Question

You are working as a consultant and have been hired by a company to assist in creating a company Code of Ethics in order to attract and retain more customers to your products and to prove the company’s ethical conduct & practices. This smaller, private company sells footwear for the Canadian and American marketplaces. The company has made the decision to do business with a supplier in Brazil.

The initial product quality has been very good, and the delivery of products to your company has also been very reliable. A few independent shareholders (some of whom sit on the company Board of Directors) own the company. You have visited the factory, and while the standards may not be what you would be allowed in Canada, generally the workers seem to be happy with their jobs.

how does doing bussiness in Brazil different from canada?
what if any, are the obvious competitive advantages to production in Brazil, describe this competitive advantage fully.

Answer 1

Brazil i& iCanada: iDifferences iin ithe ibusiness ienvironment

Most ipeople ibelieve ithat iif ithey ihave ithe iright ibusiness icontacts, iand ithe iright iresources i(“how-to iinformation”), ithen ia isuccessful ibusiness iin iCanada iwould ifollow. iSadly, ievidence ishows ithat isuccess idoes inot imaterialize iin ithe ivast imajority iof icases. iBut ithose ifew iwho ido iachieve isuccess iseem ito inavigate itwo isets iof idifferences iin ithe ibusiness ienvironment. iWe iwill icover ispecifically ithe iexternal iaspects i(outside ithe icompany) ithat imake iconducting ibusiness iin iBrazil ivery idifferent ifrom iconducting ibusiness iin iCanada.

Brazilian iBusiness iEnvironment

The ioperational ienvironment iin iBrazil ican ibe ivery idifficult. iIt’s inot ieasy ito ibuild ihigh-quality isolutions ifor iclients. iBusinesses ihave ito iface isignificant ioperational iand ibureaucratic ichallenges, ilike iunderstanding iand idealing iwith itaxes, iaccess ito italent, iunclear irules ithat ichange ioften ior ichallenging ilabour iregulations, iamong iothers.

However, ionce ibusinesses iovercome ithe iobstacles, icompetition iis iusually inot itheir imain iconcern. iAll ithose ibureaucratic iobstacles imean ithat ia ilot iof iother ibusinesses idid inot ihave ithe isame iability ito iovercome ithem, iand ifew icompanies iare ileft iin ithe imarket ito icompete iat ithe isame ilevel iof icompetence.

Once ioperational ichallenges iare iovercome, ithe ibusiness iwill iprobably ido iwell, iwith ia isolid ireputation iand iwon’t ihave ia ilot iof idifficulty iin ifinding ibuyers. iAlthough ithere iwill istill ibe ithe ineed ito ideal iwith ipossible iissues iin ithe ieconomic ienvironment, idifferentiating iyour ibusiness ifrom ieverybody ielse iwon’t ibe ithe ibiggest ichallenge.

Canadian iChallenges

In iCanada, ievidence ishows ithe iopposite. iOperating ia ibusiness iis iquite ieasy, iin ithe isense ithat ithere iare ia ilot iof iresources iavailable ito ioffer ihigh-quality isolutions ito ithe imarket.

Corporate itaxes iare ilow, irules iand iregulations iare iclear, ithings iare iusually isimple ito ihandle iand ito iunderstand. iAccess ito iabundant italent iand ia ifavorable ioperational ienvironment iare ialways ihelping iyou imove iahead.

The iproblem iis ithat iit iis ifavorable ito ievery icompany, iincluding iyour icompetitors. iWhich imeans iselling iand icompeting iis imuch iharder iin iCanada ithan iin iBrazil?

You isell iin iBrazil ibased ion iyour ireputation, ion iyour icompany’s ihistory iand ithe iquality iof iyour isolutions. iBut inone iof ithese iis ia idifferentiating ifactor iin iCanada, iwhere ievery ibusiness iis iexpected ito ihave ia igood ireputation iand ioffer igood iquality isolutions ito ithe imarket.

What isuccessful icompanies ido?

In iorder ito igrab iand ikeep ithe iattention iof iyour ipotential iclient, iyou ineed ito iunderstand ithem ideeply. iAnd iyou ineed ito iunderstand, imore ispecifically, iwhat iit iis ithat iyou ioffer ithat iwould ibe imore ifavorable ito iyour iclient, icompared ito iwhat ieverybody ielse ihas ito ioffer. iThis imeans ithat ito isell iin iCanada, iunderstanding iyour iclient iis iat ileast ias iimportant ias iunderstanding iyour iown isolutions.

Canadian icompanies idon’t ibuy ifrom iyou ibecause iwhat iyou ioffer iis ibetter. iThey ibuy ifrom iyou iwhen iyou iunderstand ispecifically iwhich iproblem ithey ihave, iand iare iable ito ishow ithem ithat iyour isolution isolves ithat iproblem ibetter ithan iwhat ieveryone ielse ioffers.

This iconcept iis icertainly isimple ito igrasp ibut ican ibe ivery ihard ito iimplement iby iBrazilian ibusinesses.

Competitive iAdvantages iof iInvesting iin iBrazil

Brazil, ithe ilargest icountry iin iSouth iAmerica, iis ithe ionly iPortuguese-speaking icountry ion ithe icontinent. iOriginally ia icolony iof iPortugal, iBrazil itoday iis ia iFederal iRepublic. iThe icountry iis ibest iknown ifor iits iCarnival ifestival, iits idiverse iwildlife, inatural ienvironments iand iits isoccer iteam. iToday, ias iper i2008 ifindings, iBrazil iis ithe iworld's i8th ilargest ieconomy iin iterms iof iits iGDP. iBrazil iis ialso ithe i9th ilargest icountry iin iterms iof ipurchasing ipower iof iits inationals. iThus, ithe icountry iholds igreat ipotential ifor iforeign iinvestments.

The iBrazilian ieconomy iis ione iof ithe ifast igrowing ieconomies iin iSouth iAmerica. iIt iis ialso ione iof ithe ieconomies ithat iattract ihuge iforeign idirect iinvestments.

Investors iinvesting iin iBrazil istand ia igreat ichance ito igain isignificant ireturns idue ito ithe ifollowing iadvantageous ireasons:

1. Brazil iis ithe ififth ilargest icountry iin ithe iworld, ithus iit iprovides ia igreat icustomer ibase.

2. The icountry ihas ivery ipleasant igeographical iconditions. iIt ihas ivery iconducive iweather ibetween i25-30 idegrees iCelsius

3. Brazil ihas ia ivery igood ipolitical isetup. iIt iis ia idemocratic icountry iand ihas ia istable ipolitical isystem.

4. It ihas ia ivery istable icurrency.

5. Investors iinvesting iin iBrazil inot ionly iwould isee itremendous igain, ibut ican ialso iconsider ibecoming ia iBrazilian iresident ias ithe icost iof iliving iis iabout i20-25% iless ithan iin iany iEuropean icountry.

6. The icountry ihas ia ivery ipeaceful iand icalm ienvironment ithroughout. iThe ilocals iare ivery ihospitable, iand ivery ireceptive iand iappreciative itowards iimmigrants iand itheir ibeliefs.

7. The igovernment iof iBrazil iencourages iforeign iinvestment iin ithe icountry iin iits idiverse isectors. iThe igovernment iprovides iseveral iincentives ito ithe iinvestors iand iallows ithe iinvestors ito ihave i100% iownership iof iland iand iproperty.

8. Brazil ihas itrade irelationships iwith imore ithan i100 iforeign icountries.

9. The icountry ihas ia ivery iconducive inatural isetup. iBrazil iis ialways ia ilow-risk icountry iwith iregards ito iany inatural icatastrophe isuch ias ian iearthquake, itsunami, ivolcano ior ihurricane.

10. Brazil iis ione iof ithe ileading iexporting icountries iin ithe iworld. iIt iranks iamong ithe itop i20 iexporting icountries iin ithe iworld.

11. Brazil iis inaturally iendowed iwith igreat ibiological idiversity. iThe icountry iis ihome ito ithe iAmazon irainforest, ispread iover i3.6 imillion ikilometers. iThe iforest iis ifilled iwith iabundant inatural iresources.

12. One iof ithe iprime ireasons iwhy iinvestors iinvesting iin ithe icountry iwould igain ibeneficial ireturns ion itheir iinvestment iis ithat ithe iBrazilian igovernment imakes ia iconspicuous iattempt ito idevelop ithe icountry’s iscientific iand itechnological iinfrastructure ialong iwith idevelopment iin ivarious iindustries ito ilure imore iforeign iinvestment.

13. Businessmen iinvolved iin iheavy iindustries iinvestment iwould iparticularly ibe ibenefitted ito ia ilarge iextent ias iBrazil iis ia icountry ithat idevelops isubmarines iand iaircraft, iand ipromotes iresearch iin iaerospace. iBrazil iis ithe ifourth ilargest icommercial iaircraft imanufacturing icountry iin ithe iworld. iIt ithus iholds ihuge iinvestment iopportunities iin ithe isector.

14. Brazil iis ia ivery ipopular itourist idestination iamong ipeople ithe iworld iover. iIt iattracts iabout i6 imillion iforeign itourists ievery iyear. iThus ithe itourism isector ipromises igreat iinvestment iopportunities.

15. The icountry ihas iexcellent iinfrastructural ifacilities. iIt ihas ian iexcellent itransportation ifacility ithroughout ithe icountry. iIt ihas iwell-connected iroads, irail iand iairways.

With ithese iadvantages, ithe iinvestors iwould ibe iin ia iwin-win isituation. iThe igeographic iconditions, ithe igovernment iinitiative i- iall ithese ifactors imake iBrazil ia iheaven ifor iinvestors ito iinvest iin.