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AN INTERNATIONAL PERSPECTIVE

BRAZIL – COUNTRY CHARACTERISTICS

PRESENTED BY : GROUP – 6ANAND MAHESHWARI

SMITI KHATTARANKITA NANDWANI

ANUPMA CHAUDHARYMANISH MISHRAUPASANA NAGPAL

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Introduction

With a population of 178 million, Brazil represents the fifth largest market opportunity in the world — after China, India, Indonesia and the USA.

The most pervasive barrier encountered by the unwary traveller would be the ‘Custo Basil’.

This term refers to the very real extra costs of doing business in Brazil — corruption, governmental inefficiency, legal and bureaucratic complications, excessive taxation, poor infrastructure, inflation etc.

Although this ‘cost’ is difficult to define, it is real and the cause of great frustration for international business

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Due to this ‘Custo Brasil’, it is important to work closely with local lawyers and accountants.

Many people have found the services of local middlemen extremely useful in overcoming many of the unfathomable local complexities.

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Facts & Stastics

Location:  Eastern South America bordering Argentina 1,224 km, Bolivia 3,400 km, Colombia 1,643 km, French Guiana 673 km, Guyana 1,119 km, Paraguay 1,290 km, Peru 1,560 km, Suriname 597 km, Uruguay 985 km, Venezuela 2,200 km

Capital:   Brazilia Climate:  mostly tropical, but

temperate in south Population:  184,101,109 Ethnic Make-up: white (includes

Portuguese, German, Italian, Spanish, Polish) 55%, mixed white and black 38%, black 6%, other (includes Japanese, Arab, Amerindian) 1%

Religions:  Roman Catholic (nominal) 80%

Government:  federative republic

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Some Facts

Fun FactNearly 50 percent of the population is under

twenty years of age. Despite massive economic problems, Brazil is

often regarded as a potentially rich country with a strong industrial sector, large agricultural production, and rich natural resources.

An example of its potential for efficient utilization of resources is its processing of sugarcane into ethyl alcohol for fueling 1.5 Million Brazilian cars.

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Languages in Brazil

Language is one of the strongest elements of Brazil's national unity Many senior and middle ranking Brazilian business executives speak

excellent English and in fact many of them may have studied abroad in the USA or UK. However, English is by no means universally spoken and when dealing with people outside the major commercial centres

Portuguese is spoken by nearly 100 percent of the population. Try to avoid using Spanish as this can be seen as culturally insensitive. Brazilians are proud of their uniqueness in South America as non-Spanish speakers

There is about as much difference between the Portuguese spoken in Brazil and that spoken in Portugal as between the English spoken in the United States and that spoken in the United Kingdom.

Within Brazil, there are no dialects of Portuguese, but only moderate regional variation in accent, vocabulary, and use of personal nouns, pronouns, and verb conjugations.

Variations tend to diminish as a result of mass media, especially national television networks that are viewed by the majority of Brazilians.

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Business Structure

As with most South American countries, Brazilian companies will tend to be organised along strictly hierarchical lines with information flowing in a very structured way up and down the various chains of command, where all key decisions will be made at the most senior levels of an organisation

Relationships are of key importance in this Latin culture and the boss and subordinates work hard to foster a relationship based on trust and respect for personal dignity. Time spent working on the development of long-term friendly relations is never a waste of resource.

Brazilians use a great deal of body language, stand at relatively close proximity and have strong levels of eye contact.

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Brazilian Society and Culture

Brazilian Diversity Brazil is a mixture of races and ethnicities, resulting in rich diversity. Many

original Portuguese settlers married native women, which created a new race, called 'mestizos'. 

'Mulattoes' are descendents of the Portuguese and African slaves. Slavery was abolished in 1888, creating over time a further blurring of racial lines.

Unlike many other Latin American countries where there is a distinct Indian population, Brazilians have intermarried to the point that it sometimes seems that almost everyone has a combination of European, African and indigenous ancestry

Brazilian Family Values The family is the foundation of the social structure and forms the basis of

stability for most people. Families tend to be large (although family size has been diminishing in recent years) and the extended family is quite close.

The individual derives a social network and assistance in times of need from the family. 

Nepotism is considered a positive thing, since it implies that employing people one knows and trusts is of primary importance. 

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Brazilian Class System

Despite the mixing of ethnicities, there is a class system in Brazil. Few Brazilians could be described as racist, although social discrimination on the basis of skin colour is a daily occurrence.

In general, people with darker brown skin are economically and socially disadvantaged. 

The middle and upper classes often have only brief interaction with the lower classes - usually maids, drivers, etc. 

 Class is determined by economic status and skin colour.  There is a great disparity in wage differentials--and therefore lifestyle

and social aspirations--among the different classes.  Although women make up 40% of the Brazilian workforce, they are

typically found in lower paid jobs such as teaching, administrative support, and nursing. 

The 1988 constitution prohibits discrimination against women, but inequities still exist. The one place where women are achieving equality is in the government.

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Etiquette and Customs in Brazil

Meeting Etiquette

• Men shake hands when greeting one another, while maintaining steady eye contact.  

• Women generally kiss each other, starting with the left and alternating cheeks. 

• Hugging and backslapping are common greetings among Brazilian friends.

• If a woman wishes to shake hands with a man, she should extend her hand first.

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Gift Giving Etiquette

• If invited to a Brazilian's house, bring the hostess flowers or a small gift. 

• Orchids are considered a very nice gift, but avoid purple ones. 

• Avoid giving anything purple or black as these are mourning colours. 

• Handkerchiefs are also associated with funerals, so they do not make good gifts. 

• Gifts are opened when received.• If you did not bring a gift to the hostess, flowers the next

day are always appreciated.

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Dining Etiquette

• Arrive at least 30 minutes late if the invitation is for dinner. • Arrive up to an hour late for a party or large gathering. • Business meals can be lengthy affairs• Brazilians dress with a flair and judge others on their

appearance. • Casual dress is more formal than in many other countries. • Always dress elegantly and err on the side of over-dressing

rather than under- dressing.• All food is eaten with a fork. Don’t use your fingers as this is

considered bad form.

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Business Etiquette and Protocol in Brazil

Relationships & Communication

• Brazilians need to know who they are doing business with before they can work effectively.

• Brazilians prefer face-to-face meetings to written communication• The individual they deal with is more important than the company. • Since this is a group culture, do not do anything to embarrass a

Brazilian.• Criticizing an individual causes that person to lose face with the

others in the meeting. • Person making the criticism also loses face, as they have disobeyed

the unwritten rule. • Communication is often informal and does not rely on strict rules of

protocol. Anyone who feels they have something to say will generally add their opinion.

• It is considered acceptable to interrupt someone who is speaking.• When it comes to business agreements, Brazilians insist on drawing

up detailed legal contracts.

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Business Negotiation

• Expect questions about your company since Brazilians are more comfortable doing business with people and companies they know. 

• Wait for your Brazilian colleagues to raise the business subject. Never rush the relationship- building time. 

• Brazilians take time when negotiating. Do not rush them or appear impatient. • Expect a great deal of time to be spent reviewing details. • Often the people you negotiate with will not have decision-making authority.• It is advisable to hire a translator if your Portuguese is not fluent.• Use local lawyers and accountants for negotiations. Brazilians resent an outside legal presence. • Brazilian business is hierarchical. Decisions are made by the highest-ranking person. • Brazilians negotiate with people not companies. Do not change your negotiating team or you

may have to start over from the beginning.

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Business Meeting Etiquette

• Business appointments are required and can often be scheduled on short notice; however, it is best to make them 2 to 3 weeks in advance. 

• Confirm the meeting in writing. It is not uncommon for appointments to be cancelled or changed at the last minute. 

• In Sao Paulo and Brasilia it is important to arrive on time for meetings. In Rio de Janeiro and other cities it is acceptable to arrive a few minutes late for a meeting. 

• Do not appear impatient if you are kept waiting. Brazilians see time as something outside their control and the demands of relationships takes precedence over adhering to a strict schedule.

• Meetings are generally rather informal. • Expect to be interrupted while you are speaking or making a presentation.• Avoid confrontations. Do not appear frustrated with your Brazilian colleagues.

16Dress Etiquette

• Brazilians pride themselves on dressing well. • Men should wear conservative, dark coloured business suits.

Three-piece suits typically indicate that someone is an executive. • Women should wear suits or dresses that are elegant and

feminine with good quality accessories. Manicures are expected.

Business Cards

• Business cards are exchanged during introductions with everyone at a meeting.

• It is advisable, although not required, to have the other side of your business card translated into Portuguese. 

• Present your business card with the Portuguese side facing the recipient

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Women in Business

• Foreign business women are treated fairly and with respect

• However, despite this trend, it is still fairly unusual to find senior female managers at the very highest levels of Brazilian owned organizations.

• Women tend to be less conservative in their dress sense at the office

• They ‘dress to impress’ and are more flamboyant that in many other countries.

• They may not allow a woman to pay for a lunch or dinner and that women can expect to be complemented on their looks, appearance and dress sense.

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HOFSTEDE’S DIMENSIONS

Gert Hofstede, a Dutch researcher, interviewed a large number of IBM executives in various countries, and found that cultural differences tended to center around four key dimensions:

1. Individualism vs. collectivism2. Power distance3. Masculinity vs. femininity4. Uncertainty avoidance

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The Geert Hofstede analysis for Brazil

The Geert Hofstede analysis for Brazil is similar to it’s Latin American neighbors.

Uncertainty avoidance ranks highest which indicates a high concern for rules, regulations, controls and issues with career security – typically, a society that does not readily accept change and is risk adverse.

A large power distance indicates that inequalities of power and wealth have been allowed to grow with Brazilian society.

High long-term orientation ranking signifies Brazil has respect for tradition and supports a strong work ethic where long term rewards are expected as a result of today’s work.

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A word on uncertainty

Brazil's highest Hofstede Dimension is Uncertainty Avoidance (UAI) is 76, indicating the society’s low level of tolerance for uncertainty.

In an effort to minimize or reduce this level of uncertainty, strict rules, laws, policies, and regulations are adopted and implemented.

The ultimate goal of this population is to control everything in order to eliminate or avoid the unexpected.

As a result of this high Uncertainty Avoidance characteristic, the society does not readily accept change and is very risk adverse.

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Collectivism as a key dimension

Brazil has a slightly higher Individualism (IDV) rank of 38 compared to the average Latin population score of 21.

However, virtually all the Latin countries are considered to be Collectivist societies as compared to Individualist cultures.

This is manifest in a close long-term commitment to the member 'group', be that a family, extended family, or extended relationships.

Loyalty in a collectivist culture is paramount, and over-rides most other societal rules.

And a lot we cant see…

THE BRAZILIAN ICE-BERG

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IMPLICIT FACTORS EXPLICIT FACTORS

Collective cultureRelationship

buildingLoyalty of

paramount importance

Beureaucracy Risk- averseLess sense of time

and space

Families tend to be largeBusiness processes tend to

be time consumingNeed to completely know

the person before concluding business

Draw out detailed legal contracts

Arrive late at meetings, last minute cancellations, stand very close while talking

THE BRAZILIAN ICE-BERG

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DOING BUSINESS IN BRAZIL – A PERSPECTIVE

GIVING REGIONALISM A DIMENSION

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Nestle tweaks its products and strategies

How nestle tweaks it’s products for the Brazilian market – concept of regionalization

Regionalization is the buzzword of the moment in the halls of Nestle do Brasil

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Worldwide kickoff of Nestle's regionalization program - inauguration of the US$48 million Feira de Santana plant in Bahia state

Products will adapt to local tastes-such as smoother instant coffee -- and to the wallets of the populations, like cookies wrapped in smaller packages.

Leche Ideal - powdered milk enriched with iron, calcium and vitamins and sold in 200-gram packets

Nutritional package to the low-income consumer and is sold in envelopes

Nestlé is to launch a floating supermarket on the Brazilian Amazon to extend its reach into some of the least commercially-developed parts of the world

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Festivals form an important part of Brazilian culture, but are often regional rather than national affairs.

As part of its regionalization strategy, Nestlé is careful to align its marketing efforts with these local celebrations.

In addition to the famous Carnival in Rio de Janeiro, the company takes advantage of marketing and sponsorship opportunities at other local festivals, such as São João in Recife and the state of Pernambuco, and Farroupilha in the south of the country.

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Unemployment is a critical social problemAlmost 13% of the work force is currently

unemployed, with high rates among young people aged 16 to 24 with little education

Nestle created about 2000 positions for low income young people under 24

A part of the First Job program, a federal government initiative to give young people their first opportunity to join the workforce

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The irony of Nestle's strategy will not be lost on campaign groups

Nestle has become one of the most boycotted firms in the world, though sales have not been noticeably affected.

Baby Milk Action, a prominent non-profit group in the anti-Nestle movement, recently called for an independent tribunal to assess the Swiss firm's infant formula marketing practices.

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THANK YOU