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THIS IS A SAMPLE ASSIGNMENT FROM A

PREVIOUS TRIMESTER.

STUDENTS ARE ADVISED TO USE THIS

ASSIGNMENT AS A GUIDE ONLY. IT IS

NOT A PERFECT ASSIGNMENT AND

THERE ARE SOME IMPERFECTIONS IN

THIS ASSIGNMENT WHICH SHOULD NOT

BE REPEATED.

THIS ASSIGNMENT ATTRACTED A MARK

OF 77%

Management 1100

Report Trimester X, 20XX

Student Name: XXXX

Student ID: XXXX

Class: XXXX

Lecturer’s Name: XXXX

Executive Summary

This report is given presented to Driza-Bone as an investigation to the possibility of

expanding their business into Brazil. Brazil’s external environments were analysed, which

consists of political, economical, socio-cultural, technological, and legal environments. The

political, economical economic, and legal environments presented as an opportunity

opportunities while the sociocultural, and technological environments presented as a threats.

Based on these findings, the opportunities outweigh the threats. It was is therefore

recommended that Driza-Bone expand into Brazil.

Table of Contents

1.0 Introduction 4

2.0 Political Environment 2.1 Government Stability 5

2.2 Government Relations 5

2.3 Analysis 5

3.0 Legal Environment

3.1 Business Laws 6

3.2 Labour Laws 6

3.3 Analysis 6

4.0 Economical Environment 4.1 Currency Exchange Rate 7

4.2 Economic trends/forecast 7

4.3 Analysis 7

5.0 Socio-cultural Environment 5.1 Hofstede’s Cultural Dimensions 8

5.2 Analysis 9

6.0 Technological Environment

6.1 Technological Infrastructure 9

6.2 Communication Networks 9

6.3 Analysis 9

7.0 SWOT Analysis 10

8.0 Conclusion 11

9.0 Recommendations 12

Reference List 13-14

1.0 Introduction

An Australian owned company named Driza-Bone is thinking of expanding their

business into Brazil. They are in the manufacturing industry that requires wool, labour,

machinery, and a suitable venue in Brazil to fabricate their products, which includes horse

riding coats and apparels. The main aim of this report is to analyse the political, economical

economic, socio-cultural, technological, and legal environments (PESTL) that exists in Brazil,

which will then be recommended to Driza-Bone on whether to expand their business into Brazil.

Could have improved sentence structure The proposed expansion strategy is by exporting

required resources from Australia to Brazil, because they do not have the experience in working

overseas.

Overall a good attempt at presenting a coherent and succinct ES and introduction.

However, some sections of the discussion could have improved in the sentence structure,

choice of words and grammar.

2.0 Political Environment

2.1 Government stability

Brazil’s election occurs every 4 years by using an advanced electronic voting system

that avoids corruption during voting (Voting in Brazil 2014). However, a protest had

occurred in Brazil in 2013 due to social unrest of the citizens (Nolan 2013). This shows

that Brazil can be stable as there are elections regularly, but also being unstable for a

business to operate due to the protest. Good attempt at critical analysis but could

have improved written expression

2.2 Government relations

Brazil has been Australia’s largest trading partner as they have a bilateral agreement

between both countries (Brazil Country Brief 2014). One of the Brazil government’s

foreign policies is that any foreign businesses are allowed to operate if only it

contributes towards improving their country (Brazilian Foreign Policy Handbook 2008,

17). These positive political relationships exhibit the government’s obligation towards

international trades.

2.3 Analysis

Considering that the government stability can be both stable and unstable, and

government relations to be reliable, it can be concluded that the political environment

can be considered as an opportunity to start a business because the opportunities

outweigh the threats Consider revising the sentence > too long. Overall, the political

environment poses as an opportunity as it results in a positive business environment.

3.0 Legal Environment

3.1 Business laws

According to De Almeida (2012, 53), the level of corruption in Brazil is considered

high. Although Brazil introduced an anti-bribery law to decrease the corruption in

businesses, the law was ineffective, showing that the business legislation is unreliable

(Jaeger 2013). Therefore, the business laws in Brazil ineffective, making it

unpredictable for a business to operate. Well-presented discussion

3.2 Labour laws

The minimum wage in Brazil is AUS $ 323.62 per month, in contrast, the minimum

wage in Australia is AUS $ 16.37 an hour or AUS $ 2619.20 monthly for a full-time

job (Gray and Marcelino 2013). Hence, the labour laws are similar in that there is a

minimum wage despite the considerable difference. Discussion could have improved

in written expression > nevertheless the information presented is relevant

3.3 Analysis

Given that the business laws are weak and labour laws to be reliable poor written

expression, it can be concluded that the legal environment can be considered as an

opportunity for the business because the opportunity exceeds the threats. Therefore, the

legal environment poses as an opportunity as it results in a profit-oriented business.

4.0 Economical Economic Environment

4.1 Currency exchange rate ($)

An Australian Dollar equals to 2.093142 Brazilian Real as of 29 July 2014, this indicates

that the Brazilian Real has a weaker currency (Rates Table 2014). Hence, this shows

that the Australian Dollar is stronger compared to Brazilian Real.

4.2 Economic trends/forecasts

Brazil is currently having an economic boom, thus, creating a higher profitability for

businesses (Pirkle 2014, 151). However, it is also said that the future is uncertain due to

recent activities (Pirkle 2014 148-149). Thus, this demonstrates that the economical

environment in Brazil is stable presently, and business operations will show

profitability.

4.3 Analysis

Given that the currency exchange rate is reliable and economic trends are positive, it

can be concluded that the economical environment can be stated as an opportunity as it

outweighs the threats. Hence, the economical environment provides a substantial

environment to create a beneficial business outcome.

Overall a well-presented discussion that addresses key relevant issues. Could have

improved written expression in some sections

5.0 Socio-cultural Environment

5.1 Hofstede’s Cultural Dimensions

Hofstede’s Cultural

Dimensions

Home Country Host Country Managerial

implications

Collectivism

Vs Individualism

Individualism Collectivism Australian

employees prefer to

work alone, and

Brazilian employees

prefer to work as a

group.

Power Distance Medium High Brazilian employees

has a higher

formality between

ranks compared the

Australian

employees, which

has a lower

formality.

Uncertainty avoidance Higher High Employees in both

countries follow sets

of procedures while

working.

Time orientation Lower Low Brazilian employees

are more long-term

oriented compared

to Australian

employees.

Quality Vs Quantity of

life OR Femininity vs

Masculinity

High Masculinity High

Masculinity

Higher numbers of

workingmen in

Brazil.

(The Hofstede Centre 2014)

5.2 Analysis

Given that the Hofstede’s Cultural Dimensions between Brazil and Australia are

dissimilar, it can be concluded that the socio-cultural environment is considered as a

threat as exceeds the opportunities. Therefore, socio-cultural environment creates a

negative environment for a business to function.

Relevant discussion addressing key relevant issues

6.0 Technological Environment

6.1 Technological infrastructure

The infrastructure in Brazil is considered as poorly built and infrequently maintained.

Due to the rare maintenance, it had escalated the cost of transportation (Pirkle 2014,

147). Thus, this will create an obstacle in operating a new business in Brazil.

6.2 Communication network

The communication network in Brazil such as Internet and phones are considered the

Top 5 in the world (The World Factlook 2012). This exhibits a strong communication

network for operating a business.

6.3 Analysis

Given that technological infrastructure is weak, and communication network is reliable,

it can be concluded that the technological environment may be a threat to provide a

good business, as the threat exceeds the opportunities. Thus, the technological

environment poses a threat as it results to a weak business.

Well-presented discussion addressing key relevant issues but the written

expression could have improved

7.0 SWOT Analysis

Strengths Driza-Bone company has:

• Good manufacturing system

• Broad client networks

• Competitive product prices

Weaknesses Driza-Bone company has:

• No experience working overseas

• A low production capacity

• Low demand in products

Opportunities Political environment

• Brazil and Australia has a bilateral agreement

• Regular elections

Economical environment

• Australia has a stronger currency exchange rate

• Brazil is in an economic boom

Legal environment

• Both countries have minimum wage for employees

Technological environment

• Good communication network

Threats Political environment

• Recent protest

Technological environment

• Poor infrastructure in Brazil

Legal environment

• High level of corruption

Sociocultural environment

• Different similarity of employees between Brazil and

Australia

Succinct, concise and well-presented although could have improved choice of

words/written expression

8.0 Conclusion

Based on the investigation of Brazil’s external environment, it can be concluded that

the opportunities outweigh the threats. The report discovered that the political, economical, and

legal environments presented as an opportunity while the sociocultural, and technological

environments presented as a threat.

9.0 Recommendations

Based on the findings of this report, it is recommended that Driza-Bone expand into Brazil

using the following recommendation:

• Driza-Bone should expand into Brazil in the short term of a year or two, as the

economical environment seems favourable to the business.

• Driza-Bone should export required resources from Australia to Brazil due to the

inexperience in operating overseas.

• Driza-Bone should conduct training and teamwork activities for the Australian and

Brazilian employees to overcome the dissimilar cultures.

Relevant and logical recommendations offered

Reference List

Brazil Country Brief. 2014. Australian Government: Department of Foreign Affairs

and Trade. http://www.dfat.gov.au/geo/brazil/brazil_brief.html

Brazilian Foreign Policy Handbook. 2008. Brasília: Alexandre de Gusmão

Foundation.

Country Comparison. 2014. The Hofstede Centre. http://geert-

hofstede.com/brazil.html

De Almeida and Monica Arruda. 2012. “Managing Public Perceptions: New Wealth

and Corruption in Brazil.” The Fletcher Forum of World Affairs 36 (2): 51-55.

http://search.proquest.com.dbgw.lis.curtin.edu.au/docview/1350918815/fulltext

PDF/5196C393373F4850PQ/1?accountid=10382

Gray, David and Ueslei Marcelino. 2013. “Global Minimum Wage.” Reuters.

Accessed August 29, http://www.reuters.com/subjects/global-minimum-wage

Jaegar, Jaclyn. 2013. “Brazil Passes Landmark Anti-Bribery Law.” Compliance Week.

Accessed July 9, http://www.complianceweek.com/blogs/enforcement-

action/brazil-passes-landmark-anti-bribery-law#.U9c-zhYxFFI

Nolan, Steve. 2013. “The World Cup Riots: One Million Brazilians Protest At

Government Spending £18 Billion on Tournament”. Daily Mail: Australia.

Accessed June 25, http://www.dailymail.co.uk/news/article-2345600/Brazil-

riots-One-million-protest-government-spending-18billion-World-Cup.html

Pirkle, Kip. 2014. “21st Century Brazil.” Journal of American Academy of Business,

Cambridge 19 (2): 146-151.

http://search.proquest.com.dbgw.lis.curtin.edu.au/docview/1464957471/7E165

18B3514799PQ/6?accountid=10382

Rates Table. 2014. X-rates. Accessed July 29,

http://www.x-rates.com/table/?from=AUD

The World FactBook. 2014. Central Intelligence Agency. Accessed June 23,

https://www.cia.gov/library/publications/the-world-factbook/geos/br.html

Voting in Brazil. 2014. Angloinfo: The Global Expat Network.

http://brazil.angloinfo.com/moving/voting/