Post on 28-May-2015
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Seminar: Meet the BRICS
Topic Number:6
Principles of Business
2
Overview
The economies of Brazil, Russia, India, China and latterly South Africa are amongst the high growth countries of the world. Yet doing business in these nations has its considerable challenges due to the economic, political, social and business environment.
In this seminar we will give consideration to these issues and look to see how organisations overcome them.
We will focus on answering:
● What indicators might companies monitor to guide their investments and actions in these countries?
● What are the implications of the emergence of the BRICs for careers and companies in your country?
● Consider doing business and its challenges in the BRICs
● Identify some of the key FDI trends that are taking place in the BRICS (inflows and outflows)
3
Learning outcomes of this seminar
• Determine the key KPI’s that companies would monitor to guide their investment decisions
• Critically evaluate and articulate the impact of the BRIC’s on careers and companies in your country
• Determine and highlight the obstacles and challenges companies may face when doing business in the BRICS
• Describe some of the key FDI trends that are taking place in the BRICS
Agenda for this seminar
What are the implications of the emergence of the BRICs for careers and companies in your country?
Consider doing business and its challenges in the BRICs
Identify some of the key FDI trends that are taking place in the BRICS (inflows and outflows)
What indicators might companies monitor to guide their investments and actions in these countries?
Structure for the session
You will have 15 minutes to
discuss each question
We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area
Feel free to ask questions but please do not have separate conversations ‘we are all in
this together’!
The BRICS
http://cuts-international.org/BRICS-TERN/pdf/BRICS_and_the_World_Order-A_Beginners_Guide.pdf
Overview of BRICSO
verv
iew
Sha
re in
Glo
bal
Tra
de
Overtaking the G6 by 2040
Source: Goldman Sachs, 2003
And by 2050…
Source: Goldman Sachs, 2003
What indicators might companies
monitor to guide their investments and actions in these
countries?
Key Indicators
GDP
GDP per Capita
Key Indicators
Population
Birth Rate
Key Indicators
Literacy
Inequality
Key Indicators
FDI
Ease of Doing Business
What are the implications of the emergence of the
BRICS for companies and careers in your
country?
Consider the principles of supply and demand
Source: Goldman Sachs, 2003
An opportunity and threat for business?
• Presents ability to reach untapped markets for growth
• Provides investment opportunities (Direct & Indirect)
• Sources of new capabilities/resources and insights (global cross-fertilization)
• Source of cheaper labour leading to a more efficient supply chain
• Increased sources of investment & funding i.e. BRIC companies investing in developed market companies
• Ability to produce goods and services cheaper
• Increased competition
• New innovations entering developed markets
• Risk of leap-frogging due to proximity to fast moving economies
Opportunity Threat
Impact on careers? Increased opportunities increased competition
• Globalisation enables free flow of personnel
• MNE organisations enable internal transfers
• Doing business abroad easier i.e. gain more exposure and knowledge
• Increased competition for a consolidating world
• Outsourced model threatens job security
• Low wage countries cause a threat to jobs in developed countries
Opportunity Competition
An example from BP
View video: http://www.bp.com/en/global/corporate/careers/students-and-graduates/global-graduates.html
Consider doing business and its challenges in the
BRICs
Ease of Doing Business in the BRICS
Source: World Bank, 2013
Ease of Doing Business in the BRICS
Source: World Bank, 2013
Ease of Doing Business in the BRICS
As you can see the BRICS are not the easiest place to do business
Each BRIC have their own complexities
Source: World Bank, 2013
Identify some of the key FDI and trade
ends that are taking place in the BRICS
(inflows and outflows)
Key FDI Trends
Share of Global FDI
Source: World Investment Report, 2013
Trends in BRICS co-operation
Source: World Investment Report, 2013
End of Seminar
Note: This recording is for your personal use only and not for further distribution or wider review.
© Pearson College 2013