Coca-Cola in Brazil

Topics: Luiz Inácio Lula da Silva, Brazil, Coca-Cola Pages: 27 (8739 words) Published: November 28, 2011
Contents
1.1 - Country Introduction2
1.2 - Legal Environment2
1.3 - Political Environment2
1.4 - Economic Environment3
1.5 - Business Environment4
Labor4
Taxation4
Corruption4
1.6 - Culture5
General Brazilian Cultural Values5
Comparison of Cultural Values between Brazil and America5
Power Distance Index (PDI)6
Individualism6
Masculinity6
Uncertainty Avoidance Index7
Long-Term Orientation7
2.1 - Coca-Cola in Brazil7
2.2 - Corporate Organization9
2.3 - The Organization of Coca-Cola Brazil10
2.4 - Diversity and Human Capital11
2.5 - Leadership at Coca-Cola12
Geocentric Leadership and Human Capital12
3.1 - Challenge #1 – Brazilian Tax System12
3.2 - Challenge #2 – Potential for Changing Government Relations13
3.3 - Challenge #3 – Recruitment of Transnational Managers14
3.4 - Challenge #4 - Labor Relations16
3.5 - Challenge #5 – Market Share17
4.1 - Conclusion18
Works Cited19
Exhibits22

1.1 - Country Introduction
The Federal Republic of Brazil is the 5th largest country in the world with 3.3 million square miles divided into 26 states and 5,000 municipalities. It also has the fifth largest population in the world at approximately 200 million people (CIA, 2010). Only China, India, the United States, and Indonesia currently have larger populations. Having gained its independence from Portugal in 1822, Brazil experienced many of the typical political and social challenges associated with Latin American colonies achieving autonomy. After a century and a half of successive dictatorships, the Constitution of 1988 established a democratic government with three branches: executive, legislative, and judicial. Brazil has since been a relatively stable country.

1.2 - Legal Environment
Within its judicial system, Brazil has both federal and state courts. Federal courts are primarily responsible for cases relating to foreign states or international agencies and maintain jurisdiction over labor and electoral issues. The state courts generally preside over commercial cases. With regard to legal formation of businesses, Brazil has similar forms to those common in the United States. The Brazilian version of a limited liability company, a sociedade limitata¸ is considered most appropriate for wholly owned subsidiaries (Demarest e Almedia, 2006) (See Exhibit 1). Another important aspect of the legal environment is Brazilian antitrust laws. These laws are enforceable whenever an action is determined to “limit or restrict free competition or result in control over any relevant market for product concentration”. A primary difference from U.S. antitrust law is that companies operating in Brazil are not required to obtain preapproval from the authoritative body, Conselho Administrativo de Defesa Econômica (the Administrative Council for Economic Defense or “CADE”) and may negotiate questionable deals. CADE does, however, reserve the right to remedial action in the event that it determines violation of antitrust law (Badra and Romano, 2009).

1.3 - Political Environment
Some of the most important political parties in Brazil are the Workers’ Party, Social Democratic Party, Democratic Movement Party, and Democrats (formerly the Liberal Front Party). The current chief of state and head of government, President Luiz Inacio Lula da Silva is a member of the Workers’ Party, which is considered a leftist party that appeals to the working class, yet maintains relatively conservative economic positions (Brazil - Political Parties, 2010). This has been consistent throughout President Lula da Silva’s two consecutive four-year terms. He is widely credited with the social progress achieved in Brazil while defending relatively conservative fiscal and monetary policies. Upcoming elections will determine the next president to take office in 2011. Candidate Dilma Rousseff is President Lula da Silva’s Chief of Staff and endorsee. The other major candidate is José Serra,...

Cited: Brazilian Values and their Influence on Business. (2007). BforBrazil.com. Retrieved September, 2010 from http://www.bforbrazil.com/values.html
Badra and Romano
Brazil Business Forecast Report Q4. (2010). Market Research.com. Retrieved September, 2010 from http://www.marketresearch.com/product/display.asp?productid=2750719&g=1
Brazil Central Banks Sees 2003 Inflation Above Target
Brazil Must Reform Tax System to Secure Economy’s Growth. (2010, August 4th). The Wall Street Journal. Retrieved September, 2010 from http://online.wsj.com/article/BT-CO-20100804-713672.html
Brazil - Political Parties, Issues, Future, Policy
Brazil Takes Off. (2009). The Economist, 11/13/2009, Vol. 393, pg 15-15. Retrieved September, 2010 from http://www.economist.com/node/14845197
Business Technology
Central Intelligence Agency (CIA). 2010 World Fact Book. Retrieved September, 2010 from https://www.cia.gov/library/publications/the-world-factbook/geos/br.html
Citizenship Report
Demarest e Almedia. (2006). Legal Aspects of Doing Business in Brazil. Demarest e Almedia Advogados. Retrieved September, 2010 from http://www.demarest.com.br/media/896319/doing%20business.pdf
Doing Business
FEMSA. (2010). Corporate and Profile History. Retrieved September, 2010 from
http://www.coca-colafemsa.com/femsa/web/conteudo_en.asp?idioma=1&tipo=27616&conta=44
Ferguson, Cara. (2002). Comparing Brazilian Culture to American Culture. Helium.com. Retrieved September, 2010 from http://www.helium.com/items/309995-comparing-brazilian-culture-to-american-culture
Global Competitiveness Report - Brazil
Global Soft Drink and Bottled Water Manufacturing. (2010). IBISWorld. Retrieved September, 2010 from http://www.ibisworld.com.pallas2.tcl.sc.edu/launch.aspx?
Guatemalan Union Leaders sue Coca-Cola
Hofstede, Geert. (2009). Cultural Dimensions - Brazil. Geert-Hofstede.com. Retrieved September, 2010 from http://www.geert-hofstede.com/hofstede_brazil.shtml
Isdell, Neville
Kennedy and Tilly. (2002). Dancing to a Different Samba. Dollars and Sense. Retrieved September, 2010 from http://www.dollarsandsense.org/archives/2002/0902toc.html
Kent, Muhtar
Massive Support for Coca-Cola Campaign at World Social Forum. (2005). IACenter.org. Retrieved September, 2010 from http://www.iacenter.org/labor/colomb_cola0105/
McKay, Betsy
One Hundred Years of Coca-Cola in Latin America. (2006). Coca-Cola Company. Retrieved September, 2010 from http://www.thecoca-colacompany.com/citizenship/pdf/Timeline_Coca-Cola_Latin_America_English.pdf
Soft Drinks in Brazil
Soft Drink Production in the US. (2010). IBISWorld. Retrieved September, 2010 from http://www.ibisworld.com.pallas2.tcl.sc.edu/launch.aspx?
Trade and Antitrust - Brazil
Vallada, Dan. (2009). FBD: Coca-Cola Brasil grows 5% in Q2 2009. FoodBizDaily.com. Retrieved September, 2010 from http://foodbizdaily.com/articles/91084-coca-cola-brasil-grows-5-is-q2.aspx
Veiga and Martin
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