Cost control leads to 15.1% EBIT
Client challenge
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Set up a low-cost local subsidiary in Brazil.
Ambition
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To become operational quickly with highly flexible, cost-effective services.
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To keep tight control of marketing strategy and operational costs.
Solution
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Use of a SIMPLES- Microempresa or Empresa de Pequeno Porte construction to protect against risk of low initial income.
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Where possible sub-contract services such as logistics, customs clearing, HR and accounting.
Results
- Break-even after 3 years (2009) and 15.1% EBIT in 2011.