Your SlideShare is downloading. ×
Dell’s dilemma in brazil
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Dell’s dilemma in brazil

1,483
views

Published on

Published in: Business, Technology

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,483
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
45
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Entry into manufacturing in Latin America – globalization of marketsTHEORY:Changing world order – rise of Latin AmericaDeclining barriers in free flow of goods, services and capital.Globalization of productionDifferences in cost and quality of factors of productionDecline in protectionism for computer manufacturersWhy brazil – population, import tariffs, mercosul
  • Intro into state -> job -> better wages -> better purchasing power -> better standards of living -> better social status -> Happy people  -> high human development index Pro’s of Minas Gerais: less differences between political parties, incentives provided like free land, promotion agency is govt+private mixCon’s of moving out of Brazil: largest growing economy in Latin America, favorable demographics not present in other Latin American countries
  • Public opinion may change the governors stiff stance.
  • Dell provides jobs to people and improves their standard of living
  • s
  • Companies – must have backup plan, must be aware of socio-cultural and economic conditions, maintain cordial relations with ruling and opposition parties (union-leaders),
  • Transcript

    • 1. Dell’s Dilemma in Brazil Cheryl Correa Ramya C Rhea Locker Gitanjali
    • 2. Contents Case Overview Listing of Problems Available Options Our Analysis Conclusion
    • 3. Case Overview Entry into manufacturing in Latin America Choice of site in Brazil State incentives to attract FDI Why Rio Grande do Sul? Change in political atmosphere What next for Dell?
    • 4. Methods of doing business in aforeign country Export the product Allow local company to produce product under license Joint venture with a local firm Wholly owned subsidiary
    • 5. Listing of Problems Political opposition to incentives given Nature of investment promotion organization in states State-specific deterrents to investment Choice of negotiation strategy with governor Dutra
    • 6. Available Options Exit the country Move the plant to another state Negotiate with the governor
    • 7. Preferred Option - NegotiationPROs CONs Best state for  Risky as governor investment response cannot be predicted Good relationship with investment  No guarantee of promotion agency another political crisis not arising Possible change in after setting up the the stance of the plant. Governor.
    • 8. OUR SOLUTION – NEGOTIATION STRATEGY Investment Creation of Betterinto the state more jobs Wages Better Better Better Social standard of Purchasing Status living Power High HDI
    • 9. Alternative to NegotiationChoose Minas GeraisPROs CONs Less differences  Incentives are not between political as attractive as Sul. parties.  Lesser proportion Additional of skilled labour. incentives provided  Perceived as a like free land. heavy industry belt. Promotion agency is govt+private mix
    • 10. Least Preferred – Exit BrazilPROs CONs Can move to  Largest growing another Mercosul economy in the state. Latin American region. Investment not  Favourable made as such. demographics of Hence not much Brazil not present financial loss. in any other Latin American Country.
    • 11. CONCLUSION Awareness of political situation important in investment decisions Intra-country competition for investments has both opportunities and risks Companies must have backup plan Maintain good relations with all important political parties in the state