Stepin Anlysis of Brazil

7/27/2019 Stepin Anlysis of Brazil.

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GROUP MEMBERS:

BRAZIL


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GENERAL INFORMATION

Capital: BraziliaIndependence: 7 Th September, 1922Languages: Portuguese, Spanish, English and French

Area: 8,514,877 sq km includes 26 federate statesand considered as the 5 th largest country in the world.Climate: Mostly tropical but temperate in south.

Natural resources: bauxite, gold, iron ore,manganese, nickel, phosphates, platinum, tin, rareearth elements, uranium, petroleum, hydropower,timber.


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SOCIAL AND CULTURALENVIRONMENTAL FACTORS

Brazil is a mixture of races and ethnicities, resulting in rich diversity.Many original Portuguese settlers married native women, which created a newrace, called 'mestizos'.'Mulattoes' are descendents of the Portuguese and African slaves.Slavery was abolished in 1888, creating over time a further blurring of raciallines.

Nepotism is considered a positive thing, since it implies that employing peopleone knows and trusts is of primary importance.Class is determined by economic status and skin colour.There is a great disparity in wage differentials and therefore lifestyle and socialaspirations among the different classesAlthough women make up 40% of the Brazilian workforce, they are typicallyfound in lower paid jobs such as teaching, administrative support, and nursing.The 1988 constitution prohibits discrimination against women, but inequities

still exist. The one place where women are achieving equality is in thegovernment.


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TECHNOLOGICAL ENVIRONMENTALFACTORS

Brazil is a leader in science and technology in South America.Brazilian Government seeks to develop an environment that is more supportiveof innovation, taking scientific advances from the laboratory to the marketplace.Technological research in Brazil is largely carried out in public universities andresearch institutes and more than 73% of funding for basic research still comesfrom government sources.Some of Brazil's most notable technological hubs are the Oswald Cruz Institute,the Air Force's Aerospace Technical Centre, the Brazilian Agricultural ResearchCorporation and the INPE. The Brazilian Space Agency has the most advancedspace program in Latin America, with significant capabilities in launchvehicles, launch sites and satellite manufacturing.The Brazilian IT market is the largest in Latin America and spending on IT

products and services is forecast to pass US$25bn in 2010 and US$30bn by2012.Research and development is also booming in the country thus enhancing thegrowth of the country in this sector.


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ECONOMIC ENVIRONMENTALFACTORS

Largest economy in South America.Vast natural resources.Largest labour pool in South America.Main business sectors: Manufacturing & Service.Expanding economy due to adaptive fiscal and monetary policies.

Lack of protective property rights GDP growth slow in 2011 (3.2%) however due to FIFA 2014 and summer Olympics 2016 it is expected to grow.Economy is greatly affected by inflation of food and fuel prices. This ishindering the economic growth.Inflation as of March 2012 (5.2%), however this is still above the national target

(4.5%).To combat inflation the government has imposed a minimum wage hikeof 14.2%.A high percentage of the population still live in slums with little or no access tohealthcare and electricity.These slums are also fertile grounds for drug trafficking.In conclusion Brazil has to work on an all round development program to


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POLITICAL AND GOVERNMENTENVIRONMENTAL FACTORS

Dilma Rousseff Strong GDP growthIncreased incomePolitical corruptionHigh crime ratesFederal Constitution26 states - empowered to shape personalized lawsLiberalizationFree zonesLack of protective property rights


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INTERNATIONAL TRADINGENVIRONMENTAL FACTORS

Brazil is generally open to and encourages foreign investment.Brazil is the largest recipient of foreign direct investment (FDI) in LatinAmerica, and the United States is traditionally the number one foreigninvestor in Brazil. Since domestic savings is not sufficient to sustain long-term high growth rates, Brazil must continue to attract FDI.

In order to attract increasing levels of FDI, many business groups andinternational organizations have highlighted the need for Brazil to improveits regulatory environment for investments and to simplify the tax code.Brazil does not have a bilateral tax or investment treaty with the UnitedStates.Legislation promoting public-private partnerships, a key effort to attract

private investment to infrastructure was passed in 2004.In 2007, the Government of Brazil initiated an ambitious infrastructuredevelopment program, known as the Growth Acceleration Program (PAC),to address the countrys significant road, rail, energy supply, and other infrastructure needs.


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RECOMENDATION

Market Overview

Market Challenges Market Opportunities

Market Entry Strategy


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THANK YOU

Documents

Stepin Anlysis of Brazil