Brazil says 'no thanks' to foreign computers

Article Abstract:

The government of Brazil has enacted what many consider to be the most protectionist of foreign economic policies to be found in any country, causing many large multinational firms operating in Brazil to pull out of the country. Robeli Libero, president of IBM do Brasil, has proposed many manufacturing projects in Brazil only to have them rejected, which has caused IBM to reduce its exports from Brazil to about $1 billion and to decrease its new investment in the country to $80 million from $176 million in 1982. Robert M. Gerrity, president of Ford do Brasil, claims that his company was forced out of Brazil by its government's regulations, having been forced to sell its Philo subsidiary's integrated circuit plant in Belo Horizonte. The ramifications of this protectionist policy for Brazil's economy are discussed.

Economic policy, Domestic content (Trade policy), Libero, Robeli, Gerrity, Robert M.

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IBM Brazil helps tame a bureaucratic brontosaurus

Article Abstract:

IBM do Brasil, the Brazilian subsidiary of IBM, embarked on an aggressive campaign to cut its massive bureaucracy in March 1982, motivated in part by a similar program initiated by the Brazilian government, and since that time the company's Red X program has become a model for other organizations in the country to follow. Fabio Steinberg, the director of the program at IBM do Brasil, claims that the benefits of the program cannot be measured simply in terms of the quantifiable aspects, and that the change in attitude at the firm is more important. The restructuring of the company's voucher system, which forms the basis for the Red X program, and the commitment such programs must receive from top management are described.

Bureaucracy, Organizational effectiveness, computer industry, Steinberg, Fabio

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Volkswagen's tough choices in Brazil's crash effort to switch from petrol to alcohol fuel

Article Abstract:

Volkswagen do Brasil was forced by the Brazilian government, the people of Brazil and its competitors to develop a plan for converting its most popular 1.3-liter engine from gas to alcohol fuel. The company's Committee for Product Planning recommended that the firm solve the problems encountered in the development of an alcohol-based engine for its automobiles by realigning its priorities, which resulted in a bottleneck in research and development as well as testing. This resulted in a reduction in the testing time to satisfy the demands of the marketing department, which claimed the increasing level of competition in the country was threatening its prospects in the market.

Economic aspects, International business enterprises, Automobile industry, Alcohol fuels, Volkswagenwerk AG

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