The CEO offered the author the position of Country Manager in Venezuela at the young age of 28. Taking on this challenge, the author developed a strategy to turn the unprofitable company around by increasing prices without losing sales, reducing trade discounts, purchasing milk at a heavy discount from the government, simplifying processes, building the best team with the right culture, and making all stakeholders part of the strategy. Through tactical execution of this plan over four years, the author was able to improve the EBITDA margin from -4.5% to 14.2%, turning the company profitable. Looking to continue strengthening the company, the author is considering an IE Master's program to gain a broader business background, explore different leadership styles, management

1. August 2015
The CEO offered me to be the
Country Manager in Venezuela

2. Wait a
sec…
Country Manager at
28 years old...?
Are you crazy?

3. And did
you say
Venezuela?

4. Great!!!!

5. To be honest I was scared… But very motivated!

6. The challenge:
1
The Company
was broken. It ran
out of cash-flow.
2
Shareholders
were skeptical.
3
Employees were
scared of being
fired.
4
Leaving our
competitors
alone was not an
option.

7. We had
to take
risks!
And do it quick!…

8. The strategy:
GOAL: BECOME PROFITABLE
STRATEGIC ACTIONS:
Increase prices
(Without losing sales)
Reduce trade
discounts
(From 24% to 16%)
Buy milk 5 times
cheaper.
(Buying it to the government with hard
discounts)
Make it simple.
(Focus in value added actions)
Build the best team.
(The right people with the right culture)
Make everyone part
of the strategy.
(All the Stakeholders)
TACTICAL ACTIONS:

9. It has
been
tough..

10. But it was worth it!

11. EBITDA Margin
1.7%
-4.5% -2.0%
3.3%
14.2%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2012 2013 2014 2015 2016
* 2016 = EBITDA 1Q

12. We can´t
stop
here!
Feeling victorious is
the one true risk.

13. Our biggest asset is
the
“crisis attitude”.

14. So we are
planning
our next
moves.

15. How an IE Master’s
Degree program would
help me to strengthen
or improve?

16. • I am good building and implementing strategies, but I need more
background.
• I want to discover new and different leadership styles, and how are
they effective, or not.
• I want to explore how is management in non critical economies. Do
the same strategies work?
• I want to train my decision-making criteria.
• I have always been in dairy. I want to learn about other industries.
• I need to think more Global. I only know Latin American markets.

17. Thanks!
Santiago Pelaez