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UNIVERSITI TEKNOLOGI MARA (UiTM)
SHAH ALAM
GLOBAL BUSINESS ISSUES
FINAL GROUP PROJECT
MBA 770
WORLD CUP 2014 & OLYMPICS 2016
IN BRAZIL
“THE
POSSIBLE IMPACTS “
PRESENTED BY:
O AZILA GANI
O HAJAR AHMEDY
O NOOR SAIDATUL NATRAH SAAIDUN
O SITI NORBAZLIN AHMAD MOHTAR
O TENGKU MOHD ZULKEFLI TENGKU
NAWAWI
O WAN EZZAH SALWA WAN YACOB
WHAT’S IN BRAZIL?
O Brazil is making preparations for not one,
but two major international events.
O FIFA World Cup 2014
O Olympics 2016.
HIGHLIGHTED ISSUES
O Delays and cost overruns
O misled on where government money would be
spent
O budget of $13.3 billion was set for the
tournament, with the majority of money to be
spent on projects around the host cities.
O Instead, a huge amount of the budget for the
tournament has been used on building the
stadiums
O Concern on the aftermath
O several of these stadiums risk becoming white
elephants because the huge stadiums they
constructed are now rarely used.
O Brazil might suffer the same drain on resources
O total lack of planning and for sure, there will be
last-minute contracts that further increase the
cost for the construction
O Forced relocation
O Many people in Rio have become worse off
because of forced evictions for sports-related
construction projects.
O Many low-income settlements known as
favelas are set to be demolished and replaced
by hotels and infrastructure designed to
alleviate traffic congestion expected for the
World Cup and the Olympics.
O Soar in transportation
O variety of new infrastructure is being created
ahead of the sporting event, such as new
roads, bridges, an international airport and
shopping centres.
O Even if new mass transit is not fully functional
for the World Cup or the Olympics, Brazil's
transportation system will be substantially
improved for the long haul
O change their laws to match the
governing body's requirements.
O laws involve along FIFA to avoid tax on
earnings at the event and preventing
businesses especially alcohol from
associating with the tournament
WHY BRAZIL?
O Has a lot attractiveness
O Famous Tourism
O Hotel
O famous samba dance
O and its world cup roles on winning for 5
times
WORLD CUP
O HISTORY
O BRAZIL ARE THEMOST SUCCESFUL
WORLD CUP TEAM AND THE ONLY
NATION TO HAVE PLAYED IN EVERY
WORLD CUP
O IN 2014, BRAZIL IS THE HOST
OLYMPIC IN RIO
O HISTORY
O GAMES PLAYED IN OLYMPICS SUCH
AS:
O TRACK AND FIELD
O BADMINTON
O GYMNASTIC
OPPORTUNITY FOR BRAZIL
O Economic stability
O the International Monetary Fund and the World Bank, Brazil
is the largest national economy in Latin America, the
world’s sixth largest by nominal GDP .
O ensure Brazil to have adequate preparation regarding their
development of infrastructures, energy, transportations,
development of hotel, labor force for the construction,
compensation for the people and others.
O Halal food market
O The availability of Halal food restaurants will attract the
tourists especially Muslims to come and watch the
tournaments at Brazil.
O Energy, railways, transportation and IT
O the Government of Brazil will spend around US$
470 billion in the development of the country’s
energy generation and distribution system,
roads, railroads, ports and airports as well as
stadiums as it prepares for the World Cup in
2014 and the Olympics in 2016.
O IT end-user spending in Brazil is expected to
grow to $134 billion in 2014. The largest share of
spending will be on telecom equipment,
representing 72% of the market, followed by IT
services at 13.3% and computing hardware at
11.9%.
O Strong agriculture sector
O It is the world's number one producer and
exporter of coffee, ranks seventh in
soybeans and rice; sixth in tomatoes, sweet
potatoes and peanuts; fifth in jute; fourth in
tobacco and cotton; second in sisal, cane
sugar, cacao, corn and oranges.
O Land extension
O give benefits in terms of economic by
encouraging more investors to come.
O Tourism sector
O The attractive tourism sector in Brazil has
encouraged the development of
accommodation and hotel networks.
O Due to the availability of hotel industry, the
government not needs to put much effort for
the development of hotel industry to
accommodate them.
O Broadcasting
O Brazil has taken steps to optimize the
economic value of these high-profile events by
safeguarding the interests of broadcasters and
sponsors.
MARKET RISK
O Security and criminal cases
O Brazil’s government pledged to curb the violence,
and major strides have been made in recent years,
particularly in Rio, where the police are now
present in more than 200 hillside “favela” slums.
O Corruption
O ranked as number 80 of 180 countries on
Transparency International's Corruption Perception
Index for 2008.
O there are still risks of corruption incidents which
may lead to illegal actions, with severe
consequences for the companies and persons
involved.
O Health care system
O The scale of criminal misconduct is
widespread and includes shopping, over-
billings and cheating the system by hiring the
same doctor in 17 different practices
simultaneously.
O The other main problem of healthcare system
in Brazil is the lack of doctors and the long
waiting times in order to be seen or get an
appointment
O Traffic jam
O Brazil's biggest city entangled itself in a
record traffic jam, highlighting how the
country's infrastructure has failed to keep
pace with economic growth.
O This is due to the metropolitan area of 20
million people where an expanding middle
class means that more than 900 new
vehicles hit the streets every day.
IMPACTS ON WORLD
CUP AND OLYMPICS IN
BRAZIL
O Economics Impacts
O high hopes in terms of employment rates
O Around 120,000 jobs per year are expected to
be created as a consequence of the Games until
2016, and then a further 130,000 jobs per year
until 2027 according to research by the Ministry
of Sport.
O Tourism Impacts
O Adding the two events, tourism is expected to
more than double to 3.3 billion visitors every
year
O Social Impacts
O Tenants are usually the most affected by the
mega-events projects because of their limited
housing rights.
O Infrastructure Impacts
O Investment in roads and public transport are
often the largest part of the event budget.
O Improved and expanded underground lines,
new buses, roads and the new traffic
engineering linked to the renovation and
construction of roads have a great distributional
effect
O Cultural Impacts
O infrastructure investments in Brazil will be a
driving force for economic growth in the
longer term
O The country will take quite a few steps
towards modernization, become more
efficient and lure increased foreign
investment
CONCLUSION
O the nation has been selected to host the 2014 World Cup
Soccer Championship as well as the 2016 Summer Olympics.
O a major investment opportunities in Brazil, is expanding and
upgrading infrastructure especially in major international
sports events
O the International Monetary Fund (IMF) predicts that Brazil will
outperform nearly all other Latin American nations.
REFERENCES
O Andrew Zimbalist. Can Brazil build the massive infrastructure it needs to
host the Olympics and the World Cup? Retrieved from
http://www.americasquarterly.org.
O
O DeMaiolo, D., Galati, R., James, R., Foraker, S. and AJ DiRienzo (2008).
International Marketing Communication Plan for Harley Davidson
Motorcycles in Brazil.
O
O Helen Trouten Torres (2011). Rio’s World Cup and Olympic Legacy:
Infrastructure. Retrieved from http://riotimesonline.com/brazil-news/rio-
politics/rios-world-cup-and-olympic-legacy-infrastructure/#.
O
O Sakariya S. Country Analysis of Brazil. Retrieved from
http://www.scribd.com/doc/.
O
O Will Brazil be left counting the cost of hosting the World Cup and
Olympics? News Global Development. Retrieved from
http://www.guardian.co.uk/.

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World Cup 2014 & Olympics 2016, The Possible Impacts

  • 1. UNIVERSITI TEKNOLOGI MARA (UiTM) SHAH ALAM GLOBAL BUSINESS ISSUES FINAL GROUP PROJECT MBA 770
  • 2. WORLD CUP 2014 & OLYMPICS 2016 IN BRAZIL “THE POSSIBLE IMPACTS “
  • 3. PRESENTED BY: O AZILA GANI O HAJAR AHMEDY O NOOR SAIDATUL NATRAH SAAIDUN O SITI NORBAZLIN AHMAD MOHTAR O TENGKU MOHD ZULKEFLI TENGKU NAWAWI O WAN EZZAH SALWA WAN YACOB
  • 4. WHAT’S IN BRAZIL? O Brazil is making preparations for not one, but two major international events. O FIFA World Cup 2014 O Olympics 2016.
  • 5. HIGHLIGHTED ISSUES O Delays and cost overruns O misled on where government money would be spent O budget of $13.3 billion was set for the tournament, with the majority of money to be spent on projects around the host cities. O Instead, a huge amount of the budget for the tournament has been used on building the stadiums
  • 6. O Concern on the aftermath O several of these stadiums risk becoming white elephants because the huge stadiums they constructed are now rarely used. O Brazil might suffer the same drain on resources O total lack of planning and for sure, there will be last-minute contracts that further increase the cost for the construction
  • 7. O Forced relocation O Many people in Rio have become worse off because of forced evictions for sports-related construction projects. O Many low-income settlements known as favelas are set to be demolished and replaced by hotels and infrastructure designed to alleviate traffic congestion expected for the World Cup and the Olympics.
  • 8. O Soar in transportation O variety of new infrastructure is being created ahead of the sporting event, such as new roads, bridges, an international airport and shopping centres. O Even if new mass transit is not fully functional for the World Cup or the Olympics, Brazil's transportation system will be substantially improved for the long haul
  • 9. O change their laws to match the governing body's requirements. O laws involve along FIFA to avoid tax on earnings at the event and preventing businesses especially alcohol from associating with the tournament
  • 11. O Has a lot attractiveness O Famous Tourism O Hotel O famous samba dance O and its world cup roles on winning for 5 times
  • 12. WORLD CUP O HISTORY O BRAZIL ARE THEMOST SUCCESFUL WORLD CUP TEAM AND THE ONLY NATION TO HAVE PLAYED IN EVERY WORLD CUP O IN 2014, BRAZIL IS THE HOST
  • 13. OLYMPIC IN RIO O HISTORY O GAMES PLAYED IN OLYMPICS SUCH AS: O TRACK AND FIELD O BADMINTON O GYMNASTIC
  • 14. OPPORTUNITY FOR BRAZIL O Economic stability O the International Monetary Fund and the World Bank, Brazil is the largest national economy in Latin America, the world’s sixth largest by nominal GDP . O ensure Brazil to have adequate preparation regarding their development of infrastructures, energy, transportations, development of hotel, labor force for the construction, compensation for the people and others. O Halal food market O The availability of Halal food restaurants will attract the tourists especially Muslims to come and watch the tournaments at Brazil.
  • 15. O Energy, railways, transportation and IT O the Government of Brazil will spend around US$ 470 billion in the development of the country’s energy generation and distribution system, roads, railroads, ports and airports as well as stadiums as it prepares for the World Cup in 2014 and the Olympics in 2016. O IT end-user spending in Brazil is expected to grow to $134 billion in 2014. The largest share of spending will be on telecom equipment, representing 72% of the market, followed by IT services at 13.3% and computing hardware at 11.9%.
  • 16. O Strong agriculture sector O It is the world's number one producer and exporter of coffee, ranks seventh in soybeans and rice; sixth in tomatoes, sweet potatoes and peanuts; fifth in jute; fourth in tobacco and cotton; second in sisal, cane sugar, cacao, corn and oranges. O Land extension O give benefits in terms of economic by encouraging more investors to come.
  • 17. O Tourism sector O The attractive tourism sector in Brazil has encouraged the development of accommodation and hotel networks. O Due to the availability of hotel industry, the government not needs to put much effort for the development of hotel industry to accommodate them. O Broadcasting O Brazil has taken steps to optimize the economic value of these high-profile events by safeguarding the interests of broadcasters and sponsors.
  • 18. MARKET RISK O Security and criminal cases O Brazil’s government pledged to curb the violence, and major strides have been made in recent years, particularly in Rio, where the police are now present in more than 200 hillside “favela” slums. O Corruption O ranked as number 80 of 180 countries on Transparency International's Corruption Perception Index for 2008. O there are still risks of corruption incidents which may lead to illegal actions, with severe consequences for the companies and persons involved.
  • 19. O Health care system O The scale of criminal misconduct is widespread and includes shopping, over- billings and cheating the system by hiring the same doctor in 17 different practices simultaneously. O The other main problem of healthcare system in Brazil is the lack of doctors and the long waiting times in order to be seen or get an appointment
  • 20. O Traffic jam O Brazil's biggest city entangled itself in a record traffic jam, highlighting how the country's infrastructure has failed to keep pace with economic growth. O This is due to the metropolitan area of 20 million people where an expanding middle class means that more than 900 new vehicles hit the streets every day.
  • 21. IMPACTS ON WORLD CUP AND OLYMPICS IN BRAZIL
  • 22. O Economics Impacts O high hopes in terms of employment rates O Around 120,000 jobs per year are expected to be created as a consequence of the Games until 2016, and then a further 130,000 jobs per year until 2027 according to research by the Ministry of Sport. O Tourism Impacts O Adding the two events, tourism is expected to more than double to 3.3 billion visitors every year
  • 23. O Social Impacts O Tenants are usually the most affected by the mega-events projects because of their limited housing rights. O Infrastructure Impacts O Investment in roads and public transport are often the largest part of the event budget. O Improved and expanded underground lines, new buses, roads and the new traffic engineering linked to the renovation and construction of roads have a great distributional effect
  • 24. O Cultural Impacts O infrastructure investments in Brazil will be a driving force for economic growth in the longer term O The country will take quite a few steps towards modernization, become more efficient and lure increased foreign investment
  • 25. CONCLUSION O the nation has been selected to host the 2014 World Cup Soccer Championship as well as the 2016 Summer Olympics. O a major investment opportunities in Brazil, is expanding and upgrading infrastructure especially in major international sports events O the International Monetary Fund (IMF) predicts that Brazil will outperform nearly all other Latin American nations.
  • 26. REFERENCES O Andrew Zimbalist. Can Brazil build the massive infrastructure it needs to host the Olympics and the World Cup? Retrieved from http://www.americasquarterly.org. O O DeMaiolo, D., Galati, R., James, R., Foraker, S. and AJ DiRienzo (2008). International Marketing Communication Plan for Harley Davidson Motorcycles in Brazil. O O Helen Trouten Torres (2011). Rio’s World Cup and Olympic Legacy: Infrastructure. Retrieved from http://riotimesonline.com/brazil-news/rio- politics/rios-world-cup-and-olympic-legacy-infrastructure/#. O O Sakariya S. Country Analysis of Brazil. Retrieved from http://www.scribd.com/doc/. O O Will Brazil be left counting the cost of hosting the World Cup and Olympics? News Global Development. Retrieved from http://www.guardian.co.uk/.