TABLE OF CONTENTS l:

Brazil:

PEST analysis of Brazil

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Political Federal republic with 26 states and a Federal District The federal government power is divided into executive, legislative and judicial The president holds office for 4 years and can be re-elected once There are 15 political parties in the Congress Democratic system of elections

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Economic Part of BRIC economies Good macroeconomic policy Inflation around 5.6% GDP with an average growth of 3.6% One of the 10 biggest countries for market size Placed at 28th for FDI Offshore oil reserves It is considerate the 10th economy in the world which has growing in the last decade Technological Good infrastructure for entrepreneurship Governments investments in developing research & development at universities Governments investment in developing technology and infrastructure Large and diverse transport network Access to internet and phone Good level of innovative activity

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Social Inequality in education, job and economic status. Population open to accept products from abroad Population open to socialization Necessity to build trust relationship Jeitinho brasileiro this means that an entrepreneur may always try to connect or talk with someone or institution in order to acquire his business going on Bribery in a positive sense Christianity Portuguese language

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Political The country is a Presidentialist Federative Republic form of government which is composed of the federal government, states and municipalities, in which the exercise of the power is assigned to distinct and independent bodies, subject to a control system to ensure the enforcement of the laws and the Constitution. The Federal Government is divided into three powers, independent and harmonious among them. They are: the Legislative power, which creates laws; the Executive, which acts in the enforcement of programs or rendering of public service; and the Judiciary Power, which solves conflicts among citizens, entities and the State. Brazil has a multiparty political system, that means, it admits the legal constitution of several parties. The political party is a voluntary association of people that share the same ideals, interests, objectives and political principles, whose purpose is to influence and be part of the political power (Portal Brasil 2010). Economy Brazil is one of the rising economic power being part of the BRIC countries. The recent discovering of offshore oil reserves may put the country as top league of oil-exporting nations. Also according to the Legatum Prosperity Index from 2010, Brazil has relatively good macroeconomic policy. At 5.6%, inflation ranks below the international mean. GDP per capita grew an average 3.6% year-on-year

between 2004 and 2008. While the amount of physical capital available per worker is slightly below the international average, Brazil places in the top ten of all countries for market size. Furthermore, hightech exports constitute 12% of total manufactured goods, placing Brazil 28th, globally and foreign direct investment is around the global average. The country also has a good level of innovative activity which place the country in the top half of the Index for R&D expenditure, ICT exports and royalty receipts. The data also reveals that business start-up costs are around the global median (2010). Social Brazilian society is worldwide known as being inequality in the sense of education, job and financial status. But in general all the population due to the culture are open to build relationship with anybody. It is culturally normal to always try to adjust to any situation pushing to positive results. In this case, it is meant that for any business it will almost always possible any negotiation in order to favor the entrepreneur. Technological Although not the majority of the population have access to modern technological infrastructure, for entrepreneurs there is moderately good infrastructure and according to the Lagatum Prosperity Index, the number of mobile telephones and secure internet servers per capita indicate global average access to communication technology. Internet bandwidth is good, placing Brazil 12th, internationally, on this variable (2010). Brazil has a large and diverse transport network. Roads are the primary carriers of freight and passenger traffic. The road system totaled 1.98 million km (1.23 million mi) in 2002. There are about 2,500 airports in Brazil, including landing fields: the second largest number in the world, after the United States. So Paulo-Guarulhos International Airport, near So Paulo, is the largest and busiest airport, handling the vast majority of popular and commercial traffic of the country and connecting the city with virtually all major cities across the world. Coastal shipping links widely separated parts of the country (Sagar Sakariya 2011) Reference Karen Smith (2007). Brazil Political System. Available at: http://www.brazil-property.co.uk/brazilpolitical-system.php Accessed: 10 September 2011 Portal Brasil (2010). Brazil political system. Available at: http://www.brasil.gov.br/sobre/brazil/brazilian-state/political-system1/br_model1?set_language=en Accessed: 10 September 2011 Legatum Prosperity Index (2010). Brazil. Available at: http://www.prosperity.com/country.aspx?id=BR (Accessed: 10 September 2011) BBC News (2011). Brazil country profile. Available at: http://news.bbc.co.uk/2/hi/americas/country_profiles/1227110.stm Accessed: 10 September 2011 Ministerie van Economische Zaken, Landbouw en Innovatie. Brazili: OTC Brazil, Offshore Technology Conference, 4 - 6 oktober 2011. Available at: http://www.agentschapnl.nl/nieuws/brazili%C3%ABotc-brazil-offshore-technology-conference-4-6-oktober-2011 Accessed: 10 September 2011 Sagar Sakariya (2011). Country Analysis Brazil. Available at: http://www.scribd.com/doc/28796465/Country-Analysis-Brazil Accessed: 10 September 2011

Brazil Gross Domestic Product The Gross Domestic Product, or GDP of Brazil is rapidly growing since 1960. The sectors that are fastest growing are mining, agriculture, manufacturing and the service sector (Trade Economics, 2011). According to the World Bank, the GDP of Brazil now with 2088 billion dollars is good for 3.37% of the worlds economy. With these numbers Brazil is ranking highest of all the South American countries and is establishing a strong position in the world economy.

Market growth The service sector in Brazil is one of the biggest sectors of the country. The sector is responsible for more than 76% of the formal jobs. From 2007 to 2008 the sector grew with 27.4% and is it is still growing. Not only the service sector, but also the GDP of Brazil keeps on growing. From 1991 until 2011 the average annual GDP growth rate is 3.26% (Trade Economics, 2011). Based on these figures the conclusion can be made that the Brazilian market is very upcoming and promising. Competition According to the International Congress and Convention Association (ICCA) is the service sector, in particular the international events in Brazil, ranking at number seven of the world. As this indicates there will be a lot of competition when entering this industry, but on the other hand this also indicates that there is a high demand for the service of organising events. The city in Brazil that has the most competition in the event organising business is So Paulo, with 75% of all trade fairs and congresses held in the country (Business and Events, 2010). References Trade Economics (2011). Brazil GDP. Available at: http://www.tradingeconomics.com/brazil/gdp-growth (Accessed: 11 September 2011) Brazilian Government (2010). Types of tourism; business and events. Available at: http://www.brasil.gov.br/sobre/tourism/types-of-tourism/business-and-events-1 (Accessed: 11 September 2011) Brazilian Government (2010). Brazilian service sector. Available at: http://www.brasil.gov.br/sobre/economy/economy-sectors/service-sector-brazilian (Accessed: 11 September 2011)

Estimated Sales In Brazil there are a lot of agencies, concerning travelling, trade and events. Therefore it is hard to define the exact numbers of event agencies located in Brazil. There is a few event agencies that are the most dominating in Brazil: - Arx Eventos (is one of the major event management companies in the entire Brazil) - AGS3 Promotions and Events Ltda (is one of the foremost event organizing companies in Brazil)

Legal situation Brazil Brazil is one of the world's fastest growing major economies. Economic reforms have given the country new international recognition. New law and regulations are bounded to these economic reforms. In 2002 a new Brazilian civil law code was enacted, that replaced the 1916 code. Under this new Brazilian Civil Code the corporate structure in Brazilian law is almost similar to the corporate law of the United States. In order to register a new firm a procedure of bureaucratic an legal hurdles need to be followed: 1. Check company name with State Commercial Registry Office 2. Pay registration fees 3. Register with the commercial board of the state where the main office is located and obtain identification number (NIRE) 4. Register for federal and state tax (Secretaria da Receita Federal do Ministrio da Fazenda, SRF/MF), obtain the CNPJ number, which also registers employees with the National Institute of Social Security (Instituto Nacional da Seguridade Social, INSS 5. Receive state tax inspection 6. Get the authorization to print receipts/invoices from the Secretaria da Fazenda Estadual 7. Register with the Municipal Taxpayers Registry (Secretaria Municipal de Finanas) of the City of So Paulo 8. Pay TFE to the Municipal Taxpayers Registry 9. Get the authorization to print receipts/invoices from the Secretaria Municipal de Finanas 10. Apply to the municipality for an operations permit (auto de licena de funcionamento) 11. Register the employees in the social integration program (Programa de Integrao Social, PIS) References Index Brazil (2011). Legal situation Brazil. Available at: http://www.indexmundi.com/brazil/legal_system.html (accessed: 11 September 2011)

Country information (2011). New civil code Brazil. Available at: http://www.usig.org/countryinfo/brazil.asp (accessed: 11 September 2011) Wikipedia (2011). Brazilian new law. Available at: http://en.wikipedia.org/wiki/Brazil (accessed: 11 September 2011) Business and investment (2011). Doing business Brazil.

Availableat:http://www.doingbusiness.org/data/exploreeconomies/brazil/starting-a-business (accessed: 11 September 2011)

Brazil market needs/trends Events and Festivals are quite popular in Brazil. The majority of the population regularly visits a festival or event. Most Festivals are from religious and/or old traditional origine and includes dance and music. In addition to this, dance and music means a lot for the community in this country and beside the well known old traditional samba festival there are some other small (dance) festivals held around the country.

Brazil Brazil places and festival

http://brazilplaces.com/festivals-in-brazil.html [11 September 2011]

Brazillian Events.

http://gobrazil.about.com/od/brazilmonthbymonth/a/brazilinjuly.htm
Brazillian music and sounds

http://www.carnaval.com/music/samba.htm [11 September 2011]

India market needs/trends India is a country with many religions and cultural traditions and this is really important for the local community. This is also a reason thats why most events held in India are events with a cultural and traditional background. Dance and music is something that's at the heart of peoples lives in India, and there is an increasing popularity of classical dance and music. The demand for having more entertainment after a busy work week is also growing which is also very hopeful for this kind of branches.

India Top Indian Festival

http://www.indiasite.com/festivals/ [11 September 2011]

Festival events in India

http://goindia.about.com/od/festivalsevents/Festivals_Events_in_India.htm [11 September

2011] The need of festival

http://www.indianweekender.co.nz/Pages/ArticleDetails/47/548/Heritage/Why-do-we-needFestivals [11 September 2011]

Legal situation (India) The legal situation in India has taking a dramatic change in the past few years due to the rise FDI (Foreign direct investment), a lot of the previews restricted sectors are now available to foreign companies. As for event agency sector to establish a sub branch in India the following standard procedure of company establishment is necessary. Name approval Main objects of the Company Director Identification Number (DIN) Digital Signature Certificate (DSC) Memorandum and Articles of Association (Memorandum and Articles respectively) Certificate of Incorporation Permanent Account Number (PAN) Tax Deduction Account Number (TAN) Value Added Tax Professional tax Service Tax The Shops & Establishment Act Employees Provident Fund Organization Employees State Insurance Corporation (ESIC)

Estimate profit The estimate profit in this case cannot be measured in figures due to the price differences. The forecast of an event agency will usually include an increase of 4 percent in annually events and a revenues jump of 8 percent over the last year. In an upcoming economy such as India a boost of 50 percent increase in revenues can be expected. Gross Domestic Product

The GDP per capita of India is 3,176 (2010 Est.). India has an inflation rate of 8.4%, which is around the globe average, and a high gross domestic savings rate of 34.3%, indicating a relatively stable national economy in which new business can be established. However, a high rate of growth in GDP per capita, averaging 7.2% year-on-year between 2004 and 2008, contributes to public optimism about the economy and gives it a stable structure.

Competitor

The biggest competitor would be the Wizcraft Entertainment Agency. The wizcarft Agency is operating globally since 20 years. They are specialized in Brand Activation, Special Event Management and Wizcraft Brands. The Wizcraft Brands, IIFA and FAwards, are platforms conceptualized, owned and nurtured over time by Wizcraft. The wizcraft Agency has a long list of prestigious clients which includes Government and authority of India like chief Secretariat of

Government of Delhi, NCR, Indian Olympic Association, Indian Army, Ministry for Non-Resident Indians, and from the entertainment industry wizcraft have managed to organize the Michael Jackson History Tour (India), Concerts for: UB40, Lou Bega , Air Supply, Diana King, Whigfield, Peter Andre, Zubin Mehta.

The second biggest competition that Vibe agency would be facing in India would be from, Deesha Communications They provide the whole gamut of Event Management activities in India including but not limited to Event Planning, Participant Acquisition & Orientation, Pre-Event Promotion, Live Event and Feedback Management. The agency expertise in event management in India, Deesha Communications with agency offices in Mumbai, Delhi, Bangalore, Kolkata, & Guwahati offers event management consultancy for events such as Corporate Seminars, Press Conferences, Product Launches, Corporate Launches, Inaugural Ceremonies, Road Shows, Awards' Functions, Theme Parties, Live Shows etc in India.

Market Growth

The market in terms of Entertainment and launching of Events is growing at a vast rate in India. The presence of Bollywood and the Indian culture itself embraces colossal number of festivals like holly, basant, rakhi and many more. The Event management Industry in India is highly unorganized having huge opportunities of growth Market. The Main segments of events are Corporate, Leisure, Cultural and Personal, with a rising demand of management in the corporate sector. Numerous festivals, occasions and upcoming events are expected to lead to a growing event management industry Market Overview Market Size & Growth. Numerous festivals, occasions and upcoming events are expected to lead to a growing event management industry Market Overview Market Size & Growth. Any type of a gathering, ceremony, competition convention, happening, festival, media event, or sporting event comes under the sector of Event Management. India being a country rich in heritage and culture holds numerous events throughout the year. Due to this factor there are huge opportunities of growth in this sector. The Indian Market of event management has risen from 20 bn INDR to 30 bn INDR from 2010 to 2011, and it is estimated to increase in the upcoming four years. PEST-Analysis India Political Stable democracy Constitutional rights Environmental awareness by Indian government High certainty avoidance rate Integrated taxation policy

Democratic presidential and government election Active foreign policy Economical

Strong growing economy Moderate inflation rate Moderate interest rate Foreign trade and investments Well-balanced national budget Member of the World Trade Organization Strong (Asian) currency rate

Social Overall population is low educated Multicultural High knowledge for environmental awareness Relatively sophisticated Cast-system Technological

Highly developed IT sector Large access to telecommunication systems Developed communication network Competitive transport industry

Political The political environment in India is somewhat turbulent, the popular consensus is that much corruption takes place within the political system. India however is one of Asias leading countries in business growth and development. The political and legal system has become increasing flexible allowing for starting companies to grow quickly and develop locally, nationally and internationally.

Economical India belongs to the BRIC-countries and thus signifies a emerging economy, one almost destined to become a powerful force in years to come. This made even more so by the power shift between the now dominant United States and the increasingly dominating East (Asia). India has one of the highest GDP rates in the Asian continent. Some places in India such as Mumbai, the financial and entertainment capital of India, accounts for also 6% of national GDP. Establishing a business or subsidiary in Mumbai, India will reap profitable fruits in the coming years as Indias economy continues to grow. Granted that a business can sustain stable growth. It must be mentioned however that because of the financial crisis and a possible second global recession the economy had slowed down substantially. This still does not take away the strides and achievements India had made in its economy in the last decade

Social India has a heavily enforced cast-system. This social division offers unique threats compared to Western countries. But this type of social division also offers sometimes unseen opportunities. This is very much apparent when marketing comes into play. Its because of social division marketers can quickly spot developments in class and seize opportunities.

Technological The IT-sector in India is one of the most advanced sectors in India as well as in the world. India invest a substantial amount of its national budget into this sector. Education is a important part in the development of this sector and for this reason its growth is quite steep. Because of this, business can grow at an extremely fast rate and can better predict trends.

Sources: The legatum prosperity Index, (2010), the legatum prosperity Index India. Available at: http://www.prosperity.com/country.aspx?id=IN (Accessed: 10 September 2011). Event Management Market Growth rate India (June, 2010), World press Research on India. Available at:

http://www.slideshare.net/ResearchOnIndia/event-management-market-in-india-2010. (Accessed: 10 September 2011). The Wizcraft International Entertainment, (2010), Wizcraft international brands. Available at: www.wizcraftworld.com. ( Accessed: 10 September 2011). The wizcraft International Entertainment, (20100), Wizcraft portfolio and clients. Available at: http://www.linkedin.com/company/wizcraft-international-entertainment-pvt.-ltd.. (Accessed: 10 September 2011) Deesha Communications, (2010), the event management sector India and achievements, Available at: http://www.deeshapr.com/media_management_mumbai_india.html (Accesssed: 10 September 2011).