Prof. Caldart has an article published in HBR Latin America

“Dilemas multinacionais: três modelos de estrutura regional na América Latina” [“Multinational dilemmas: three models for regional structure in Latin America”] is the title of the article by Prof. Adrián Caldart, of AESE, published in the January/February 2011 edition of the highly-regarded Harvard Business Review Latin America.

The article was the result of a collaboration between IAE Professors of Corporate Strategy, Roberto Vassolo and Matthias Kleinhempel, and Fernando Fragueiro, Professor of Human Behaviour in the Organisation. The Chair of the department of Corporate Strategy at AESE, Adrián Caldart, joined this team, offering a clear vision of the challenges for multinationals seeking to innovate and reduce costs at the regional level. This entails an analysis of the most important trade-offs, which, for experts, is essential in choosing the business model most appropriate for each company.

“In the last decade, several multinationals have adopted a regional organisation in Latin America. This type of structure generally simplifies the report to be sent to headquarters, reduces costs, generates critical mass, allows a sophisticated regional infrastructure to be maintained, ensures better monitoring by the senior management and favours greater responsiveness, which minimises and enables management of risks in an unstable environment.

In the last four years, we have thoroughly studied more than 50 offices of multinationals in Latin America, exploring their performance patterns and the resulting capacity for innovation. During this process, we identified certain fundamental elements for the implementation of a regional organisation; we developed a framework for the assessment of the strategic trade-offs associated with each process; we identified three organisational models or configurations implemented into the regional plan by most of the multinationals studied and we drew lessons from in-depth studies of the cases that exemplified the three models.”