The growth of global economy has facilitated the improved business across borders. When operating in Brazil as a multinational or simply having an external branch, there are some challenges that the investors need to deal with political, social, economical, technological, and international trade. The challenges emanate from the social-economic standing of the country as well as its trade policies.
Marketing and finance play important role in business management and strategy implementation; the business parameters are greatly affected by regional and global business environment of Brazil named above (Kotter &Schlesinger, 2008). This paper take an analysis of the effect political, social, economical, technological, and international trade in Brazil have on marketing and finance structure of companies operating in the economy.
Political environment
Although Brazil has structure to enhance political neutrality, there are elements of national and international politics that are likely to affect businesses operating in the economy. The presidential governance operating in the company gives room for democracy in the country; when making advertising campaigns, companies have to be keen on natural policies controlling marketing.
For instance there are times that the country has banned advertising of cigarettes and alcoholic drinks. The mode of advertising and choice of words in adverts is regulated by government structures implemented.
Although the country has well developed financial sector, the government through monetary and fiscal interventions in the market shape the market. At times the interest rates are competitive that cost of capital is reduced while at times they are high creating some inefficiency.
Social
One area that the Brazilian government has invested in is ensuring that the communities adopt a uniform set of social believe. The country is moving towards multiculturalism. With the taken charge, the communities are continuously changing their perception, requirements and demands. When operating a marketing policy in the country, the management has to be careful to have strategies that will continually grow with the changing consumer needs.
When getting financing to cater for some of the programs that companies have, the country financial system has in the past hesitated financing some activities that can be termed as social in nature like corporate social responsibilities (Stonehouse, Campbell, Hamill & Purdie, 2010).
International trade
Brazil has some international agreements with the United States of America and with other global countries; when doing business in the country: it is important to consider international and bilateral trade agreements undertaken with the United States and international community. This shapes the marketing structure adopted by companies in the economy as they have to adjust for the agreements.
International trade also means that the country has an increased number of players in different sectors. The high competition experienced by the companies means that they have to develop marketing policies that persuade their customers and to shake off competitors.
This calls for high investment in marketing and sales. International trade has led to various international financial organizations like banks, micro finances and insurances have base in Brazil. With the increased base, the companies get financing more easily and at a competitive rate. When dealing with international companies, some might have competitive advantages that the company at hand creating difficulties in getting finances and making marketing complicated.
Technology
Technology is another area that the government of Brazil has invested in; the high technology in the country offers a good working ground for companies. For instance in marketing, companies are free to use modern forms of communication and advertising available in the country; they include free press Medias, social Medias, magazines, among others. With the technology it is easy to reach customer from different areas and give them a taste of one’s products.
Technology in the financial institutions of Brazil also works to the benefit of companies in the economy. The use of technology has assisted companies to have the easy payment methods, easy communication with their banks and customers get alternative payment methods to cash. When this is the situation, companies in the economy have to invest heavily in technology to meet the demand of various customers (Wheelen & Hunger, 1998)
Economical situation
Brazil is one of the world fast growing technologies; the country growth is driven by its policy of open economy where international trade is playing a vital role. With the growing economic situation, there has been an increase in demands of different products ranging from retail commodities to more complex commodities.
With the increased demand, companies have to make their marketing policies robust and able to take advantage of the situation. This influence the structure and nature of marketing strategies adopted by the company. To get the cream of the opportunities brought about by growing economy, companies are forced to have structures that ensure customer get high satisfaction out of the company.
The economic environment improvement has created growth in the finance sector; there are different banks, insurers, and money venders in the economy. With the increased number, companies are able to secure loans at competitive prices from either domestic or international financial institutions (Fred, 2008).
References
Fred, D. (2008). Strategic Management: Concepts and Cases. New Jersey: Pearson Education
Kotter, J.,& Schlesinger, L. (2008). Choosing strategies for change. Harvard Business Review, 80(30), 117-124 .
Stonehouse, G., Campbell, D. Hamill, J., & Purdie, J. (2010). Global and Transnational Business: Strategy and Management. New York: John Wiley & Sons, Ltd.
Wheelen, L., & Hunger, J.(1998). Strategic Management and Business Policy: Entering 21st Century Global Society, 5th edition. Massachusetts: Addison Wesley