Brazil’s Banking Infrastructure and Business Structures

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Brazil’s Banking Infrastructure and Business Structures

Business Environment:

Brazil is ranked 116th in World Bank’s Ease of doing business ranking. The infrastructure changes that have been done over the past few years have helped Brazil move up in the listing.

It can be seen that Brazil ranks the highest in Getting Electricity (14th) and the lowest in Paying Taxes.

It can be seen that the Brazilian government has been bringing out a lot of policies in order to makethe business environment easier. There have been vast changes in the category of resolving insolvency and as a result it has moved further towards the standards of the developed countries.

Business Structure: Organizational and Managerial Factors

Most companies in Brazil tend to be organized and stick to strict hierarchy in the organization. The information flows in a strict and structured way up down the various chains of command. Most of the decisions are made by the top most officials in the organization chart. While dealing with a Brazilian company it is always best to first understand the flow of command in the firm and get to know who makes the ultimate decision. Since most of the time a lot of foreign firms waste their time negotiating with someone who is not the deciding authority. Another point to remember is that most of the time the organizational chart shown by a Brazilian firm does not exactly depict the flow of command. There may be a few who hold more power than the person above them due to various reasons like internal politics, power of personal relationships etc.

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Environmental Factors:

History:

Brazil was under the rule of the Portuguese until the early 1800s. It was discovered by the Portuguese explorer Pedro Alvares Cabral. Brazil was broken into colonies and the colonies contributed their revenues to both the colony and the state. Coffee, Sugar and gold were the primary products exported from Brazil during this period. As the 18th century dawned Brazil was influenced by its neighboring states and fought for its independence. On September 7, 1822 Brazil was declared independence and was led by King João’s son Pedro as the regent. He was a liberal leader. He promoted education, improved communications, developed agriculture and encouraged immigration from Europe. The coffee boom began during his period. He abolished slavery. After Pedro Brazil was under the rule of both communist ruler, military rulers like Castello Branco who was pro-US and pro capitalist ruler like De Silva. Cardoso played an important role in the history of Brazil. He was at the helm of Plano Real which drastically reduced the inflation. The president , Dilam Rousseff of the Worker’s party, followed De silva in 2011. Many were skeptical about her being the candidate to fill De Silva’s shoes but she has been quite effective.