Business report

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Executive Summary

The purpose of this report is about the Driza Bones Its Driza Bone, not Driza Bones is going into Brazil Poor written expression. In other spelling (order) to do direct foreign investment, Driza Bones need to investigate the political, economic, social, technological and legal environment (PESTL) in Brazil in order for Driza Bones operate. Also the report will be cover strength, weaknesses, opportunities and threats (SWOT) of Driza Bone and Brazil. Whether Driza Bones is able to go forward with the expansion into Brazil. Poorly written ES that fails to reflect the key findings of the report. Written expression needs major attention Should have complied with assignment writing conventions > font size 12, line spacing etc

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Contents 1.0 Introduction ................................................................................................................................. 4

2.0 Political Environment ................................................................................................................... 5

2.1 Government stability................................................................................................................ 5

2.2 Government relations .............................................................................................................. 5

2.3 Analysis .................................................................................................................................... 5

3.0 Legal Environment ....................................................................................................................... 6

3.1 Business law ............................................................................................................................. 6

3.2 Labour laws .............................................................................................................................. 6

3.3 Analysis .................................................................................................................................... 6

4.0 Economic Environment ................................................................................................................ 6

4.1 Currency exchange rate ($) ...................................................................................................... 6

4.2 Economic trends/forecasts ....................................................................................................... 6

4.3 Analysis .................................................................................................................................... 7

5.0 Socio-cultural Environment .......................................................................................................... 7

5.1 Hofstede’s Cultural Dimensions ................................................................................................ 7

5.2 Analysis .................................................................................................................................... 8

6.0 Technological Environment .......................................................................................................... 8

6.1 Technological infrastructure ..................................................................................................... 8

6.2 Communication networks ........................................................................................................ 8

6.4 Analysis .................................................................................................................................... 8

7.0 SWOT Analysis ............................................................................................................................. 9

8.0 Conclusion ................................................................................................................................. 10

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9.0 Recommendations ..................................................................................................................... 11

10.0 References ................................................................................................................................. 12

1.0 Introduction Driza Bones is owned by an Australian company that make full length waterproof riding coasts and apparel. Driza Bones is now looking for the opportunities to expand the company oversea. The purpose of this report is to investigate the political, economic, social, technological and legal environment (PESTL) in Brazil in order for Driza Bones operate. How are they proposing to expand? Direct investment? Exporting? Introduction lacks depth

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2.0 Political Environment

2.1 Government stability In Brazil there is political violence, the public shown their anger to the government. There are many protests and strikes in some urban areas and cause temporary disruption to public transportation. However, Brazilian government are avoid any large event where crowds and other event to could be demonstrate and protest (Investment Climate Statement 2013). As mentioned by Jonathan Last name?> this applies to all below (2009) Brazil is had no threat of terrorism or civil unrest and no ethnic or cultural conflicts. Beside this Brazil is currently having unstable government. Poor written expression> meaning is lost due to weak sentence structure/grammar> this applies to all discussion below

For example: No need to include example > should have followed instructions provided in class – present the indicators then conclude> this applies to all discussion below. As mentioned by Jonathan (2014) Brazil government currently is unstable because recently there are many protests going on in the year. However, the current political party has been in power to control the protest by avoid any large crowds and other events. This demonstrates that the government is unstable therefore it is not a safe place for business operations.

2.2 Government relations According to World Trade Organisation Brazil is the member since 1 January 1995 Reference?. Therefore, Brazil is an open country to do trade and foreign investment. There are number of Australian companies are now operating in Brazil. Brazil has introduced a number of insurance and export finance and guarantee measures aimed at assisting produce (Australian Government DFAT). Concluding sentence? What is the conclusion on Brazil’s relationship with other countries?

2.3 Analysis Brazilian government avoid any large crowds or events to control the protests, however, there are no threat of terrorism, no ethnic or cultural conflicts Why repeat information?. Beside the

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protests Brazil has strong relationship in business with Australia and other foreign investor. This is presents an opportunity for Driza Bones company because it offers a suitable business environment to operate the company. Poor analysis that should have reflected the findings from the above discussion as opposed to reiterating the same information.

3.0 Legal Environment

3.1 Business law Brazil and it corruption is a head line in the country Poor written expression(The cost of corruption in Brazil). As described by Paulo last name? (2006, 33-34) Brazil is stepping into e- commerce and developed all the legislation and taxation are being negotiated in the context of international agreements. After developed e-commerce Brazil now in the global economy. Concluding sentence?

3.2 Labour laws The minimum age to be able to work in Brazil is 15 year old and maximum is 64 year old. In Brazil, Brazilian start work early and they have a longer afternoon break about two to two and half hours and they will finish work after six in the evening. Reference? Comparative analysis? Concluding sentence?

3.3 Analysis The business and labour laws present themselves as threats because there are corruption in Brazil government should not be reiterating the information in the discussion. The impact that have on the company is cost of investment in a corrupted country. On other hand, Brazil could be an opportunities because Brazil is now in global economy and it is continues to developing.

4.0 Economic Environment

4.1 Currency exchange rate ($) 1 Australian dollar equals 2.11 Brazilian real (The Money Converter 2014) Date?

4.2 Economic trends/forecasts Brazil is in the 10th largest economy in the world, it was rated as Investment Grade’s level. With the gross in domestic product in the last decade, which increased a number of labour in the market and reflect the economy expansion. In this case Brazil has becomes an extremely attractive destination

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for foreign investment due to the stale in economic Poor written expression> meaning is lost and the dynamic internal market. (Horwath Bendoraytes, Aizenman & Cia).

4.3 Analysis Yes ??, the currency exchange rate and the economic forecast present themselves as opportunities. The biggest impact would be the currency exchange because Australian dollars is valuable to compare with the Brazilian real. The company will have to big advantage on the cost of manufactures and labours. Should have made reference to the business environment

5.0 Socio-cultural Environment

5.1 Hofstede’s Cultural Dimensions TABULAR FORMAT: Hofstede’s Cultural Dimensions

Home Country (Australia)

Host Country (Brazil)

Managerial implications

Collectivism Vs Individualism

High Low Brazil had a low individualism working environment, they are working as a group in other to achieving the goal and share the reward. However, Australia is opposite with Brazil, Australian are more individual on the task.

Power Distance Low High In this case Australia is had a relaxed, friendly workplace and the power distance is a small gap between the managers and employees.

Uncertainty avoidance High Higher Both countries are avoidance any risks.

Time orientation High Low Time orientation in Brazil is low because Brazilian are often late and take time.

Quality Vs Quantity of life High High The quality vs.

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OR Femininity vs Masculinity

quantity of life are both countries are similar.

(Hofstede Country Comparison 2014)

Poor written expression> weak sentence structure and grammar

5.2 Analysis There are the similarities and dissimilarities between the two cultures. For example: the power distance, collectivism vs individualism and time orientation are the dissimilar this would be the big impact on the company because Driza Bones had a different culture in the company. And the similarities are uncertainty avoidance and quality vs quantity of life. There will be an opportunity and a threat because the cultural of the company could change in order to fit in Brazil, however, the cultural in headquarter would not be affected.

6.0 Technological Environment

6.1 Technological infrastructure In other trade Brazil should update their infrastructure for example: roads, high ways, and traffic lights, electricity. Discussion lacks depth and support from references. Poor written expression

6.2 Communication networks Brazil is developed with internet, phone to be able to connecting with other foreign countries. As the research shows that there are many countries coming into Brazil to invest and it is compulsory to have the strong communication networks. Poor written expression and discussion is not supported by any evidence of research/references

6.4 Analysis The technology environment play a big role in invest into another foreign country, because to operate a company oversea the company need to communicate with headquarter quick and fast. Therefore this is an opportunity for a company to operate oversea and able to communicate between the two countries. The analysis fails to make reference to the discussion above.

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7.0 SWOT Analysis

Strengths Driza Bone company has: Driza Bones not need to repeat is a well establish band Driza Bones is strong in leadership and staff communication Driza Bones is ahead of schedule in getting new product into the market.

Weaknesses Driza Bones company has: Driza Bones does not have many experiences oversea Driza Bones would not be success in Brazil How do you know? Driza Bones lacking as foreign investment Poor written expression > meaning is lost

Opportunities Brazil Economic environment

• Favourable currency exchange rate will offer cheaper labour costs

• What about the economic trend/forecast?

Technological environment • Communication networks are advanced • Infrastructure is reliable • In the process of advancing the technological environment

Social Environment • Able to adapt the new working culture

Threats Brazil Political environment

• Unstable government • Poor security and high level of corruption

Legal environment

• High level of corruption

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SWOT analysis is not comprehensive and does not address all the findings of the sub-headings covered in the report

8.0 Conclusion Brazil is an open country for foreign investors the organisation should go ahead with the expansion because there are many other companies from Australia had been successful in Brazil and other foreign investors. To expand the company Driza Bones should wait after the next election because the government currently is not stable. The report also covered the PETLE and SWOT of Brazil in order to expand the company. Recommendations should be presented in the recommendations section

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9.0 Recommendations There are weaknesses and threats of the company and Brazil, however, there are also strengths from the company and opportunities from Brazil. The weaknesses and threats are legal and political environment, strengths and opportunities are economic, social and technological environment. As the results show I recommend for Driza Bones to go forward in invest in Brazil. Recommendations lack depth > should have provided logical recommendations on how the organisation could overcome some of the threats and weaknesses and exploited the strengths and opportunities

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10.0 References References not Chicago compliant > italics and indentation of second and subsequent line of reference Australian Government Department of Foreign Affairs and Trade. Brazil country brief. Australian Government.2014. Australian Trade Commission. Doing Business. Brazil Doing Business in Brazil. Horwath Bendoraytes, Aizenman& Cia. https://www.crowehorwath.net/uploadedfiles/br/doing%20business%20in%20brazil.pdf Doing Business.2014. Ease of Doing Business in Brazil. Jonathan, Watts. 2014. “Anti-World Cup protest across Brazil.” The Guardian May 16. Jonathan. 2009. “Investing in Brazil-Alternative investment.” Investment International The Hofstede Centre 2014.Country Comparison. U.S. Department of State. 2013. 2013 Investment Climate Statement-Brazil. Investment Climate Statement Bureau of Economic and Business Affairs.

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