Burswood Entertainment and Brazilian Market Report
Political Environment
The country has a policy of democratic governance ,Entertainment with the government divided into three main branches: states, municipalities, and the Federal District, each of which serves the common good of the country. All its executive and legislative members in the country are elected, while members of the judiciary, such as judges, are appointed after passing an examination.
government stability
Brazil has a presidential system in which the president is elected by the people. Political analysts believe that with a female president, the political situation in the country should remain stable in the long term (Magdalena, Eugenia, and Oana, 2008).
Government and Association
As far as businesses are concerned, the country’s government has policies in place to promote fair trade between domestic and international companies. Some companies have incentives to enter the market, while others benefit only from industrial deduction from tax due.
The country’s growing population and demand for social services has created a need for the government to attract entertainment companies into the international hospitality industry. It does this through incentives such as simplified licensing, exemptions and tax breaks, and protection of intellectual property rights (Magdalena, Eugenia, and Oana 2008).
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With the situation expected to remain stable, most companies worldwide will feel confident investing in Brazil. Political stability ensures peace and security, thus increasing the demand for recreational facilities.
The result is a superior market for Burswood Entertainment, which will require the company to expand its resources, both quantitatively and qualitatively, in order to achieve competition and customer satisfaction in the Brazilian entertainment industry. This will greatly affect the strategic planning and management of the company as they will have to develop a strategy applicable to the new market (Brazilian market).
legal environment
regulatory framework
The highest source of law in the country is the Constitution, which is respected by all: it upholds respect for human rights in areas such as employment, retirement and the environment. Brazil’s framework is rigid, which makes the country reluctant to undertake constitutional changes (Laura 2007).
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business law
Like other laws in Brazil, commercial laws, especially import and export laws, are strict and unfavorable for certain foreign companies. The constitution expects foreign countries to partner with local companies that can outsource other services. Foreign companies are at a disadvantage because they cannot benefit from government incentives. However, this legislation aims to promote free and fair trade between different actors in the country (Laura 2007).
Labor Law
The law defines the rights and freedoms of workers. For international companies, the rules state that at least 25% of employees are from Brazil, some of whom have managerial and technical responsibilities. The Constitution provides for the formation of trade unions. For example, the hotel industry has a union to defend its own rights and the rights of its employees (Laura 2007).
tax law
The country’s tax laws are flexible and have various deductions. Tax laws govern the importation, day-to-day operations and ownership of foreign companies in the country (Brazilian Institute of Geography and Statistics (IBGE) 2011).
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Because Burswood was required to comply with Brazilian commercial survival laws, it had to train Brazilians in Australia in skills relevant to its business so that at least 25% of its workforce was Brazilian when its operations began. As part of your strategic planning, you will need to review your financial allocations to meet Brazilian tax requirements. In fact, it is very important for companies to engage the services of local legal experts in order to familiarize themselves with the operations of Brazilian law.
economic environment
interest rate
The Brazilian reference rate was last shown at 11.75%. From 1999 to 2010, the average rate on COPOM was 17.22%. This represents a global growth rate of 0.70% (IBGE 2011).
Inflation rate
After a turnaround in 2008 when the government reported inflation at 5.9 percent and below in 2009, economic growth should
