1. MG6021 International and Cross Cultural Management
The Unique, Ethno-Features of Brazilian
Management Practices:
Identification, Explanation and Illustration
Group members Student ID
Wantong Dong 15072487
Charul Singh 15012447
Lansinli Pheiga Gangmei 15012336
Olaseni Odeyemi 15014967
Stephen Gilmartin 0421596

2. Introduction
1
3
2
4
5

3. Brazilian History and Evolution of Culture
• Pre-colonial era: Before 1500
Indigenous people---Agriculture, fishing and hunting.
• Arrival of the Portuguese in Brazil
o Natives: live on the coast and along the banks of rivers.
o Pursuit of Brazilian wood.
• Importation of slaves from Africa: 16th century
o Sugarcane….. the base of economy.
o Enslave the natives as labour, BUT they failed.
o Import slaves from Africa.

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), 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), 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

8. Hofstede’s Cultural Dimensions of Brazil
Adapted from (Hofstede, 2012)

9. Globe Study
Manager’s
Strategic
Practices
POWER
DISTANCE
UNCERTAINTY
AVOIDANCE
FUTURE
ORIENTATION
PERFORMANCE
ORIENTATION
PERSONALISM
kadfghkfhgk
he

10. GLOBE Study Results
• 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
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.
• Global success in the Brazilian
market.
• The best eSports players.
• 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: integration and absorption of different civilizations.
• Domestic companies & MNCs: respect cultural values
• Successful cross-cultural management: Identify & consider org.
practices and values in the Brazilian workplace
• Commonalities will also define Brazil’s future:
o New Capitalism: Hybridised Management styles
o Relationship/network culture … shared BRICS traits

19. Obrigado!
Q & A