Brazil report Structure Essay Example | Topics and Well Written Essays - 2000 words

Brazil report Structure - Essay Example Continuous success of the National Foods is supported due to the company's commitment to strong brand, many of which are category leaders, such as PURA Milk, Australia’s number 1 milk brand, Dairy Farmers, Berri, Yoplait, Dare, Big M and Farmers Union (National Foods Website, n.d.). However, the company is seeking alternative ways for its business expansion and is going to target Brazilian consumers. The basic idea is to produce dairy products at the territory of Australia, and then to export final goods directly to Brazil. The aim of the organization is to evaluate its business idea from few different perspectives and to understand the viability of this idea. The purpose of the report is to conduct a comprehensive research and analysis, aimed to provide timely and accurate information, relying upon which will enable the company to make a right decision, regarding to the Brazilian market. Thus, the report will analyze the political, legal, economic, socio-cultural, technologic al environment in Brazil and provide SWOT analysis for the National Foods. Clear understanding of both external and internal environments, National Foods will be enabled to make a right business decision and to develop appropriate entry/development strategy. 2.0 Political Environment 2.1 Government stability Brazil has a stable democratic political system (Ball, 2009). Political structure of Brazil is defined as the Federal Republic, which is currently ruled by a coalition (EDC, 2011). There are difficult relations between the legislature and the executive, between state and federal governments (EDC, 2011). In 2011, Dilma Rousseff took the President’s post in Brazil. Newly elect government will likely seek to differentiate its administration regarding the general policy. Even though there is still no clear understanding of what will be changed, it is unlikely to be investment and trade policy (EDC, 2011). 2.2 Government and contribution Former President Luiz Inacio Lula da Si lva has been promoting policies aimed at strengthening of the investment environment. Considering the issues of political stability, Brazil is very attractive country for the investment: it has no political enemies; there is no threat of terrorism or civil unrest (Ball, 2009). Both international and domestic markets have confidence in Brazil’s political system, due to the activity of Brazil’s democratic institutions (Ball, 2009). 2.3 Analysis Brazil and Australia are the countries that cooperate multilaterally on issues of mutual interest, including agricultural trade reform in the World Trade Organization (Australian Government, 2011). In 2001, there was established a Council on Australia Latin America Relations (COALAR); COALAR has been active in promoting Latin America as a market for Australian exporters (Australian Government, 2011). Additionally, Brazilian and Australian foreign and trade policy interests coincide in several significant areas. This friendly relat ionship between two countries and cooperation in agricultural sector can favourably impact the National Foods business development in Brazil. 3.0 Legal Environment 3.1 Regulatory framework Brazil has a commercial legal system, which consists of the Commercial Code. By the Commercial Code there are governed the majority of aspects of commercial association (FDI, n.d.). However, this does not relate to professional services category, which is governed by the Civil Code (FDI, n.d.). 3.2 Business laws Brazil has import restrictions on