily interactions, including the Brazilian importance of family, which will often be place above work priorities (Training, 2012). Brazil is also different in its communication style, which tends to be more informal and indirect than Canada’s formal and direct style. Brazil is also considered a high-context culture, therefore it is important to pay attention to what is said, how it is said, and what is not said (Suderman, 2008). Another major aspect of Brazilian culture is the importance of building relationships before commencing business. Brazilians expect to get to know their business contacts through multiple meetings, in order to establish trust, and hopefully a friendship (DiPaolo, 2006). This process may take some time as it illustrates Brazil’s Polychronic orientation, which is more relaxed (slower) in nature and where the prevailing attitude is that “things will get done in their own time” (Suderman, 2008). Brazil is also very comfortable with inequality as evidenced by their high score on Hofstede’s Power Distance Index (Hofstede, 2014). As a manager in Brazil you will be expected to take absolute responsibility and to use an authoritarian style of leadership...
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...Proposal Submitted by – Shazma Farooqui Student ID - 10000 Word Count - 2000 Executive Summary The proposal is for Jason products which is a family owned business, the company deals in high quality dining accessories and table protection solutions. The company products are innovative, beautiful, & practical to use, in the last 5 decades the company has grown to become one of the world leader in cork backed placemat manufacture and design. The company is headquartered and based in Auckland with subsidiaries in UK, USA & Australia. (www.jason.co.nz, 2013) This proposal is for exporting the company products to four new countries along with detailed explanation that why these potential markets will be beneficial for the organization to start exporting company products, the proposal will cover the economic, financial & cultural factors prevailing in the countries being recommended in this report. The environment, competition and the market trends in domestic & international market & the developments have a direct impact on success. It is imperative to have a better understanding of the prevailing market scenario, which will help us to plan well and take good decisions. Target Countries for Expansion * Japan * Canada * Brazil * France JAPAN Japan is one of the most developed countries in the world and the economy of the japan is the third largest in the world by nominal GDP & purchasing power parity...
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...APRIL 2007 Doing Business in Brazil ERNST & YOUNG DOING BUSINESS IN BRAZIL CONTENT SUMMARY B7 - Essential Industries .................................................. 13 B8 - Energy and Natural Resources ............................. 13 A B9 - Foreign Trade ............................................................... 13 Trade Balance ............................................................... 13 Exports and Imports ..................................................... 13 Trading Partners ........................................................... 14 A1 - Regulatory Constraints and Relief ........................ 6 Regional and International Trading Associations ........ 14 Exchange Background ................................................... 6 Exchange Controls ........................................................ 6 Foreign Ownership of Business .................................... 6 Foreign Ownership of Real State .................................. 6 A2 - Government Attitude and Incentives ................... 7 C Government Attitude to Foreign Investment ................. 7 Foreign Investment Government Financial Incentives .................................. 7 A3 - Tax System ..................................................................... 7 C1 - Exchange Controls .................................................... 14 Remittance of Dividends and Profits ........................... 14 Corporate Income Tax...
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...international business plan are; Saudi Arabia, South Korea, and Brazil. Each country has a different economic system, political system, and management style for doing business with respect to the culture and traditions of the country. Each country can be a real consideration for expanding your business in if the research is done by the business desiring to expand. If the research is not done properly, then without a doubt your business plan to expand will not be productive. Each of these countries it is easy to cause a great enough offense to the host country that it will be virtually impossible to enter into this country and have an effective business. The business must have a market advantage to expand in any country. The host country must feel they have respect and the wellbeing of their country before they will allow a business to enter into their country. A good example of this is when McDonalds entered into China. McDonalds needed to make some serious changes to their menu for the culture in which they intended to setup their business and they had to give certain guarantee’s to China about labor, customs, courtesies, and business involvement for political issues (Thuermer, 1998). A similar business move was required when McDonald’s established their self in England. England required a large amount of the product be produced by England for the product used. This research will look at Brazil, South Korea, and Saudi Arabia for a proposed business plan for implementation...
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...Vasiliki Kontanis, Mary Kate Manganiello, Kelsey Swierczek, and Maria Tropiano Monday, November 11, 2013 Anheuser-Busch International, Inc.: Making Inroads into Brazil and Mexico 1. What were the major challenges facing Anheuser-Busch in entering the Brazilian market? In entering the Mexican Market? The export.gov website describes several market challenges that a company encounters when doing business in Brazil. These challenges include: 1) an intimate knowledge of the local environment, including the explicit as well as the implicit costs of doing business (the “Custo Brazil”); 2) Logistics, given infrastructure limitations posed by a decade of economic expansion; and 3) Tariffs and a complex customs and legal system (www.export.gov 1). The vscgrowth.com website lists the following market challenges for Brazil: 1) The language – Most professionals in Brazil will need an interpreter because English is not widely spoken in Brazil; 2) Time zones and distance – Being on the other side of the world there is no overlap in business hours meaning holding phone or video conferences will have one party up very early or late; 3) Business culture tends to be “laisse a faire” or “introspective” and the different cultural background means priorities don’t always coincide with the US business psyche; and 4) Brazilian infrastructure needs improvement so as to support and capitalize on growth opportunities (www.vscgrowth.com 1). The startupoverseas.co.uk website discusses the...
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...Challenges faced when doing business in brazil Another reason to be excited about the Brazilian economy is that - after several quarters of disappointing growth levels. But doing business in Brazil is notoriously complicated, and there are several things organisations should consider before making the leap. Developing nation Brazil is still considered a developing nation, and although that is often interpreted as a precursor for ‘high growth levels’, it also means that several areas of the economy remain underdeveloped. The consumer base, regulatory environment and sphere of investment are not as mature as those of developed nations, and considerations must be made to that effect. Bureaucracy The reform of the laws and regulations for opening and running a business in Brazil has not adapted at the rate with which the economy has grown, presenting many hurdles to overseas corporations. Brazil ranked 126th out of 183 countries in the World Bank’s latest annual global report which evaluates the ease of starting a business, dealing with construction permits, registering property, and paying taxes. On average, it takes 13 procedures and 119 days of work to start a business in Brazil, and construction permits demand an average 17 procedures and 469 days to finally get authorised. Corruption Brazil has become somewhat notorious for the levels of corruption among its politicians and senior business people. However, a recent report by The Economist suggests that the country...
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...Brazil Studies: Brazil socio-cultural factors and Cross-cultural issues By: Lawanda Timmons Date: January 31, 2015 Instructor: Minsky TROY Managing in a Global Environment MGT-4478 Introduction I am pleased our company decided to expand the W Hotel to Brazil. Brazil is a great place to start a new service business at, especially a hotel. Brazil is a place where the culture believes in diversity. Also they consider themselves to be Americans as well. Therefore they do not mind using U.S products or services. They are a people that believe in family and that family is a key part to life. Brazil is a place that is filled with variety and is not afraid to allow new cultures to their part of the world. Cultural Analysis In Brazil, the primary language is Portuguese. It was the Brazilians’ first language, but over time immigrants such as Italians, Germans, Japanese, and Spanish-speaking introduced new words and expression to their language. It is much easier for some Brazilians to understand Spanish language than other Latin American countries. The Portuguese they speak in Brazil is different from what they speak in Portugal. The language is so different. It’s just like the English spoken in the United States. However, in Brazil there are many customs. In fact, their daily communication style of Brazilian locals is typically relaxed and relatively informal. It is not unusual during a conversation to be interrupted. Although it’s not rude in...
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...Transmittal Letter December 4, 2010 Tumi Luggage in Brazil: A Feasibility Study Tumi Luggage is a very popular , high end, luxurious product. With its success in the US, in some parts of Europe and Asia, it is with best interest to research the feasibility in expanding its operations i nto the beautiful and lucrative country of Brazil. Feasibility and Marketing Plan: Tumi Luggage in Brazil Dr. Judy Strauss Associate Professor of Marketing University of Nevada, Reno Reno, Nevada 89557 Dear Dr. Strauss: We are pleased to present you with Bulletproof’s Feasibility and Marketing Plan for Tumi Luggage in the beautiful and lucrative country of Brazil. This plan will assist you in gaining valuable insight into the opportunity available for Tumi Luggage in Brazil. This plan is the result of an extensive research utilizing both primary and secondary findings. The suggestions proposed are carefully correlated with the market opportunities that are currently present in Brazil. The plan has been constructed in three different sections: (1) analysis of the potential market in Brazil, (2) the technical, financial and organizational elements that should be considered when entering the Brazilian market and (3) a marketing plan, if implemented, could create an overall increase in brand recognition, Tumi’s profitability and overall global market share. It is with confidence that the recommendations contained in this plan will cultivate excellent opportunities for Tumi Luggage, and...
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...After doing some extensive research, I am for us establishing a business operation in Brazil. My reason is not only Brazil the world’s fifth largest country; it is also the world’s fastest growing in economy and is the third largest in the Americas. The culture in Brazil is derived from Portuguese culture. The culture was also influenced by African, Italian, German and non-Portuguese European cultures and traditions. The official language in Brazil is Portuguese. The population of Brazil is about 190 million, so finding local qualified applicants would not be a problem. Brazil is a developing country that offers great opportunities for investments, partnerships and commerce. I think if we decide to do either a joint-venture or direct foreign investments, it would be a win-win situation for us. Yes there will be some difficulties, but it would not reduce its market attractiveness. Brazil’s economy is so diverse, it includes agriculture, industry and many others. Since agriculture and other sectors like forestry, logging and fishing accounts for about 5.1% of Brazil’s gross domestic product, this would put us in a great position for growth in the agribusiness. Brazil has experiences tremendous economic growth over the past three decades in the global power in agriculture and natural resources. Even though, Brazil has had a huge loss in corn corps due to lack of rain and poor fertilization, there are still good prospects for a brighter Brazil. Because of the drought, Brazil has...
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...------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Proposal for Greenfield Venture Expansion in Brazil ------------------------------------------------- ------------------------------------------------- Peace of Mind Consulting, LLC ------------------------------------------------- “Where safety is our #1 concern” ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Ulrich Bernard ------------------------------------------------- Financial Analyst ------------------------------------------------- ------------------------------------------------- Kevin Cotter ------------------------------------------------- Operational Analyst ------------------------------------------------- ------------------------------------------------- Jingming Li ------------------------------------------------- Foreign Relations Liaison ------------------------------------------------- ------------------------------------------------- Vincentius Njauw ------------------------------------------------- Economic Analyst ------------------------------------------------- ------------------------------------------------- April 24, 2012 ------------------------------------------------- ------------------------------------------------- ...
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...destination for opening a new “natural and organic foods” grocery market. The project focus revolved around achieving long-term success in a market for Whole Foods. The analysis was to determine the most lucrative candidate country in which to introduce a three-store market, keeping all stores no further than ten miles apart. Chronological Scope: To ensure the relevance of information presented in the report, only the most recent available data was analyzed. The indicator analysis covers years 2006 through 2009. Effective evaluation of indicators requires the comparison of the three countries within the same time frame for each individual indicator. Geographical Scope: The report compares and contrasts the following countries: ➢ Brazil ➢ South Korea ➢ Poland Functional Scope: This report provides an insight into the international market screening process for Whole Foods. It outlines specific procedures that were undertaken in order to evaluate each prospective expansion destination and eliminate the two least viable options. In order for Whole Foods to deem a market successful, it must be able to achieve and sustain the following factors: • Provide the highest quality of natural and organic products available • Satisfy and delight customers • Build a supportive and winning team • Create wealth through profits and growth • Promote the health of stakeholders through healthy eating education Ensuring a successful market introduction...
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...the Southeast. They now have about 300 Krispy Kreme factory stores and 90 satellites, and have continued growth. The speedy development fashioned challenges in making sure products were always fresh and obtainable. With this continuous growth, Nathan Mucher, Vice-President of Information Services realized that an long-drawn-out web presence would aid, and be a underpinning in their expansion proposals. The company was able to start escalating internationally in 2001. It opened its first store in the United Kingdom in 2003 at Harrod’s Department Store in Knightsbridge. Krispy Kreme is doing well in the United Kingdom and they ought to continue expanding into other countries, as well as other parts of the world. The best candidate for a entering new in a foreign country market at this time would be Brazil. This report will methodically examine the reasons why it would be a superior business decision for Krispy Kreme to enter into the Brazilian market. Mission & Vision One of Krispy Kreme’s main flaws is that it they do not have a clear mission and vision statement. The only affirmed purpose was to have a triumphant Krispy Kreme in every town in the United States. As a result, Krispy Kreme has experienced monetary difficulties. Krispy Kreme attempted to enlarge too quickly and is now paying for it financially. Krispy Kreme has now made a good decision to...
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