I'm Buzzed

2018 6-7-10

Before my family freaks out let me clarify by saying that I got my hair buzzed.  That's right it was time to mozzy on down to the local hair stylist.  It was a little bit more expensive this time at 40RMB or $5.82 but it included two hair washings so I guess I can't complain.  Midway through the guys electrical clippers broke down so he had to switch to another pair that didn't have that handy little… whatever thingy at the end that keeps it all the same length so he had to do it all by eyeballing it.  Gotta admit I was seriously wondering if I would have to go home and simply shave my head, but he actually did a really nice job.  I mean it was probably one of the longest buzz cuts I've ever had but he really tried hard to do it right.  Great quality (crappy tools, but not my problem), low price, no complaints here.

I also went shopping a little bit, picked up a pair of chopsticks as well as a little Totoro coin purse (I need to start buying gifts for people) all for only 20RMB.  I had planned on getting some t-shirts but I just can't find anything that interests me.  Other than then that I continued my N.A.G. campaign and worked on school work, which I will be posting at the bottom.

LEADERSHIP CLASS

Leading Oneself

a)      What: In my room, personal reflection.  "He who cannot obey himself will be commanded." – Nietzsche

b)      So what: We're all taught that setting goals is important.  I would argue you that achieving goals is even more important.  Not only is there a profound psychological effect when we fail/achieve a goal, but it's also hard for me to understand how we can expect others to follow us if we can't achieve our own personal objectives.

c)       Now what: I have a lot of high and mighty goals and I think breaking them up into much smaller and more achievable objectives would be much more affective and meaningful.  Not only is this better for myself but it helps me practice project management, because our life is, if nothing else, a project.

INTERNATIONAL BUSINESS ENVIORNMENTS

To: Gary Haberland

From: Kevin Watford (#3)

I would advise GENICON to enter into the Brazilian market.  Based on the expected growth in Brazil's medical market, its low (sometimes none existent) tariffs, current market environment, and government regulations and policies provide an excellent opportunity for GENICON.  First I will elaborate on the opportunities within the Brazilian market, second I will point out possible complications, and third I will give a general suggestion on going to market.

Brazil's expected GDP growth is slightly higher than the rest of Latin America at 6.6%.  But the CAGR for the medical device (MD) market in Brazil is expected to be 13.8% (China's is 13% by comparison) largely due to the increase in health expenditures which is over 10% of the total GDP.  While Brazil is not the largest MD market (China is) it is the second largest and with the fastest forecasted growth for the next 5 years at 15.2%.  Brazil is also a huge importer of foreign MDs with the US being one of the largest importers, this along with its low import tariffs and the fact that over 42 MDs had no tariffs placed on them, makes Brazil an import friendly country.

The Brazilian market is also similar to our first foray into the European market.  The market currently has 3,000 importers and distributers creating a highly fragmented market, but much like what happened in Europe, the market as it grows is suppose to become much more consolidated leaving many smaller distributers in niche markets unable to sell products to our customers leaving us with a golden opportunity, and one that we already have experience exploiting in the past.

Brazil also is the least corrupt of the emerging markets we're considering based off of the Worldwide Corruption Perceptions ranking published by Transparency International.  This is an important factor when considering that we're a US company with strict laws forbidding us in engaging in bribery.   This along with Brazils relatively quick registration process (10 months), and the fact that they will usually accept international certifications allows for easy entry into the market, important for a small company such as GENICON.

There are things we should be aware of.  As previously stated Brazil's market is highly fragmented making it hard for a company without many connections to sell to the overall market.  44% of the demand for MDs come from the public sector with strong public funding expected to come, on top of that, domestic companies are largely the ones given government tender.  The National Health Surveillance Agency will also require us to have a local office, manufacturing facility, or appoint a local distributer in order for our product to be registered.

To enter into this market GENICON should consider using some of its capital to purchase or partner with a local factory, granting access to government contracts, as well as giving us a manufacturing base in Latin America which we can use to export products into Argentina, Chile, Colombia, and Peru.