international business brazil
DESCRIPTION
TRANSCRIPT
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Internatio
nal
Business
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Presented By
44
05 59 0242
43
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Worlds 5th
Largest Country
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One of the Latest Emerging
Super-Power on the Global Platform
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World’s World’s Largest Largest
Exporter of Exporter of Iron Ore and Iron Ore and
SoyaSoya
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9th Largest Economyin terms
of Purchasing
Power
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Largest Reserves of Tropical Forest, Freshwater and
Bio-Diversity
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10th Largest 10th Largest Economy Economy
in terms of in terms of Market ExchangeMarket Exchange
RatesRates
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Introduction
• Brazil is larger than the continental US and Australia
• Brazil is also one of the most unequal
societies.• The country outside the G8 with the
best science base.• It is a key player on the world stage.
e.g G20, BRIC, Mercosul and many more..
Brief Description
EconomyBusiness
EnvironmentBusiness
RegulationsProduct Conclusion
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Introduction
Brazilian Population
178,000,000
180,000,000
182,000,000
184,000,000
186,000,000
188,000,000
190,000,000
192,000,000
2003 2004 2005 2006 2007
Year
Popu
latio
n
• Population.Population.
• Age Structure.Age Structure.
• Literacy.Literacy.
• Religion & LanguageReligion & Language
Demographic
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
Mal
e/Fe
mal
e
0-14 15-64 65 & above
Age Group
Age Structure
0
20
40
60
80
100
Literate Illiterate
Male
Female
EconomyPolitical
IssuesBusiness
RegulationsProduct Conclusion
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EconomyIntroduction
Overview
• GDP Growth rate – 3.8 % (2006)
• Inflation – 3 % (2006)
• Major Industries
• Trading Partners
• International Economic Organizations
• Government Structure
BusinessEnvironment
BusinessRegulations
Product Conclusion
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BusinessEnvironment
Introduction Economy
Business Opportunities
• Introduction of publicly and privately-run agencies.
• Promising and Predominant Urban Market.
• Foreign investment growth has increased from US$ 2 billion(1995) to US$ 20 billion(2006).
• Trade surplus improved BOP position.
• Infrastructure development.
BusinessRegulations
Product Conclusion
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EconomyIntroductionBusiness
EnvironmentBusiness
Regulations
Political Environment
• Undeniable distress in regards to macro-economic policies.
• Impact of Presidential election in 2002.
• Devaluation of Brazilian Currency.
Product Conclusion
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Introduction EconomyBusiness
Environment
Legal Environment
ExecutiveBranch
Public Ministry
Legal AidOffice
Public DefenseOffice
• Defends the juridical order and to ensures compliance with the law. • Its activities also extend towards decisions regarding Labor and the Armed Forces.
BusinessRegulations
Product Conclusion
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ProductIntroduction EconomyBusiness
EnvironmentBusiness
Regulations
Overview
• Licensing from SECEX (Secretariat of Foreign Trade)
• licenses are valid for 60 days starting from the date of dispatch of the goods
• The license is granted only if the payment is effective within 30 days from the date of B/L (Bill of Lading)
• Custom Duties reduced considerably with the formation of
Mercosur.
• $70 payable lump sum to obtain an import license.
Conclusion
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ProductIntroduction EconomyBusiness
EnvironmentBusiness
Regulations
Product Details
• Product Category : Pet food for dogs• Brand Name : “Dog Chow”• Parent Company : Nestle• Product Attributes and Benefits:
– Nestlé's Premium pet food brand– Formulated with high quality proteins, vitamins.– 100% complete and balanced nutrition– Pet supper stores.
Conclusion
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ProductIntroduction EconomyBusiness
EnvironmentBusiness
Regulations
B 2 C Market
• Today, a majority of the big retailing chains have their own import agencies.
• Brazilian supermarkets handle 80 % of the sales of goods of basic necessity.
• The first three retailing chains in the ascending order are: Carrefour, Pao de Acucar and Sendas.
Conclusion
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ProductIntroduction EconomyBusiness
EnvironmentBusiness
Regulations
Pet Food Industry - Brazil
• Brazil has 27 million dogs and 11 million cats
• They consume about 95 percent of Brazil’s pet food and supplies.
• If all pets were fed processed pet food, the market would total $2.1 billion.
• The Industry is growing at a rate of 26% annually.
• Consumers in the upper income level are the main buyers of pet food and accessories,
• This fast-growing sector is perfect for foreign companies with medium- and long-term plans to enter the Brazilian market
Conclusion
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ProductIntroduction EconomyBusiness
EnvironmentBusiness
Regulations
Market Insights
Retail Dog Food Sale
0
20
40
60
80
100
120
140
160
180
200
1990 1995 2000 2006
Years
Do
llar
in M
illio
n
Conclusion
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ConclusionProductIntroduction EconomyBusiness
EnvironmentBusiness
Regulations
Why would Dog Chow be Successful ?
Premium Pet foods see highest growth.
Focus on value-added products.
Relatively few companies dominate the pet food segment.
Pet superstores attract pet owners
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ProductIntroduction EconomyBusiness
EnvironmentBusiness
RegulationsConclusion
Future of Dog Chow
• Future challenge -- to convert pet owners at lower income
levels completely to commercially-produced Premium Pet
food .
• Increasing awareness through education on animal health.
• Mid- and economy priced segments increasingly look to
premium lines as a step towards innovation.
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