DAVNA Enterprises, LLC has spent the past 3 years working within the Brazilian business environment creating relationships and uncovering potential opportunities for American AEC firms. With the upcoming World Cup games in 2014 and Summer Olympic games in 2016, Brazil presents an economy rich with need (more than $3 trillion) for products and services provided by American firms. The Going for Gold presentation has been developed to discuss the opportunities available in Brazil and to recap what the past 3 years have uncovered.

1. DAVNA Enterprises, LLC
International Partnership Brokering
Danna J. Olivo, CPSM, CDT
dolivo@davna.com
A Case For International
Expansion Into Brazil

2. All men dream, but not equally.
Those who dream in the night
in the dusty recesses of their
minds,
wake in the day to find
that it was vanity:
but the dreamers of the day
are dangerous men,
for they act on their dreams
with open eyes,
to make them possible.
T.E. Lawrence

3.  Going for Gold program
overview
 International Expansion
Strategy
 Conclusion
Sao Paulo, Brazil
Corcavado –
Christ the
Redeemer

4. Overviewof“GoingforGo

5.  Economic Recession in the US and Europe
 Architectural, Engineering and Construction hit
the hardest
 Brazil rapidly becoming strongest economy
in BRIC conglomerate
 Host country for 2014 World Cup and 2016
Olympic games
 $3 trillion(+) economic development plans
 PreSalt oil find boosted financial and
economic standing worldwide.
Overviewof“GoingforGo

6.  Product/Service Concentrations
 Architectural, Engineering and Construction
 Transportation
 Technology
Overviewof“GoingforGo
Iguacu Falls, Brazil

7.  In country research
 Solution-based approach
 Identified immediate and long-term needs
Overviewof“GoingforGo
Construction
Transportation
Technology/Communi
cation

8.  Timing is EVERYTHING!
 Watched, recognized and followed indicators
 Timeline Calculations
 Applied industry-wide time tables
 Added additional time
for international effort
 FLEXIBILITY is the RULE!
Overviewof“GoingforGo
Copacabana Beach
Rio de Janeiro, Brazil
Throughout life signs are placed in our paths as subtle
reminders of which way to go. It is up to us to watch and act on
them.

9. “Sometimes you have to just jump
and grow wings on the way down.”
 Hours X rate
 US and In-country taxes
 Translation
 Exchange rates
 Travel costs
Overviewof“GoingforGo
Sao Paulo, Brazil
• 18 months average
Business Development
cycle
• 20-22 touches per cycle
• +35% international

10.  Legal Costs
 Import/export
fees and tariffs
 Representation
costs
 Profit?
 Going for Gold Business Model
Collaborative Teaming
Overviewof“GoingforGo

11.  Maintain Staying Power
 Dollars vs. time
 Weigh return against time invested
 Identify when to „shelve/delay’ business
development efforts
 Monitor market/
industry signs
 Define an exit strategy
 Bottom line
 Exiting gracefully
Overviewof“GoingforGo
Barra de Tijuca, Brazil

12.  Language Barriers
 Best to know language
 Find good in-country representation
 Business/Family cultural differences
 Business meetings take considerably longer
 Often business/family co-mingle
 Passport/Visa Issues
 Business versus working visas
Overviewof“GoingforGo

13.  Finding funding sources
 Private versus Public – positioning
 Corruption Protection
 Narrowed scope (Municipal/State vs. Federal)
 Flexibility
 Changes happen
instantaneously
 Watch for signs
Overviewof“GoingforGo

14. Courage is resistance to fear, mastery of
fear, not absence of fear. - Mark Twain

15.  Achieving international expansion in a
structured way, on budget without losing
control of the business both at home and in
the target market
InternationalExpansionStrate

16.  Today’s National AEC economic overview
 Devaluation of the US Dollar
 Constricted Capital markets
 EU’s financial situation
 Political climate
 State of housing market
 Worldwide need to share resources
 American quality/service excellence
InternationalExpansionStrate

17.  4 possible scenarios (2012 Construction Market
Overview)
 Scenario #1: Rapid escalation of the Global
Financial Crisis
 Scenario #2: ―Lost decade‖ scenario
 Scenario #3: Take Our Medicine Sooner Than
Later
 Scenario #4: We have nothing to Fear but
Fear itself
InternationalExpansionStrate

18.  Motivation
 Diversification
 Financial Growth
 Market Expansion
 Benefits of Worldwide Expansion
 Access to new/untapped markets
 Lost cost resources
 Shared information/knowledge
 Broaden strategic competitive options
InternationalExpansionStrate

19.  What markets
 What financial, human and administrative
resources will be needed?
 What would our potential return on
investment be if we do this?
 Do I really want this—and is my company
ready?
 Requires patience, financial commitment, a
desire to learn and a strong value proposition
InternationalExpansionStrate

20.  Organizational commitment
 Know your intended market (Culturally and
economically)
 Establish In-Country Representation
 Research Business Model Approach
InternationalExpansionStrate

21.  Establish a realistic budget and time line
 Set realistic objectives/goals
 Develop an exit strategy
 Outline Payment Terms
InternationalExpansionStrate

22.  Plan
 Protect
 Product
 People
InternationalExpansionStrate
Plan
People
Product
Protect

23.  Plan - “Few plan to fail but many fail to plan.”
 Several Stages
 Rationalization
 Research
 Justification
 Implementation
 Exit Plan
InternationalExpansionStrate

24.  Protect - “Competition is not only the basis
of protection to the consumer, but is the
incentive to progress.” Herbert Hoover
 Consumer Protection – Buyer Beware
 Corporate Protection can cover many aspects
of a successful international expansion.
 Intellectual Property
 Website
 Brand/trademark
 Contractual relations
InternationalExpansionStrate

25.  Product
 Multi-dimensional arena
 Logistical Supply Chain
 Import/Export
 Concessions
 Partnering
InternationalExpansionStrate

26.  People – Courage means to keep working a
relationship, to continue seeking solutions to
difficult problems, and to stay focused during
stressful periods. Denis Waitley
 Business Relationships
 In-Country Representation
 Clear Prioritization/Discipline
 Legal
 Financial
InternationalExpansionStrate

27. It was character that got us out of bed,
commitment that moved us into action,
and discipline that enabled us to follow
through.
ZigZiglar
 Character
 Commitment
 Discipline
InternationalExpansionStrate
Keep Your Eye On The Prize
At All Times!

28.  DAVNA Enterprises, LLC - www.davna.com
Obrigada