1. MG6021 International and Cross Cultural Management
Identification, Explanation and Illustration
the Unique, Ethno-Features of Brazilian
Management Practice
Group members Student ID
Wantong Dong 15072487
Charul Singh 15012447
Lansinli Pheiga
Gangmei
15012336
Olaseni Odeyemi 15014967
Stephen Gilmartin 0421596
3. Brazilian history and evolution of culture
Pre-colonial era
Arrival of the Portuguese in Brazil
Importation of slaves from Africa
In the pre-colonial era, there were no written records of permanent
monumental architecture of Brazil before 1500. The indigenous people
were traditionally semi-nomadic tribes who engaged in Agriculture, fishing
and hunting. (Diffie and Perkins 1987)
When the Portuguese arrived in 1500, Tribal war, Cannibalism and the
pursuit of Brazilian wood convinced the Portuguese that they should
Christianise the natives. (Levine 1999)
From the 16th century, sugarcane grown on plantation became the base of Brazilian
economy with the use of slaves on large plantations to make sugar for export to
Europe (Boxer and Manchester 1963). At first, settlers tried to enslave the natives as
labour to work the field. However, colonists were unable to enslave the natives and
Portuguese land owners resulted to importing millions of slaves from Africa. Africans
became a substantial section of Brazilian population. (Boxer and Manchester 1963).
4. Cultural Traits of Brazil
Major Traits*
• From Colonial Times:
o Family Structure and Values
o Authoritarian
• Paternalism
• Personal relationship
• Power concentration
• Hierarchy
• Personalism
• Collectivism Personalism + Power Concentration
Paternalism
* Tanurea & Duarteb, 2005 “The International Journal of Human Resource Management”. The International
Journal of Human Resource Management, 16(12), pp. 2201-2217.
5. Cultural Traits of Brazil
Major Traits
• Jeitinho
• Flexibility
• Informal means of
Communication
• Cordiality and Hospitality
• Loyalty
* Tanurea & Duarteb, 2005 ”The International Journal of Human Resource Management”. The
International Journal of Human Resource Management, 16(12), pp. 2201-2217.
Jeitinho
Flexibility + Adaptiveness
6. Brazil Regional Cultural Differences
Tanurea & Duarteb, 2005. The International Journal of Human Resource Management.The International Journal of Human Resource Management,
16(12), pp. 2201-2217
North East
Sugarcane Mills; Colonial;
Afro-Brazilian
Less hierarchical
More caring
North
Rain Forest; Slaves;
Immigrants
Authoritative, Patriarchal,
Social, Loyal, Collectivist
Centre/West
Industrialised
Individualist, Competitive
Hierarchical
South
Agricultural, cattle farms,
Rural areas
Equality, less formal,
Collectivism
South East(Sao Paulo)
Industrialised
Short term–oriented, Hard
working business-minded
7. The Natura Case Study
• Founded in 1969 & headquartered in Brazil.
• Simply Natura is a Brazilian manufacturer and marketer of
Cosmetics.
Personal relationships in Natura’s business
• Positive company image
• Strong social relationships
• Avoided formality
Role of power concentration in Natura
• Teamwork was encouraged
• Hierarchical Decision making
• Informal Communication of Decision to
Employees
• Encouraged participative management
Role of flexibility in creating org. value
• High autonomy, flexibility and authority
Goal
10. GLOBE Study Result
• Jeitinho diminishes with increase in internationalisation
• Personalism & Formalism are hugely influenced by
internationalisation
• Uncertainty Avoidance & Performance orientation has a
strong correlation with the frequency of contact with
international employees via telephone or email
• Power distance, future orientation and performance
orientation increase with internationalisation
11. MNCs’ Expansion into Brazil (2nd in emerging destinations)
• Abundant raw materials, natural
resources
• Sizable labour force
• 2014 FIFA World Cup
• 2016 Olympic Games
Legal and regulatory issues (Tax System)
Relationship-based business
environment
Organisational
Expatriates (OE)
Self-Initiated
Expatriates (SIEs)
Cross-cultural adaptation 1
1. Bruno, F., Maria, L. M. T., Poliano, B. and Elise, M. (2013) ‘Understanding the adaption of organisational
and self- initiated expatriates in the context of Brazilian culture’, The International Journal of Human
Resource Management, 25(18), 2489-2509.
12. Major League Gaming’s 2014 Brazilian Expansion
Founded in 2002 & headquartered in
New York the world’s largest eSports
organisation.
Brazil is one of the fastest growing
markets for video game sales,
but no gaming league.
• Further MLG's global success in
the Brazilian market.
• Help Brazilians to become the
best eSports players in the world
• Build an extensive competitive
gaming platform in S. America.
Goal
Before doing business in Brazil …
13. To Do Business in Brazil
A leading sports
entertainment company in
Latin America
Extensive experience
working with the World Cup
Brazilian tax system … federal, state and municipal levels
• Complicated and time-consuming
Brazilian constitution … high import taxes
What is theirs purposes?
Grupo
Águia
Get involved in public sector procurement at the
federal or state levels … Find a local partner
Social media(Twitter) … Potential young customers
14. Brazil’s Knowledge Economy Lag
• Brazil’s R&D spending 1 : ~1% of GDP … OECD Avg. = 2.3%.
• 11.6% of Brazilians have a tertiary degree 2 … Russia = 53%.
• Brazil’s academic research bias3:
o Social Sciences = 30%;
o Agriculture/Biology/Health = 38%;
o Science & Engineering = 24%.
1. OECD (2015), Gross domestic spending on R&D
(indicator). doi: 10.1787/d8b068b4-en
(Accessed on 11 October 2015)
3. Barata, R. B., Aragao, E., de Sousa, L., Santana, T. M. and Barreto,
M. L. (2014) 'The configuration of the Brazilian scientific field',
Anais Da Academia Brasileira De Ciencias, 86(1), 505-521.
2. UNESCO (2010) UNESCO Science
Report 2010: The current Status of Science Around the World, 18-19, [accessed 16/10/15].
15. Brazil’s Knowledge Economy Lag
* UNESCO (2010) UNESCO Science
Report 2010: The current Status of
Science Around the World, 18-19,
http://www.unesco.org/new/en/brasi
lia/about-this-office/unesco-
resources-in-brazil/statistics/
[accessed 16/10/15].
* Adapted from
(UNESCO 2010),
Figure 4.
Recommended:
• Increase R&D
investment
• Address 3rd-level bias
• Reduce barriers to
innovation
• Develop the high-tech
knowledge economy
16. Brazil’s New Capitalism
• State Capitalism: State involvement in the economy
o e.g.: Banks; utilities; strategic assets.
• Free-Market Capitalism: e.g. USA – where the market rules
• Brazil’s Hybridisation of State & Free Capitalism Models
o Self-determination … Brazil cherry-picks elements to adopt.
• Brazil’s Growing Pains:
o International Institutions & political - competency/trust?
o Q - Play to its strengths ?… build relationships & networks.
17. What's Likely to Define Brazil’s Future?
• The Differences?
o Cross-cultural differences … Hofstede/Schwartz/GLOBE
o Capitalist model differences … State/Free
o Political differences … Socialism vs Middle vs Right
Commonalities will also define Brazil’s future:
o Hybridised New Capitalism, elements of neoliberalism
o Hybridised Management styles/practices
Globalisation Influences – inwards & outwards
o Relationship/network culture … shared BRICS traits
… Influencing factors
18. Conclusions and recommendations
Brazilian culture is the result of integration and absorption of different
civilizations.
The leaders of domestic companies or foreign MNEs operating within Brazil
should respect cultural values, and base their workplace values on Brazilian
cultural values.
Identifying and considering organisational practices and values in the Brazilian
workplace is key for successful cross-cultural management.
Commonalities will also define Brazil’s future:
New Capitalism: Hybridised Management styles
Relationship/network culture … shared BRICS traits
