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Go South Young Business People
By Laurie Alder
Today, global opportunities abound for business graduates in all fields. South America, and Brazil particularly, is a growing economy full of both entrepreneurial activity and major corporate expansion. With an economy growing at 3.6 percent, an inflation rate more than 3 percent lower than last year, foreign investment rising exponentially, and a government dedicated to reforming trade and stabilizing its currency, Brazil is attracting world-wide attention. In 1993, The McCombs School of Business formally began developing its base in Brazil through partnership with Fundaçao Getulio Vargas, the country’s top business school. Through multiple connections, including academic exchanges, Ph.D. and faculty research initiatives, and a strengthening UT alumni base in the country, McCombs graduates have a ready-made network to tap when seeking their fame and fortune in Brazil.
UT MBA Builds Lucent Spin-Off in Brazil
When Avaya (NYSE:AV) hit the New York Stock Exchange for the first time on October 2, Carlos S. da Costa Pinto, MBA 95, smiled with pleasure. As managing director for Avaya Brazil, Pinto was involved in months of planning and years of growth that led to this point.
Formerly the Enterprise Networks Group of Lucent Technologies, Avaya is a leading provider of communication systems and software for enterprises. With a customer list that includes 90 percent of the Fortune 500 companies, the $8-billion business is off to a good start.
“This is a great opportunity to build a new company,” Pinto says. “It’s about creating something new, and that’s exciting.”
Complete by the end of September, Avaya’s spin-off from Lucent Technologies was accomplished in one step, with Lucent Technologies contributing the assets of the enterprise businesses in exchange for all of Avaya’s stock.
Pinto feels this newly gained independence will provide Avaya the flexibility and focus it needs to sustain its growth and broaden its market coverage. Of course, there will be challenges too.
“We have to create and develop a brand,” Pinto says. “We also need to get the word out to our customers about our legacy and show that we are not just a brand-new company.”
Four years ago Lucent Technologies itself spun-out of AT&T and has built a good name for itself in Brazil. “Everyone knows about Lucent here; they have great brand awareness,” Pinto proclaims. “Now I must do the same for Avaya.”
According to the native Brazilian, the current business climate in Brazil is ideal for his business to thrive. “Brazil is enjoying major prosperity right now,” Pinto explains. “We have political stability, and the economy is good. The country is getting better year after year.”
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The country’s prosperity is evident in the way citizens have embraced technology. The Internet is growing at an extremely rapid pace, and ebusiness is booming. The number of phone lines in Brazil more than tripled during the past few years. The number of wireless subscribers has increased from 5 million to 20 million. A Brazilian can find vendors offering wireless Internet access via a mobile phone on every street corner in major cities. “In the past few years, Brazil has become a very sophisticated market,” comments Pinto.
Pinto’s operation has definitely seen the benefits of this economic boom. In the past four years, revenue for the Brazil division jumped from $6 million to $100 million. Referring to the tremendous growth, Pinto notes, “It’s like that old saying – we were the right company in the right place at the right time.”
When the telecommunications industry in Brazil was deregulated two years ago, Lucent Technologies was definitely in the right place at the right time. All of the major telecommunications players came to Brazil to vie for a piece of the market. Although Lucent Technologies emerged as one of the leaders in the industry, Pinto does not plan to stop there.
“We have already been successful in telecommunications,” he says. “I want to penetrate other markets and build business partnerships. I would also like to expand to other areas in Brazil, beyond São Paulo and Rio de Janeiro where we already have a strong presence.”
The abundant opportunities and fast-paced environment of a new company in a high growth industry seem to be right up Pinto’s alley. “I hate routine, and I don’t like to be bored,” Pinto affirms. “I need a challenge. I like working in a dynamic field, and I love working with new technology.”
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