Efficiency leverages in the current Brazilian context

On 10th December 2014, executives from the financial area came to Integration’s office in São Paulo, /Brazil to participate in the By Invitation Only event, which is a business forum organised with the objective of discussing relevant themes within business scenarios.

During the event, which led by the managing partner Hugo Ribeiro and leaders from the Finance & Management practice, there was a rich discussion on the challenges faced by company CFOs to increase the efficiency of the businesses they work in.
Operating in such an oscillating market brings many opportunities and risks, which is why Integration understands and values such debates which promote the cooperation between different segments of the industry.

Please see below for some topics approached during the event.

A company can generate value with operational, non-operational and strategic levers.

BIO_EN_Slide1_744

However, some growth factors do not depend only on a company’s action. The organiszations suffer with the legislation of the countries in which they operat. Brazil, for example, suffers with the application of taxes on merchandise produced, imported raw materials and also labour force, leading to a high cost for production.

The elevated cost directly affects competitiveness in the Brazilian industry, which means it is perceived at a lower level regarding global competitiveness, when compared to other countries.

BIO_EN_Slide2_744

Besides such legislation, the economic tension and lack of trust from the industries is also a warning for the moment, contributing to the low Brazilian productivity rate.

BIO_EN_Slide3_744

The final consumers also feel the erosion of the industry, and start to seek products at a lower price. One of the most-used mechanisms is the e-commerce platform, which allows a refined search for products and costs.

Faced with this scenario, the companies begin to invest in the diversification of the product portfolio. The innovation appears as a great ally to stand out in a environment filled with competitors. Since the economy works at a global level, the competition also surpasses geographical frontiers, allowing organisations to overcome competitors at a global level.

BIO_EN_Slide4_744

Among the topics explored during the meeting, the participants affirmed they were investing in tools that bring idea management, as well as benchmarks in the countries where their company branches exist. The decision-making process was another point approached which, according to entrepreneurs, interferes with the speed of action and consequently in the market’s reaction. Moreover, the importance of indicators in the efficiency evaluation was mentioned and the behaviour of collaborators was said to influence productivity. Having a managerial vision helps in the result of the work, which was be measured with the help of KPIs.