Revista da ESPM - SET-OUT_2007

Orivaldo O. Gallasso M A I O / J U N H O D E 2 0 0 6 – REVISTA DA ESPM ES PM GERDAU – ACQUISITIONS ABROAD AS AN ANSWER TO DWINDLING DOMESTIC DEMAND pAgE 46 EVA STAL MARCOS AMATUCCI Having found a winning formula for excellence in the management of minimills , the Gerdau company grew, in Brazil, by purchasing low- performing plants and improving their level of efficiency. At the turn of the century, the model became an export item. The article examines the international growth of Gerdau under the light of the theoretical model of Stephen Hymer – one of the first thinkers on internationalization models – who explained the competitive advantages a company may obtain by managing foreign- located assets. In November 2006, two units of the Gerdau group – Metalúrgica Gerdau S.A. and Gerdau S.A. - were selected to be part of ISE (the São Paulo Stock Exchange Index of Entrepreneurial Sustentability). The need for investing abroad is inherent to the logic of revenue maintenance, as a major competence of Gerdau: and the acquisition and improvement of low-performing plants play an important rôle in it. HOW COMPETITIVE IS BRAZIL COMPARED TO OTHER BRIC S ? pAgE 70 ALEXANDRE LACERDA LANDIM This is a study based on the concept of the “competitiveness of nations”, which defined prosperity as a multifactorial, large-scale, integration process of such diverse areas as economy, politics, society, environment, public institutions, business performance and capacity of innovation (in science and culture). Specifically in relation to the Brazilian economic model, this approach tends to reveal serious shortcomings, which have severely limited its growth potential and hinder the entrance of its companies in the world scenario. In fact, the widening gap between the low level of performance of mostly ineffective state institutions, and the increasing capability of the private sector for innovation, sophistication and profitability, becomes ever more alarming. BARBECUE, UPPSALA STYLE pAgE 98 FREDERICO TUROLLA MARCOS AMATUCCI With the acquisition of the Swift Company, the Brazilian group JBS has taken the number one position in the world meat market. This article describes aspects of the internationalization path of JPS and proposes an element of explanation for the firm’s success, on the basis of assessments by the Swedish school of Uppsala. This school endorses a process of gradual internationalization which – in the case of Friboi and other Brazilian companies – have also benefited from a temporary business situation in the late 90s, represented by the opening of trade and valuation of exchange rates. The article includes other evaluations and explanations for this success story, including the part played by public policies such as BNDES financing. THE PARADIGM OF BRAZILIAN COMPETITIVENESS: OPENING, GROWTH AND CONTESTABILITY pAgE 106 MÁRIO MARCONINI When compared to neighboring nations, Brazil’s overall performances not so bad. However, economic growth has been lagging, lately. The internationalization of the economy continues to expand, and foreign trade is becoming vital, but feelings of frustration are in the air. Analysts tend to agree that one of the major shortcomings for Brazil, today, dwells in its inability to take maximum advantage of the current momentum of world prosperity and general growth. There is consensus about what must be done to correct this situation; but the bad news seems to be that there is no prevailing political will to do it, at least in the foreseeable future. A saying in Brazil goes: “the best is enemy of the good”. Complacency and the dolce far niente may contribute to the image – abroad – of a simpatico and warm- hearted people. But to score as a winner, in the game of international business, requires more than just that. 125 SETEMBRO / OUTUBRO DE 20 7 – R I S T D A E S P M