Managment Essay Example | Topics and Well Written Essays - 1500 words

Managment - Essay ExampleOn the other hand, Telstra hand over to establish administrative set up in Brazil to get the governments consent to start its telecommunication service. Telstra have been supremacyful in Australia capturing optimum market shargon. So, Telstra can replicate this success in other markets also, and in that direction Brazil can be the perfect market for its amplification plans. 2.0 Political Environment 2.1 Government stability Although remnants of instability were there, there was progress when Luiz Inacio Lula da Silva was reelected as the countrys president for the second term in 2006, and then the election of his protege Dilma Rousseff in 2011. He actualized a stable form of government and also launched many pro-business measures, with Rousseff vouching to follow it. 2.2 Government and contribution in a flash after assuming office as part of his second term in 2006, the Silva government launched a new Growth Acceleration Program called the Programa de A celeracao de Crescimento, or PAC. Under this program, the Brazilian government is expend sizable funds to establish infrastructures for the entry and development of businesses. Infrastructures for better transportation, telecom and for power energy are the key parts of PAC. 2.3 Analysis When the political climate of Brazil is viewed from the perspective of Telstras expansion plans, it augurs well. ... mework and the solution powers regarding foreign investment are the exclusive competence of the Brazilian Federal government and states do non have regulatory powers in this matter. (OECD 1998). Thus, with investor friendly environment prevailing under Rousseffs regime, the regulatory example also has been made business friendly. 3.2 Business laws A telecommunication service licence can and be granted to companies existing under Brazilian law, with their principal place of business and administration in Brazil. (Campbell 2007). This law clearly makes it mandatory for the companies like Telstra to establish a local set up or even a subsidiary. 3.3 Labour laws In Brazil labor laws there are impediments to hiring workers and even more to firing them. (Thomas 2006). The labor code encourages litigation to resolve disputes between the employees and the employers. Use of part-time labor is poorly constrained. (Thomas 2006). 3.4 Taxation laws As part of PAC, tax system for business as been further simplified and reduced. The measures acknowledge investment in the creation and repair of roads and railways, simplification and reduction of taxation. (The President 2011) 3.5 Analysis From the higher up discussion of the Brazils legal environment, it is clear that Brazil has some tough laws. Although, these laws are not disadvantageous, they have to be given a lot more care, for any cell phone go with including Telstra to have successful operations. 4.0 Economic Environment (Heading) 4.1 Interest rates (%) The Brazilian Government set the subsidised interested rat es at 6.75 percent, with interest rates offered to middle-class producers set still lower at 6.25 percent. (Hrapsky and Ming 2010). These high interest rates and the economic boom are the key reasons for