PEST analysis of Brazil

3403 words 14 pages
This paper will focus on Legoland theme park company possible expansion in Brazil. I will use PEST framework as a guideline for analysis and other analysis methods, such as Porter´s or Hofsted, if needed. First, paper will analyze the external environment that affects decision making and furthermore, provide some internal environment information about Legolands strengths and weaknesses.
Brazil is South America's most significant country, an economic giant and one of the world's biggest democracies, with fifth large population in the world (News.bbc.co.uk, 2013). In coming years Brazil will host two huge sport events, World Cup in 2014 and Olympic Games 2016, which have obviously some impact in PEST- analysis areas. When speaking
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Land of the Future, n.d.)
2.5 Employment Laws
Employment and labour relations in Brazil are primarily governed by the Brazilian Federal Constitution, the Brazilian Labour Code – ‘CLT’ and Collective Labour Agreements. Established working hours in Brazil should not exceed 44 hours a week and preferentially, 8 hours a day. Depending on the job, there are conventions between companies and Unions, and then employees will work more than 8 hours a day. Every employee working under the CLT regulation has right of a 30-day rest every 12 months of work. Brazil has the 13th salary, which is a gratification equivalent to a month salary and paid in two installments in November and December For individuals considered as employees, the company must make a monthly deposit tothe Government Severance Indemnity Fund for Employees. Aviso prévio is a notification that must be given by both employee and employer when they are no longer willing to work together. This notification must be given one month prior to the dismissal. Additionally Brazilian employers are obliged to cover its employees’ transportation costs and provide a meal for those working 8 hours a day. All in all hiring in Brazil is not cheap because of the all additional cost mentioned earlier (Globalconnections.hsbc.com, 2013).

3.Economic environment
According to World Bank 2013 statistics the economy of Brazil is the world's seventh largest by nominal GDP and ninth largest by purchasing power

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