Brazil - Pestl Analysis and Swimwear Industry Review Essay
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| RESEARCH ASSIGNMENT | Brazil: Swimear & Surfwear | | Warwick Brown (87354922) | |
Contents EXECUTIVE SUMMARY 1 SITUATION ANALYSIS 1 POLITICAL 1 ECONOMIC 2 SOCIAL 3 TECHNOLOGICAL 5 LEGAL 6 ENVIRONMENTAL 7 THE SWIMWEAR INDUSTRY 8 BRAZILIAN BRANDS 9 AUSTRALIAN BRANDS 10 MARKET ENTRY STRATEGIES 12 EXPORT 12 JOINT VENTURE 12 DIRECT INVESTMENT 13 PREFERRED STRATEGY 13 APPENDIX 15 BIBLIOGRAPHY 16
Brazil is the largest economy in South America, with GDP of $US 1,314 billion and a population of 192 million. It is also one in which there is enormous inequality of wealth distribution, which presents challenges for the government, and the economy. Largely…show more content… cotton growers. (Klapper 2009).
Reducing poverty is a major initiative of the Lulu administration. Income distribution in Brazil is one of the most unequal in the world. In 1989 it ranked second, in 2006, it ranked tenth. (Matins-Bekat and Kulkarni 2009). Standards of living have been lifted through economic stabilisation and social programs, such as Bolsa Família (Family Fund Program) which provides support to parents to feed, clothe, educate and care for their children.
Corruption is a continuing problem with the divide between rich and poor, and the high levels of crime. In Transparency Internationals’ annual Corruption Perception Index, in 2008 Brazil ranked 80 (with the 1st ranking being the least corrupt) out of 180 countries. (Transparency International n.d.). The Government itself is the target of corruption accusations. For example, the Senate has only 81 members, but is supported by a staff of more than 10,000 – with benefits such as health insurance, generous pensions and housing allowances, leading to claims of nepotism. Police are currently investigation more than 660 acts that have been passed since 1995 that have awarded jobs and pay rises to members of staff, and four Senate Presidents in the last 8 years have been embroiled in scandals. (The Economist 2009)
With a population of 192 million, Brazil is Latin America’s largest economy and the world’s 10th largest with a GDP