The political and legal environment
Corruption is a large issue in Brazil. In the Corruption Perceptions Index of 2014, Brazil scored 43 points on a scale of 0 (highly corrupt country) to 100 (very clean country). Last year, a scandal involving the national oil company Petrobras was reported on the media. Money laundry has moved illegally 10 billion reais and part of that money was sent to people from the government. The population has made several peaceful protests against the government and corruption. The situation seems to continue for long time, since the president Dilma Rousseff was reelected last year. Thus, corruption is a political risk for companies that are trying to enter the country.
In 2013, Rousseff signed the Anti-Corruption …show more content…
These materials can come from different parts of the country or even the globe. That is when logistics enter the scene. But in Brazil, the lack of investment in transportation and infrastructure causes damage to the national economy. According to the newspaper Estadão, Brazilian companies lost 80 billion reais (approximately U$ 26 billion) because of the bad conditions of the roads, rail roads that are incompatible with the country’s size, and archaic ports. As reported by CIA, Brazil has 4,093 airports, 28,538 Km of railways, 1,580,964 km of roadways not including urban roads, and seven major seaports. For decades Brazil have focused on road transportation and stopped investing in rail transportation, which many analysts consider an error, since rail transportation is more effective on large routes. If it does not change, companies may be even more affected in the future and spend more money on transport. United States Department of Agriculture reported that Brazil produced 9,723 billion metric tons of beef in 2014, which represents 16.85% of the worldwide production. It is the second largest producer of the world, behind the United States, that produced 11,078 billion metric tons last year (19% worldwide). Thus, Fuddruckers could use fresh national meat to make its hamburgers instead of import from the United …show more content…
The number of restaurants specialized in hamburgers also increased, especially in the last ten years. Besides McDonalds, Burger King, and Johnny Rockets, there are others chains such as The Fifties, Carl’s Jr., P.J. Clarke’s, Burger Lovers, Bobs and Big X Picanha, and small local restaurants. Although they sell the same type of products, they have different offerings to the target markets. Some of them are fast foods and others are considered gourmet food. Their positioning also varies. For example, Big X Picanha focus on the quality of their picanha hamburgers while Johnny Rockets wants to sell the American
Corruption is a large issue in Brazil. In the Corruption Perceptions Index of 2014, Brazil scored 43 points on a scale of 0 (highly corrupt country) to 100 (very clean country). Last year, a scandal involving the national oil company Petrobras was reported on the media. Money laundry has moved illegally 10 billion reais and part of that money was sent to people from the government. The population has made several peaceful protests against the government and corruption. The situation seems to continue for long time, since the president Dilma Rousseff was reelected last year. Thus, corruption is a political risk for companies that are trying to enter the country.
In 2013, Rousseff signed the Anti-Corruption …show more content…
These materials can come from different parts of the country or even the globe. That is when logistics enter the scene. But in Brazil, the lack of investment in transportation and infrastructure causes damage to the national economy. According to the newspaper Estadão, Brazilian companies lost 80 billion reais (approximately U$ 26 billion) because of the bad conditions of the roads, rail roads that are incompatible with the country’s size, and archaic ports. As reported by CIA, Brazil has 4,093 airports, 28,538 Km of railways, 1,580,964 km of roadways not including urban roads, and seven major seaports. For decades Brazil have focused on road transportation and stopped investing in rail transportation, which many analysts consider an error, since rail transportation is more effective on large routes. If it does not change, companies may be even more affected in the future and spend more money on transport. United States Department of Agriculture reported that Brazil produced 9,723 billion metric tons of beef in 2014, which represents 16.85% of the worldwide production. It is the second largest producer of the world, behind the United States, that produced 11,078 billion metric tons last year (19% worldwide). Thus, Fuddruckers could use fresh national meat to make its hamburgers instead of import from the United …show more content…
The number of restaurants specialized in hamburgers also increased, especially in the last ten years. Besides McDonalds, Burger King, and Johnny Rockets, there are others chains such as The Fifties, Carl’s Jr., P.J. Clarke’s, Burger Lovers, Bobs and Big X Picanha, and small local restaurants. Although they sell the same type of products, they have different offerings to the target markets. Some of them are fast foods and others are considered gourmet food. Their positioning also varies. For example, Big X Picanha focus on the quality of their picanha hamburgers while Johnny Rockets wants to sell the American