project on Brazil related to the swot analysis and pestle analysis , history of Brazil opportunity threats product HISTORY OF BRAZILand so on

1. MINI PROJECT OF
BUSINESS ENVIRONMENT
 SUBMITTED TO
SWATI HALANI MAAM
 COUNTRY SELECTED
BRAZIL
 ENROLLMENT NO
ARPAN SINGH 201704100710038
ANIKETMALI 201704100710009
INTRODUCTION
BRAZIL OFFICIALLYTHEFEDERATIVEREPUBLIC OF AND LATIN
AMERICA. AS THE WORLD’S FIFTH LARGESTCOUNTERYBY AREA AND SIXTH BY
POPULATION. ITIS THELARGESTCOUNTRY TO HAVE PORTUGUESEAS AN
OFFICIAL LANGUAGEAND THEONLYONE INTHE AMERICANS. BOUNDED BY
THE ATLANTIC OCEANON THE EAST, BRAZIL HAS A COASTLINEOF 7491

2. KILOMETERS ITBORDERS ALL OTHERSOUTH AMERICANCOUNTRIES EXCEPT
ECUADORAND CHILEAND COVERS 47.3% OF THECONTINENT’S LAND AREA.
ITS AMAZONRIVERBASININCLUDES A VASTTROPICAL FOREST, HOMETO
DIVERSEWILDLIFE, A VARIETYOF ECOLOGICAL SYSTEMS AND EXTENSIVE
NATURAL RESOURCES SPANNING NUMEROUS PROTECTED HABITATS. THIS
UNIQUEENVIRONMENTAL HERITAGEMAKES BRAZIL ONEOF 17 MEGA
DIVERSECOUNTRIES AND IS THESUBJECTOF SIGNIFICANT GLOBAL INTERST
AND DEBATE REGARDING DEFORESTATIONAND ENVIRONMENTPROTECTION.
BRAZIL IS ALSO FAMOUS FORSOCIO CULTURAL ENVIRONMENTAND ITS
HERITAGES LIKESTATUEOF CHRISTTHEREDEEMER.
BRAZIL IS A MEMBER OF THE COMMEN MARKET OF THE SOUTH.CAPITAL CITY
OF THE BRAZIL IS BRASILLIA.CURRENCYOF THEBRAZIL IS BRAZILIANREAL
(BRL).MOSTOF THE BRAZIL COUNTRYARE SPEAKING PORTUGUESE.GDP PER
CAPITA IS 15128(2016).EASYOF DOING BUSINESS REANK 123 OUTOF 190
(2016).
THE WARM WEATHER AND MOSTLYTROPICAL CLIMATEALLOWS BRAZIL TO
PRODUCEMANY PRODUCTS WHICH AREEXPORTED ALL OVER THE WORLD
TODAY. SUGARCANE AND COFFEEPLANTATIONSYNONYMOUS WITH BRAZIL
AS WELL AS WELL RENWNED FROITES SUCH AS ORANGES, BANANAS AND
MANGOES ARE GROWENAND EXPORTED WORLDWIDE. BRAZIL ISRECOGNIZED
AS THE LARGESTPRODUCEROF COFFEEINTHE WORLD.

3. DEMOGRAPHIC PROFILE
BRAZIL population is very diverse,comprising many races
and ethnic groups. In general, Brazilians trace their origins from five
sources: Europeans,Amerindians, Africans, Levantines, and East
Asians
Brazil has conducted a periodicalpopulation census since 1872.Brazil is
widely known to be one of the most diverse countries in the world. Since
1940,this census has been carried out decennially. Scanned versions of
the forms for each census distributed in Brazil since 1960 are available
on-line from IPUMS International
Historically, Brazil has experienced large degrees of ethnic and racial
admixture, assimilation of cultures and syncretism.
Regionaldifferences
In some states in the North and Northeast, the fertility rate was higher
than the national average in 2015.The highest rate was in Acre, with
2.35 children per woman Other regions with high fertility include Amapá,
with 2.28 children per woman, Amazonas, 2.25 in Roraima, 2.22,
in Maranhão, 2.17, and Pará, 2.13.
On the other hand, São Paulo is the state with the lowest rate, 1.38
children per woman. Other states with low fertility include, Santa
Catarina, with 1.45, Rio Grande do Sul, 1.50, in Rio de Janeiro, 1.55
in Paraná and Minas Gerais 1.59.
Childlessness and education
The colour or race of the woman and the level of education has also
shown to influence the fact of not having children. In 2013,among white
women aged 15 to 49 years, 41.5% had no children, while among black
women, the percentage was 35.8%.
The proportional differenceis even greater among white women
compared to black 25–29 years. While the proportionamong white
women childless was 48.1% among black women was 33.8%.
Regarding education, among women 15–49 years of age with more than
eight years of schooling, 44.2% had no children in 2013,while among
those with up to seven years of study this figure was 21.6%.
Schooling among women 25–29 years has shown an even greater
disparity. Among the less educated,16.3% had no children, while
among the more educated 54.5% had no children The proportionof
women aged 45 to 49 without children was 8.2% in 2013 among those

4. with less education and 15.1% among those with more years of
schooling.
Emigration
In the second half of the 1980s,Brazilians from various socioeconomic
levels started to immigrate to other countries in search of economic
opportunities.
In the 1990s,nearly 1.9 million Brazilians were living outside the country,
mainly in the United States, Paraguay and Japan, but also in Italy,
Portugal, the United Kingdom,France, Canada, Australia, Switzerland,
Germany, Belgium, Spain and Israel. However, there were no specific
policies implemented bythe governmentto encourage or discourage this
emigration process.
The 2000 Brazilian Census provides some information about the high
number of migrants returning to Brazil. Of those who reported residing in
another country less than 10 years before the 2000 census,66.9 percent
were Brazilians. If only the returning migrants (formerBrazilian
immigrants) are considered,26.8 percent of Brazilians came from
Paraguay, 17 percent came from Japan, and 15.8 percent came from
the United States.
Black Brazilians
Black Brazilians are defined as people who are solely, or mostly,
descended from formerAfrican slaves, or immigrants. According to the
2010 census,there are 14,517,961 Afro Brazilians, which make up
7.61% of Brazil's population, although a larger number of Brazilians have
some degree of African ancestry.
Asian Brazilians
According to the 2006 census,people of East Asian descentnumber
1,919,000,or 1.1% of Brazil's population. Estimates say that there are
2.5 to 3.0 million people of Japanese descent in Brazil, who are mostly
concentrated in two states: São Paulo and Paraná, but smaller
communities are found in the entire territory of the country. Brazil has
the largest population of Japanese descentoutside Japan
There are also smaller communities of Korean people and Chinese
origin.

5. GENRAL ECONOMIC &INDUSTRIES OVERVIEWS
The Economyof Brazil is the world's
ninth largest economyby nominal GDP and eighth largest by purchasing
power parity. The Brazilian economyis characterized by a mixed
economythat relies on import substitution to achieve economic growth.
Brazil has an estimated US$21.8 trillion worth of natural resources which
includes vast amounts of gold,uranium, iron, and timber.

6. As of late 2010,Brazil's economyis the largest of Latin Americaand the
second largest in the Americas. From 2000 to 2012,Brazil was one of
the fastest-growing major economiesin the world, with an average
annual GDP growth rate of over 5%, with its economyin 2012
surpassing that of the United Kingdom,temporarily making Brazil the
world's sixth largest economy.However, Brazil's economygrowth
decelerated in 2013and the country entered a recessionin 2014.In
2017,however, the economystarted to recover, with a 1% GDP growth
in the first quarter. In the second quarter, the economygrowth 0.3%
compared to the same period of the previous year, officiallyexiting the
recession.
According to the World Economic Forum, Brazil was the top country in
upward evolution of competitivenessin 2009,gaining eight positions
among other countries, overcoming Russia for the first time, and partially
closing the competitiveness gap with India and China among
the BRIC economies.Important steps taken since the 1990s toward
fiscal sustainability, as well as measures taken to liberalize and open the
economy,have significantly boostedthe country's competitiveness
fundamentals, providing a better environment for private-sector
development.
In 2012 Forbes ranked Brazil as having the 5th largest number of
billionaires in the world, a number much larger than what is found in
other Latin American countries, and even ahead of United Kingdom and
Japan.Brazil is a memberof diverse economic organizations, such
as Mercosur, Unasul, G8+5,G20, WTO,and the Cairns Group.
Sustainable growth
Portuguese explorers arrived in 1500,but it was only in 1808 that Brazil
obtained a permit from the Portuguese colonial government to set up its
first factories and manufacturers. In the 21st century, Brazil reached the
status of 8th largest economyin the world. Originally, the exports were
basic raw and primary goods,such as sugar, rubber and gold. Today,
84% of exports are of manufactured and semi-manufactured products.
The period of great economic transformation and growth occurred
between 1875 and 1975.
In the last decade,domestic productionincreased by
32.3%.Agribusiness (agriculture and cattle-raising), which grew by 47%
or 3.6% per year, was the most dynamic sector – even after having
weathered international crises that demanded constant adjustments to
the Brazilian economy The Brazilian government also launched a
program for economic developmentacceleration called Programa de
Aceleração do Crescimento,aiming to spur growth.

7. Brazil's transparency rank in the international world is 75th according
to Transparency International.
Controland reform
Among measures recently adopted to balance the economy, Brazil
carried out reforms to its socialsecurity (state and retirement pensions)
and tax systems.These changes brought with them a noteworthy
addition: a Law of Fiscal Responsibilitywhich controls public expenditure
by the executive branches at federal,state and municipal levels. At the
same time, investments were made towards administration efficiency
and policies were created to encourage exports, industry and trade, thus
creating "windows of opportunity" for local and international investors
and producers.
With these alterations in place, Brazil has reduced its vulnerability: it
doesn'timport the oil it consumes;it has halved its domestic debt
through exchange rate-linked certificates and has seen exports grow, on
average, by 20% a year. The exchange rate does not put pressure on
the industrial sectoror inflation (at 4% a year), and does away with the
possibilityof a liquidity crisis. As a result, the country, after 12 years, has
achieved a positive balance in the accounts which measure
exports/imports,plus interest payments, services and overseas
payment. Thus, respectedeconomists say that the country won't be
deeplyaffected by the current world economic crisis.
In 2017,President Michel Temerrefuses to make public the list of
companies accused of "modernslavery". The list, made public since the
presidencyof Lula Da Silva in 2003,ad to oblige companies to settle
their fines and to conform to the regulations in a country where
corruption of the political class by the private sectorwould have risked to
compromise the respectforthe law. The relations of the president-in-
office with the "landowner lobby" were denounced by the dismissed
president Dilma Rousseff on this occasion.
Consistentpolicies
Support for the productive sectorhas been simplified at all levels; active
and independent, Congress and the Judiciary Branch carry out the
evaluation of rules and regulations. Among the main measures taken to
stimulate the economyare the reduction of up to 30 percenton
manufactured products tax (IPI), and the investment of $8 billion on road
cargo transportation fleets,thus improving distribution logistics.Further
resources guarantee the propagationof business and information
telecasters.

8. The policy for industry, technology and foreigntrade, at the forefrontof
this sector,for its part, invests $19.5 billion in specificsectors,following
the example of the software and semiconductor,pharmaceutical and
medicine product, and capital goods sectors.
Mergers and acquisitions
Between 1993 and 2010,7.012 mergers & acquisitions with a total
known value of US$707 billion with the involvement of Brazilian firms
have beenannounced. The year 2010 was a new record in terms of
value with $115 billion of transactions. The largest transaction with
involvement of Brazilian companies has been: CIA Vale do Rio
Dace acquired Inco in a tender offervalued at $18.9 billion.
Income
Brazil is a country with extreme differencesin wages. Members of the
national congress make R$33,700 permonth, plus an additional 13th
salary, totalling R$444,800per year (USD 140,000),but most of the
population only makes minimum wage set for the year of 2017 at R$937
per month plus an additional 13th salary in the second half of December,
totalling R$12,181 peryear (around USD 4,000),which is 35 times less
than national politicians. The GDP per capita in 2011 was US$12,906.
OVERVIEW OF DIFFERENTECONOMICS SECTORS OF BRAZIL COUNTRY
Brazil's major economic sectors are all well developed.The agricultural
sectorof Brazil represented alarger percentage of the gross domestic
productthan industry until 1945.At that time, the government supported
industrialization and direct investment in industry, with subsidies and
trade protectionfor Brazilian industrial products. Industry was almost 3
times more valuable than agriculture as a percentage of gross domestic
productby 1999.In the agriculture sector,Brazil is one of the world's
largest producers of soybeans and coffee.

9. International competitors watch Brazil's weather to determine the
success ofthe soybeanand coffee season,setting international prices
based on Brazil's harvest. The agriculture sectorrepresented 8.4
percentof the gross domestic productin 1999 and employed 31 percent
of the workforce.
The government uses import taxes to protect many Brazilian industries
against international competition.These industries include textiles,
shoes,chemicals, cement,lumber, iron ore, tin, steel,aircraft,
motor vehicles and parts, and other machinery and equipment.
The footwear industry is the mostimportant finished good exported from
Brazil. Government-owned Petrobras and Brazilian Aeronautics
Enterprise are important companies headquartered in Brazil that
produce oil and aircraft, respectively.The industrial sector represented
31.7 percentof the gross domestic productin 1999. Twenty-
seven percent of the employed workforce was in the industrial sector.
The third most important developed sectorof the Brazilian economyis
the services sector.It represented59.9 percent of the gross domestic
productin 1999.Tourism has increased rapidly with an estimated 4.82
million foreigntourist arrivals and receipts of US$3.68 billion from foreign
tourists in 1998.This representedan increase from 2.67 million foreign
tourist arrivals and receipts of US$2.47 billion in 1996.Forty-two percent
of the employed working force was in the service sector.
FOOTWEARSECTOR
Brazil has, as of 2014, thethird largest footwear industry in the world, trailing
behind China and India. Even though its production was impacted by the
Chinese industry and changes in the United States market, Brazil is still the
most importantfootwear producer outside of Asia. Itis responsiblefor 4.6% of
the world’s production, which amounted to production of nearly 900 million
pairs in 2013. For the sakeof comparison, China produced 13 billion pairs and
India produced 1.2 billion.
 Its world renowned reputation, especially relating to the high quality and
Relatively cheap leather
 Price of Asian footwear is gradually rising
 Expansion of Brazilian footwear market to new countries.
AGGERICULTURE SECTORS: The agriculture of Brazil is historically
one of the principal bases of Brazil's economy.While its initial focus was
on sugarcane, Brazil eventually became the world's largest exporter of
coffee, soybeans,beef,and crop-basedethanol. As of 2009 Brazil had

10. about 106,000,000 hectares (260,000,000 acres)of undeveloped fertile
land – a territory larger than the combined area of France and Spain.
According to a 2008 IBGE study, despite the world financial crisis, Brazil
had record agricultural production, with growth of 9.1%, principally
motivated by favourable weather. The productionof grains in the year
reached an unprecedented145,400,000 tons. That record output
employed an additional 4.8% in planted area, totalling 65,338,000
hectares and producing $148 billion Reals. The principal products were
corn (13.1% growth) and soy (2.4% growth).
The southern one-half to two-thirds of Brazil has a semi-temperate
climate, higher rainfall, more fertile soil, more advanced technologyand
input use, adequate infrastructure and more experiencedfarmers.This
region produces mostof Brazil's grains, oilseeds(and exports).
The drought-ridden northeast region and Amazon basin lack well-
distributed rainfall, good soil, adequate infrastructure and development
capital. Although mostly occupied by subsistence farmers,both regions
are increasingly important as exporters of forestproducts,cocoaand
tropical fruits. Central Brazil contains substantial areas of grassland.
Brazilian grasslands are far less fertile than those of North America, and
are generally suited only for grazing.
Cementand minerals markets
Brazil’s national mining association, Institute Brasileiro de Mineração
(IBRAM), estimates that the value of mineral productionin the country in
2013 was US$44 billion, compared to US$48 billion in 2012.IBRAM
expects the value of mineral productionto decline further in 2014,
dropping by around US$1 billion to US$43 billion. However, IBRAM’s
2012 – 2022 forecastpredicts long-term growth for the aggregates
industry, boostedby preparations for the World Cup and Olympics.As
such, demand foraggregates,sand and gravel is expected to rise from
696 million t to 1.12 billion t over the forecastperiod.
Meanwhile, preliminary results from the Syndicator National da Industrial
do Cement (SNIC) indicate that some 70 million t of cementproduced in
the country was sold on the domesticmarket in 2013,up 2.4% y/y.
Although domestic cementsales volumes in the final month of 2013
remained in line with December2012 levels, the first two months of 2014
have experienced year-on-year growth. In January this year, preliminary
figures put total sales on the national market at approximately 5.91
million t, 6.8% higher than in January 2013.February saw domestic
sales rise from 5.075 million t in 2013 to an estimated 5.626 million t in

11. 2014.Accumulated sales on Brazil’s national market increased by 8.7%
y/y to 11.5 million t in January – February 2014.
GENRAL OVERVIEW OF TRADEAND COMMERCE
 The EU is Brazil's first trading partner, accounting for
19.6%% of its total trade, and Brazil is the EU’s eleventh
trading partner, accounting for 1.7% of total EU trade
(2016).
 EU imports from Brazil are dominated by primary
products, in particular foodstuffs, beverages and tobacco
products (18.2% of EU imports from Brazil), followed by
vegetable products (17.9%) and mineral products
(16.3%).
 Brazil is the single biggest exporter of agricultural
products to the EU worldwide.
 EU's exports to Brazil consist mainly of machinery and
appliances (25.7%), chemical products (24.4%), and
transport equipment (18.1%).
 The EU is the biggest foreign investor in Brazil with
investments in many sectors of the Brazilian economy.
The EU had 48.5% of its Latin American investments in
Brazil in 2015.

12. List of items that are imported and exported
IMPORT
1. Machinery including computers: US$21.1 billion (15.4% of
total imports)
2. Electrical machinery, equipment: $16.9 billion (12.3%)
3. Mineral fuels including oil: $15.1 billion (11%)
4. Vehicles: $10 billion (7.2%)
5. Organic chemicals: $8.3 billion (6.1%)
6. Pharmaceuticals: $6.4 billion (4.6%)
7. Fertilizers: $6 billion (4.4%)
8. Plastics, plastic articles: $5.9 billion (4.3%)
9. Optical, technical, medical apparatus: $4.8 billion (3.5%)
10. Other chemical goods: $3.8 billion (2.8%)
EXPORT
1. Oil seed: US$19.6 billion (10.6% of total exports)
2. Ores, slag, ash: $15.8 billion (8.5%)
3. Meat: $12.7 billion (6.8%)
4. Machinery including computers: $11.6 billion (6.3%)
5. Mineral fuels including oil: $11.6 billion (6.3%)
6. Vehicles: $11 billion (5.9%)
7. Sugar, sugar confectionery: $10.6 billion (5.7%)
8. Iron, steel: $7.9 billion (4.3%)
9. Wood pulp: $5.6 billion (3%)
10. Food industry waste, animal fodder: $5.5 billion (3%)

13. PESTEL ANALYSIS OF BRAZIL
Political Factors
The government is proactive and stable and there is no political
instability in the country at the moment. However, for how long?
This is something which cannot be predicted, as the modern
history of Brazil indicates things can change overnight, especially
during elections, as the political situation tends to heat up a great
deal.
Corruption still remains a big issue in the country and it’s
worsening. It has escalated to the extent that even openinga small
business (at times) may require you to make payments to
government representatives and officials. According to a survey by
Transparency International, Brazil is ranked 72nd out of 180
countries when it comes to corruption. This is even higher than
economies like Turkey, Bulgaria and Cuba.
Economic Factors
Thanks to a large population and FDI inflow, Brazil’s potential for
growth is extremely high. There is a substantial trend of a growing
middle-class and the gap between the rich and poor is declining
steadily. Additionally, the Central Bank has successfully reduced
the risk of currency devaluation and has also brought inflation
under control. However, when it comes to the dollar, the currency
is considered to be overvalued, which is adversely affecting the
exports of the country. Both domestic and foreign enterprises are
treated equally and labour costs are considerably low. For import
duties, a system is in position, whichgraduallydecreases the tariff
depending on the amount of successful importing years.
Furthermore, the corporate tax is set at 15% and there are no
incentives for leaving profits in the country. Compared to other
economies, such as Greece and Ireland, the tax rates are
considerably high.
Social Factors
Next up in PEST analysis come the social factors. There is economic
inequality with the population as around 20% of the population
lives underthe povertyline. Lookingat the class distribution, there
are a considerable numberof wealthycitizens and a huge segment
of people with minimal incomes. The middle class is growing.
However, there is still time for it to establish. In addition,

14. Brazilians are up-to-date in the fashion world and are considered
modern, as they are aware of big brands and are keen to buy
expensive and luxurious products. The country hosted the FIFA
World Cup 2014 and a majority of the population has a keen
interest in football.
Technological Factors
Compared to countries like the US and Russia, Brazil possesses a
weaker technological infrastructure, as well as investment, but
there are efforts beingmade to push the developmentof technology
centres all overthe country. However, IT is a sector in which Brazil
has been constantly improving and it currently ranks 53rd in the
world.
LEGAL
 Civil code
 Most common types of companies
1. The corporation
2. Limit liability quotas company
 Companies are treated as separate legal personalities
 Creditors are generally not able to seize partner assets to pay
off debts
 Registration on foreign investment in media, finance ,
insurance and public health
 Legislation varies across states thus increases complexity
and compliance costs
 Although senate suggested tax reform , 33% of GDP is tax
 It takes 120 days to open a business.
ENVIRONMENTAL
 Environmental policies to stop deforestation and emission
 Compelled industries to initiate eco-friendly combustion
technique
 According to Kyoto protocol Brazil is one of the largest
emitters of greenhouse gases.

16. SWOTANALYSIS OF COUNTRY
STRENGTHS
 OPTIMISMABOUTTHEFUTURE
 HIGH POPULATION
 OIL RESOURES COAST
 STABLE GOVERNMENTFINANCES
 MORE NORMAL INTERESTRATES AND CURRENCY
 INDUSTRYTURNING AROUND
 FOREIGNAID
 PRESIDENTROUSSEFF’S ECONOMIC MANAGEMENT
 BANK OF AMERICA INVESTING IN BRAZIL
 NATURAL SUGARCANE HEDGE
WEAKNESSES
 LACK OF INVESTMENTININDUSTRY
 POORRAILWAYNETWORK
 INEFFICIENTTAX SYSTEM
 INCOMEINEQUALITY
 HIGH BUSINESS COSTS
 CORRUPTION
 INFRASTUCTERINVESTMENTS INBRAZIL
 TIGHTLABORMARKETS
OPPORTUNITIES
 GDP GROWTH IS EXPECTED TO ACHIEVE7%
 GEOWING MIDDLECLASS
 LEGISLATIONWAS INTRODUCED IN2014 TO ENCOURAGEFOREIGN
INVESTMENTINBRAZIL FARMLAND
 POSITIVEDISCRIMINATIONFORBLACKS
 PEAK OIL SUPPLY
 OIL DISCOVERY
 HYDROELECTRICITY
 Infrastructure
 SERVICES,TOURISM
 E-COMMERCE AND M-COMMERCE

17. THREATS
 EXPORTDRIVENECONOMY
 GLOBAL ECONOMIES CONTINUETO STRUGGLE
 DIFFICULTIES INDOING BUSINESS
 LACK OF INVESTMENTS FROMLOCAL COMPANIES AND FROM
GOVERNMENTS INLOCAL INFRASTRUCTURE
 COLOMBIANTERRORITKIDNAPPING AROUND BORDER
 VERY HIGH INTERESTRATES

18. FINDINGS AND CONCLUSION
 FINDINGS
1. Tourismin Brazil is a growing sector and key to the economy of
severalregions
2. Brazil is the world’s 9 largesteconomy by nominal GDP
3. Brazil has been the world’s largestexporter of coffee for more
than 150 years
4. The Amazon River is the world’s largestby volume of water
discharged
5. Rio de Janeiro became a world heritage site in 2012
6. In 2012 Forbes ranked Brazil as having the 5th largest
number of billionaires in the world
7. Brazil as of 2014,the largest footwear industry in the world.
Traveling behind India and china.
CONCLUSION
We conclude that Brazil have many opportunity in many sector. Brazil has
widest country by area, industry, by population.
Brazil is still considered as developing country due to its low GDP per capita,
low GDP per capita, low living standards, high infantmortality rate and other
factors.
A Brazilian’s life expectancy, at 74 years, ranks higher than of most developing
countries but falls well shortof 80, which is the averagefor developed nations.