Final day in Buenos Aires (6/26)

Quote for the day:

The real voyage of discovery consists not in seeking new landscapes but in having new eyes.
Marcel Proust, French novelist and author, 1871-1922.


Our very last day together… one last company visit, and saying “goodbye” to our friends and this lovely city…

A new tour group started today, and we made new friends from Xavier University as we went together to visit Globant, a software development firm. Really, this was a fun visit, a great way to end our journey. Guilbert Englebienne, the Chief Technology Officer, introduced us to this world-class player in the highly dynamic software development space. This entrepreneurial, agile firm is an innovator – its business case and development have even become an MIT business case. And I can’t even begin to describe the physical set-up and layout of the place. I do think that many of us will be waiting for its IPO…

And before we left for the airport and our long journey home, we came together one last time to celebrate, to thank our hosts and guides, and to appreciate this wonderful experience and opportunity. Thanks to Sean and his fantastic Austral Group, thanks to Paola and Felicitas, our great guides in Argentina, thanks to DJ, Hsu, and Pete and his wonderful Executive MBA team. And very special thanks to our Silberman College of Business and to Fairleigh Dickinson University -- a most wonderful place that truly understands the value of global learning in creating world citizens.

Wednesday in Buenos Aires (6/25)

On Wednesday, we returned to our agenda of business meetings for two appointments – first we went to the headquarters of the telecommunications giant, Telefonica de Argentina, and then to Ernst and Young, the international accounting and consulting firm.

Our host at Telefonica was Mariana Laurence, of their Strategy and Regulations organization. Her presentation told the story of strategic business and technology growth in a newly deregulated market. Based in Spain, Telefonica entered Argentina in 1990 at the time of deregulation, and it has continued to expand its presence in both fixed and mobile markets. As someone whose industry experience has been in telecommunications, I was especially impressed with the breadth and depth of her knowledge and presentation. The story that she shared certainly is an excellent example of a company that strategically and successfully entered a new market at a critical and unique historical moment in such a way that both the company and the country together built and developed a critical business and technology infrastructure.

Our next visit was to Ernst and Young, the global professional services firm (and one of the “big Four” auditing firms)that is headquartered at (our home in) New York. After a company and recruiting overview, Fernando Pachi and Rodolfo Papa gave us a comprehensive and impressive country briefing on Argentina’s business trends and opportunities and its capital markets and Mergers and Acquisitions possibilities. Again, this was quite useful to our teams, as they continue to prepare for their project and assignment.


And the evening was a time for:

Tuesday in Buenos Aires (6/24)

After our exhausting and full day yesterday, we were ready for a change of pace. This morning we travelled for an hour by bus to the campus of the IAE Business School at the Universidad Austral.

WOW, what an impressive campus the Austral Business School has…it is gorgeous!! It would certainly be great for SCB to have a facility like this one. The classrooms are large, there is plenty of meeting space and break-out rooms, a wonderful library and a beautiful cafeteria where we were treated to an excellent lunch.

Our speaker was Professor Patricio Fay, the director of their EMBA and International Exchange Program (and also an Organizational Behavior (OB) professor). In a highly interactive presentation he spoke with us of the cultural considerations of doing business in Argentina. He started from a fascinating case, An Amercan Gaucho in Argentina (prepared by Charles A. Rarick at Barry University) in which an American businessman from Iowa experiences significant cross-cultural difficulties in his negotiations with an Argentine beef-processor.

Here’s a site where you can download and read the case:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1112277

Our discussion included issues of language, relationship, basic cultural assumptions and a summary of some excellent research that compared various cultures along multiple dimensions. All in all, I think that this added a lot to our understanding of Argentina and the Argentine people.

When we arrived back at the hotel, many of us went on a two-hour tour of Buenos Aires. We had a fine tour guide, Andrea Grossetti, who shared the highlights of her city – we heard history and culture, and we saw lots of this beautiful and energetic, European-like city.

Hopefully others will add pictures, as we saw the Plaza de Mayo, the Presidential Palace, the Obalisk, and many of the fascinating neighborhoods of the city.

What impressed many of us the most, however, was the visit to Recoleta Cemetery, where Eva Peron and others from the wealthy families of the city were buried. The cemetery was a small city of streets that were full of stone buildings that were each decorated with spectacular sculpture and monuments, and contained tombs, prayer chapels and other memorials to loved ones and family members. While I was looking to go to a museum, this cemetery truly was one – it was an extraordinary home for fine art.

Monday in Buenos Aires (6/23)

Brrr – it’s a bit chilly here. Yes, it’s winter in this part of the world. Today is a “Business Formal” day. And we’re off to three high-powered appointments.

First stop was the Central Bank of Argentina (BCRA) where Martin Castellano provided an excellent presentation on “The Monetary and Financial Policy Response to the Current Turbulence.” As you may know, since 2000/2001 Argentina has been responding to and recovering from a series of severe economic shocks. As a representative of the Central Bank, the institution that is responsible for creating and implementing fiscal policy to establish and maintain economic stability, Mr. Castellano made and supported the argument that Argentina is “well-prepared to face turbulence vis a vis other emerging markets.” He reported an inflation rate of 8%, with an unemployment rate to match. The historical and current economic data that he presented gave us all a good picture of the current state of the Argentine economy, and his explanations of the policy choices the Bank has been making were quite helpful to our understanding.

After a fine lunch in a convent across the street from the bank, we walked back to the hotel meeting room for our next appointment with a representative from the US Commercial Service. As you will remember from our trip to Rio, the US Department of commerce has established offices in foreign countries to provide information and support to Americans who are considering establishing business in these countries.

http://www.comerciousa.org/argentina/en/setEnglish.asp

Our hosts and speakers in Argentina were Brian Brisson, the Senior Commercial Officer and his Associate Charles Renado. After providing an overview of the services his office provides to American businesses, Mr. Brisson provided an overview of the current economic and political climate in Argentina, as well as an assessment of the challenges, opportunities, and best prospects US business people and investors face in planning and executing successful business plans in Argentina. This was indeed quite helpful for all of us, especially as the student teams prepare to do their country and market assessment assignments for class.

Out final appointment for the day was a presentation by Juan Ferreira, President of Monsanto Argentina (soon to become president of Monsanto EMEA – Europe, Middle East, and Africa). Monsanto is a world leader in agricultural biotechnology, a leader in producing herbicides such as “Roundup” that prevent crops from being infected and destroyed. Additionally, Monsanto is a primary developer and marketer of genetically engineered (GM) seed and bovine growth hormone, and it aggressively litigates and lobbies for its interests around the world. Mr. Ferreira carefully presented his company as being a primary contributor to solving global issues of world hunger and food production, and as a strong contributor to creating a healthier and more sustainable world. As Ferreira himself noted, this approach is indeed controversial:

http://www.responsibletechnology.org/GMFree/Home/index.cfm

After a long day of stimulating and challenging presentations, we returned to our “home away from home” and settled into quiet dinners in small groups on our own.

Sunday in Buenos Aires (6/22)

It’s Sunday morning in this wonderful city. Welcome…

We arrived yesterday (Saturday) afternoon and went to our new hotel, the NH Lancaster. It is a bit more European than the others which reflects the more European feel of this, our third city.

Last night, after we had checked in, rested a bit and got our bearings, we had a magnificent dinner together at the Cabana Las Lilas. For those of you have never tasted Argentine beef, it is extraordinary. And for those of us who are not beef-eaters, the food and company were excellent as well.

Today’s activities include a day-trip to an Argentine estancia (ranch) in the Pampas – some of us will go horseback riding, others will play tennis and other sports, and other will just relax and read. Definitely a good, restorative day. And yes, they’ll enjoy a traditional Argentine barbeque (a “sacred” event here) for a noontime meal.

Later on, some of us will be going to a soccer match. Unfortunately, I’m not quite feeling well, so I’m not going out today. Others will report on their adventures.


See you in the morning…

Saturday Morning: Sao Paulo to Buenos Aires (6/21)

Greetings from the bus on the way to the airport. Today ends our stay in Brazil – we’re on our way to Argentina.

And before I forget, Happy Birthday, Matt. Neena took over the microphone at the front of the bus and led us in song as we left the hotel. We also said goodbye to Joice, who has been with us during our stay in Brazil..


We have developed a great camaraderie in such a short time…the sounds of quiet conversation and soft laughter are always in the background.

Last night our students planned a “Goodbye to Brazil” party to celebrate our stay in Rio and in Sao Paulo. We’ve seen and experienced and learned so much together in our journey thus far. We even brought the computer to the party and shared pictures and a slideshow. Thanks, all, for a tremendous experience.

Now on to Argentina.

Friday in Sao Paulo (6/20)

Many of us stumbled out of bed on Friday morning, grabbed a cup of coffee in the hotel restaurant and just caught the 7:45 am bus. We were on our way again.

This time, we were out to visit two innovative, successful, entrepreneurial companies – the Semco Group and Subway Link. Although they were quite different in industry and focus (Semco Group provides consultancy and other services and solutions in such areas as environmental, industrial equipment and postal systems for companies wanting to do business in the Latin America markets, while Subway Link is a dynamic and innovative player in producing and delivering video programs to retailers), both companies exhibit a high-energy, innovative and entrepreneurial spirit, and both have been highly successful companies.

Our host at Semco, Jose Vendramin Neto, explained to us how Semco has evolved to become a gateway to LA for companies that want to enter the region. “We have the ability to establish time-limited partnerships – to start new businesses, grow them, and sell them at the right time.” Semco is particularly known for its innovative organizational structure and design and its approach to management. I was particularly impressed with his continuing respect for workers as adults, as well as his belief in workplace democracy: “If you treat them like a child, they’ll act like a child. One doesn’t become a child when one enters the gate.”

Here are links to two books by Semco’s founder, Ricardo Semler, that tell the story of this “maverick” and his innovative management practices (I’ve already ordered both of them):

http://www.amazon.com/Maverick-Success-Behind-Unusual-Workplace/dp/0446670553/ref=sr_1_1?ie=UTF8&s=books&qid=1214346097&sr=1-1

http://www.amazon.com/Seven-Day-Weekend-Changing-Work-Works/dp/B0009S5AVW/ref=pd_sim_b_1


Subway Link was quite another experience again. When we arrived we were taken to the rooftop where we found an elaborate video setup, several monitors, and a presentation setting. While the CEO and founder was unable to meet with us, Fabio Jorge, the CFO did a fantastic job of introducing us to a company that in the past 9 years began with an innovative idea: producing business TV solutions for companies. By 2005, it evolved to provide a full set of solutions -- Audiovidual productions, Corporate TV, and In-store TV commercials that customers see close to the time of the decision to purchase an item. This is a fast-growing company in a high growth market that is well-positioned to make a difference in Brazil and other nearby countries.

It had been a great day. We ended the day both excited and exhausted. After returning to the hotel, and some of us went shopping, while others made plans for the evening.

Thursday in Sao Paulo (6/19)

Greetings from San Paulo.

Yesterday was a travel day – we spent much of it in the airport, due to weather problems in Sao Paulo. We finally arrived (via TAM airlines), and checked into our hotel, the Masoud Plaza, by mid-afternoon. Although it was too late to take the city tour that had been planned, we were able get out and about a bit. As usual, I headed for the Art Museum (MASP), which was in walking distance of the hotel, where we saw some glorious Brazilian art along with others from the Museum’s fine collection.

Thursday’s appointments took us to two sections of the city. First we went to Natura, a leading Brazilian manufacturer and marketer of skin care, cosmetics, perfumes and hair care products. The natural beauty of the campus of this company was particularly striking. Our speaker was Jimena Berlange, the Sustainability officer, who highlighted the company’s commitment to “create and sell products and services that promote well being and being well.” This company lives its values of interdependence, diversity, transparency and truth. Natura was founded in the 1970’s, employs a direct sales model, with over 450,000 consultants in Brazil and over 30,000 spread throughout Argentina, Chile, and Peru – it’s growth has been astonishing, as it has done $ 4.3 billion USD in sales and 183 product launches in 2007. We also took a tour of the facility and the factory. Here’s a piece of trivia – they produce 4000 tubes of lipsticks in an hour.









Then we went to the University of Sao Paulo, our Professor Hsu’s alma mater. After an excellent lunch in the student center, we went to the Foundation Institute of Administration, an affiliated organization of the Business School. There we were treated to an excellent lecture, presentation and lively discussion with Professor Ricardo Sennes, on the Political Climate in Brazil and its effects on Foreign Investment. It seemed to me that this was an excellent capstone for our study of Brazilian business in its economic, political, social, and institutional contexts.

After this full day, we returned to the hotel exhausted – our group separated to various locations for dinner. I went to a delightful place, the Sky bar at the top of the xxxx, hotel, and enjoyed a great view of the city, wonderful sushi and oysters, and a great Bloody Mary.

Cheers to you all…

Wednesday in Rio (6/18).

It’s early Wednesday morning, and today we travel to Sao Paolo. Before I go out for a final walk on the beach, here are a few of yesterday’s highlights.

Our morning appointment was at Vale, a dynamic international mining company. Our two presenters, Patricia Calazans from Investor Relations and Hanna Meirelles from Human Resources, outlined the story of a company that has grown dramatically in the past 10 years from a Brazilian mining company (98% revenue from its Brazilian operations) to a global, diversified, 200 billion dollar mining company with a significant presence on 5 continents. Vale’s commitment to and practice of sustainable development of the world’s resources and its respect for local communities and workers were especially impressive.

After small, informal group lunches, we went to the beautiful campus of the Pontifica Universidade Catolica do Rio de Janeiro. It has a large business school, and after a tour of its campus we were treated to an excellent lecture given by the Dean of the school and esteemed economics and finance professor, Professor Luiz Felipe Jacques da Motta. His insightful comments and fantastic data on Brazil’s economic and political developments over the past 50 years were excellent additions to our growing understanding of the complexities of Brazil’s economy and its potential role in world economic development.

Dinner was on our own… reports will follow tomorrow.

Now off to the beach, then breakfast and to the airport for our morning flight to Sao Paolo.

Tuesday morning. Reflections from the bus (6/17).

Another sunny, beautiful day. We’re on our way again. To my right spreads the early morning beach. Sounds are chattering people humming along to Brazilian sounds. Good morning world. Welcome to Rio...












Yesterday was a full day – that combining fantastic educational and recreational time. Our first appointment was a 9:30 at the United States Commercial Service

http://www2.focusbrazil.org.br/siteuse.index.htm

After passing through security (sans cell phones, computers, zip dives and high heels, of course..) we entered the consulate. Camille Richardson, Principal Communications Office and impressive and knowledgeable international relations professional briefed us for 2 hours on the Brazil’s potential for investment and business development. It was a great start for our trip: she outlined the opportunities and also the challenges for investors who might be interested in starting a business in Brazil. Since our class teams will be performing just such an analysis as our course project, this presentation and discussion were invaluable to us. Also, our lively conversation with Camille and her colleague, the Director of the AMCHAM Rio, Ricardo Mayer, helped us to gain a better understanding of some of the economic, political, social, and cultural aspects of Brazil.





After our meeting at the consulate, we took a walking tour of downtown Rio and lunched as the beautiful Cafeteria Columbo. The lunch was a large buffet, and we were able to sample many of the tastes of the city.


Then on to our next appointment at Petrobras, one of world’s largest and most successful international oil companies. Rafaela Monteiro, an economist, gave an excellent presentation in which she provided an outstanding overview of the oil and energy industries in Brazil and worldwide. Needless to say, her interactive presentation and our conversation with Ms. Monteiro outlined the significant challenges and opportunities for finding creative and commercially successful solutions to the world’s energy needs.

We left Petrobras to enjoy a few free hours and to prepare for the evening’s main event, dinner and Samba show at the Plazaforma.

We had a great evening, and these pictures speak for themselves:






After the show, we returned to the hotel, smiling and exhausted. Some of us slept, while others saw a bit more of the city’s nightlife.

Monday morning in Rio. Reflections on the journey (6/16).

Good morning world. Welcome to Rio (6.18.2008)

Quote for the day:

A mind once stretched by a new idea never regains its original dimension.
Oliver Wendell Holmes, Autocrat at the Breakfast Table.

When DJ looked over our fresh faces in class last Saturday morning and told that we’d soon see and get to know each other in a totally new way, some of us thought that he was going a bit too far, but yesterday brought new perspectives to all of us. We welcomed sleep at the end of a long, long day.

We arrived in Rio early Sunday morning after a long, tiring flight in tight coach seats. Some of us yearned for those corporate business class days. As we passed though customs and retrieved our bags, we were met by Joice and Joao, our Austral Group guides who will be with us for the rest of our trip. When Rich and Hsu finally appeared with Rich’s bag, we got onto our royal bus that is to be our traveling home for the next few day to travel to the Ipanema Plaza Hotel.

By about 10, we found ourselves on the rooftop Terrace of the hotel, looking down onto Ipanema beach, up to the great Christ the Redeemer statue, to Sugarloaf Mountain, and around at the bustling heart of this beautiful city. The sun was shining and the view was glorious. Drinks and appetizers in hand, we met Shaun Sheffield, our fine Austral Group host, who presented our orientation session, and we were ready to begin our journey.

Then we had our first free time. Some of us went straight to the Ipanema Beach where two of us went into the water, while others just observed the fine sights. Others of us went to the “Hippie fair” and did some quick shopping and just listening to the great sounds of the people and the city.

At 1:30 we all met back at the bus with Joao and Joice to take a sightseeing tour of Rio. The tour was scheduled to take about 4 hours, but as you’ll see, things took a decidedly unusual turn. In retrospect, it was certainly a “bonding experience.”

Anyway, the highlight was to be a long train ride up the mountain to see the statue firsthand, so that was our main goal. As we traveled our Joao (JV) shared some of the wonderful customs, history and culture of the city. When we arrived at the train station, we found that since it was a lovely day, the train was quite popular, and we couldn’t get tickets until the 4:30 ride. Our plans were quickly revised and we went to the famous soccer (football) stadium, and then to the “dead samba mile”. There we had great fun, trying on fabulous samba costumes (and getting some great pictures).

Finally we went back to the train, which took us up, up, up the mountain. At the top, the statue and the view were both glorious.

You’ll notice that some of these pictures show a gathering storm, dark clouds in the distance, and some winds coming in. Yes, it was exhilarating, powerful, and actually quite humbling to stand in the great presence of the statue in those moments. We were seeing (and feeling) all of this from what seemed like the top of the world.

We were all scheduled to meet to take the 5:45 train back down the hill. However, since the place was packed and all were trying to leave, we all were stuck, stranded on top of the hill (with thousands of other people, of course). And soon it was beginning to get mistier, and finally to rain. We were cold, we were wet, and we were going nowhere. A group of us took refuge at the restaurant on the mount, while the rest of the group valiantly stayed in the line that went nowhere. After what felt like forever, some of us managed to get to the front of the train line, the line began to move, and we eventually met at the bus again. Soaked, tired and frustrated we came back to hotel. Then dinner and to sleep… we had certainly traveled far in this one long day.