GREENFIELD VENTURING:

SQUARE IN BRAZIL

BUS 251 Section 15

Instructor: Looksina Khan (LKK)
Group: AQRAB

Name ID

MD. Faisal Khan 1611480030

Nusrat Jahan 1631074630

Sharmim Hamid Ivee 1610398630

Md. Ahad Hossain Monve 1521424631

 Shithima Islam 1530532030

Executive Summary
The report is divided into two distinctive sections. On the first section we discussed about the
origin of Square Inc and the home country USA. On the second section we discussed about the
host country, Brazil. We added information regarding origin, background of Square, products &
services provided by Square and industrial condition of USA in-terms of fin-tech. On the second
part, the condition of Brazil is thoroughly. History, geography, people, currency, economy,
staffing policies, advertisement policies and linguistic characteristics are discussed. In the end,
we concluded with our understanding based on the information we collected, whether we should
take the company to Brazil or not.
Contents
Company profile..........................................................................................................................................4
Valuation.................................................................................................................................................4
Products & Services....................................................................................................................................4
Industry analysis..........................................................................................................................................5
Rivalry among competitors......................................................................................................................5
Threats of substitutes...............................................................................................................................6
Threats of new entrants............................................................................................................................6
Bargaining power of the suppliers...........................................................................................................6
Bargaining power of the buyer................................................................................................................6
Competition.................................................................................................................................................6
History.........................................................................................................................................................7
Geography & Climate..................................................................................................................................7
Climate....................................................................................................................................................7
People..........................................................................................................................................................7
Education.................................................................................................................................................8
Age structure...........................................................................................................................................8
Median age..............................................................................................................................................9
Languages................................................................................................................................................9
Religions.................................................................................................................................................9
Currency......................................................................................................................................................9
Economy...................................................................................................................................................10
Problem faced by multinational companies conducting business in Brazil................................................10
Staffing Policies of Brazil..........................................................................................................................11
Recruitment & agreement......................................................................................................................11
Working hour & employee benefits.......................................................................................................11
Termination policies..............................................................................................................................11
Advertising practices & rules....................................................................................................................12
Communication culture of Brazil..............................................................................................................12
Verbal communication..........................................................................................................................12
Non-verbal communication...................................................................................................................13
Body language.......................................................................................................................................13
 Tone of Communication........................................................................................................................14
Roles and mannerisms...........................................................................................................................14
Attitude towards materialism.................................................................................................................16
Research shows people tend to believe more in “I would rather have more time than money” and also
“Experiences are more important than possessions”. A very large percentage of people have expressed
their opinion on this and they rightfully agree on this statement...........................................................16
Time awareness differences...................................................................................................................16
Concept of personal space.....................................................................................................................16
Decision making, problem solving and negotiation...............................................................................16
Political affiliations with the United States................................................................................................17
Useful things to know while communicating in Brazil..............................................................................17
The Art of Conversation........................................................................................................................17
when you meet someone for the first time.........................................................................................17
Good conversation topic....................................................................................................................17
Business meeting and meals..............................................................................................................18
Recommendation.......................................................................................................................................18
Conclusion.................................................................................................................................................18
Bibliography..............................................................................................................................................19
SQUARE INC
Company profile
Square.INC is a financial technology company based in San Francisco, California, which was
founded in 2009 by three founders. Jack Dorsey, Jim McKelvey, Tristan O’Tierney founded after
witnessing the backward trend in retail industry. Even though there were enough technological
facilities to introduce a modern compact money transaction system, no company came up with it.
In that time in US, every bank used to issue their own debit-credit card swiping machines.
Understanding this opportunity, Jack Dorsey imposed the idea of utilizing the existing iphones to
make card payment system easy. Square inc built their own detachable device which was capable
of supporting all sorts of cards and had taken no extra space. In 2010, they introduced both
machine and the app. The app was built to track the transaction history, customer profile and
time of transaction. Gradually the company improved both the app and the device.
("Square Was Almost Named Squirrel Until Dorsey Talked To Apple". pulse2.com. May 26, 2011. September 19, 2011.)

Valuation
As par 2018, the company is valued at 32 Billion USD ("Square - 2018 Q4 Shareholder Letter | SQ").

Products & Services

Square Reader: The Square Reader was the firm's first product. It accepts credit card payments
by connecting to a mobile device's audio jack. The original version consisted of a simple read
head directly wired to a 3.5 mm audio jack, through which unencrypted, analog card information
was fed to smartphones for amplification and digitization. ("Inside the Square Reader". Protean
Payment. August 22, 2012.)
After the claim of 2011 by Verifone regarding the security issues with Square devices, the
company developed their existing machine and started using stronger encryption and blockchain
method to secure the data transaction.
Square now uses strong encryption on its devices, and neither card numbers, nor magnetic stripe
data, nor security codes are stored on Square client devices. The current technology is Payment
Card Industry Data Security Standard (PCI) compliant and Verisign certified. ("Square -
Security". Squareup.com. Sept 19, 2011.)

Square Stand: In June 2013, the firm unveiled Square Stand, which turns the Apple iPad into a
more complete point-of-sale system (Terdiman, Daniel. “At Square, an obsession with the 'magic' of
hardware design”, CNET). In 2015, Square launched a bluetooth-connected reader that works for
Android and iOS devices to accept chip and contactless payments through their platform
("Square Will Launch An Apple Pay-Ready NFC And Card Chip Reader This Fall". TechCrunch ). In
October 2018, Square introduced a terminal which has the features like, a display, prints receipts,
and accepts chip, swipe, and contactless payments ( "Square takes on the clunky old-school payment
terminal", Fast Company, 18 Oct 2018)

Current R&D: Square is currently developing devices which will be capable of accepting non-
touch transaction system which will be able to detect biometric payment. Facial recognition
system can also be integrated with their existing devices to make the payment even more secure.

Services: Apart from offering products, the company also offers various services.
I. 2012: Square began allowing merchants to issue virtual gift cards; a QR code is scanned
from the customer's smartphone to use the funds ("Square Now Offers Gift Cards,
Thrusting It Deeper Into The Money Business". Business Insider).

II. 2014: Square capital was introduced, which offers business financing to the merchants of
Square ("Square's cash advance: Don't call it a loan". CNN. May 28, 2014).

III. 2015: The firm launched Square Payroll, a tool for small business owners to process
payroll for their employees. Automatically handles a business's withholdings, payroll
payments, and tax filings ("Square feels your pain, debuts payroll service". San Francisco
Business Times. June 30, 2015).

IV. 2018: Square began allowing merchants to develop custom interfaces for the platform,
via an application programming interface or API ("Square checkout systems can now
have custom interfaces". The Verge. Vox Media).

Industry analysis
Porter’s five factors are used to justify the industry situation in home country USA.

Rivalry among competitors

o Current rivalry among the competitors is very high.
o The number of finance provider companies in USA is significantly high.
o With the introduction of micro-finance, the big companies may provide schemes for
small-business owners.
Threats of substitutes
o Current threats of substitute products in low for square inc.
o There is no substitute product that can give similar utility as the services and product
combination provided by Square.
Threats of new entrants
o It takes huge investment to enter into this industry.
o Already established start-ups of Silicon valley can become competitors in near future.
o Currently the level of threats of new entrants is low.

Bargaining power of the suppliers

o Product manufacturers and hardware provider: Currently the company is manufacturing
their product from China which is low cost market. The supplier industry is fragmented.

o Finance providers: In-terms of capital, bargaining power of the capital providers in

moderate. As the company is already very profitable, the suppliers are getting their
expected share.
Bargaining power of the buyer
o Current bargaining power of the buyer is high because of the availability of competitive
products.
o If the products and services provided by Square give less utility, then the buyer may
switch even if substitute products do not provide equal utility as Square.

Competition
Apart from silicon valley start-ups, Square.Inc has several strong competitors who are providing
similar services in one way or another.
1. Paypal – Revenue = 17 B
2. Chase – Revenue = 25 B
3. Shopify – Revenue = 1.4 B
4. Intuit – Revenue = 14.2 B
5. TSYS – Revenue = 4.1 B
Only positive thing about these companies is, none of them are providing equal services like
Square nor they are producing specialized hardwares.
Country Analysis
History
The history of Brazil starts with indigenous people in Brazil. Europeans arrived in Brazil at the
opening of the 16th century. The first European to claim sovereignty over Indigenous lands part
of what is now the territory of the Federative Republic of Brazil on the continent of South
America was Pedro Álvares Cabral (c. 1467/1468 – c. 1520) on April 22, 1500 under the
sponsorship of the Kingdom of Portugal. From the 16th to the early 19th century, Brazil was a
colony and a part of the Portuguese Empire. The country expanded south along the coast and
west along the Amazon and other inland rivers from the original 15 donatary captaincy colonies
established on the northeast Atlantic coast east of the Tordesillas Line of 1494 (approximately
the 46th meridian west) that divided the Portuguese domain to the east from the Spanish domain
to the west, although Brazil was at one time a colony of Spain [ CITATION Rob \l 1033 ]. The
country's borders were only finalized in the early 20th century.

Geography & Climate

The country of Brazil occupies roughly half of South America, bordering the Atlantic Ocean.
Brazil covers a total area of 8,514,215 km2 (3,287,357 sq. mi) which includes 8,456,510 km2
(3,265,080 sq. mi) of land and 55,455 km2 (21,411 sq. mi) of water. The highest point in Brazil
is Pico da Neblina at 2,994 m (9,823 ft.). Brazil is bordered by the countries of Argentina,
Bolivia, Colombia, Guyana, Paraguay, Peru, Suriname, Uruguay, Venezuela, and France
(overseas department of France, French Guiana) (brasil escola, n.d.).

Climate
Much of the climate is tropical, with the south being relatively temperate. The largest river in
Brazil, the second longest in the world, is the Amazon [ CITATION pew13 \l 1033 ]. Although 90%
of the country is within the tropical zone, the climate of Brazil varies considerably from the
mostly tropical North (the equator traverses the mouth of the Amazon) to temperate zones below
the Tropic of Capricorn (23°27' S latitude), which crosses the country at the latitude of the city of
São Paulo. Brazil has five climatic regions: equatorial, tropical, semiarid, highland tropical, and
subtropical.[ CITATION htt4 \l 1033 ]

People
Brazil’s population is very diverse, comprising many races and ethnic groups. In general,
Brazilians trace their origins from five sources: Europeans, Amerindians, Africans, Levantines,
and East Asians.
Brazil has conducted a periodical population census since 1872. Brazil is widely known to be
one of the most diverse countries in the world. Since 1940, this census has been carried out
decennially. Scanned versions of the forms for each census distributed in Brazil since 1960 are
available on-line from IPUMS International.[ CITATION bra \l 1033 ]

Historically, Brazil has experienced large degrees of ethnic and racial admixture, assimilation of
cultures and syncretism. The Brazilian population is said to be one of the most mixed in the
world.[ CITATION wor \l 1033 ]

Population distribution in Brazil is very uneven. The majority of Brazilians live within 300
kilometers of the coast, while the interior in the Amazon Basin is almost empty. Therefore, the
densely populated areas are on the coast and the sparsely populated areas are in the interior. This
historical pattern is little changed by recent movements into the interior.

Education
The color or race of the woman and the level of education has also shown to influence the fact of
not having children. In 2013, among European women aged 15 to 49 years, 41.5% had no
children, while among African women, the percentage was 35.8%. The proportional difference is
even greater among European women compared to African 25–29 years. While the proportion
among European women childless was 48.1% among African women was 33.8%.[ CITATION
wor \l 1033 ] Regarding education, among women 15–49 years of age with more than eight years
of schooling, 44.2% had no children in 2013, while among those with up to seven years of study
this figure was 21.6%. Schooling among women 25–29 years has shown an even greater
disparity. Among the less educated, 16.3% had no children, while among the more educated
54.5% had no children. The proportion of women aged 45 to 49 without children was 8.2% in
2013 among those with less education and 15.1% among those with more years of schooling.
[ CITATION wor \l 1033 ]

Age structure
Brazil's population pyramid in 2017
0-14 years: 21.89% (male 23,310,437 /female 22,414,551)
15-24 years: 16.29% (male 17,254,084 /female 16,758,140)
25-54 years: 43.86% (male 45,449,158 /female 46,151,759)
55-64 years: 9.35% (male 9,229,665 /female 10,296,824)
65 years and over: 8.61% (male 7,666,845 /female 10,315,429) (2018 est.)
Median age
total: 32.4 years. Country comparison to the world: 100th
male: 31.5 years
female: 33.3 years (2018 est.)

Languages
Portuguese (official).

Religions
Roman Catholic 64.6%, other Catholic 0.4%, Protestant 22.2% (includes Adventist 6.5%,
Assembly of God 2.0%, Christian Congregation of Brazil 1.2%, Universal Kingdom of God
1.0%, other Protestant 11.5%), other Christian 0.7%, Spiritism 2.2%, other 1.4%, none 8%,
unspecified 0.4% (2010 est.)[ CITATION wor \l 1033 ]

Currency
Brazil’s currency is known as Brazilian real. Since the invasion by Portugal real had been used a
currency in Brazil. It is the first and only official currency of Brazil till now. The currency has
the symbol of “R$” and it was adopted as the first official currency in 1690 till 1942 and later re-
implemented in July,1 1994. The currency is divided in 100 sub-unit which is also known as
“Centavos”.

Currency Code BRL

Currency Number 986

According to the world bank in November 29.2019 the Brazilian real value was 4.22 against 1
USD. In the last decade it 2019’s November saw peaked value. The value of the Brazilians Real
in the last five years are given below.

Year USD BR
2015-2016 1 4.16
2016-2017 1 4.40
2017-2018 1 3.21
2018-2019 1 3.24
2019-2020 1 4.22
Economy
GDP:
The economy of Brazil’s is a developing free market economy. According to the world bank it’s
the nine largest economy in terms of nominal GDP and eight largest by the purchasing power
parity. In 2018-2019 the country has produced an estimated of US$1.86 trillion. Its considered as
one of the largest economies in South America. Currently their GDP per capita is 8.95 which is
73rd in the world. Brazil’s economy mostly relies on the natural resources, according to world
bank their highest percentage of the contribution of GDP comes from their service sector which
is 76%. From the below table we can find out about the GPD of brazils in the last five years.

Years GDP (In billion dollar)

2014-2015 2455.81
2015-2016 1802.21
2016-2017 1796.28
2017-2018 2053.6
2018-2019 1868.63

Currency Exchange rate

Currency Name Currency Value against Brazilian Real

USD 0.24133
GBP 0.18371
EUR 0.21821
CAD 0.3199
RUB 15.3633

Problem faced by multinational companies conducting business in Brazil

Following problems has already been faced by the multinational companies conducting in Brazil.

 In Brazil’s corporate culture there is lack of loyalty. So for the foreign trader it is hard to
conduct a long term business with temporary employees.
 Brazil has the highest taxes. According to world bank a company has to contribute almost
67% of their profit with taxation matter.
 Brazil has highest number when it comes to opening a business. It takes upto 185 days to
open up a new business.
 Corruption is impacting a lot to the economy of Brazil. From import to setting up a
business, in every sector a company has to pay bribe which are not acceptable in many
culture
Staffing Policies of Brazil
Following information collected from Human Resources Management in Brazilian
Multinationals, Tonelli, Maria. (2012).
Recruitment & agreement
a) An employee can only be hired by a proper registered company.
b) Employees are hired on the basis of a certain term and other conditions of an employment
agreement.
c) Within 48 hours after an employee started his job in a respective Brazilian organization, the
mentioned employment agreement should be registered.
d) It is possible to include a trial period into the employment contract, with a maximum of 90
days. Temporary employment agreements should have a maximum of 2 years.

Working hour & employee benefits

a) A standardized working schedule for all employees of 8 hours per day and a maximum of 44
hours a week.
b) Employers and employees can agree upon stretching the working hours (common in the
offshore industry for instance). Workers are paid a 50% surcharge on the regular hourly rate
for overtime (2 hours overtime per day max). When workdays last more than 6 hours,
employees are entitled to a 1 hour break minimum.
c) Apart from a monthly salary, other substantial benefits are provided to staff members. In
general, these include a thirteenth salary, which should be paid mid November and is equal to
the salary of December and a 30 day holiday pay, to be paid 2 days before leave at the latest.
d) In case of childbirth, in Brazil female employees are eligible to get a liberal maternity leave
of 120 days, beginning in the 8th month of pregnancy.
e) Male workers are entitled to a 5 days paternity leave, starting at the day of birth.

Termination policies
a) An employer cannot dismiss an employee prior to the 12th month following the return from a
paid work-related accident leave.
b) An employee is bound to provide a 30 days’ notice to the company before finishing the job.
c) It is possible to terminate an employment agreement before the expiry date by the employer.
It is compulsory however paying the employee a certain amount of compensation.

Advertising practices & rules

Juliana Mello, “Regulation of the Brazilian Advertisement Industry”, The Brazil business
The advertisement industry in Brazil is regulated by:
A. The Consumer Defense Code (Código de Defesa do Consumidor, known as CDC)
B. Specific Laws
C. CONAR (Conselho Nacional de Autorregulamentação Publicitária)
Regulations
o Article 67, for example, establishes the protection against misleading or abusive
advertisement: Consumers have the right to demand for everything that was promised in
ads.
o Law nº 4.680 Regulates the profession of Advertiser and agent of Propaganda and other
measures.
o Law nº 9610 Changes, updates and consolidates the laws on copyright and other matters.
o Code of Ethics Define the ethical principles that should guide advertising.
o Article 268 of the Decree. 2998 Provides for advertising of firearms.
o Law no. 5197 Provides for the protection of fauna and other measures (use of wild
animals).
o Law 9.610 The Copyright Act.

The above mentioned information were collected from; Juliana Mello, “Regulation of the Brazilian
Advertisement Industry”, The Brazil business.

Communication culture of Brazil

Verbal communication
Physical appearance and physical surroundings are important and provide visual cues as to status
and tone of conversations.
For example: Dressing is black is usually a sign of mourning.
Correspondence Style: Brazilians can be extremely expressive and emotive in their
correspondence. On occasion, they may interfere with others when talking when overwhelmed
by their enthusiasm or enthusiasm for the discussion point. In addition, Brazilians are regularly
not hesitant to express their genuine thoughts and express what is in their heart.
Backhanded Communication: Despite their expressive method for verbally conveying,
Brazilians for the most part will in general keep away from strife. In discussion, they will in
general progressively move the subject towards something they might want to discuss. In this
way, Brazilians won't be excessively immediate or prompt in their appearance because of the
propensity to maintain a strategic distance from strife.
Language Style: The small is a run of the mill normal for Brazilian Portuguese. It communicates
recognition and love towards a thing or individual. Most words can be utilized in their humble
structure by including the syllable 'inha' for females and 'inho' for guys. The modest is
additionally used to help verbal articulations that may somehow or another sound excessively
gruff. For instance, rather than saying "yes", somebody may say "só um pouquinho".
Convention: In Portuguese, the nonexclusive titles of 'senhor' (male) and 'senhora' (female) are
the most conventional strategy for address and are normally used to address individuals of rank
(in light of age and calling). It is likewise normal to address somebody by their expert title
pursued by their surname. The more casual articulation is the pronoun 'você'. It is ordinarily
utilized among the individuals who know about one another.

Non-verbal communication

1. Touching is common. Kissing on both cheeks is common among family members, relatives,
friends and acquaintances.
2. Handshaking, kissing, hugging, patting, embracing and holdings hands are common forms of
greeting.
3. Eye Contact: Avoiding eye-to-eye contact shows respect.
4. Greetings: Students usually greet teachers with a kiss on both cheeks. Young children may
address the teacher as, “Tia” (Aunt)”[CITATION ELL05 \l 1033 ].

Body language

A. Physical contact is part of simple communication. Touching arms, elbows and backs is very
common and acceptable. Brazilians also stand extremely close to one another. Do not back
away.
B. The "O.K." sign is considered very rude and vulgar; the "thumbs up" gesture is used for
approval.
C. Wiping your hands together means "it doesn’t matter." Clicking the tongue and shaking the
head indicates disagreement or disapproval [CITATION Bra19 \l 1033 ]

Tone of Communication
Brazilians can be exceptionally expressive and emotive in their correspondence. Now and again,
they may intrude on others when talking when overwhelmed by their enthusiasm or enthusiasm
for the discussion point. Also, Brazilians are regularly not reluctant to express their real thoughts
and express what is in their heart.
Roles and mannerisms
Brazilians are amicable and free-vivacious, with an unbelievable pizzazz. They are very hazard
arranged and exceptionally imaginative. Transcendently Roman Catholic (73%), families are
huge and regularly incorporate more distant family individuals. Family, social institutions and
financial foundations are essential to Brazilians.
Following guidelines would be suitable for a foreigner while visiting the country or setting up a
business;
1. Do not talk with food in your mouth. It is considered extremely rude.
2. Try not to make noise when eating, as it may make people around you uncomfortable.
3. In more formal settings, do not place your elbows on the table.
4. It’s common to say “bom apetite” before you begin to eat.
5. Use the fork in your left hand and the knife in your right hand.
6. Use your utensils for all types of food, even pizza, sandwiches, and French fries. Food is
very rarely eaten with bare hands, since it is considered unhygienic to do so.
7. If you do decide to eat food with your hands, wrap it in a napkin so your fingers aren’t
touching it.
8. Do not cut with your fork, and be sure to rest the utensils on your plate if not using them.
9. After every sip you take of your drink, wipe your mouth on your napkin. If you forget, at
least try to wipe your mouth several times throughout the meal.
10. Keep both hands above the table.
11. Do not drink directly from a bottle or a can. Always pour your drink into a glass.
12. Absolutely never belch at the table, and be subtle about sneezing and coughing (be sure
to cover your face with your hands). If you have to blow your nose, leave the table and go
to the bathroom.
13. Toothpicks can be used at the table, but behind your hand or a napkin (Brazilian
Etiquette: Table Manners, n.d.).
DO: (Guide for a foreigner)
1. Make eye contact with those around you, even as you walk through the streets and
marketplaces, or travel on public transport. This is considered to be normal and polite. It
is also a safety measure, as pickpocket thieves are known to prey on those who do not
make eye contact (since they can, presumably, not identify the people around them and
the perpetrator of the crime).
2. Be a careful, alert pedestrian, looking carefully before crossing the street. This is a busy
country, with plenty of traffic.
3. Leave the bulk of your money and important paperwork (passport, driver’s licence, etc...)
in a safe place at your accommodation. Carry only the money you need for the day with
you. If necessary, make photocopies of your paperwork to carry with you and leave the
originals at your hotel.
 4. Pickpocketing is, unfortunately, a threat, particularly in bustling areas, full of locals and
tourists making their way around the beautiful cities of Brazil. Therefore, when visiting a
very busy area, do not wear valuable jewellery (including wristwatches) and do not carry
cameras, money and wallets anywhere in or from which they can easily be seen or taken.
5. If you are the victim of any sort of crime, be sure to report it to the tourist police
immediately.
6. If you are going to be visiting a busy area, wear your backpack backwards, so that it
hangs on your chest, not behind you.
7. Always check with your hotel if certain areas are safe, or if they advise that you do not
visit them. Take their advice to heart.
8. Get a taxi rather than a bus for long distance travel. They are reasonably priced and safe.
9. Brazilian locals are generally very helpful and often quite friendly. Accept their help if
they offer it to you.
10. If you need to draw money, choose an ATM inside a mall or bank rather than one on the
street.
11. Wear walking shoes (not hiking boots), shorts and a plain T-shirt to fit in with the locals.

DON’T: (Guide for a foreigner)

1. Get drunk. Brazilians are not often drunk and do not respect others that indulge in far too
much alcohol.
2. Do drugs. It is illegal to use or be in possession of drugs in Brazil.
3. Make use of prostitutes. They often supplement their income by robbing their clients.
4. Opt for really cheap accommodation. Small accommodation providers are generally not
willing to provide lodging for foreigners (which they may do, but begrudgingly) and may
not offer the safety and conveniences of larger establishments.
5. Leave your luggage, shopping or any other personal possessions unattended.
6. Give money to beggars and street children. Although these ones pose little or no physical
danger to you, they should not be supported financially.
7. Walk in the streets or along the beaches after dark (Meyer, Global Studies Attitudes
around materialism).

Attitude towards materialism

Research shows people tend to believe more in “I would rather have more time than money” and
also “Experiences are more important than possessions”. A very large percentage of people have
expressed their opinion on this and they rightfully agree on this statement.
Time awareness differences
People in Brazil are very relaxed and flexible about their time. So this is not very common to
maintain time punctually or to maintain plans precisely. Brazilian people tend to live their life at
a slower space which also affect their businesses. They also delay their business meeting or they
do cancel their meeting without any prior notice.

Concept of personal space

The notion of personal space is very different among Brazilians and Americans. In Brazil, people
love to stand close for all kinds of social situations. there is a lot more touching during
conversations. [ CITATION Luc09 \l 1033 ]American people could get shocked about the
personal space of Brazil. All the Brazilians will jump up from their seats and scramble to get
their bags on the overhead bins. This includes extending their arms in front of you, bending over
you if you are still seated, and even squeezing by behind you to go where they want to go.
[ CITATION Luc09 \l 1033 ]They are not used to say "EXCUSE ME" when they get closed to
you. But this is not rude that they are not saying sorry, they just do not feel the need to say this.

Decision making, problem solving and negotiation

Negotiation: Brazilian people like to bargain. Like U.S people they take their concessions
slowly. You need to be punctual when you negotiate with them. [ CITATION BCC18 \l 1033 ]
Negotiators are likely to move at a faster space city in Sao Paulo that any other cities. While
negotiating, following directions should be followed.

a) Try to be more expressive.

b) Get a written agreement.

c) Be clear about delivery times and details.

It is better to keep an interpreter while presenting at business deals.[ CITATION BCC18 \l

1033 ]

Problem solving: Brazilian are recently working to get rid of crime, lack of education, infant
mortality.
Political affiliations with the United States
Brazil & United States have bi-lateral relationship. The United States was the first country to
recognize Brazilian independence, and Brazil was the only South American nation to send troops
to fight alongside the Allies in World War II. Though never openly confrontational towards each
other, the two countries have had relatively-distant relations, with brief periods of co-operation.
While Brazilian-American relations strengthened significantly after the election of Dilma
Rousseff as president of Brazil in 2010 and the recent deterioration of Brazil–Iran relations, there
has been a period of tension in relations over the June 2013 revelation of US mass surveillance
programs in Brazil after there had been proof of American spying on Rousseff. Rousseff
cancelled a scheduled visit to the US in September, 2013 in protest over such revelations. This
tension receded somewhat in 2014 after it became clear that US President Barack Obama had not
been directly involved in surveillance programs. Relations have improved markedly since
Rousseff's state visit on June 30, 2015 to the United States, nearly two years after she had
canceled a previous visit to the United States over the spying scandals. In 2019 with the victory
of Jair Bolsonaro, the two countries approached again, signing deals in the areas of research,
security and defense, Bolsnaro and Trump are considered regional allies. [ CITATION pew18 \l
1033 ]

Useful things to know while communicating in Brazil

Business mentality: Brazilians negotiate with people not with companies. Building a positive
relationship while talking about business matter. Brazilian business is hierarchical. The final
decisions are made by the highest ranking person.[ CITATION Tod \l 1033 ]

Greetings: involving women will involve kissing of both cheeks.

Handshake are usually reserved for men. It is customary to shake hand everyone present both
upon arrival and upon existing the room.

The Art of Conversation

when you meet someone for the first time

It is polite to say " muito prazer ". Expressions such as "como vai " and " tudo bem " are
common forms of saying "hello"

Good conversation topic

Football, family and music. It is also great to praise about brazil beautiful beaches. [ CITATION
Tod \l 1033 ]
Business meeting and meals

Although Brazilian culture seems to be very informal, they are quite fashion conscious.

I. Brazilian are known to arrive 15-30 minutes late to social meetings. So, punctuality is
more relaxed [ CITATION Tod \l 1033 ].

II. Avoid giving purple or black gifts as this is for funerals.

Recommendation
Brazil has high number of lower-middle class consumers. Considering them, if Square can
introduce locally customized products, such as mobile banking, along with their existing internet
banking facility. There are several other suggestions that Square needs to customize to fit into the
culture of Brazil.
1. A slogal and tagline in Portuguese language.
2. Marketing campaign adjusted with local culture.
3. Emphasize on local culture, may be adding more color variants.
4. Apart from small businesses, Square need to adjust a bit to provide services to mid-size
businesses as well.

Conclusion
Considering Brazil-USA relationship, Square corporate culture & power and Brazil’s existing
market, Brazil seems to be a suitable country to do green field investment. The host country has
huge number of tourist, huge number of local population and small businesses. The slow pace,
fun loving Brazilians would accept an easier solution for financing. The tourists who visit Brazil
with different types of Credit cards or debit cards can pay directly with their card. The small
businesses will not need to set up individual card swiping machines. Brazilians have this
tendency to be unorganized. Software of Square can make their ledgers and accounts look
cleaner and easier to access. Also, the trend of finance world is moving towards digitalization.
Square Inc could add a bit of spice to the existing market of Brazil.
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