Movin' on up: twenty-five proven growth managers forge plans to boost revenue while keeping costs in line.So how do you make a company grow? If there were ever such a formula, we'd all be rich. But some executives have a knack for boosting company revenues while keeping costs down. LATIN TRADE Latin Trade is a monthly magazine covering global business in Latin America and the Caribbean. Similar to Forbes and Fortune Magazine in coverage, the magazine was founded in 1993 and now publishes 87,000 copies 1 each month in Spanish, Portuguese, and English. asked executive search companies to identify the top growth managers across the region as part of our annual poll. We surveyed Egon Zehnder International Egon Zehnder International is a leading global executive search firm. It was founded in 1964 by Egon Zehnder. History Realizing that the only way to overcome the resistance encountered by executive search in Europe was to adopt an entirely professional approach marked by , Korn/Ferry International, Macaya & Sufirez Battan Asesores, Mariaca & Associates, Russell Reynolds, Spencer Stuart and Virchaux & Partners. They singled out many top-notch executives who should be in the driver's seat driv·er's seat n. A position of control or authority. of a growing company, with consensus bringing the number to 25, including six who were repeatedly mentioned by our pollees. Global wireless giant Sony Ericsson's man in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Anderson Teixeira, is one of them. Teixeira has been in charge of the Latin American division since 2001, when Sony Ericsson For an arrangement of Sony Ericsson products, see list of Sony Ericsson products Sony Ericsson is a joint venture established in 2001 by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to make mobile phones. was created as a venture of Japan's Sony Electronics Sony Electronics Inc., headquartered in San Diego, Calif., is the largest component of Sony Corporation of America, the U.S. holding company for Sony's U.S.-based electronics and entertainment businesses. and Swedish telecom equipment-maker Ericsson. During the third quarter of 2004, global company sales rose 29% to US$2.23 billion compared to the same period in 2003. Sony Ericsson does not disclose Latin American financials but claims that sales in the region grew at a similar pace. The wireless telephone maker attributes its growth to introducing the right blend of different products to different markets. Some countries take in mass-market cellular telephones while others are ripe for lower-volume but higher-margin devices. The idea is to pump increasingly innovative products into the hands of consumers. "I foresee that the market will remain growing in the double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. , driven not only by growth in our industry but also by more stable macroeconomics macroeconomics Study of the entire economy in terms of the total amount of goods and services produced, total income earned, level of employment of productive resources, and general behaviour of prices. in the region," says Teixeira. Latin America's economy as a whole was forecast to end 2004 up 4.5%, over 2003's growth of 1.5%. Dominique Virchaux, managing partner at Miami search firm Virchaux & Partners, says having the right people is key to growth. Robust economies can spark hefty demand for products, and new markets may arise at home, but the right team is crucial for success. And that doesn't mean just having the right CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Picking the right people is No. 1" says Virchaux. "It means having the right CFO See Chief Financial Officer. , the right country manager and then letting them run their own business." Meltdown meltdown Occurrence in which a huge amount of thermal energy and radiation is released as a result of an uncontrolled chain reaction in a nuclear power reactor. The chain reaction that occurs in the reactor's core must be carefully regulated by control rods, which absorb . For Luis Tobio, general manager of Visteon's unit in Argentina, where the automobile-parts maker has three factories, growth comes from combining human capital with competitive labor costs. Visteon Argentina supplies Europe, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Latin America. Argentina's economic meltdown of the end of 2001 through the beginning of 2002 devalued de·val·ue also de·val·u·ate v. de·val·ued also de·valu·at·ed, de·val·u·ing also de·val·u·at·ing, de·val·ues also de·val·u·ates v.tr. 1. To lessen or cancel the value of. the peso and lead to the largest sovereign default in history. But with crisis comes opportunity and that, says Tobio, made his company competitive today. "Everybody keeps talking about Asia and China," says Tobio. 'Argentina has a 96% literacy rate and more than 80 universities. ... We are taking advantage of the most important strengths that we have as a people and a country--working with a passion." Under Tobio's watch, financial chaos and abrupt changes in government did not disrupt a single day of exporting. Today, Visteon is growing. Sales were expected to reach $60 million in 2004, pre-2002 crisis levels. Back in Miami, the Burson Marsteller public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most agency's Latin American division grew during 2004 under the leadership of Santiago Hinojosa, President and CEO for Latin America. The company focused on tapping new countries such as Peru and Ecuador as well as new businesses in countries where it is already established, Hinojosa says. "Two years ago, we targeted tourism and we pitched the Mexican tourism business and we won that business;' Hinojosa says. Landing a new account can mean access to ancillary business. In the case of Mexican tourism, Burson-Marsteller picked up clients like hotels and cruise lines
Name Headquarters A'rosa Europe NCL America America AIDA Cruises Europe American Cruise Lines America seeking to boost their image. The company has also focused on the U.S. Hispanic market. Throughout the past year, Burson-Marsteller's Latin American business has grown. It now has over 100 clients in Latin America, despite volatility in the market. "We haven't lost any major businesses and we continue to add new ones;' says Hinojosa. Obsessed ob·sess v. ob·sessed, ob·sess·ing, ob·sess·es v.tr. To preoccupy the mind of excessively. v.intr. . Economic growth may come and go but keeping costs under control is constant. For Panamanian airline Copa's CEO Pedro Heilbron Pedro Heilbron (born 1958 in Colon, Panama) is, since 1988, the CEO of Copa Holdings S.A., the parent company of Panamanian carrier Copa Airlines and Colombian carrier AeroRepública. He received an MBA from George Washington University and a B.A. from Holy Cross. , keeping overhead down has helped this hub-and-spoke carrier compete with low-cost model airlines like Brazil's Gol Linhas Awreas. "We are almost obsessed with overhead costs overhead costs see fixed costs. ," says Heilbron. Copa has spent the last five years upgrading its fleet to fly more efficiently around the Americas. That's a wise move, considering the company has more international frequencies and nonstop HP's brand name for its fault-tolerant servers, which range in size from four CPUs to 4,000 CPUs. The NonStop line was created by Tandem Computers, which was acquired by Compaq, which later became part of HP. flights among Latin American destinations than any other airline. The company has sought to make Panama City Panama City, city (1990 pop. 34,378), seat of Bay co., NW Fla., on St. Andrews Bay; inc. 1909. A Gulf Coast resort with amusement parks and excellent fishing, it is also a port of entry. The city's industries produce paper, clothing, and chemicals. a so-called "hub of the Americas," which would allow passengers flying to and from South American destinations to connect through Panama, which is closer to the region than the current traditional Latin American hub, Miami. "We truly believe and so do most passengers that Panama is in the best position to be the best place to connect when flying through the continent;' says Heilbron. While low-cost carriers A low-cost carrier or low-cost airline (also known as a no-frills or discount carrier / airline) is an airline that offers generally low fares in exchange for eliminating many traditional passenger services. gain ground in countries like Brazil and with airport expansion underway in neighboring neigh·bor n. 1. One who lives near or next to another. 2. A person, place, or thing adjacent to or located near another. 3. A fellow human. 4. Used as a form of familiar address. v. Bogota, Copa is aware that competition will rise for market share. But for now, the future looks good. The company says its available seat miles--essentially its capacity to carry passengers--grew 13% in 2003. In 2004, the carrier expected traffic to grow another 13% and then jump 21% in 2005. Costs and revenue aside, sometimes Good old-fashioned business sense is needed to keep a company growing. Carlos Ribeiro, president of HP do Brasil, took on the tough task of overseeing the merger between Hewlett-Packard and Compaq in Brazil. Many mergers fail due to incompatibilities among corporate cultures rather than just business conditions, yet Ribeiro managed to fuse the two companies into a successful tech manufacturer, says Marcelo Mariaca, partner and president of Brazilian executive search firm Mariaca & Associates. "The merger was extremely well done in Brazil as it was worldwide," says Mariaca. "[Ribiero] integrated marketing, production and people." Brazil is also famous for being a stepping stone for some of the world's most upwardly mobile executives, including those in the auto business. Global automobile executives such as Brazilian-born Carlos Ghosn, who turned Nissan around, and General Motors Chairman and CEO Richard Wagoner worked in Brazil on their way to the top, says Mariaca. Digging out. Brazil's massive labor unions labor union: see union, labor. and large market provides the perfect testing ground Noun 1. testing ground - a region resembling a laboratory inasmuch as it offers opportunities for observation and practice and experimentation; "the new nation is a testing ground for socioeconomic theories"; "Pakistan is a laboratory for studying the use of American for a rising star, such as Ford do Brasil Ford do Brasil is a subsidiary of American automaker Ford Motor Company, founded on April 24, 1919. The operation started out importing the Ford T-model cars and the Ford TT trucks in kit form from the US for assembly in Brazil. President Antonio Maciel, who boosted sales thanks to a new, $1.90 billion plant in Bahia state. Southern Cone The term Southern Cone (Spanish: Cono Sur, Portuguese: Cone Sul) refers to a geographic region composed of the southernmost areas of South America, below the Tropic of Capricorn. automakers fought their way out of a hole after spending billions to build capacity, only to face disastrous sales as markets collapsed after the 1999 devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the real, among other factors. Maciel unleashed aggressive marketing plans to get people back driving Fords made in Brazil. The marketing plan included paying cash to potential buyers--$40--who took test drives. It worked. In 2002, Ford do Brasil produced 148,117 Ford, Jaguar, Land Rover See LANRover. and Volvo products. That figure jumped 32% in 2003. "He's a tremendous, personable PERSONABLE. Having the capacities of a person; for example, the defendant was judged personable to maintain this action. Old Nat. Brev. 142. This word is obsolete. marketer," Mariaca says of Maciel. "He has recovered market share and brand image." AUTOMOTIVE Doubled sales as exports increased. Ricardo Chuahy Upgraded technology and research President to develop new engines for heavy Cummins Latin vehicles, providing alternatives to the America automotive industry. Sao Paulo AUTOMOTIVE Expects 2004 sales to reach US$60 Luis Tobio million, pre-2002 crisis levels. General Manager Remained faithful to Argentina dur- Visteon Argentina ing the crisis when other companies Buenos Aires bailed out, leaving the country. AVIATION Used cargo to balance passenger Enrique Cueto flows. Reported record profits of CEO US$36.4 million in the third quarter LAN of 2004 due to sound cost manage- Santiago ment. AVIATION Added new Embraer and Boeing air- Pedro Heilbron craft to the fleet. Boosted capacity by CEO 13% in 2003 and again in 2004. Copa Airlines Capacity should rise to 21 % in 2005. Panama City CONSUMER PRODUCTS Oversaw growth in Venezuela and Javier Gonzalez Argentina when the rest of the President Latin region slipped. Boosted distribution American Region of products in Brazilian markets Revlon through 2004. Mexico City CONSUMER PRODUCTS Continued to diversify by investing in Lorenzo Mendoza banking, oil and petrochemicals, and CEO retail. The king of beer in Venezuela, Empresas Polar Mendoza gets kudos for developing Caracas a wine business. ELECTRONICS Marketed high-end and mass-market Anderson Teixeira products to the right places across Head of the Latin Latin America. Kept growth in line American Region with the company's global 30% gain Sony Ericsson in sales. Miami FINANCIAL SERVICES Marcio Cypriano One of Brazil's new breed of banking President CEOs. Expanded Brazil's largest pri- Banco Bradesco vate bank into Japan, where ATM ser- Sao Paulo vices are offered. FINANCIAL SERVICES Acquired a bank a year since 1994. Roberto Setubal Total assets managed by the end of CEO September 2004 jumped 18% to Banco Itau US$48.0 billion on year. Sao Paulo HEAVY INDUSTRY Hiked sales by 10% to US$4.24 billion Dionisio Garza Medina via joint ventures. Nineteen deals so CEO far across the globe keep the compa- Grupo ALFA ny in various types of industries. San Pedro Garza Garcia HEAVY INDUSTRY Massive M&A growth strategy includ- Lorenzo Zambrano ed a US$4.10 billion acquisition of CEO U.K.'s RMC Group. Sold U.S. plants for Cemex $400 million to help finance the pur- Monterrey chase. INFORMATION Focused on higher-margin, value- TECHNOLOGY added services to protect the compa- Carlos Ribeiro ny from mass-market competitors. President Hefty corporate spending in the HP Brasil region could help consolidate gains. Sao Paulo LOGISTICS Found the perfect niche as a Miami- Karl Weyeneth based, global logistics company President and CEO competing in a market of 800-pound Hellmann Worldwide gorillas. Talented at assembling Miami regional teams. MINING Hiked sales by 30% to US$5 billion in Roger Agnelli 2003 by feeding China's enormous CEO appetite for commodities. Net in- CVRD come shot up by 127%. Rio de Janeiro PHARMACEUTICALS Increased sales of animal health, Carlos Garcia over-the-counter, infant care and President pharmaceutical products, boosting Novartis Latin America market share across the region. Miami PUBLIC RELATIONS Tapped markets in new countries Santiago Hinojosa and niches in existing markets, such President & CEO as tourism in Mexico. Lost no major Latin America accounts throughout 2004, keeping Burson-Marsteller the customer base over 100. Miami PUBLIC SECTOR Cut interest rates to enhance Brazil's Henrique Meirelles economic growth and foreign invest- President ments. Monetary policy should help Central Bank of Brazil the economy grow 3.5% in 2005. Brasilia Inflation under control. RETAIL Abilio Diniz Retook position as Brazil's largest President retailer through a series of mergers, Pao de Acucar acquisitions and other strategic Sao Paulo deals. TELECOMMUNICATIONS Took revenues up 26% during the Tomas Milmo Santos first nine months of 2004 to US$315 President and CEO million by jacking up the number of Axtel fixed telephone lines through a $145 San Pedro Garza Garcia million growth plan. AVIATION Mauricio Botelho President Embraer Sao Jose dos Campos São José dos Cam·pos A city of southeast Brazil east-northeast of São Paulo. It is a major center of Brazil's aircraft industry. Population: 600,000. Noun 1. Took smaller and cheaper aircraft to the market. The rise of the low-cost airlines The following is a list of low cost carriers: Asia Bangladesh
Constantino de Oliveira President Gol Linhas Adreas Sao Paulo Implemented a new breed of airline in Brazil--the low-cost model. Gol was the first company in Brazil to sell airline tickets over the Internet, and it recently raised US$202 million in an initial public offering. Gol's slice of the skies is busy. During the third quarter of 2004, accumulated nine-month revenue hit US$182.4 million, 28% higher than a year ago as it increased routes throughout 2004. Oliveira's five-year-old company already controls a quarter of the Brazilian market, forcing traditional carriers to rethink their business plans. With money to spend, there is room to grow. Gol will buy 43 jets from U.S. aerospace company Boeing in a deal worth up to US$2.70 billion. INFORMATION TECHNOLOGY Luis Meisler Senior Vice President, Oracle Latin America Oracle Miami Directed the enterprise-software giant through another year of growth. In fiscal year 2004, Oracle's Latin American division raised revenue to US$53 million from $43 million. It jumped 74% in the first quarter of that fiscal year, compared to a year before. To build demand, the company sponsors events and conferences. Under Meisler's leadership, specifically, the company grew through developing alliances with thousands of organizations to deliver its database and storage applications to customers across the Americas. And he's a real road warrior A person who frequently travels with laptop and cellphone. . In Latin America, Meisler's team hosted 300 events during 2004 alone. It works: Last year, the Latin American installed base of Oracle products increased a reported 119%, thanks mainly to big jumps in the Mexican market, where sales increased by 150%. Peter Wiegandt VP Latin America Dell Mexico City Mexico City Spanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi Managed growth of more than 40% across Latin America during the last two years, quite a strategy in the land of unbranded PCs and runaway piracy. In Mexico, Dell controls 12.5% of the market, and 4% in Brazil, where tax restrictions make it harder to compete. Dell rules the roost on getting its products to market quickly and cheaply by writing the book on just-in-time delivery, and Wiegandt has experience in taking products to market. Having worked for Coca-Cola FEMSA Coca-Cola FEMSA is the anchor bottler of Coca-Cola and its related soft drink products in much of Latin America. The company is an important part of the Coca-Cola System. Specifically, Coca-Cola FEMSA distributes about 10% of the worldwide production of Coca-Cola products. , Pepsi-Cola International and Hewlett-Packard, Wiegandt now faces boosting market share for the company as its moves from straight PC sales to home electronics, printers and digital devices in a bid to double the company's size globally. AUTOMOTIVE Antonio Maciel Neto President Ford do Brasil Sao Bernardo do Campo São Ber·nar·do do Cam·po A city of southeast Brazil, an industrial suburb of São Paulo. Population: 740,000. Noun 1. Sao Bernardo do Campo - a city in southeastern Brazil; an industrial suburb of Sao Paulo Navigated the once-troubled automaker to growth from labor unrest labor unrest n (US) → conflictividad f laboral and economic problems at home and in its closest markets. Brazil's devaluation rocked the economy six months before Maciel took control of the Ford do Brasil in mid-1999, right when a US$1.90 billion factory opened in Bahia state. Soon after, Argentine auto demand evaporated evaporated reduced in volume by evaporation; concentrated to a denser form. after an economic meltdown, in early 2002. He faced the challenge of selling to uninterested buyers with an aggressive marketing campaign that included $40 cash payments for taking a test drive. The strategy worked. Ford grew in a shrinking market, even after the Sept. 11 attacks in the United States. Car production climbed 32% in 2003 and remained stable in 2004. PHARMACEUTICALS Philippe Prufer President Eli Lilly Eli Lilly can refer to:
Sao Paulo Launched campaign to fight off the rise of cheaper generic drugs generic drug, a drug sold or prescribed under the nonproprietary name of its active ingredients or under a generally descriptive name rather than under a brand or trade name. by increasing the availability of the latest-generation pharmaceuticals in Brazil, a tough fight considering that even in developed markets like the United States there's a move on to import from abroad. Works with domestic scientific community to produce drugs in Brazil while bringing more brands from abroad to the domestic market. A vocal defendant of patent rights and on the need to protect intellectual property and technology, Prufer has set a goal of bringing Eli Lilly back into Brazil's Top 10 list of the country's largest pharmaceuticals. (It's now in the Top 25.) In addition to overseeing Brazil, Prufer also manages Eli Lilly's Southern Cone division, which includes Chile, Argentina, Paraguay and Uruguay. |
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