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Ryan Devine Michael Higgins Paras Kamdar Patrick Kaminski Michael Orton Ryan Waldron US/MULTINATIONAL BUSINESSES IN BRAZIL.

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Presentation on theme: "Ryan Devine Michael Higgins Paras Kamdar Patrick Kaminski Michael Orton Ryan Waldron US/MULTINATIONAL BUSINESSES IN BRAZIL."— Presentation transcript:

1 Ryan Devine Michael Higgins Paras Kamdar Patrick Kaminski Michael Orton Ryan Waldron US/MULTINATIONAL BUSINESSES IN BRAZIL

2 Attracting Global Business 8 th Largest Economy in the World (GDP) Employment Structure – Agriculture 19% – Industry 21% – Services 60% GDP Structure – Agriculture 6% – Industry 25% (Incl. 16% Manufacturing) – Services 69% US/Multinational Businesses in Brazil

3 Oil & Gas Industry International Oil Majors BP (UK) – O&G, Ethanol JV, Aviation Fuel, Lubricants, etc… – 4,200 Employees Chevron (US) – Growing Offshore Operations; Deep-water Heavy Oil – Lubricants Manufacturing Plants in Sao Paulo & Rio – 700 Employees Statoil (Norway) – Operator of Several Deep-Water Gas Wells – JV with Petrobas for Commercial & Technological Development Oil Services Many Rigs Transferred Post-Macando US/Multinational Businesses in Brazil

4 Exxon Mobil Senior Financial Corporate Controller Business Support Center in Curitiba – Global Financial Consolidation, Computer Services, Call Center – XOM US Subsidiaries Report Financial Data to Curitiba Young, Educated, English Speaking Workforce (Less $$$) – Lower Experience Level High Turnover & Currency Appreciation Eroding Benefit – Intense Competition for Services from International Firms – Offer More Training & Promotion Opportunities Minor Culture Adaptations – Longer Work Hours, Later Start – Lunch Subsidy, etc… is Government Mandate – Fewer Managers & Supervisors US/Multinational Businesses in Brazil

5 Consumer Goods Brazil Growing Market Growth Through Acquisitions of Local Companies Expansion of Local Brands Pepsi vs. Coke PepsiCo – Partnership with AmBev (Largest Brewer in Latin America) – 9,000 Employees Across 19 Plants & Food/Beverage Facilities – November 2011 Acquisition of Mabel – Cookies, Crackers, Snacks Coca-Cola Brazil – 16 Independent Authorized Manufacturers – 53,000 Direct Employees Across 46 Plants – Over 150 Brands and Product Line Extensions US/Multinational Businesses in Brazil

6 Consumer Goods Unilever – Food: Lipton, Bertolli, Slim-Fast, Ben & Jerrys – Personal: Dove, Axe, TRESemmé, St. Ives Kraft Foods – Gums & Candies: Trident, Halls, Chiclets, Certs – Biscuits/Cookies: Nabisco, Club Social, Bon Gouter Kimberly-Clark – 3,000 Employees Across 4 Factories – Personal Care: Scott Paper Towels, Kleenex – Baby Products: Huggies Diapers/Wet Wipes US/Multinational Businesses in Brazil

7 Auto Manufacturing Brazils Fast Growing Car Market – 5 th Largest Automobile Market – 7 th Largest Producer – Annual Production of Nearly 2,000,000 Vehicles – 1 st Capitalist Company to Bring Together the 10 Major Car Assemblers Inside its National Territory Market Players – Volkswagen – General Motors – FIAT – Ford Increased Import Tax on Foreign-Built Cars – Raise in 2011 to 35% – Mexico Free-Trade Agreement in the News US/Multinational Businesses in Brazil

8 International Trade Biggest Trading Partner – China Trade surplus exporting raw materials – iron ore, soy beans and crude oil Trade deficit in manufactured goods due to: -Inflation -High Interest Rates -High Taxes -Poor Infrastructure -Lack of Proper Education/Training Intense competition in the manufacturing sector Protectionist measures to stifle imports and boost domestic output (i.e. 35% import duty) China is single largest investor in Brazil Brazil & China

9 US/Multinational Businesses in Brazil Brazilian Ethanol from Sugarcane U.S. government import tariffs and tax credits (protecting ethanol distilled from corn) ended on Dec 31, Opened the American market to sugarcane ethanol from Brazil Brazil makes as much ethanol from sugarcane as U.S. does from corn Joint Ventures – Ethanol Production Dow & Mitsui Royal Dutch Shell & Cosan SA Cargill & Grupo USJ – SJC Bioenergia Recent Developments

10 US/Multinational Businesses in Brazil Multinational Presence in Brazil

11 US/Multinational Businesses in Brazil Perguntas?


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