Management - Individual Business Report Essay Example | Topics and Well Written Essays - 1500 words

Management - Individual Business Report - Essay Example The report elaborates on the external environment analysis of Brazil and its suitability for BlueScope to expand. SWOT analysis of BlueScope Steel identifies the internal capabilities and external opportunities, based on which recommendations are forwarded for the Australian company. Why Brazil Brazil, one of the member nations of BRIC, is the largest country in South American continent and also the 5th most populous and largest geographical country in the world. It shares its borders with a host of other nations which provide it a very good international connectivity. Brazilian GDP crosses the mark of US Dollars 1 trillion and boasts off a rich reservoir of mineral resources (Gurmendi 2010). Industrialization is already at peak in Brazil with automobiles, computers, aircrafts and other steel-intensive industries providing expansion and diversification opportunities to steel manufacturers and even those operating in mining industry. In the entire Latin America, Brazil ranks first in the production of iron ore, manganese, aluminium and ferroalloys. Steel production remains one of the top 10 industries and iron ore the second largest exported commodity. It stores 19,500 million tons of iron ore reserves, making it the 6th largest iron ore reserving nations of the world (Gurmendi 2010). These figures present mouth-watering prospects for steel manufacturers and those operating in mineral based industry. This is what which makes BlueScope Steel willing to enter Brazil as a part of its business expansion strategy. PESTL Analysis of Brazil Political States, Municipalities and Federal District constitute the autonomous and non-hierarchical political set up at Brazil. It has a democratic form of government and states enjoy their individual constitutions. As such, laws of States do not contradict with Federal Laws. Civil law is given preference to common law which is favourable to the general public in Brazil. Labour laws are also specialized in Brazil which acts as safe guard to protect the rights of employees and labours against ineffective foreign and domestic employment practices. Economic Economically, Brazil has shown clear signs of good economic recovery and potential to become an excellent investment hub. It has supported expansionary monetary policy which fuels the growth of private consumption and capital formation. Significant improvements in Brazil’s GDP and macroeconomic basics, it is poised to grow at an annual rate of 4-5% throughout 2012. Use of prudent policies led to Brazil’s growth by 2.8% in 2006 and 4.5% in 2007 and due to increase of exports, international expansion and reduction in unemployment, debt-to-GDP ratio and inflation; promise a very good investment opportunity in Brazil (International Finance Corporation 2006). Special legislation to promote public-private partnerships was also passed in the year 2004. To support free trade, Brazilian government is also tying hands with developing nations and getting si gnatories to free trade blocs like Mercosul. Developed industrial sector of Brazil strengthens its economic viability (Gurmendi 2010). Because of dominance of industries like automobile, machinery and equipment, steel, tin, computer, aircraft, etc., Brazil offers tremendous growth potential for steel manufacturers. Socio-cultural Brazil is culturally very diverse with a mix of religions, ethnicities and celebrations. While Catholicism is