Annual Report 2018 slide image

Annual Report 2018

28 Administration The main contribution of the study is to supply a tractable framework to structurally quantify the impact of trade shocks in a world with frictions in the search for employment and labor mobility frictions between sectors. APPLICATIONS OF THE RESULTS AND POSSIBLE EXTENSIONS OF THE STUDY • The results of the study raise important policyquestions. The first aspect is that facing a strong competitor like China brings benefits to developed and emerging economies, im- plying that any policy that seeks to restrain trade in name of protecting workers should be analyzed carefully. The trade shock, however, generates winners and losers in the labor market. Therefore, it can benefit society to find a way to compensate the losers, while allowing the adjustment to occur without any type of intervention that disrupts trade. Finally, the theoretical framework developed allows studying other questions beyond the scope of this study, such as the exit of the United Kingdom from the European Union (Brexit). INTERNATIONAL COMPETITIVENESS: BUSINESS MANAGEMENT MODELS AND PRACTICES Studies on business productivity in Brazil have been focused on the so-called systemic productivity, highlighting structural problems of the Brazilian economy. This project proposes an analytic framework to chart internal factors that influence firm's competitiveness and evaluate management models and practices that contribute towards the betterment of productivity and performance. OBJECTIVE The objective is to develop an analytical framework to map the firms internal factors that contribute to improve their productivity and performance, in seven Brazilian industrial sectors; also to assess management models and practices that favor this improvement. RESEARCH METHODS 1. The analytical framework was applied to research companies in seven industrial sectors: sugar-ethanol, mining, foods and beverages, chemicals, publishing, telecommunications, and gas systems. The choice of the sectors was aligned to SENAI's priorities. In each sector, 10 firms were studied among those classified in the quartile of the most advanced ones in the sector. The study at the sectorial level adopted the following procedures: 2. 3. 4. Description of the productive chain and identification of the business models existing in each sector. Analysis of the sector evolution and the main factors that influence it. Formulation of a chart with trends in the sector based on secondary information, to permit a prospective analysis of the demands that will define whether or not the firms and sector will maintain its competitiveness. Design of the typical value chain (global or local) of each sector. Interviews were conducted with managers to find evidence of the firms maturity stage in regards to the adoptions of management practices. The interviews also disclosed infor- mation about the professional profiles, targeted by the study. Secondary data comple- mented the information on the firm. AUTHOR: João Paulo Pessoa. ORGANIZATION: Sao Paulo School of Economics (EESP). SUPPORT: Applied Research Fund (FPA FGV) and the São Paulo State Research Support Founda- tion (FAPESP). RESULTS There was strong heterogeneity in the business models analyzed, due to various factors, such as firm size, type of product, final market, position in the production chain and scope of operation (local or international). The business model of the firms did not necessarily determine their management prac- tices, but did influence them. There were companies with different business models that had advanced management practices and good performance. Some of the firms selected had very conservative practices while others were in a very advanced stage. The firms with focus on the external market, exporters or Brazilian multinationals had more advanced management practices than local firms, with focus on the domestic mar- ket. This finding applies also to the subsidiaries of multinationals, which presented more modern management practices. Annual Report 2018 29 RESEARCH
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