Government Reforms in Brazil Essay Example | Topics and Well Written Essays - 1000 words

Government Reforms in Brazil - Essay Example Again Brazil is not alone in this condition. Most countries in Latin and South America that were once ran by the military have abandoned this system in favor of democracy, the same way countries in Eastern Europe that were once part of the Communist Bloc are now embracing the democratic way of life as the better path to progress and peace. For these countries, there is greater pressure to institute these democratic reforms. The reform agenda enunciated by the Da Silva government in 2002 sought to tinker with the Constitution by amending its provisions on public administration, taxation, social security and ownership of energy and communications facilities. Da Silva's predecessor pushed these very same reforms but succeeded only in introducing new procedures in public administration. These reforms were also implemented on an ad hoc basis unaccompanied by meaningful structural changes. (Bresser-Pereira, L., 2003) Civil service reforms were placed high on the list because Brazil is known for its inefficient bureaucracy. Even progressive countries like UK and those in the OECD bloc are streamlining their bureaucracy in the increasing realization that structural inefficiencies in public administration are one of the main causes of the fiscal crisis and the budget deficit. (MARE-Brazil) The bureaucratic reforms pursued in Brazil were thus patterned after the UK model that is also popular in other OECD countries. Its main features call for the decentralization of government functions and services, providing more autonomy, more public accountability and separating policy formulation from execution. Part of the reforms was getting government out of business. This is the same policy carried out in UK, which has already privatized most public utilities. Brazil also turned over to non-government organizations the ownership and management of social and scientific activities. For example, 12 previously state-run hospitals in Sao Paulo are now in the hands of NGOs. (Bresser-Pereira, L., 1999) Another phase of the bureaucratic reforms serves to democratize entry to government employment by eliminating the policy that sets a single labor standard for civil servants. The government also put a cap on the salaries of employees in the judicial and legislative branches and adopted the total quality management approach to managerial activities in government service. (CLAD, 1998) Business and Tax Reforms Tax reform is high on the political agenda as part of the effort to encourage the informal business sector to go formal to increase the government's tax collection. The informal economy in Brazil is so large it is not limited to small and medium scale enterprises but extends to large concerns in the retail and construction industries. In the process, the government misses out on taxes that could run into billions of reals. To encourage the informal business sector to formalize their operations, the government uses the carrot and stick approach to persuade the companies concerned to register their businesses. It is emphasized that going formal gives these companies access to financing and technology assistance. (OECD,

The Analysis of the Recent Microsoft's Acquisition of Skype Research Paper

The Analysis of the Recent Microsoft's Acquisition of Skype - Research Paper Example Acquisition is also used as a strategic tool for entering a foreign market, when other methods for achieving the specific target are not available (Coffey et al. 2001, p.52). In the above context, acquisition can highly enhance the organizational performance, under the terms that all its phases are carefully monitored; the readiness of the buyer to acquire an organization, with all the consequences of such initiative, needs to be evaluated in advance. The level of success of acquisition, as described above, is high and it is for this reason that managers of organizations worldwide prefer the specific strategy. In any case, the use of acquisition for covering various organizational needs to meet specific requirements: if the cost of the process is estimated to be significantly higher from the expected benefits, then another strategy of this type would be preferred (Frankel 2005). Moreover, if the acquired firm is of different culture/ industry, then time would be required for aligning the aims of the two organizations. Under certain terms, the acquired company cannot support the activities of the new owner – probably because the cultural or operational differences between the two firms are so high that acquisition would not benefit the company that initiated the above process. In accordance with Darby (2006) the successful completion of an acquisition process requires that accurate information are exchanged between the buyer and the seller in order for the assets of the acquired company to be effectively managed. Moreover, Coffey et al. (2001) note that every acquisition plan need to be carefully in advance regarding its costs; it is explained that if not all costs are estimated with accuracy - reference is made to the ‘purchase costs, administrative costs and integration costs’ (Coffey et al. 2001, p.52) – then the process is likely to fail, in the short or the long term. From a similar point of view, Rock et al. (1994) noted that the key target of an acquisition should be ‘the creation of a strategic advantage’ (Rock et al. 1994, p.5), meaning that the specific process would help the firm to improve its position towards its competitors. Particular emphasis is also given on the successful integration of the acquired company within the business entity of the buyer (Rock et al. 1994, p.5). The decision of Microsoft to acquire Skype would be evaluated by referring to the issues discussed above. Microsoft is a firm well established in the global market; in fact the organization is considered as one of the key competitors in the software industry – along with Apple (Yahoo Finance, 2011). The tools that Microsoft had already developed in regard to the direct – online communication, such as the Live Messenger and Xbox & Kinect, have performed quite well in the global market. However, still the firm did not have the control of the market, regarding products of such characteristics. Apple with a series of products/ software of advanced technology, such as iPhone and iMessage, had managed to get an important share of the market (Yahoo Finance 2011, Huo 2011). In the above context, the acquisition of Skype would offer to Microsoft a key strategic advantage towards its competitors – especially Apple; such perspective is among the main causes of acquisition as a business strategy, as explained above (Microsoft News Center 2011). At the next level, Microsoft is a firm quite powerful, in terms of funds available for the