Business Environment of Brazil


Large events usually provide ample business opportunities for firms across the world. Football has a large following; therefore, events such as the ongoing Barclays Premier League, the upcoming Euro Competition, and the 2014 World Cup due to be held in Brazil are ultimate sources of interest for businessmen and spectators. This essay shall focus on the business environment in Brazil presented by the upcoming World Cup in 2014 as well as the Summer Olympics games in 2016 and shall concentrate on opportunities availed to Football Fan U.K (F.F.U).

F.F.U is a medium-sized, family owned business located in Staffordshire, United Kingdom. It was established in 2003 with the core objective of re-selling football shirts and other clothing wear manufactured by large corporations such as Adidas, Puma, Nike, and Umbro. Customers can order products of their choice on their website, which are then delivered within 24 hours after payment has been received. Obviously, the company is in a prime position to expand and reap huge profits through concrete and diverse investments in Brazil. It is advisable for the firm to localize its operations first to Rio de Janeiro before expanding to other cities or towns (Football Fan U.K, 2012, 1).

Business Culture, Values and Norms in Brazil

Brazil is a country located in South America that has a population exceeding 200 million. It is the largest country in the continent in terms of area and population. The language spoken is a fusion of Portuguese and indigenous Indian and African languages. Brazil is well known for openness, hospitality and its tradition for hosting colorful, rhythmic national events, such as the world-renowned annual Carnival show. There is a distinct Catholic influence due to the fact that it is the predominant religion, inherited from the Portuguese colonial masters who first demarcated the colony in the 16th Century. Since gaining independence in 1822, it has experienced an exponential increase in its population as foreigners settled and merged with the indigenous inhabitants. The society’s diversity is extremely emphasized by the fact that there are major class differences as well as ethnic groups. A proper understanding of the unique values and perceptions held in the country will definitely aid this group of managers to do business more effectively with their Brazilian counterparts.

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In the past, Brazil was regarded as an agriculture-based country. Its massive production of coffee, sugar, beef, and orange juice as well as soy beans placed it on the world map as an agriculture powerhouse in times of the trans-Atlantic trade. Currently, the country has expanded into industrial and service sectors. In the last decade, Brazil has increased trading with foreign markets, which has made it the country with the fifth world largest economy. It also offers a unique gateway to the coveted Mercosur market. Therefore, it is vital for all managers and businessmen to understand the culture, norms, and etiquette of the Brazilian people.

There are three aspects that are highly regarded by the Brazilian citizens. First, Brazilians regard the family institution very highly. Families are large but close-knit, which provides family members with intricate connections as well as security. This is evidenced in their business culture, whereby members of the same family work for the same company. Secondly, Brazilians place a special emphasis on relationships. A businessman must know the right people in the right places if matters are to go their way. Therefore, it is absolutely necessary to spend ample time bonding with workplace counterparts. Finally, time is regarded in an entirely different perspective as to that held in the United Kingdom. Preciseness and punctuality are not held as important virtues, and people are likely to be late or make flexible plans in a casual manner. Therefore, a manager must expect a meeting to be delayed or entirely postponed without much ado.

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In the past decade, the Brazilian economy has experienced tremendous growth due to vast foreign investments. However, the market as well as the economy is increasingly plagued by bureaucracy, corruption, and a burdensome tax system. In addition, local funding mechanisms demand high interest rates, which are bound to change in accordance with what the political clout feel is necessary. There have been major reports that are indicative of manipulated, corrupt and extremely slow legal and justice systems. Disputes may be deliberately unresolved through postponement of hearings before a court of law. Moreover, extensive bureaucratic measures are imposed on foreigners or foreign firms, which makes it extremely difficult to access the legal system. Therefore, it is extremely important for a firm to ensure that details regarding fiscal, legal and financial data are accurate and reliable to avoid any major hiccups (Communicaid Group, 2012, 3-6).

Hofstede’s Model: Brazilian Culture

These scores are as presented in the Greet Hofstede Seminar (2012, 1):

  1. Power Distance (PDI)

Brazil has a PDI score of 69. The society upholds the laid down hierarchy, and the powerful in the society have more benefits.

  1. Individualism (IDV)

Brazil has an IDV score of 38, implying that there is a strong cohesive relationship amongst family members in exchange for connections, security, and loyalty.

  1. Masculinity/Feminism (MAS)

Brazil has an MAS score of 49, implying that conflicts are abhorred in the public limelight and a consensus is normally arrived at.

  1. Uncertainty Avoidance (UAI)

Brazil has a UAI score of 76, implying that there is a need to institute strong laws and an elaborate legal system.

  1. Long-term Orientation

Brazil has a score of 65, implying that the society has an in-depth search for virtue. Brazilians have the urge to cultivate what could be regarded as impossible in the United Kingdom.

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Brazil is a prime country for a medium-sized or large company to invest in. Not only does the World Cup and the Olympics present ample opportunities, but it is also evident that the large population provides a sufficient market for the company’s products. However, F.F.U must contextualize its managers and other employees into the Brazilian business environment before beginning its operations if the firm is to be successful.



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