Country and Culture Background
Brazil is one of the largest countries in South America; its business climate attracts growing companies striving to gain a global presence. Due to the large population and diversity of demographics, the appeal to the Brazilian market might be beneficial for a company seeking foreign development opportunities. Indeed, a diverse Brazilian population provides a beneficial opportunity for a foreign business to market its product successfully with a higher chance of obtaining a large body of loyal customers. According to Park and Paiva (208), the differences in industrialization and developmental backgrounds inherent in the cultures of various countries are reflected in the selected business strategies for those environments. Thus, Brazil is a country with particularities of business management that should be addressed by the company management.
Culturally, Brazil is a rich and heterogeneous country that is the home to an ethnically, economically, and socially diverse population. The country is characterized by a large gap between the rich and the poor, as well as the geographical unevenness of population distribution (de Oliveira et al., 208). Moreover, the latest economic c
rises have significantly impacted the cultural identity of the people of Brazil, shifting consumers decision-making prioritization from emotionally based to more rational (Francis & Hoefel, 2020). Therefore, to enhance the prospective benefits of entering the Brazilian market, the company should acknowledge and incorporate potential cultural differences and conflict risks to mitigate them and address them properly.
Key Cultural Business Issues the Company Might Confront in Selling a Product for the First Time in Brazil
Brazils business culture is inherently connected with the overall cultural particularities of the state. Since the countrys economically distinct regions are geographically distributed, with some areas being considered richer and some perceived as poorer, the prioritization of a geographical location for company facilities might be decisive. De Oliveira et al. (208) state that more than half of the companies are located in the southeast area, which is the richest region in Brazil, reflecting geographical inequalities in the countrys development (p. 59). Therefore, when opening a facility in Brazil, the company should approach the site selection meticulously with the reliance on evidence.