Case Study 2

Cost control leads to 15.1% EBIT

Client challenge

  • Set up a low-cost local subsidiary in Brazil.

Ambition

  • To become operational quickly with highly flexible, cost-effective services.

  • To keep tight control of marketing strategy and operational costs.

Solution

  • Use of a SIMPLES- Microempresa or Empresa de Pequeno Porte construction to protect against risk of low initial income.

  • 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.