Nordson Do Brasil B
1. Nordson do Brasil: Challenges in an Emerging Market
Gregory Merk, General Manager-Latin America South (LAS) and the head of Nordson do Brasil, a wholly owned subsidiary of Nordson (Nasdaq: NDSN), was deep in thought in his Tambore office in Sao Paulo. He was thinking about his plan of action for his first 2002 quarterly meeting at Westlake, Ohio, worldwide headquarters (HQ) of Nordson. This was to be a crucial meeting, more than a mere update – HQ wanted to be apprised of the problems and issues facing the Brazilian subsidiary as well as the entire LAS region which reported through Nordson do Brazil. Senior management specifically wanted him to break the problems down into immediate concerns and other long-term strategic issues. Merk had been requesting this audience with HQ for quite some time. He realized that he had HQ’s ear now and wanted to make the best of this opportunity to have his concerns addressed. He decided to spend the better part of the coming week to thoroughly prepare for the meeting.
Amongst Merk’s immediate concerns were the challenges Nordson LAS faced due to the global recession and the Argentine crisis with its contagion effects over the entire LAS region. Although Nordson do Brazil had adapted its business practices to suit the business realities of the region, specifically to counter the recession, Merk realized that more work needed to be done in order to stay viable and competitive in today’s troubled times. He was also feeling the pressure due to the tough cost-cutting measures that Nordson had implemented worldwide. Furthermore, he knew that the upcoming presidential elections held in October, would have an effect on Brazil’s view of international trade. Historically, new presidents have come to office initially with the mind-set of restoring Brazil’s independence on imports by increasing tariffs. This approach ensures the president of a continuing base of support from the domestic business community all the while boosting
Gregory Merk, General Manager-Latin America South (LAS) and the head of Nordson do Brasil, a wholly owned subsidiary of Nordson (Nasdaq: NDSN), was deep in thought in his Tambore office in Sao Paulo. He was thinking about his plan of action for his first 2002 quarterly meeting at Westlake, Ohio, worldwide headquarters (HQ) of Nordson. This was to be a crucial meeting, more than a mere update – HQ wanted to be apprised of the problems and issues facing the Brazilian subsidiary as well as the entire LAS region which reported through Nordson do Brazil. Senior management specifically wanted him to break the problems down into immediate concerns and other long-term strategic issues. Merk had been requesting this audience with HQ for quite some time. He realized that he had HQ’s ear now and wanted to make the best of this opportunity to have his concerns addressed. He decided to spend the better part of the coming week to thoroughly prepare for the meeting.
Amongst Merk’s immediate concerns were the challenges Nordson LAS faced due to the global recession and the Argentine crisis with its contagion effects over the entire LAS region. Although Nordson do Brazil had adapted its business practices to suit the business realities of the region, specifically to counter the recession, Merk realized that more work needed to be done in order to stay viable and competitive in today’s troubled times. He was also feeling the pressure due to the tough cost-cutting measures that Nordson had implemented worldwide. Furthermore, he knew that the upcoming presidential elections held in October, would have an effect on Brazil’s view of international trade. Historically, new presidents have come to office initially with the mind-set of restoring Brazil’s independence on imports by increasing tariffs. This approach ensures the president of a continuing base of support from the domestic business community all the while boosting