Business Expansion in Latin America

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Business Expansion in Latin America

Table of Contents
PART 1 Main Report 1. Executive Summary……………………………………………………………………..2 1.1 Introduction…………………………………………………………………………..4 1.2 Background………………………………………………………………………….4 2 Aims and Objectives……………………………………………………………………6 2.1 Aims…………………………………………………………………………………..6 2.2 Objectives……………………………………………………………………………7 3 Literature Review………………………………………………………………………..8 3.1Reuters- Study of Skagen………………………………………………………….8 3.2 Renault-Nissan Brazil Expansion………………………………………………11 3.3 Terre Mark’s Expansion of Data Centres………………………………………13 3.4 General Motors Brazilian Expansions………………………………………….15 3.5 Siemens Brazil Portfolio Expansion……………………………………………16 4 Relevant Case Studies……………………………………………………………….19 4.1 Capgemini in Brazil……………………………………………………………….19 4.2 Alliance Data1 Loyalty One Expand in Brazil…………………………………..21 5 Conclusion……………………………………………………………………………..23 5.1 Analysing the case studies used to examine the Brazilian market…………23 5.2 Evaluation of Discussions and Findings……………………………………....28 5.3 Resultant and influence on other Investors in Similar Business Model…...30 6 Recommendations…………………………………………………………………....32 6.1 A Joint Venture in Brazil…………………………………………………………32 6.2 Initiating a Joint Venture in Brazil……………………………………………....33 6.3 Benefits to the company with joint ventures…………………………………..35 7 References…………………………………………………………………………….36

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1 Executive Summary
Multinational and enterprise organisations tackle many difficulties in expansion when planning to expand overseas. International expansion is affected by multiple factors like market, capital, environment, production and resource availability in the respective country planned for expansion. Many a times the multinational companies find it hard to expand overseas because lack of capital and resource it is only the large scale organisations which make it through without any hustle. Expansion mode and the planned strategy may vary for the business model; the expansion may range from the export entry model to the investment entry model, amongst both the export model is with least risk model for a new organisation to enter foreign market, in such model the company is not bonded to any limitations nor is in under any contract to abide the market rules and protocols followed in the host country. In such model the production cost is saved as the entities are produced at home or the root country and the final product or services are exported abroad. Along with active participation In the foreign market also increases the risk. As most of the times these Cross Border Merger and Acquisitions require to invest a large sum of money and high active participation In the market therefore the market involvement is directly proportional to risk. Other risks may include the cross country variances like culture, political and economic environment, national laws and jurisdictions, tax rules. Still the figures of the foreign business expansion have been increased at a constant rate in the past. As the value of the total overseas merger acquisitions boomed from USD 200 billion in 2000 to USD 1637 billion in 2007 (Sudarsanam 2010), the high increase in the foreign business activities through the business owners in the past have shown that that the overseas expansion for any company is helpful and profitable to its economy. This report is a reflection of a business expansion of a UK based company in Latin America which will be either a success or a failure in its process will be discussed in the thesis. Also the effects of the merger and acquisitions on the revenue and economy of the company will be discussed in detail in the thesis. Still the wealth effects of the foreign expansion are either positive or negative which are still a question for many business scholars as the negative effects on economic balance of the company may be cited from (Andrade et al., 2001; Mulherin and Boone, 2000; Franks et al., 1991 and Walker, 2000), and the positive effects may be seen from (Asquith et al., 1983; Loderer and Martin, 1990; Schliemann, 2004;

Moeller, Schlingemann, 2005 and Antoniou et al., 2007).

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The sustainability and rise in the prices of commodities have raised substantially which hs resulted in the change and rise of GDP of Brazil over time which could be clearly seen from the graph shown below

(Source:http://www.forexblog.org/2010/05/brazil-is-booming-but-real-is-in-trouble.html) Fig 1: Brazil GDP growth rate This report focuses on the Eurozone crisis which led to the foreign investment or expansion of many business owners along with the business expansion of Marconi

Telecommunications which is a UK London based company planning expansion to Brazil. The report will highlight complete strategy for expansion along with the challenges the company might have to face during the process change. The factors which will be discussed in the report will be business entry model, budget, and scope of the company in this expansion. Also the success or the failure factors are also discussed in this report using the macroeconomic factors because these are useful in explaining the wealth effects of the company.

1.1 Introduction
Marconi Telecommunications a subsidiary of Marconi is a London based company providing solutions to the business process on the basis of IT requirements outsourcing business 3|Page

process and work and also the services in IT telecom department. The company also provides the network services to the methodologies like that of CISCO and Net link which provide products, devices and services in IT to other multinational corporations. This report will highlight the plans of Marconi to expand its business in Brazil; this report will mainly focus on the entry methodology which would be the best for the company to take an action into settling up its business in the country. also this report will highlighting the expansion of the companies in the past into Brazil and their outcome along with their impact on the market and any influence on our company. This report also redefines the benefits that the company might get along with the study description in the literature review of the case studies of other companies and their strategies which have been used in making their plan success and the following influence on the market.

1.2 Background
The pace of growth in the Brazil is an issue of debate In the foreign market all around the world, its rate of progression and the development that is going on in the country is being counted and analysed by most of the industrial powers and multinational corporates. This report will focus in finding out the efficient approach for expanding business into Brazil. The opportunities for the Brazil in hosting some of the major and world’s most favourite sporting events is the biggest that the nation has at this point of time and is investing a huge amount of money on its infrastructure development and globalisation of the country. The status of Brazil’s debt crisis in the BRIC group of countries is shown below in form of a graph

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Fig 2: Debt Crisis Moreover, this report will deface the economic crisis which stroked European economy and the business. This report will bring forward the boom in the economy of Latin America relatively Brazil which is amongst the fastest growing economies of the world and is investing heavily in its infrastructure and globalisation for the next 2016 Olympic games and the FIFA world cup in 2014. This report highlights the scope of investing in such a developing and prosperous nation along with the abundance of natural resources available in the country with the benefit to my company expansion. As conclusion the report will highlight the success factor of the expansion through the mode of entry chosen for expansion and how successful or unsuccessful the company would be in Brazil. The report will also show the share market effects from the entry of the company. The report also provides comparative review of the different market entry options for the company and their expected outcomes possible.

2 Aims and Objectives
2.1 Aims
The main aim of this report is to find an efficient methodology to expand a business in any Latin American country because of the fast and enormous growth in the region and the presence of abundant natural resources. The economic crisis in the European region is the reason for the expansion of the company so as to increase its productivity and revenue. This report will highlight and will thus conclude the development and economic rise of the region specially Brazil as being the chosen country which is hosting the nest FIFA 2014 and the Olympic 2016 and therefore is investing very heavily in its infrastructure and globalisation of the nation and consequently the affect which is either positive or negative on the company’s expansion to brazil. As conclusion the report will contrast on the business entry model for the company Marconi Telecommunications to enter the Brazil’s economic market successfully and the strategies the company would be following to harness the growth and the resources available in the region.

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This report will contrast the scope available in Brazil for the foreign investors and traders to invest or export their products with ease in the country and the imports that Brazil does from the rest of the world. The exposure of the company’s entry will be limited to the Brazilian market and not the whole Latin American markets as the company itself a small scale company. Therefore this report will contrast only the Brazilian economy and not the whole Latin American Region however the complete region In a state of booming economy but as limitations of the project this report will be limited to the Brazilian market. The main aim of the project which is to find an efficient methodology of entry of the company in the Brazilian market which is from amongst the FDI, Joint Venture, Merger and Acquisitions, Franchise, contractual entry or just an export entry will be concluded from the assessment of the case studies of the similar business models from the different parts of the world which have invested in Brazil and have succeeded in reaching their goals and expectations.

2.2 Objectives
The objective that would be used in finding the efficient methodology for the entry In the Brazilian market would be following:    Information gathering about the business models that have invested in Brazil In the past from the other parts of the world and analysing their success ratio. Research on the Brazilian market the rules and the strategies that are carried out in the market without the law and accounting policies. Critical examination of the business expansions in the past years and the business that have official plans to expand to Brazil of different models and analysing their importance and any affects if there on the economy of Brazil and ultimately on the expansion of our company.   Research on the relevant companies that have expanded companies of similar type, their business process, expansion strategies and Critical consideration of the political and cultural differences between the two environments of the company along the methodology most popular in the region for carrying out the business in the country with most profitable ratio.

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     

Feasibility of the resources available in a certain entry model along with the government policies and ease of law and tax options best for the company. Providing a research of case studies of other companies that have expanded their business over to Brazil from several distinct parts of the world. Providing conclusions for the company wherever possible along with the relevant literature as supportive text. Offering recommendation for the company to move and in taking the first step of expansion of the company’s profit. Illustrating with the help of a figure where statistics or report needs to be shown for bringing the past experiences of the companies that have invested in Brazil. Finally, providing the company with a feasible and efficient way to enter Brazil as a respectful organisation unbiased of the social differences between the environments of the working of the company and proposing market strategies that will help increase productivity and revenue generation of the company.

3 Literature Review

3.1 Reuters – Study of Skagen
Stavanger, a Norway fund company Skagen states for a local newspaper in Sao Paulo that because of the change of the constant policies and rules by the Brazilian President Dilma Rousseff affects the economic stability of the organisations as according to him his company has suffered a loss of $200 Million since august right after the President’s intervention plan which is a compulsion to companies to slash electricity bills. The President’s amendment in the policy is because of the struggling small scale industries and other consumes limitations on electricity which is a positive outback on the local immigrants but the cross border merger and acquisitions are suffering a loss because of the sudden implementation of the law on the companies. The relative loss to the companies has been enormous as about $15 Billion has been the estimated figure of the loss of the Brazilian power companies amongst which Electrobras is one amongst of which Stagen is a stakeholder and holds large quantity of shares. The portfolio manager of the Skagen fund Kristian Falnes said, that this implication of the law from the Brazilian government is amongst one of the change in the foreign policy which

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is scaring the investors to come to Brazil and invest in business. Falnes continued with saying that they are the not the amongst who have been affected by the sudden changes of the policies by the Brazilian government but many others also have been affected from the same over a period of time because of the Rousseff amendments in the in the business policies which is meant for the betterment of the country but as a resultant the economy along with the major stalk holder companies of the nation are suffering a loss so as the government and the growing economy. According to the report released on 27th of October in Sao Paulo through Reuters the confusion between the companies and the government resulting the loss of the stakeholders of the country in the form of heavy tax obligations to the companies. Also the reported survey by Reuters predicted that the Investment in the Brazilian economy have been declined by a one fifth straight quarter in the session of July to September resulting the economy to a foreign expansion of just 0.6 per cent during this period which is almost the half of the statistic predicted by the financial market experts. This drop down is even expected to fall down during the next couple of months in this year and the debt rising of the Brazilian economy can be clearly seen from the graph shown below,

(Source: Thomson Reuters) Fig 3: Brazil’s GDP growth Brazil is considered as the biggest economy in the Latin America which was expected to be accountable for the one quarter of the revenue generation for the whole region itself is 8|Page

recorded to be growing at the rate of 1.3% this year which is the worst performance ever shown by this economy amongst the BRICS group of emerging market holders. At a glance even the average developing nations and the economies are expected to grow faster and a comparatively more GDP than the Brazilian economy. So as concluding, the government thus Rousseff and their financial team do have only one agenda to speak about which is the global economic crisis, thus stating the country which has been the topic off the discussion for this country is now the agenda which the country is trying to eradicate at the top priority. Also a misplaced government activism is stated as a reason for the decline of the foreign investment in the country, also the president states that the recovery for the country’s state for preparing for the global outrage is on its way for the2014 FIFA games and the 2016 Olympic games and thus all these law implications and the amendments are the resultant are the effects of the investment in the infrastructure development of the nation. Thus from analysing the report and the discussion, as according to the report been published by Reuters Brazilian economy which was growing at the rate of 7.3% GDP rate two years ago for the global reformation and the preparation of the games is now experiencing a major outback leaning to a GDP rate of only 1.3% this year which is a major decline in the country’s economic status, also the report summarises that the continues reforms and policies by the President Rousseff in the law and financial matters of the country is decreasing the business expansion and foreign investment. Statically this has been recorded as only 0.6% in the spring session of the political assembly in 2012 and has been expected to even decline in the coming months till the end of this year.

Impact on the our company
As a result of this reformation and the negative impact of the country the findings that could be imposed on the business expansion of Marconi Telecommunications are:  The company is based on the telecommunication industry thus the amount of power required by the company is comparatively very low than the production and the construction companies and industries.  The infrastructure development of the country for the preparation of the Games in the 2014 and 2016 respectively for the FIFA and Olympic Games Is the cause of the amendments in the law and other policies of Brazil, therefore once the games gets closer the country will then attract the investors to do business in the company with the very competitive policies and feasibility in the law and order.

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The company Marconi Telecommunications has a huge scope in the country’s economy because the infrastructure development of the country can provide more work and involvement to the company or outsourcing the communication role in the company’s favour.



The main finding which is analysed from this report by the Reuters is that the more the involvement in the country’s economy the more the expectations of the loss are because as per the scenario of the nation before the games and the global outrage is such that the GDP is declining along with the foreign investments but once the games date gets closer the country’s economy will start booming and so for stakeholders, but right after finishing of the games the country could suffer a debt crisis which it has not seen yet because of the excessive investment in the infrastructure and the loan from the world bank, and thus all the relative stakeholders might suffer a great loss because of the direct exposure to the business and relativity in the economy.



Therefore it concludes that Marconi Telecommunications should not directly invest in the country for starting the business but along with any merger so as to minimize the risks and its factors.

3.2 Renault-Nissan Brazil expansion
In the year 2011 in Sao Paulo, Brazil Mr Carlos Ghosn the CEO of the Renault-Nissan French- Japanese car manufacturer brought forward the plan of expansion of their manufacturing plants in Rio de Janeiro state, this expansion was obviously was an important achievement for the company’s economy and will the outrage the availability of jobs in the region thus was a much important for the government to support this expansion which led to the meeting of the CEO of the company with the President Dilma Rouseff. The company and the CEO’s expectation from the expansion are much high as they want the plant to be becoming a major part in the Brazilian market. In this period of time when Brazil is going through very high rate of infrastructure development the company wants that their this plant would be the second top market for Renault after France. The deliverables of the meeting with the President resulted in the achieving double their expectations as such till the 2016 un till the games finishes and the market may be at a risk or still at a boom but till then the company is expecting to make a growth of 8% for Renault and 5% for Nissan. The heavy initial investment in the country is expected to create at least 2000 new jobs in the region which Is an important factor in creating the employment in the 10 | P a g e

state and thus the country. The company announced to make an investment of R$2.6 Billion to begin with the production and manufacturing and later of R$1.5 Billion which will be used to increase the current production of the cars in the country from the current rate as most of the models of Nissan are imported from the parts of Mexico and only four of the models are manufactured within the country this expansion will outrage the production of the cars in the region. In the case above of the Reuters in which we saw the negative impact on the company and the economic condition in the region led to many outbreaks for the country and the sudden change of the policies in the region which was creating a difficult situation for the foreign investors to come to Brazil. The government made certain changes in its policies in late2011 on tax implication for increasing the productivity in manufacturing and productivity in car. The expansion will also be benefited to other investors in a manner that it will increase the scope of involvement and create more opportunities for other business models to be a part of such a great business setup. Also as stated by the company that the expansion will not only decrease the number of imports but will also lessen the cost of the car comparatively from the ones which are produced outside Mexico or are imported in the country. The

manufacturing expansion of Renault-Nissan has already inspired the car giants of China as JAC Motors of China has also announced the expansion of their plant in the Rio de Janeiro in the year 2013 as a result of the feasibility in the law and the policies of the government because of the expansion of such a massive company in the country which will create most many opportunities for different types of business models and the affected stakeholders. The CEO of the company Mr Ghosn has many expectations from the country’s booming economy in the following years as for the development in infrastructure. The Ghosn expects the Brazilian car market to be booming at a very good rate which is a good option for the country and thinks that the Brazilian car market will overtake the Japanese car market in the coming years and will be coming out to be the third largest automobile market after U.S and China. The company has also announced its future plans to harness the growth of the Brazilian market in this outrage of the country until 2016 as Renault has announced to launch 13 new models.

Impact on our company
The expansion of Renault-Nissan in Brazil in Rio de Janeiro will explore many new opportunities and scope in the nation along with the availability of jobs and boom in the economy and development in the infrastructure the company will also see a growth in the

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country’s economy and thus all the relative businesses may be affected as a result the affects that this expansion may be the following:  This expansion will involve very big investment in the region that will increase the opportunities in the region and all the relative business models will be affected through this expansion as far as the communication business model are concerned as like the company Marconi Telecommunications which is a business model which deals with the communications infrastructures and telecom business process outsourcing.  Such expansion will increase the opportunities in the region and also will attract other foreign investors to come to Brazil as an example it has already done through announcement of the Chinese car manufacturing company JAC motors to set up a plant in Brazil, thus opening more barriers for the opportunities in the country.  Through analysing of the report of expansion of a manufacturing company it is clear that that the country is at a verge of booming up its economy again and will set up positive impacts on the markets of the rest of the world.  Also this will increase the chances of the outsourcing companies like one ours is to be involve more in the process of booming of the economy and will set up the links for the global outrage of development in Brazil for the next couple of years until 2016 as preparing for the FIFA and Olympic games.

3.3 Terremark’s major expansion of Brazilian Data Centres
Terremark is a subsidiary of Verizon Communications Inc. it is amongst the top company providing IT services based on maintenance and transformation of the enterprise class on a global scale security features and services to the companies. Terremark is one of the company which is followed by the other security solution companies and is followed by them for the latest advancement in the IT Security Solutions, it is also preached as the standard company for the deployments and advancement in the infrastructure provide scale, reliability to the enterprise class of businesses and the government organisations around different parts of the world. Terremark announces the expansion of its new data centre in Sao Paulo as Network Access Point (NAP) do Brasil. This expansion is being made for the involvement in the recent growth in the country and the development in the infrastructure because of the games that Brazil 12 | P a g e

would be hosting in the coming years as FIFA in 2014 and Olympics in 2016. Thus this expansion will make the region abundant with the largest multicentre data centre yet to be existing in the region. Also as part of the expansion the company has already taken over the data facility of185,000 sq.foot of space with an addition of 15,000 raised floor space which will result in making an availability to atleast 100,000 servers in the region far more than any recorded yet in the surroundings. The company announces its this operation to be a part of its strategy to provide improvements and standardisation in the IT services around the world and also through its 50 connected and distinctly located data centres around the world. Also the company states that this expansion will provide the local users in Sao Paulo with a secure, reliable hosting environment for their applications as stated by the General manager of Brazilian Terremark operations Mr Hugo Zanon. The expanded data centre in Sao Paulo is composed and built with multiple redundancies to ensure the highest possible International standard available for the Data Centres efficient working and reliability. Even the power supply for the company is through two different power stations and is redundant to one over the other to avoid a single point of failure and ensuring the power required to walk through with the demand and supply of the connectivity. The company is also making efforts in advancing its standard in IT on a global verge as the head of the Latin American Verizon’s Terremark operation head Rodolfo Garcia stated that the company is dedicated in bringing the best and latest technology available in securing the enterprise models such as Cloud Computing, IT Cloud security solutions to patch up with the demands of the worldwide and international companies in the fast growing economies. The largest network carriers of the entire Latin American region are located in the Terremark’s Sao Paulo exchange point. This data centre delivers the internet exchange facility for other neighbouring states as well like in Columbia and the Dominician Republic. This company would be playing a major part amongst the contractors of the games which the Brazilian republic is hosting in the next recent years.

Impact on our company
Marconi Telecommunications is a similar business model company up to an extent of this case as the company also do provide the IT services such as infrastructure, maintenance, and the advancement in the solutions. This company also outsource the works for business processes to the world for other business models and organisations. The expansion of a similar company with such a huge investment in the infrastructure is not temporary thus it shows that the companies with the similar background have a good scope in Brazil. After 13 | P a g e

summarizing the report of expansion of Terremark following conclusion could be taken out from the market as:  The business model and the scenario of the company as discussed and out company is somewhat similar, and from the fact that Terremark has invested such a huge amount in the infrastructure shows that the law implications are not very tough in the country and the IT industries have a solid boom and are going to be in demand in the next couple of coming years.  The expansion also saw the benefits for the neighbouring regions such as Columbia and Dominican Republic through the investments that the company has made in the Sao Paulo data centre thus the region is ready for the growth and the globalisation with the rest of the parts of the world along with attracting the business owners from the surrounding regions for the investment in Brazil.  With the increase in such type of companies in the market the opportunity for the outsourcing of the work increases thus making a chance for the company to grow and show its colours in the region as there would be more demand for the customer support services and the backend offices work that would might not be carried forward by the same company.  Therefore, from this report scenario of the expansion of the IT company in the region highlights the opportunity available to such companies in the future and also it determine the business entry model which would be efficient for our company to enter Brazilian market.

3.4 General Motors (GM) Brazilian Expansion
In 2009 General Motors announced the investment of $1 Billion in the Brazilian market in the recent years to increase its productivity and develop new car models. GM has predicted that this expansion will create 1000 new jobs in the region. The reason behind the General Motors planning to invest in the Brazilian market is because of the tax break the government is providing to the manufacturing industries for investment and setting up a business in Brazil. Analysing the growth rate of the region the company announces to make an autonomous body of the General Motors which would be completely functional and independent from the US GM company even on the basis of the models available and other dependencies on its products. The company’s investment capital comes from a ratio of the half from the company funds and the other half from the local state banks which is reported 14 | P a g e

by the BBC correspondent Gary Duffy from Sao Paulo. Also Brazilian motor industry has seen many new inventions in the models in the recent years which made it an attractive spot for the manufacturing industries investment worldwide. The next couple of years until 2016 will see the major investments in the manufacturing industry sector in the country because of the tax break policy by Rousseff the President of Brazilian economy.

Impact on our company
Increasing expansions in the manufacturing industries which could be seen from the past and from the expansion of Renault-Nissan and then a Chinese company getting inspired from the huge investment and the law and the tax policies of the country, and now the General Motors investing a large sum of money in the country predicts that the policies of the government in this sector are in favour of the business owners and are also attractive and feasible to the foreign investors in the country. Also a major point which has been noticed from this report was the investment capital arrangement of the company which was financed a half through itself and the other half through the bank loans from state which states that the loans are even available for the initial investment in the country to the foreign investors however the policies of the APR of the loan would not be as easy as that of the local policies in own country but is available at a sound rate. This could be helpful for our company as the initial expansion and investment in the country for the factors like infrastructure and advertisement will require a huge sum of money at the early stage therefore the company has to be ready to bear the consequences of the expansion.

3.5 Siemens Business Expansion in Brazil
In the mid of this year 2012 Siemens has planned to invest a sum of $1 Billion over a period of next five years so as to support its business worldwide with the utilization of natural resources available in abundance in Brazil and also to strengthen its growth in the country over a long term. As Siemens has announced an investment of $1 Billion the expansion will see the empowerment of most of the sectors of its business as Energy, infrastructure, Industry and healthcare. Also as stated that the company will try to harness the massive growth in the region and also support research and development for its product range. Like the other business model Siemens is also inspired from the massive boom in the Latin American Economy mostly by the Brazilian economy because this is the only country which is accountable for the one quarter of the revenue generation amongst entire Latin American region and is considered to be the most powerful economy of this region. Furthermore the

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Brazil is hosting the FIFA world cup in 2014 and the summer Olympic Games in 2016 therefore for the preparation of the games there is an outrage in the country as the government is investing heavily in the infrastructure development within the country.

Fig 4: Public sector Debt Peter Y. Solmssen, a member of the managing board of Siemens AG stated at the press conference in 2011 that their Siemens have been operational in business in Brazil for over a century and this is the time when the company has complete faith in the economy that it is at a verge of great growth and rise in business revenue generation because of the development in the infrastructure and the globalisation of the country. Brazil is also set to see the major sporting events which are considered to be the most watched and as a token of honour to be hosting one of those games which Brazil is going to host in the next recent years. This is considered to be the most promising factor for the investment of the foreign business holders in the country. The CEO of the Siemens Corporation Paulo Stark continued with stating of maximising its revenue generation in Brazil to be almost double by the end of 2017 as they say that their business model is completely equipped with the requirements the economy is seeking from a developing and that as well with such a progressive rate. Siemens states Brazil to one of the world’s fastest growing major economies and is even 16 | P a g e

coming out to be a powerhouse of the Latin American region as it owns most of the profitable and usable resources. As the country continues to grow it will require various distinct range of products for the efficient working and steady growth of the Brazilian economy. This is one of the reasons why the company is increasing its involvement in the business and expanding its range in products over time. The company is tend to invest a huge amount in the country which can be seen from the fact that it will invest a major part of its investment over the oil and gas industry, also in 2012 itself the company is tend to open a research and development centre in Rio de Janeiro which would be accountable for the energy production In the respective region. This expansion will provide the opportunity to about 200 highly skilled researchers to harness the natural resources available in the Rio state for the conversion into Energy.

Impacts on our company
 As Siemens plans to invest in the multiple number of operations in the country as like Healthcare, energy and infrastructure with a huge sum of investment of $1 Billion, which will create lot of opportunities in the region as like more employability, efficient use and supply of electricity and the standard of living of the local people therefore the technology will be rising in the region as well though the company Marconi Telecommunications is based on the IT the options for the company are very clear in the country to settle down along with any other similar contractor to learn the Brazilian market tactics and then starting with the firm of its own in the area.  Furthermore as the opportunities of various increases in the country with the coming of global company investors the demand of the skilled and the highly professional staff and the services providers would be required to which the company has options to supply with from its international operations department.  The lack of education and knowledge in the specific fields in the people of the country may result into the unexpected decline and loss of the companies in Brazil which they might then have to outsource the work to other professional clients around the work in which our company is amongst the best ones available settled in the largest outsourcing market in the world.  As the company also talks about the research that it is going to conduct could be supported by ours or similar IT Company providing and maintaining tools and specific applications to work and store research on.

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4 Relevant Case Studies of Similar Business Models
4.1 Capgemini Brazil Operations
Capgemini is a world well recognised Multinational Corporation located all around the world with its headquarters In Paris, France. Capgemini is amongst the top IT services solution providers in management consulting, outsourcing and professional work to the IT companies and other business models in finding the best options available to progress in the market based on their highly experienced records and strategies. The outsourcing firm of Capgemini is the widely known and recognised name in the industry which has its plants all round the world the company also started its operations in Brazil a few years ago and has successfully managed to grow and utilize the resources from Brazil, the company has also shown the growth record and a comparative functional operations department in the nation from its other operation plants as in India. After the expansion into Brazil the company has provided the Latin American region aware with the option of outsourcing a business process which has been mostly useful for the private industrial sector in the Latin American region. Capgemini has also announced its expansion of operations within Brazil late this year (2012), as with the company announced the expansion of its unit in the southern region of the country in Sao Paulo and has expected to meet the demands of the consumers from within the local and international scale, as the company expects to be achieving an employee rate of 3000 by the end of 2015 in Brazil. The company has announced to hire 400 highly professionals for its new operational unit and is searching private contractors to set up their business and IT architecture which is according to the global standard and also the training department which can aware their employees with the local market and the global requirement at the same time to which a company like ours Marconi Telecommunications could help in bringing the people and businesses together to the global standards. In expanding its operations Capgemini has also become the member of Associação Brasileira de Provedores de Serviços de Apoio Administrativo (ABRAPSA) which is a symbol of hard work and dedication of work in the nation. Similar to the Marconi Telecommunications Capgemini provides solutions to the business in finance, human resources, supply chain and procurement. To which it has provided services in the Latin American region from Brazil and to other parts of the world. The earlier operational units of Capgemini have aided the multinational companies in the world to transform their business 18 | P a g e

and grow in different sectors such as finance, human resource, supply chain and procurement. Thus the company has a positive expectation from this expansion as well. Although Capgemini is a worldwide known Name and Brand image which is preferable through many of the multinational corporations but the expansion of similar model company as like outs will also be benefitted from the outrage and the demand that is growing in the country.

Influence to a similar Business model
 Capgemini is an IT based company which has operations all round the world and has operational units as in India which holds the international outsourcing and consultation operations whereas the other units which are located in the rest of the part of the world provide services to the local and the regional business and corporations, thus the Brazil unit of the company holds the requests and operations of only the local and the Latin American regional issues which provides scope to any other company following the similar business model to invest and come to Brazil to provide services to the same and create a competition environment.  There is also an opportunity for a company to launch any new product or service at this verge so as to advertise the business process and provide a competitive solution for the similar agenda of the corporations.  The expansion of Capgemini within Brazil and increasing its availability and approach to the people in the region states and proves that the region is equipped with loads of opportunities in the region.  Capgemini being a global and a huge multinational organisation expanded to Brazil with contractual entry without being a part of any other organisation or in any other entry option to the country.  The announcement of the organisation like Capgemini also brings the opportunities to the companies in the similar sector to either come on their own to provide competitive services in the market to help the company through merging as a contractor in providing small services to either of its regions as the company name and being a part of the multinational organisation so as to gain mutual profit and approach.

http://www.big4.com/capgemini/capgemini-brazil-operations-expanded/

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4.2 Alliance Data’s Loyalty One Brazilian Business Expansion
Alliance Data1 is one of the companies of north America which holds a solid grip of the loyalty market, Alliance Data1 is provides services to most of the biggest business in the region as its operation based on transaction, data driven marketing and loyalty solutions to most of the biggest brands. The company alone is responsible for producing, implementing and maintaining of the system in the North American region is completely functional and responsible for the efficient working and providing the services for the efficient working. It is also responsible for maintaining a high level of standard for the change in the behaviour and choosing priority of the customers, this company engages and keeps the record of millions of customers seeking loyalty points for the benefits in the respective fields and sectors of the market which may be either big or small and increase their loyalty towards the brand this change of tradition in the business of marketing has created many opportunities for the customers to take the benefit from the best of the brand and also it has created the opportunities to the companies belonging to the same sector as like providing technical support and outsourcing the work. Alliance Data has its operations in many other parts of the world and had recently expanded to Brazil. Alliance Data1 entered Brazilian market under the Companhia Brasileira De Servicos De Marketing (CBSM), under Dotz loyalty programme in Brazil. The company first came as an equity with the LoyaltyOne with its first operation of settlement in Sao Paulo state. After the launch of the program in Sao Paulo it was adopted by millions of consumers and thousands of brands operating locally and globally from Brazil, the operations of the Loyalty spread through internationally and were managed by LoyaltyOne being an leader and a standardised company which is looked forward in the market. The program first launched in Brazil recorded a remarkable success of approx. 3 million users. As because the first initial plan of the company has been a huge success the company has planned to expand its operation to the north region to cover the left over markets and make them aware of the scheme to provide customer loyalty and increase this has been a success in the Brazilian market because it gives mutual benefits to the seller and the consumer as being loyal the customer gets the benefits and the company owner gets a loyal customer increasing percentage of sales. Increasing its operations in the other regions of the country the company has made a contract with Paulistao, which is a recognized brand name in Sao Paulo providing services in the similar sector to manage and handle the few regions to give maximum profit as available

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to the company. This merging of the company with a new partner shows the opportunity available in the Brazilian market, thus being a developing nation it is a home to endless opportunities which are increasing day per day with the time being closer towards the events that Brazil is holding in the next coming years which has created a lot of demands in the market is opportunity that any company which wants to be globally operational should set its journey start from this region.

Influence on the market and Impacts to similar business models
 The Expansion of another similar business along with thousands of the similar IT projects and plans that are getting ready to be started in Brazil is the sign of investment bringing a very good return to the capital and brand name.  An example of merger of the Alliance Data1 with Paulistao which is a new partner of the company highlights that the opportunity of the cross border merger and acquisitions are also available at a high rate and are in demand by the multinational corporations for aiding them in expanding operations in this Brazilian outrage.  The Brazilian “Dotz” program is an example of the government plans and loyalty towards IT sector business and its developments in the strategies and its feasibility towards IT companies to attract other IT investors from around the world in Brazil making its GDP growth rate in IT comparative as like India and China. http://www.colloquy.com/press_release_view.asp?xd=106

5 Conclusions
5.1 Analysing the case studies used to examine the Brazilian market The studies that have been used in referring the growth and development in the Brazilian economy states multiple factors which bring the positive and negative sides of investment in the Brazilian economy. The conclusions of those studies have been highlighted in this section.

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Fig 5: Rio in recent years As we initiate with the case study of Skagen which is a Norway based energy producing company as it stated that the constant amendments in the policies of Brazilian government is bringing the economic instability in the country is causing huge to losses to the similar companies as Skagen talks about its loss of $100 Million in past recent years, the company makes the President Rousseff responsible for the troublesome that is causing the industrial sector to get feared off the government and are scaring the reports of such companies are scaring the foreign investors from coming in the country and investing in business. Skagen states that such plans like slashing the electricity bills by the industrial organisations is bringing a change in their work methodology and thus resulting them in experiencing a loss in their respective fields that constant policy change of the government in the recent years have also decreased the foreign investment rate and thus the economic growth GDP of the nation. But finally as the company concludes as the global outrage and the infrastructure development is the main reason behind the high tax impositions in the country and they will come to an end by the end of this year as the plans of some major companies to expand in to Brazil has made the President announce the changes in the policies and feasibility in the law for doing business in Brazil and help and support that would be given by the government during the process.

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From Renault-Nissan Expansion The Expansion of the company like Renault and Nissan in the Brazilian market will explore the opportunities for many business models and will affect the economic growth rate of the country as this manufacturing unit plans to invest a very huge sum of money in the market and announces to launch some of the new models in its scale to attract the business owners from the surrounding region to make business with the company and contracting with the local sub-contractors for different purposes. An expansion like this in the Brazilian economy and the investment of such a huge amount states that the country is liable of change and growth in the next couple of years creating a strong profit and hold in the world market providing the best services and resources available to the industrialists, also the plans of the government which gets affected by such operations will be an advantage for the emerging companies and the foreign investors because the expansion of such a huge company will create new opportunities of work like production, maintenance and outsourcing of work in which our company Marconi Telecommunication is an expert. Also this identifies the approach for the entry in the Brazilian market along with any similar company contractor investor as the company expands in the nation so will be its operations and its demand to provide different services to it such as its IT and technical management to which most of the companies have a different departments or do outsource the work. From Terre mark’s outbreak The plans of Terre mark to expand its business and data centres within Brazil along with already existing operations present in the country states that there is a demand for the IT advancement and the companies that are available to provide services in the similar sector as there is lack of technology advancement in this country and most of the IT related work is outsourced from the countries like India and China therefore the coming and settling of the similar companies will make the tasks easier and cheaper services for the business owners and will provide better expansion rate. Also the expansion of teremark saw the demands of the corporate organisations from neighbouring regions like Columbia and other countries for either outsourcing work or just for leasing the internet exchange point which is the biggest the Latin American region. Thus this illustrates the growth of the I-T related companies in the Brazilian market. The opportunity for the similar model based companies as like of ours is that it may join any such company for handling a government or a private project in the industrial sector to merge or join a

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venture along and enter the Brazilian market and get the hold of the tactics that are vital and functioned in the Brazilian global market. The GM expansion From the expansion of GM in the Brazilian market show that the strategies of the Brazilian government are becoming favourable towards the manufacturing companies for over a prolonged period of time which will not only help their business economy to grow but also the respect and global outreach in the world. The expansion of General motors and along with other announcements of similar manufacturing company owners states that there is a boom in the market that is through a Chinese company announcing the expansion which will bring the emerging of new opportunities and the relations with the other Chinese companies to come to Brazil and will increase in the change of Technology and outsourcing of work between Brazil and China, ultimately benefiting the growth rate of the BRIC group of nations. The figure that has been most highlighted during the expansion of the General Motors in Brazil was the availability of loans and other funding options available in the country for the foreign and the local investors to come to business easily and the methodologies for minimising the risks to be undertaken by theses lenders in doing the business or investing in a certain type of business in this period and in the coming years in Brazil.

Siemens Plans of huge investments in Brazil The plans of Siemens to increase its operations in business in various of its sectors and portfolio in the country highlights the coming of the business openings and opportunities for the local people of the country and the neighbouring nations to find options available for them which could benefit their business models in future. As Siemens plans to invest in various sectors such as Healthcare, industry, energy, mining and other manufacturing units operational in the country it brings the government to bring changes to the policies that have been implemented so everyone can take the advantage of the feasibility in this market, making it the most favourable nation to invest in after India and China, Brazil do has much more capabilities than it has today but standing between the giants in the world business markets like India, China and USA which are considered as the land of opportunities because the availability of resources and potential in them to carry out a business process

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which they have successfully proven to be managing through their knowledge and experience that these countries have in the market. Brazil can have a availability to these through education and increasing the number of people depending on the work based on knowledge and education based, but not only in the manufacturing and industrial sectors, though that is true that Brazil can provide with the best and the less expensive workforce in the world than any other nation but along with this the nation fails to meet the technology demands of the country and thus the work needs to be outsourced to other countries or corporations around the world. The rise of the IT companies could be also examined from the fact that it has shown tremendous growth and market around the world in providing services to many multinational corporations the operations and the opportunities created by them or available to them could be analysed from the fact that they have expanded in Brazil over time and have more operations coming over in the next few years.

From the rise of Capgemini
The expansion of one of the top IT solution providers of the work like Capgemini shows that the demand of the services are growing at very high rate in the Latin American region as the number of multinational corporations are moving on to this region to harness the excessive growth and potential in this region so as the demand of services such as consultation, finances and outsourcing is required in these countries. Capgemini expanded its operations around the different parts of Brazil to cover the multinationals that fall around these regions. As Capgemini is a very big brand name in itself, it hardly requires any other work to be managed by other companies or to work along with Capgemini but still as its campaigns increases in the different parts of the Brazilian region so the demand for the company to manage these units and provide the same and functional services to all the businesses around, in that case there is a demand for other similar business models to come forward and work along with such company under joint ventures in accomplishing any tasks which may be either government or private. Capgemini being a big brand name does not require to merge with any of the existing company in the region to work in the country it entered the Brazilian market with the contractual entry of working standalone and would be governed by the Brazilian national policies of foreign investment and starting business but not under the influence of any other Brazilian corporate. But as for other small scale companies the benefit would be in either entering the market with the formation of a kind of alliance or a merger group so as to minimise the risks and investments involved in business expansion. 25 | P a g e

Alliance Data1’s Expansion in Brazil
The expansion of such a company which deals with making more loyalty of the consumers to a certain type of business models is worth more than anything to the business owners and as such methodology has been in existence in Brazil for the first time, there has been huge demand and the number of clients increasing per day for the company as the local and the global business reach to the company to utilize the company’s assets of Loyalty points. Also the adaptation of such a methodology which brings the mutual profit for the company owners and the consumers showcases the trend of new market approach and methodology coming in to existence. Also coming of such a company booms the market with loads of opportunities for other such business models working towards the betterment of the loyalty towards market brands and helping shaping their approaches towards customers. Thus it creates loads of opportunities like to a company as ours in providing services and outsourcing operations to meet such a large demand by the businesses in the local and global region as more and more businesses are getting involved in this approach.

5.2 Evaluation of the Discussions and Findings
On critically examining the status of Brazilian economy, the pace of growth and development in the country, the government plans and strategies for the next coming years and some of the case studies relevant and the other which will influence the expansion of our company Marconi Telecommunications and similar business models working in the similar scenario. Also certain points which have been noticed by going through the case studies are the boom in the Brazilian market leading to increase in the investment market prices and the price of commodities have boomed and rose up to the level similar of any other developed in the world therefore making Brazil not cheap for business expansion and a cheap and feasible option for investment in business, the market has become expensive because of the boom and the demand in the market for the development and up to date infrastructure for the progress and the outrage that is going on to the country, the financial experts have also compared the prices of Brazilian currency with the GBP as they say It is similarly expensive like living in London as in Rio the price of the commodities are comparable in both of the

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cities, the figure shown below shows the statistic comparison of the currency between Brazil and GBP.

Fig 6: GBP and BRL comparison Furthermore the stock market in Brazil is also in a verge climbing up to the highest it has gone ever before in the history of the country. The Brazilian stock equity is measured by ishares MSCI Brazil index which monitors and maintains the growth in the stock market according to statistics given by the ishare it states that Brazilian market has shown a tremendous growth between the period of 2003 to 2008 and will further rise in the future. The rise and fall of the stock equity market can be examined from the graph below which states the share of the stock market and its rise and falls during the recent years.

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Fig 7: iShares MSCI Brazil Index

Brazil is in the risk off rut situation as when there is a financial crisis going on in the world and the investors know that the commodities like gold, stocks and Brazilian stock would be driven into the market to sell in a rush to keep the cast flowing there would be only the stable markets which could provide stability to the business preventing them from huge losses and gaining financial assets from investments. The BRIC group of nations are trusted as the most by the investors in moving or expanding up their business to so as to get comparatively better services than the others developed like Japan and USA, however the projects like the manufacturing, mining, energy and agriculture based always have a risk in investment and expansion still however the investors are planning to move to Brazil because the policies and the strategies of the government being lenient and feasible to the foreign investors to come and invest in Brazil making its economy grow better. However with the known fact that Brazil is going to host some of the major sporting events in the world as FIFA world cup in 2014 and the summer Olympics in 2016 which is bringing a lot of opportunities in the country is flowing at a steady rate but not as it did in the other countries already hosted the major sporting events as like Britain who hosted the recent London 2012 Olympic and Paralympic games, the country was successful to make use of the opportunity in making relations and expansion business in their country through the opportunity of investors coming to their country during the preparation and the functioning of 28 | P a g e

the games. Also as in the Brazil this communication between the government and the private sector business is communicating slowly but steadily. Moreover tourism which will create a lot of opportunities in the country as the people will come here as spectators of the sporting games or just on holiday to celebrate some of the greatest shows on earth. For just the stock brokers and investors ishares of Brazil is the easiest and fastest way of making money from Brazil

5.3 Resultant and Influence on the other Investors in Similar Business Model
As from the above case studies of the various international companies who have expanded their business to Brazil the resultant which can be analysed is of course the economy of this region is booming at a very high rate but so along is the tax implications and policies at this point of time, generally the developing countries have a very low rate of operation for the international investors in their country but this is not as far as Brazil is concerned. Although the BRIC group of nations are known for their feasibility and simplicity in the business rules and policies for any new business either expanding or starting in these nations but this statistics does not belong to Brazil any more at least not at the moment the President of Brazil Mr Dilma Rousseff has announced that the foreign investment and business policies have been taken into consideration by the government this year and will be brought to an ease very quickly to again bring economic stability in the country as the nation is going through tremendous change and development the development at this point of time is majorly because of the upcoming events that the world would be coming through to view in Brazil and these events will outclass the world the resources and the power of Brazil, probably this might be one of the reasons why the development is growing at the fastest rate than ever before in both the government and the private sector and the government is unable to do anything in managing the balance between the demand and supply resulting in being a debtor of the World Bank and the other financial organisations. Also as the discussion on the future plans of some of the major companies which have been highlighted above clearly shows the opportunities and the scope of investment and business in Brazil, it is slightly difficult and expensive for the companies than ever before as the nation is going through major changes and globalisation but for the companies to get settled in the country and get stabled before the sporting events that the country is hosting starts they have to take the risk because the financial experts know that this investment will repay them with the best and loads of profit for their company but will also increase their approach and reach to the world through the outrage of this nation.

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Thus it can be concluded from the above findings that the initial investment for expansion and moving to this country at this time can be a bit more then general but if any company is looking forward to expand in any of the Latin American nation no other option is better and more profitable for them other than Brazil. Because a major change and development process which has come to its final finish for preparing for the events that are going to take place in the next couple of years. Also the fact that the business policies and the foreign business protocols would be changing in the coming time as that could be seen from the above case study that as Renault-Nissan is expanding into the country which is a huge expansion and investment of billions will give opportunities to millions of people and the local residents of the nation. The self-dependency which is a big asset of Brazil will attract the investors from other countries in the recent years and as the government announced that the tax break which would available to the car manufacturers will bring a hope and attract other investors from around the world to come and set up their plants to Brazil which could bring a sudden increase and profit in their revenue.

6 Recommendations
As per analysing of the report and the case studies that have involved in making the resultant of the entry methodology which would be involved during the entry mechanism of the company Marconi Telecommunications is based on the experiences and the accountability of other similar business models which have successfully managed to grow in region and have made profits and increased the revenue generations of the company. As it has been clearly seen from the study that the Brazilian market is going through a rapid advancement and growth in the industrial sector in these years and the coming years also this performance will continue to grow till at very giant rate till the coming of the major sporting events that the country is about to host which is the FIFA world cup In 2014 and the summer Olympic Games in 2016. In these years the country is expected to be growing at the rate of 7.3% GDP rate which Is comparative to the other group of BRIC nations to which Brazil is a part. 30 | P a g e

During this enhancement in the growth and infrastructure development as the government is investing a huge amount of money in development and globalisation facilities it is yet to see it would be going to be more expensive for the companies to be a part of this change and growth as the government needs capital to spend on its national sources to bring them forward and available to the rest of the world during the highlighting events. So it could be concluded that any company which plans to move or expand its business into Brazil would have to invest a lot more money than it has to generally at this time which would be even increasing in the coming years due to globalisation in the region. Whereas the market strategies states that any company which has to invest a huge capital in initial investments in the starting of a new firms or expansion of business process is at a verge of risks and is prone to more towards the losses if the business environment is new to its economy. The entry options that have been analysed from the case studies above are most of the companies which are well recognised in the world and have a solid reputation and market hold though its multinational operations have availability of the capital required to move into the country where as far as the economic background of our company Marconi Telecommunications is concerned it is more of a subsidiary of a multinational brand Marconi which is recognised in most of the developing and developed nations but still cannot provide sufficient funds to the company to start a contractual entry in to Brazil, as well as deploy system and value of its own in the country. A option that may help the company Marconi Telecommunications to build a strong hold in the market and understand the tactics involved of doing business in Brazil may be understood through compelling the company on the least risk factor. Therefore the options for the company which it can undertake to move to Brazil may be amongst those which have been concluded to be the one who have seen tremendous success factor in the past for the similar business models in to foreign countries therefore the business entry option chosen by our company is through a Joint Venture. For undergoing a Joint Venture in Brazil Marconi Telecommunications has to undertake certain changes in its strategy such as investing a little less amount in physically settling down into the country also to understand basic requirements of doing business in Brazil and understand the risk factors and success factors involved while joining any company as the Joint Venture.

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6.1 A Joint Venture in Brazil
A Joint Venture is a great option for any company planning to move or expand its business abroad through making contractual partnerships with similar business models in the host countries on the basis of providing mutual benefits to both parties in exchange of skill and technology which affects their economies and help in building the better deliverables in the market. As far as out company Marconi Telecommunications is concerned it is valued to provide technology support in communication, outsourcing of business process and consultation on the basis of financial and strategically benefited solutions to business process around the world. And as in the Brazilian market of opportunities it is very convenient for any company as such like ours to settle down with the cross border merger & acquisitions with any similar company which is esteemed in providing services to either the government or the private sector in this infrastructure development of the nation. Joint ventures have always been proven to be successful in a foreign expansion of a company because it involves least risk factor and less investment on capital in settling down of the company as well as the most important factor which affects the stability of the company in any foreign market that is Advertisement. Advertisement plays an important role in the prosperity of any company to grow in a foreign market and to that of as Brazil It will create a lot of opportunity for the company to be highlighted amongst the people required to use certain services as the company provides. Researching of the success factor of Joint Ventures it has proven to be the most adapted methodology after franchising in Brazil for business expansion. Franchising has not been taken into consideration by the company because it involves less market exposure to the company with the operations of our company to be managed and run by other sectors or small scale organisations present in the market. But the company has the future plans of settling down into the Brazilian Market until the end of 2016 when the games are about to finish so that the company when have acquired sufficient knowledge about the system of business in Brazil and would have gained an attention of the investors and business companies requiring the work to be outsourced through other companies to pick up the company for their business expansion also until that time the company must have managed to arrange sufficient funds of its own to start its individual operations in the country.

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6.3 Initiating a Joint Venture in Brazil
Starting a Joint Venture in Brazil is very easy and feasible for the foreign investors as this is amongst the most popular entry methodology by the investors therefore the government keeps the policies and law in order to let these companies start with their business in the region along with the partnership with any host company in the similar model to start its business and carry out the local and global operations in providing services or manufacturing of products. As the Brazil is about to host some of the most favourite and greatest sporting events in the world that is the FIFA world cup in 2014 and the Olympic Games in 2016 there is a demand for the IT solution providers in the sectors like Telecom, Communication, Internet Service and Data Exchange point providers, outsourcing of business process which are also the functionalities of the Marconi Telecommunications, giving a wide scope available to the company in the market.

Benefits to the company with Joint Ventures
As been proven the most successful and widely adapted business model for expansion of business in a foreign country the common benefits that any other company and specifically an IT based company like Marconi Telecommunications can experience are stated below:       There is a minimum risk factor for the company as the contracts are made on the mutual benefits basis. The host company has the knowledge of the functionality of business process in the market. The capital investment in the market is less as compared to on the direct entry with contractual basis from government for starting a business on its own. The market shares of both of the companies are raised on individual basis however they work in the Joint Venture for accomplishing a project. The reach for the company and its market approach increases as working with the host company. The faith on the host company through the people also makes it important for increasing the faith in the service and quality of the new company as well in providing business solutions.  Specifically for the IT companies it is very important in Brazil to be having contacts with the other companies in the different parts of the world as the lack of technological support and the knowledge available in the market makes it an asset

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for the business process to even be outsourced and inspired through its earlier and predetermined successful earlier operations.

7 References
Economic Growth in Brazil, Werner Baer (2001),” The Brazilian Economy: Growth and development”,Praeger Publications, United States of America. Ignacio Garcia Marin (2011), “Brazil and China: Leadership, Economic Growth and Future”, Research paper, Druck Books, Germany. ISBN: 978-3-656-04067-5 Economic Boom in Latin America, Werner Baer, David V. Fleischer (2011), “The Economies of Argentina and Brazil: A Comparative Perspective”, Edward Elgar Publishing Ltd, Cheltenham. Latin America Economy status, OECD (2011), “Latin American Economic Outlook 2011”, Oced publications. Economic Crisis, available on page21 Michael Cohen (2012), “The Global Economic Crisis in Latin America: Impacts and Responses”, Rutledge publications. Javier A Reyes, W Charles Sawyer (2011),” Latin American Economic Development”, Routledge publications.

Case Studies
Reuters – Skagen Brail Expansion, available online at http://www.reuters.com/article/2012/12/03/usth brazil-economy-eletrobras-idUSBRE8B211220121203, accessed on 12 November 2012. Renault-Nissan Brazil Expansion, Rio Times, available online at http://riotimesonline.com/brazilth news/rio-business/renault-nissan-plans-for-expansion-in-brazil/#, accessed on 12 November 2012. Terre mark’s Data Centre Expansion, available online at http://www.verizonbusiness.com/about/news/pr-25793-enth Terremark+Completes+Major+Expansion+of+Brazilian+Data+Center.xml, retrieved on 14 November 2012. General Motors Brazil Expansion, BBC News http://news.bbc.co.uk/1/hi/business/8153097.stm, th accessed on 14 November 2012. Siemens Business Expansion in Brazil, available online at http://www.offshoreenergytoday.com/siemens-to-spend-usd-1-billion-on-business-expansion-in-brazil/ th accessed on 16 November 2012. Capgemini study, available online at http://www.big4.com/capgemini/capgemini-brazil-operationsth expanded/ accessed on 11 November 2012 Alliance Data1 Expansion, available online at th http://www.colloquy.com/press_release_view.asp?xd=106, accessed on 10 November 2012

Expanding Business Barriers, available online at http://businesscasestudies.co.uk/davis-servicegroup/growing-a-company-by-international-aquisition/international-expansion.html#axzz2ER5GFKB8, th accessed on 17 November 2012

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Cross Border and Acquisitions, available online at http://pure.au.dk/portal-asbth student/files/41992555/Master_Thesis_OY.pdf accessed on 9 November 2012. Concluding, Brazil Stock market analysis, available online at http://www.moneyweek.com/investments/stock-markets/emerging-markets/emerging-marketsth investing-in-brazil-20300, accessed on 27 November 2012 Barriers for business entry in Brazil, available online at http://www.tutor2u.net/blog/index.php/business-studies/comments/barriers-to-entry-for-businessth expansion-to-brazil accessed on 28 November 2012

Figures
Fig 1: Sustaining the Boom, available at http://www.forexblog.org/2010/05/brazil-is-booming-but-realth is-in-trouble.html, retrieved on 16 November, 2012. Fig 2 debt crisis, available at http://blogs.ft.com/beyond-brics/2012/07/02/chart-of-the-week-brazilianth corporate-debt/#axzz2EgDMbTge, retrieved on 16 November, 2012. Fig 3: Brazil’s GDP growth, available at http://brazilianbubble.com/chart-brazils-sluggish-gdp-growthth in-2011-though-pmi-suggests-a-pick-up/, retrieved on 17 November, 2012. Fig 4: Public sector Debt, available at http://seekingalpha.com/article/155269-charting-brazil-sth economy, retrieved on 16 November, 2012. Fig 5: Rio in recent years, available at http://hottelling.net/2012/09/14/str-global-brazils-key-citiesth gearing-up-for-the-2016-olympics/, retrieved on 19 November, 2012. Fig 6: GBP and BRL comparison, available at http://www.moneyweek.com/investments/stockth markets/emerging-markets/emerging-markets-investing-in-brazil-20300, retrieved on 19 November, 2012. Fig 7: iShares MSCI Brazil Index, available at http://www.moneyweek.com/investments/stockth markets/emerging-markets/emerging-markets-investing-in-brazil-20300, retrieved on 25 November, 2012.

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