Management Individual Business Report Supre
Supré Pty Ltd, since being founded in Australia in 1984, has achieved great success not only in opening privately owned stores across Australia and New Zealand, but also in providing online shopping opportunities to customers in Countries across the globe (Supré Pty Ltd 2011). This report addresses a proposal for Supré to embrace international expansion by launching a store in the country of Brazil, located in the Latin America and Caribbean Region.
This report will firstly evaluate environmental factors, also known as the PESTL Analysis, for consideration when expanding operations internationally and includes Political, Economic, Socio-Cultural, Technological and Legal factors. Brazil is a large country comprising of five distinct regions, so for the purpose of the PESTL analysis the environmental factors will be considered to generally affect the country as a whole and only Brazil’s most relevant positive and/or negative environmental factors will be considered. Secondly, the report will conduct a SWOT analysis to address the Strength and Weaknesses within the organisation as well as the external Opportunities and Threats associated with international expansion of operations to Brazil. Finally, recommendations on the proposal will be presented for consideration by Senior Management of Supré.
(Greenwich Mean Time (GMT) 2010)
Political Environment
Brazil has a long history of corruption and unrest tarnishing Political operations as well as business in the private sector. In 2009, 69.9% of Brazil firms surveyed by the Enterprise Analysis Unit of the World Bank identified that corruption was a major constraint (Enterprise Surveys 2009). On a financial scale, a local group called Ethos Institute estimated that the cost of corruption in Brazil is $180 billion each year. In 2007 the Ethos Institute demonstrated that positive steps are being taken to address the concerning figures by encouraging 300 Brazilian companies to sign an anti-corruption pact. In
This report will firstly evaluate environmental factors, also known as the PESTL Analysis, for consideration when expanding operations internationally and includes Political, Economic, Socio-Cultural, Technological and Legal factors. Brazil is a large country comprising of five distinct regions, so for the purpose of the PESTL analysis the environmental factors will be considered to generally affect the country as a whole and only Brazil’s most relevant positive and/or negative environmental factors will be considered. Secondly, the report will conduct a SWOT analysis to address the Strength and Weaknesses within the organisation as well as the external Opportunities and Threats associated with international expansion of operations to Brazil. Finally, recommendations on the proposal will be presented for consideration by Senior Management of Supré.
(Greenwich Mean Time (GMT) 2010)
Political Environment
Brazil has a long history of corruption and unrest tarnishing Political operations as well as business in the private sector. In 2009, 69.9% of Brazil firms surveyed by the Enterprise Analysis Unit of the World Bank identified that corruption was a major constraint (Enterprise Surveys 2009). On a financial scale, a local group called Ethos Institute estimated that the cost of corruption in Brazil is $180 billion each year. In 2007 the Ethos Institute demonstrated that positive steps are being taken to address the concerning figures by encouraging 300 Brazilian companies to sign an anti-corruption pact. In
References: Austrade (Australian Trade Commission). 2010. ICT to Brazil. Canberra, A.C.T.: Austrade. CIA (Central Intelligence Agency). 2009. The World Factbook 2009. Washington, DC.:CIA. https://www.cia.gov/library/publications/the-world-factbook/index.html. DFAT (Department of Foreign Affairs and Trade). 2001. Doing Business in Brazil: An Introductory Guide. Canberra, A.C.T.: DFAT. Enterprise Surveys Greenwich Mean Time (GMT). 2010. Brazil Map. http://wwp.greenwichmeantime.com/time-zone/south-america/brazil/map.htm. Hofstede, Geert. 2011. Geert Hofstede™ Cultural Dimensions: Brazil. http://www.geert-hofstede.com/hofstede_brazil.shtml. Noriega, Roger, Marc Fogassa. 2011. “Brazil is in a Class By Itself.” FoxNews. March 19. http://www.foxnews.com/opinion/2011/03/19/brazil-class. Penteado, Claudia. 1997. “Global highlight: Brazil 's Ethos Institute 's 'Corruption Inc. '” Advertising Age 78 (6): 27. Supre Pty Ltd. 2011. Help & FAQ. www.supre.com.au. The World Bank Group. 2011. Making a Difference for Entrepreneurs: Doing Business 2011 – Brazil. http://doingbusiness.org/data/exploreeconomies/brazil.