Brazil, R&D and the role of clusters

Most of the Brazilian executives dislike quick and infrequent visits by foreign sales representatives, and
prefer a more continuous relationship.
One is advised to be well prepared technically for negotiations in Brazil.
The Brazilian secretary may be the foreign businessman’s best friend, and a small gift will see to that the
friendship is established.
The Brazilians expect visitors to be on time, even though they may well be somewhat delayed – traffic is
an often used excuse for the delay; especially in São Paulo. To be somewhat delayed may be a nonverbal
sign of authority.
Always arrive on time for a business meal or meeting at a restaurant. Usually Brazilian business protocol
demands punctuality on these occasions.
- NEGOTIATION TECHNIQUES:
Compared to the western world, the pace of negotiations is slower and to a higher extent than in
Europe and more based on personal contact. The slower pace, however, does not mean that Brazilians
are less knowledgeable in terms of technology or modern business practices.
Business deals are seldom concluded over the phone or by letter, and require personal presence of
company directors.
How to proceed during negotiations depend on the size of the company with which one is negotiating.
The bigger the company, the more international will be the counterpart’s routines. In a smaller company
usually the owner of the company will take the decisions. It is very important to choose a direct and
honest attitude and not try to be arrogant or instructive. In most cases, the counterpart will know just as
much about the subject as the visitor, but may know little or nothing about the product or service he is
being offered.
In Brazil it is of utmost importance to follow up the meetings in order to keep the relation warm. One
should not let it pass more than 2 weeks after the meeting(s). Trust is something that does not come
automatically in Brazil, and by following up, one shows interest and trustworthiness.
Brazilians have a tendency of always marking up the prices in order to be able to eventually give a
discount.
- MANAGEMENT STYLE:
The Management style and decision making depends on the size of the company. A large company or a
multi-national will be following international patterns with planning of activities and clear decision
making channels, although routines may be less rigid and to a certain extent more flexible to fit the
Brazilian environment. The smaller companies are far more flexible in their management structure and
performance.
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