...strongly influences the attraction of foreign investment. It is the fifth largest country on the planet, with a population of 180 million inhabitants, responsible for a very promising, predominantly urban, market. The country has the possibility to overcome the situation of exclusion from the digital world for a large portion of its population (approximately 28 million Brazilians have internet access, the highest rate in Latin America), due to an increase in telephone services, particularly in the case of prepaid mobile telephones. In addition, the development of a specific model of digital television makes the Brazilian market a gigantic laboratory for the use of applied technology. Furthermore, Brazil has the largest and most diversified system of science, technology and innovation in Latin America, a result of the accrual of accomplishments in the last 50 years, which include the capacity for oil prospection in deep waters and the ability to build aircrafts. Furthermore, the country invests in space and nuclear programs, as well as in new areas currently at the border of knowledge, such as nanoscience, nanotechnology and biotechnology. Infrastructure and partnerships Within the area of infrastructure, due to the urgency in the social agenda, the demand for modernization is shared between the State and capital from the private sector, in initiatives known as Public-Private Partnerships (PPP). In the Transport sector, the country is improving a multi-modal model and investing...
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...REPORT – BRAZIL Distribution of income Brazil has historically a very unequal income distribution. In the 90´s Brazilian government believed that if high inflation rate were cut down, the income distribution would improve. In fact, after a successful plan of stabilization of the inflation, the unequal pattern of income distribution did improve in a consistent way in this decade. Other important aspect about income inequality in Brazil is related to regional pattern of income distribution, which is extremely unequal between different regions of the country. Although a generally improved distribution of income took place, the differences between regions remained in the 90’s. However, the current level of unequal income distribution is yet very far from the pattern of many developed countries. [1] Growth and structural changes have not altered significantly Brazil's extremely unequal distribution of wealth, income, and opportunity. Despite impressive increments in economic growth and output, the number of poor has risen sharply. Most of the poor are concentrated in the rural areas or in the country's large cities or metropolitan areas. Poverty, measured by the local minimum wage, declined from over 52% of the population, in the beginning of the nineties, to about 38% in 2005, meeting the Millennium Development Goal. Extreme poverty, defined as income of less than a dollar a day (in purchasing power parity), declined from 8.8% to 4.2% in the same period. [2] Trade In...
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...challenges of sustained growth and pro-poor development. India is an extreme “dual” economy.1 At one extreme, it is the world’s fourth-largest economy in purchasing power parity (PPP) terms, it is a nuclear and space power, and it is increasingly becoming a top global innovation player in certain key economic sectors––such as biotechnology, pharmaceuticals, automotive components, information technology (IT), software, and IT-enabled services (ITES). At the opposite extreme, India largely remains a subsistence economy. With an average per capita income of $720 in 2005, India is still a low-income and mainly rural, agrarian economy. About a quarter of its population lives below the national poverty line, with significant spatial variance across and within states.2 Roughly 70 percent of its population is rural, and 60 percent of the workforce is engaged in agriculture. Illiteracy rates are 46 percent for women and 25 percent for men.3 Given this dual economy, it is natural to ask what can be done both to strengthen the likelihood of sustained high growth rates and to address the unmet needs of the informal sector and the poor. To sustain growth and reduce poverty, India must leverage and improve its innovation potential. Innovation can be a critical driver of increased productivity and competitiveness and, ultimately, poverty alleviation.4 India’s recent acceleration in growth has been impressive. Over the 2004–06 period, real GDP has grown by over 8 percent a year. Growth has been driven...
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...Entrepreneurship and Innovation at the Base of the Pyramid: A Recipe for Inclusive Growth or Social Exclusion? joms_1044 1..28 Jeremy Hall, Stelvia Matos, Lorn Sheehan and Bruno Silvestre Simon Fraser University; Simon Fraser University; Dalhousie University; University of Winnipeg abstract Policy makers often see entrepreneurship as a panacea for inclusive growth in underdeveloped ‘Base of the Pyramid’ (BOP) regions, but it may also lead to unanticipated negative outcomes such as crime and social exclusion. Our objective is to improve the understanding of how entrepreneurship policies can lead to socially inclusive growth at the BOP. Drawing on data collected from Brazilian tourism destinations with varying entrepreneurship, innovation, and social inclusion policies, we argue that weak institutions coupled with alert entrepreneurs encourage destructive outcomes, especially if entrepreneurship policies are based solely on economic indicators. Policies addressing both economic and social perspectives may foster more productive entrepreneurial outcomes, albeit at a more constrained economic pace. The study extends the related BOP, entrepreneurship, global value chain, and sustainable tourism literatures by examining the poor as entrepreneurs, the role of local innovation, and how entrepreneurship policies generate different social impacts within poor communities. Keywords: base of the pyramid (BOP), entrepreneurship policy, innovation, social entrepreneurship...
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...offer expert advice to attain business success in that market. CONTENTS- 1. Introduction. 2. View of Brazil’s economy. 3. Brazil as a BRICS Economy. 4. Market for smart phones in Brazil. 5. Using the porter’s five forces to analyse the market for smart phones in Brazil. 6. Competitors existing in the market. 7. How to enter the market. 8. Constraints to success for the company (using PESTLE model). 9. How to achieve a sustainable competitive advantage. 1. INTRODUCTION The Cost (this involves the legal cost, corruption, lack of infrastructure), Benefits (size of the economy or economy growth),Risk (political-social unrest, economic mis-management) analysis has been used to analyse the favourable emerging market in Latin America which is Brazil. The main reasons for choosing this market will discussed in details. 2. OVERVIEW OF BRAZIL’S ECONOMY The chosen market is BRAZIL which is an emerging market and also the largest of the Latin American nations and the second largest in the western hemisphere with an average annual GDP growth rate of over 5%. In one of my findings, Brazil is expected to become one of the five largest economies in the world in future. As at 2011 according to Forbes, “Brazil was ranked the 8th largest number of billionaires in the world”. Brazil is the sixth largest economy by nominal GDP in the world and also ranked 10th ease of doing business rank, with a population of...
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...Brazil: Leading the BRICs? Brazil has experienced great integration into the global economy over the past decade, which has been a result of significant growth in exports and reinforcement of the country’s weight in international trade negotiations. Brazil is the third strongest economy of the BRIC group (Brazil, Russia, India and China) and is the leading economic power of the South America. Brazil’s president (Cardoso) initiated accession to the World Trade Organization (WTO) in the mid-1990s. Brazil plays an active role within the WTO and a constructive role in the development of economic and trade associations. The accession of Brazil to WTO, its success in the organization and its important leadership position in the Group of Twenty, made it play a major role in the multilateral trade negotiations. Its position in favor of the Doha round brought about the realization of ambitions for development. Brazil’s actions in the World Trade Organization definitely serve the country’s long-term economic goals. The bilateral and regional trade agreements, promoted by Brazil, can complement the multilateral system by reinforcing the integration of the markets and strengthening the role of trade in economic growth. This is why Brazil should work through another round of WTO sponsored agreements. The WTO cotton dispute between Brazil and the United States reveals how some countries may strangle others by their strategic trade policy. It also shows the importance of Brazil’s...
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...IKEA: Expanding globally Introduction……………………………………………………………………………….3 1. A learning organization: understanding the culture of learning and innovation….3 2.1 General concept of learning organization……………………………………3 2.2 IKEA – a learning organization in various market:………………………….4 2. IKEA’s internationalization strategy ……………………………………………..6 3.3 Internationalization strategy from 1974 onwards ……………………………6 3.4 From the perspective of internationalization theories: ………………………7 3. Issued considered in international market research and opportunity analysis: ….9 3.1The Japanese and Chinese market: ……………………………………………9 3.2 The Brazilian market: ………………………………………………………..9 4. IKEA’s entry mode strategy: …………………………………………………...12 5.5 Subsidiaries………………………………………………………………….13 5.6 Franchising………………………………………………………………….13 Summary Introduction Globalization is now playing an important role in the growth of economies across the world. The rapid growth of its process has led to social, economic, technical, cultural and ecological interdependence among nations. It also provides new and potentially profitable markets, increases firms’ competitiveness, facilitates access to new product ideas, manufacturing innovations. Thanks to its numerous advantages, the world is moving closer together and a great deal of organizations has great opportunities to expand their market to foreign ones. IKEA, the world’s largest furniture retailer, did not...
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...Cultural Considerations Competitive advantage can easily be achieved by providing innovative products and services to customers in a market. This report contains various considerations to remain competitive in the market place. In addition, primary factors for making decisions, strategies for rivalry firms, and future plans to remain competitive in a global marketplace are also analyzed. Considerations to remain Competitive Organizations need to way innovative ways to remain competitive. Having well planned strategies will help companies remain competitive in the market. The organization should analyze the overall market and events taking place externally in the environment. By utilizing strategic planning helps an organization create policies and services in the market. Strategic planning also helps to achieve competitive advantage. Being new in the global marketplace, it is highly beneficial to perform a SWOT analysis on the organizations two biggest competitors. The two biggest global competitors are; IKEA and Ethan Allen both are setting the scale for being very competitive in the market. The SWOT analysis on both organizations will provide information to help the organization keep up in the competitive market. (Steinberg, 2015) Along with the SWOT analysis the organization should perform analysis just at the 5 C’s of marketing as well as a PEST analysis. The 5 C’s of Marketing is used to analyze five key areas that are involved in marketing decisions for a company, they...
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...and innovation: Comparative studies of innovative firms from the south of Brazil. PAULO ANTÔNIO ZAWISLAK Graduate Center on Business Administration Management School Federal University of Rio Grande do Sul Rua Washington Luiz, 855, Porto Alegre, RS, 90.010-000, Brazil paz@ea.ufrgs.br ANTÔNIO DOMINGOS PADULA Graduate Center on Business Administration Management School Federal University of Rio Grande do Sul Rua Washington Luiz, 855, Porto Alegre, RS, 90.010-000, Brazil apadula@ea.ufrgs.br LÁZARO SUMBA QUIMI Graduate Center on Business Administration Management School Federal University of Rio Grande do Sul Rua Washington Luiz, 855, Porto Alegre, RS, 90.010-000, Brazil lsumba@hotmail.com CAROLINE PRATES Graduate Center on Business Administration Management School Federal University of Rio Grande do Sul Rua Washington Luiz, 855, Porto Alegre, RS, 90.010-000, Brazil carol.prates@ibest.com.br POMS 23rd Annual Conference Chicago, Illinois, U.S.A. April 20 to April 23, 2011 The firm’s operational capability and innovation: Comparative studies of innovative firms from the south of Brazil. Abstract: In emergent economies, firm’s innovation is often a survival issue. This research is focused on the operational capability concept and it is intended to explain, in a comprehensive way, how this capability matters and supports innovation. This paper analyzes firms, which working under standard technology, innovate and export. Key words: Brazil; Innovation;...
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...Table of contents: 1. Introduction………………………………………………………………………………………………………….3 2. Critical review a well managed organization with culture of learning and innovation in international markets…………………………………………………………………….3 2.1 Literature review of a well managed organization with culture of learning and innovation in international markets………………………………..……………………………3 2.2 Examining Wal-Mart’s characteristics to the extent of learning culture and innovation …………………………………………………………………………………………………….4 3. Critical review internationalization theories and the case of Wal-Mart from 1994 onwards……………………………………………………………………………………………………….7 3.1 Theories of internationalization…………………..……………………….……………………...7 3.2 Wal-Mart’s internationalization strategies from 1994 onwards……………..……9 4. Wal-Mart entry Brazilian and Japanese market……………………………………………….10 4.1 Considerable issues of the company………………………………………………………… 11 4.2 Opportunity in those markets……………………………………………………………………13 5. Wal-Mart’s entry modes in international markets - Examining with Brazilian and Japanese markets…………………………………….…………………………………………… ….13 5.1 Mode of entry to Brazil ………………….…..……………………………………………………..13 5.2 Mode of entry to Japan……………………………………………………………………………….14 6. Summary……………………………………………………………………………………………………………15 7. References………………………………………………………………………………………………………….15 8. Appendices…………………………………………………………………………………………………………16 ...
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...and Fons Trompenaars. In particular, Hofstede’s “Uncertainty Avoidance” and Trompenaars’ “Ascription vs. Achievement” have been applied. 2. Theoretical Background Hofstede and Trompenaar are proponents of the ‘etic’ approach. They hold that culture is linked to people’s values. Furthermore they argue that these values can be transferred into universal cultural characteristics. Underpinned by empirical and experimental evidence, both anthropologists developed their set of bi-polar dimensions. According to Browaeys and Price (2008, p.92) these dimensions serve to differentiate national cultures. Moreover they provide implications on the impact of culture in business and management. 2.1. Geert Hofstede Hofstede’s work is based on research conducted at the multinational computing company IBM. Surveys were conducted amongst 116.000...
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...Coca Cola’s Marketing Challenges in Brazil: The Tubaínas War Case Analysis I. Summary The case study deals with Coca Cola’s attempt to pursue different strategies in order to stand up to the strong growth of the so called tubaínas. Tubaínas is defined as the numerous brands of inexpensive, carbonated and sweet beverages which are manufactured and distributed locally throughout Brazil by hundreds of small companies. Due to the significant growth of the tubaínas in Brazil, Coca Cola intended to find a way to impede and even defeat the steady increase, to sustain their performance and strength. II. / III. Statement of the problem / Causes of the problem One of the biggest problems Coca Cola faced was its declining market share in 1999 which dropped to 48%. It became evident that Brazil seemed to be a challenging market for Coca Cola concerning sales, market share and profitability despite the existing high brand awareness all over the world. The decline was the result from the rising social class C which included typical workers in the lower middle class and accounted for around 28% of total national consumption of soft drinks. The outcome of a market study conducted by Boston Consulting Group showed that brand awareness was the least significant factor in the beverage purchase decision of Class C. However lower-priced products, also referred to as B brands, played a decisive role and were preferred. Another market study, published by A.C. Nielsen/CBPA study supported the...
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...Brief History In 2001, Jim O’Neil – an economist at Goldman Sachs – first coined the term BRIC and ever since then it stood as an acronym for Brazil, Russia, India and China. At the time, O’Neil was trying to predict where Wall Street investors could place their investment dollars. In their search for future high growth and therefore high profits within a span of one to two decades, O’Neil came up with recommending the BRIC countries as potentially good nations where to park investment dollars. In that same year, he went on to predict that over the first decade of the twenty first century, the economies of those BRIC countries would increase in a very significant way; so much so, that it would “outpace growth of some of the world’s largest economies” (Sharma, 2012). In 2015 his prediction is presently valid, but mostly for China, which has achieved impressive economic growth in the last few years, and for India, which despite its ambivalent economic performance and socialistic labor tendencies, it has managed to post some notable levels of economic growth. At the beginning of the twenty first century, in search for new national markets where investment dollars could gain hefty returns, and partially as a result of sluggish economic performance in the US and Europe, Wall Street placed its sight on emerging economies such as China, Brazil and even Russia. O’Neil was not the only Wall Street economist or investor to actively seek...
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...PESTEL Brazil Why Brazil? * Brazil is politically stabile and has democratic rules achieved under the presidencies of Fernando Henrique Cardoso and Luiz Inácio Lula da Silva. * Brazil has a diversified and growing economy that plays a significant role in the global economy. Brazil is the largest economic power in Latin America and the world’s 10thlargest economy. * The country is open to and encourages foreign investment by implementing investor-friendly policies. The country is one of the world’s leading destinations for foreign direct investment. * Brazil is the fourth biggest producer of gold in the world. It has abundant reserves of natural resources and many regions are still unexplored which make the country an attractive location for mine development. * Brazil has an established Civil Law system and a modern mining legislation. * The country is a green energy leader, renewable energy supplying nearly 45% of the country’s energy needs. * Expanding into Brazil will allow Newmont to reinforce its presence in South America where its competitors are already well established. PESTEL Analysis Political Type: Federative republic (with 26 states and a federal district) Independence: September 7, 1822. Constitution: Promulgated October 5, 1988. Branches: Executive–president (chief of state and head of government popularly elected to no more than two 4-year terms). Legislative–Senate (81 members popularly elected...
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...those in need of the n Assistant Professor of Business Law, School of Business, University of Connecticut. This article received the Holmes-Cardozo Award for Outstanding Submitted Conference Paper as well as the Ralph J. Bunche Best Paper Award at the Academy of Legal Studies in Business Annual Meeting, Indianapolis, IN, August 2007. Our thanks for comments and support go to Jayashree Watal, Peter Yu, Douglas Lippoldt, and the other participants at the University of Connecticut’s Center for International Business Education and Research Conference, ‘‘The Impact of Intellectual Property Rights on Innovation, Knowledge Diffusion, and Foreign Direct Investment in the Global Economy,’’ Storrs, CT, May 2007. Additional thanks to Anthony Kwasnica and Larry Cata-Backer for helpful comments. nn Associate Professor of Business Law, Smeal College of Business, The Pennsylvania State University. My research was supported by funding from the 2007 Smeal Competitive Research Grants Program. 1 The term ‘‘compulsory license’’ can refer to any compelled relaxation of an intellectual property owner’s right to exclude in exchange for a licensee’s...
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