Business Report

Procedure

The report uses secondary data collection methods to gather the required data and information. The sources used include online sources like surveys, population facts sheets, and websites. These resources are used to collect data and information on Brazil economic growth, population trends, culture, car industry, and trends in development.

Findings

Brazil is ranked as the 5th largest country in the world with almost 185 million people (Country Facts & Information 2010). This forms a substantive population that could be targeted by any foreign company willing to invest here. Like the U.S, Brazil is a melting pot characterized by different cultures from different parts of the world (Country Facts & Information 2010). As such, Brazil offers a segmented market that can be tapped by ATEXHAUST Gmbh to supply the catalytic exhausts. Unlike Germany, Brazil has a multicultural population which makes it a good target because of the diversity. Brazilians are friendly and social people who prefer face- to- face communication over formal communication (Kwitntessential n.d). They hate criticism and attach themselves to individuals more than the company.

Cars in Brazil operate on gasoline, with 80% of all new cars using ethanol, gasoline, or a mixture of two (Maciel 2006). This means that most of the new vehicles here will not require catalytic exhausts. For a population of over 180 million people, the country has more over 28 million vehicles operating on the road (Maciel 2006).

Although Brazil is known for the use of bio-fuels, it also uses petroleum-related fuels (Plummer 2006). A report released by Sindire reveals that “34.3 million mainly flex fuel cars, 14.4 million gasoline motorcycles, close to 5.5 million diesel operated pickups and about ten million diesel fueled busses and trucks on the road today” (Fierst 2010). This implies that catalytic exhausts would find a ready market in Brazil.

Other findings show that an estimated $11 billion was set aside by the government to boost the motor vehicle industry (Fierst 2010). This has been necessitated by the increase in the local demand for vehicles, with a car for every 6.3 people (Fierst 2010). The demand is estimated to increase since Brazil is an emerging economy whose population is on the increase. The $ 11 million boost is believed to have resulted in an increase in vehicle production of between 5 and 6 million vehicles (Fierst 2010). This means that there is an increasing projected demand for vehicles which means that catalytic exhausts would be required. However, Brazil is also ranked as the leading country in the world in terms of low carbon dioxide emissions from vehicles. The availability of catalytic exhausts would ensure that vehicles using natural fuels cut down CO2.

Brazil is one of the emerging economies in the world with a GDP growth rate of 0.8% in the last quarter (Trading Economics 2011). This is an indication of an expanding economy. A strong currency of over 10% over the US dollar makes Brazil a better market to invest in.

Conclusion

Brazil offers a readily available market for the catalytic exhausts. The conclusion has been supported by a number of observations and points and they are;

• Brazil is an emerging economy that offers CATEXHAUST Gmbh a perfect market for catalytic exhausts because a developing economy is always characterized by heavy industrial manufacturing
• The country is the fifth largest in terms of population , indicating a huge market base
• Brazil has zero tolerance on carbon emissions; therefore catalytic exhausts would be required for vehicles that do not use gasoline or ethanol.
• The country has a plan to expand the motor vehicle industry by 2012 and increase the vehicles produced to 6 million by 2020. This means that the number of the people owning vehicles is expected to increase.
• Unlike German, Brazil is a melting pot as it is home to different people with different cultural backgrounds. This means that it would be easy for CATEXHAUST Gmbh to blend well in the system.
• Other than the huge population, Brazil has a stable economy which implies that majority of Brazilians would be willing to own a car.
• CATEXHAUST Gmbh and Volkswagen do Brazil Ltda have high potential of blending because they are both German- based companies.
• There is an already existing market given that the population is increasing and diversified which offers the best opportunity for investment.

Recommendations

Brazil offers a readily available market for the catalytic exhausts. The conclusion has been supported by a number of observations and points and they are;

• Based on the findings and conclusion CATEXHAUST Gmbh can proceed and invest in Brazil to supply Volkswagen do Brazil Ltda with catalytic exhausts.
• It would be advisable for a pilot study to be carried in Brazil to determine the attitude of the people on the catalytic exhausts.
• It is recommended that CATEXHAUST Gmbh learn the deep culture of Brazil before the full establishment of its manufacturing plant. This would avoid the collapse of the country mainly because of cultural differences like the way Wal-Mart failed in China.