World Cup 2014 & Olympics 2016, The Possible Impacts
UNIVERSITI TEKNOLOGI MARA (UiTM)SHAH ALAMGLOBAL BUSINESS ISSUESFINAL GROUP PROJECTMBA 770
WORLD CUP 2014 & OLYMPICS 2016IN BRAZIL“THEPOSSIBLE IMPACTS “
PRESENTED BY:O AZILA GANIO HAJAR AHMEDYO NOOR SAIDATUL NATRAH SAAIDUNO SITI NORBAZLIN AHMAD MOHTARO TENGKU MOHD ZULKEFLI TENGKUNAWAWIO WAN EZZAH SALWA WAN YACOB
WHAT’S IN BRAZIL?O Brazil is making preparations for not one,but two major international events.O FIFA World Cup 2014O Olympics 2016.
HIGHLIGHTED ISSUESO Delays and cost overrunsO misled on where government money would bespentO budget of $13.3 billion was set for thetournament, with the majority of money to bespent on projects around the host cities.O Instead, a huge amount of the budget for thetournament has been used on building thestadiums
O Concern on the aftermathO several of these stadiums risk becoming whiteelephants because the huge stadiums theyconstructed are now rarely used.O Brazil might suffer the same drain on resourcesO total lack of planning and for sure, there will belast-minute contracts that further increase thecost for the construction
O Forced relocationO Many people in Rio have become worse offbecause of forced evictions for sports-relatedconstruction projects.O Many low-income settlements known asfavelas are set to be demolished and replacedby hotels and infrastructure designed toalleviate traffic congestion expected for theWorld Cup and the Olympics.
O Soar in transportationO variety of new infrastructure is being createdahead of the sporting event, such as newroads, bridges, an international airport andshopping centres.O Even if new mass transit is not fully functionalfor the World Cup or the Olympics, Brazilstransportation system will be substantiallyimproved for the long haul
O change their laws to match thegoverning bodys requirements.O laws involve along FIFA to avoid tax onearnings at the event and preventingbusinesses especially alcohol fromassociating with the tournament
O Has a lot attractivenessO Famous TourismO HotelO famous samba danceO and its world cup roles on winning for 5times
WORLD CUPO HISTORYO BRAZIL ARE THEMOST SUCCESFULWORLD CUP TEAM AND THE ONLYNATION TO HAVE PLAYED IN EVERYWORLD CUPO IN 2014, BRAZIL IS THE HOST
OLYMPIC IN RIOO HISTORYO GAMES PLAYED IN OLYMPICS SUCHAS:O TRACK AND FIELDO BADMINTONO GYMNASTIC
OPPORTUNITY FOR BRAZILO Economic stabilityO the International Monetary Fund and the World Bank, Brazilis the largest national economy in Latin America, theworld’s sixth largest by nominal GDP .O ensure Brazil to have adequate preparation regarding theirdevelopment of infrastructures, energy, transportations,development of hotel, labor force for the construction,compensation for the people and others.O Halal food marketO The availability of Halal food restaurants will attract thetourists especially Muslims to come and watch thetournaments at Brazil.
O Energy, railways, transportation and ITO the Government of Brazil will spend around US$470 billion in the development of the country’senergy generation and distribution system,roads, railroads, ports and airports as well asstadiums as it prepares for the World Cup in2014 and the Olympics in 2016.O IT end-user spending in Brazil is expected togrow to $134 billion in 2014. The largest share ofspending will be on telecom equipment,representing 72% of the market, followed by ITservices at 13.3% and computing hardware at11.9%.
O Strong agriculture sectorO It is the worlds number one producer andexporter of coffee, ranks seventh insoybeans and rice; sixth in tomatoes, sweetpotatoes and peanuts; fifth in jute; fourth intobacco and cotton; second in sisal, canesugar, cacao, corn and oranges.O Land extensionO give benefits in terms of economic byencouraging more investors to come.
O Tourism sectorO The attractive tourism sector in Brazil hasencouraged the development ofaccommodation and hotel networks.O Due to the availability of hotel industry, thegovernment not needs to put much effort forthe development of hotel industry toaccommodate them.O BroadcastingO Brazil has taken steps to optimize theeconomic value of these high-profile events bysafeguarding the interests of broadcasters andsponsors.
MARKET RISKO Security and criminal casesO Brazil’s government pledged to curb the violence,and major strides have been made in recent years,particularly in Rio, where the police are nowpresent in more than 200 hillside “favela” slums.O CorruptionO ranked as number 80 of 180 countries onTransparency Internationals Corruption PerceptionIndex for 2008.O there are still risks of corruption incidents whichmay lead to illegal actions, with severeconsequences for the companies and personsinvolved.
O Health care systemO The scale of criminal misconduct iswidespread and includes shopping, over-billings and cheating the system by hiring thesame doctor in 17 different practicessimultaneously.O The other main problem of healthcare systemin Brazil is the lack of doctors and the longwaiting times in order to be seen or get anappointment
O Traffic jamO Brazils biggest city entangled itself in arecord traffic jam, highlighting how thecountrys infrastructure has failed to keeppace with economic growth.O This is due to the metropolitan area of 20million people where an expanding middleclass means that more than 900 newvehicles hit the streets every day.
O Economics ImpactsO high hopes in terms of employment ratesO Around 120,000 jobs per year are expected tobe created as a consequence of the Games until2016, and then a further 130,000 jobs per yearuntil 2027 according to research by the Ministryof Sport.O Tourism ImpactsO Adding the two events, tourism is expected tomore than double to 3.3 billion visitors everyyear
O Social ImpactsO Tenants are usually the most affected by themega-events projects because of their limitedhousing rights.O Infrastructure ImpactsO Investment in roads and public transport areoften the largest part of the event budget.O Improved and expanded underground lines,new buses, roads and the new trafficengineering linked to the renovation andconstruction of roads have a great distributionaleffect
O Cultural ImpactsO infrastructure investments in Brazil will be adriving force for economic growth in thelonger termO The country will take quite a few stepstowards modernization, become moreefficient and lure increased foreigninvestment
CONCLUSIONO the nation has been selected to host the 2014 World CupSoccer Championship as well as the 2016 Summer Olympics.O a major investment opportunities in Brazil, is expanding andupgrading infrastructure especially in major internationalsports eventsO the International Monetary Fund (IMF) predicts that Brazil willoutperform nearly all other Latin American nations.
REFERENCESO Andrew Zimbalist. Can Brazil build the massive infrastructure it needs tohost the Olympics and the World Cup? Retrieved fromhttp://www.americasquarterly.org.OO DeMaiolo, D., Galati, R., James, R., Foraker, S. and AJ DiRienzo (2008).International Marketing Communication Plan for Harley DavidsonMotorcycles in Brazil.OO Helen Trouten Torres (2011). Rio’s World Cup and Olympic Legacy:Infrastructure. Retrieved from http://riotimesonline.com/brazil-news/rio-politics/rios-world-cup-and-olympic-legacy-infrastructure/#.OO Sakariya S. Country Analysis of Brazil. Retrieved fromhttp://www.scribd.com/doc/.OO Will Brazil be left counting the cost of hosting the World Cup andOlympics? News Global Development. Retrieved fromhttp://www.guardian.co.uk/.