Nike in Brazil: a Host Country View

Negative effects of Nike from brazil-nut trees point of wad brazil is rapidly privatizing many industries and its attitude toward a free grocery economy has changed signifi housetly in the past 10 years. However, it seems the country restrained has a perception that often times associates capitalism with greedy developed countries. If the opinion of brazil-nut trees chairperson is a reflection of how nigh of its peck feel this is certainly the case. In 2008, brazils president lambasted US corporations and the US government for infecting his nation with problems that were not of its making (The impertinently York Times, 2008). This attitude seems to have created some problems for Brazilians in terms of their view of Nike. The manikin of leverage and control that such a large corporation can exert on footb whole in the country is huge. This issue was impel into the light when in 1998 the Brazilian guinea pig aggroup lost in the World Cup finals to France. Earlier on i n the year, Nike had invested a demean amount ($200 million US) for the right to sponsor the Brazilian national team in the World Cup.As a requisite for sponsorship, Nike demanded that the team play an inordinate amount of exhibition games leading up to the event. umteen Brazilians, including Brazilian football legend Pele (who filed a lawsuit against Nike), still darned Nike for Brazils loss. They claim that the unusual number of exhibition games timeworn the players out. Similarly, another interesting problem is Nikes effect on contender in Brazil. Nikes recent acquisition of UK fair wear company Umbro allowed it to eclipse Adidas as the biggest brand in the world of football (The pecuniary Times, 2007).This is particularly troubling for Brazilian retailers, who worry about the concentration of brands among two large Multi-Nationals and the effect this expertness have on their business. Lastly, as with many interactions surrounded by MNCs and developing countries environ mental issues have been a problem. Brazil is a massive supplier of strap used for products comparable Nike shoes. However, much(prenominal) of the cattle that the leather comes from graze on what was once virago rain forest. A host of Brazilian ranchers have clear-cut wide swaths of rainforest in an attempt to make room for more cattle.This goes against Brazils need to preserve what is arguably its most precious congenital resource (The Ends Report, 2009). In prox business interactions, Nike needs to be endure of using tactics that could be perceived by the Brazilian people as greedy, dominating, or imperialistic. Such tactics may erode cartel within the Brazilian population and could turn out to be a bigger PR headache than they are worth. Advantages of having Nike in Brazil from Brazils point of view On the other hand, the fact that Nike is such a large and powerful company can have its benefits for the Brazilian people.With its enormous buying capability Nike can actually shift the means products are produced in some countries by pressuring suppliers. As was discussed earlier, Nike has been using leather procured from suppliers who have clear-cut forests in order to make room for their cattle. However, in August of last year, Nike along with help from Greenpeace enacted a set of regulations that all its suppliers must follow. The policies included a rule against clear-cutting, as advantageously as other important environmental conventions.It seems that where there are problems between Brazil and Nike, there are also opportunities (The Ends Report, 2009). Programs like this are exactly what Nike needs. not only do they foster trust and goodwill, they also facilitate much needed changes in Brazil. Without Nike the changes in the Brazilian leather industry might be difficult to encourage. The cattle lobby in Brazil is well funded and has many political ties making foremosts that may affect productivity potent to pass. However, it seems that environ mentally conscious Brazilians have found a solution and a partner in Nike.In addition, Nike also decided to make its complete 2010 World Cup kit (a collection of football clothing) out of recycled bottles. This initiative took 13 million plastic bottles out of landfills. Furthermore, the Nike project created an association between Brazil and sustainability that will be seen all over the world (Al-Bawaba Reporters, 2010). Lastly, in recent years Nike has invested enormous amounts of money in the Brazilian football infrastructure. Nike is one of the chief supporters of the Brazilian Football Confederation and has extended its iron out with this association until 2018.In addition, Nike also sponsors all three of the largest football teams in the country (Sports Marketing Quarterly, 2006). This reflects a direct commitment to improving and education football in the Brazil. The support of such a large sporting powerhouse seems to have had some positive effects on Brazil in terms of th eir attractiveness as a host for future events. In the past year, Brazil secured the 2014 world cup. This event is extremely lucrative for local vendors (among other parties) and will allow Brazil to display its undreamt culture on a worldwide scale. Bibliography