Clothing manufactures is a multinational clothing company wishing to start its operations in Brazil. The company focuses on the production and distribution of both men and women cloth lines, and it wishes to expand its services to the emerging markets. In order to succeed in doing so, there are several risks and challenges that the company must put into consideration before it can start its operations in Brazil. Some of the commercial risks and challenges identified include uncertainty of the company’s future in the country, difference in bookkeeping methods, difficulties in acquiring intellectual property, and the slow pace of conducting transactions in a foreign country. Financial challenges include the expensive nature of doing business in Brazil due to high prices that have been brought by its economic boom and the 2014 world cup held in the country. Heavy taxes levied especially on foreign companies are another financial challenge that the company is likely to face. Country risks and challenges include the underdeveloped nature of the country’s infrastructure as compared to developed countries, and the bureaucratic nature of government systems in Brazil. Finally, Brazil is made up of different ethnicities and races which may pose cross-cultural challenges while conducting business in the country. Therefore, the strategies adopted during the commencement and continual of the company’s operations should address these issues.
Some of the recommendations include making strong personal relationships with the locals as an entry strategy of the company. This can be attained through regular visits by the management board to meet with potential partners, and attending trade shows and exhibitions to market the brand to potential clients and company peers. A local distributor or
firm should be established to deal with the distribution of products in the country. A proper and trusted online payment system should also be…