Argentina, Economic Transformation with Management Logic

ARGENTINA, ECONOMIC TRANSFORMATION WITH MANAGEMENT LOGIC

In this reasoning scene, it’s common to be made recognition to the processes that do not fully work. As in this case is about a country, we identified the exports business as which works not at full pelt:

· When a company is analyzed by itself (we suppose to see the country
like a company), its strategy, its executives, its personnel, the applied technology, the procedures, the used processes, it asks itself: What are we doing is the correct thing or the best thing than it can be obtained?

· The fact to be giving priority to fiscal and monetary subject’s makes that the export businesses, those of high potential to solve varied interesting issues, are being wasted. Are there businesses or products in which Argentina should try to do and it hasn’t done it yet? Could we add value in terms of labor? Could we add products or services that are not in our exports product list at this moment? Do we export efficiently using technological and productive resources and the infrastructure at full capacity? Do we optimize them? If these questions have a majority "not" by answer, the second step is:

· Identification of who could do it better: The globalization requires understanding of the pressures and reaction. There are demands of high level of technology and know how that today we do not have. The countries that have them and can use them must be in our associative plans. The reason is if we don’t have which they have and this context goes on, it will be very difficult or maybe impossible to march. The globalization has made a clear process; it concentrated more and more "the supplier" of each good or service.

· Analysis of the value chain: If we divided the economic activities of the country into which are strategically important, in order to understand the behavior of overheads and the existing and potential sources of differentiation, we are in the correct direction.
A country as a company obtains a competitive advantage when carrying out the important strategic activities, in a way chipper or better than its competitors.
The value chain allows us to identify those business components could be solved with outsourcing. In this way we would establish a high competitive advantage over the other food producers in the world that work isolated. As example we could mention the European and North American powers.

· Decision: Outsourcing. If we had tried exports policies, which we saw we were not convinced, we would have experimented that later, the great industrial countries negotiated their future suppliers in India or South Korea. Given our competitive advantages in natural resources, agricultural foods, etc., we had intensely covered the ways of our competitive areas, which despite today it appears like exciting possibilities. Economists who strongly resisted a subsidy to stimulate exports, at the present they wish and admire the development performance of software in India. Once Argentina begins to develop its potential agricultural food, it will be enormously capitalized with the strengthening to have alongside a country with experience in generating high productivity. This simultaneously will open the doors to a growth leads by real wages different from the emergent society, which will allow us to encourage the internal market as well.

A New Focus that address To Us Towards an Economy with Management Vision -

"To harden the thought is the omen of the failure...

Make sure to be always receptive to new ideas"

George Crane

The Argentine exports represented less than the ten percent of GDP, until the debacle of the end 2001 (according to National Accounts Data showed that exports in current price was 11 pct of GDP, while analyzing Foreign Trade from Indec, the exports were 10 pct of GDP or a little superior). Any businesses division in a company that participates in just ten percent on the sales has an eventual potential growth by four or ten times its average. It is very frequent that a sleepy business wakes up and passes from a marginal cell to a main division. It is important to emphasize that from the final of the Alfonsin´s Administration, the Argentineans we have multiplied our exports by four, even our permanent delayed Pesos exchange as a consequence of the constant application of anti inflationary stabilization plans. Investing time and effort in a strategic alliance to export and to grow with an expert, is more healthful than to promote trade-off and restructuring debt. I.e. How many new products could export Argentina, with the Japanese industrial feature? Well, hundreds!

In the first place, all things that the Japanese people know that the world requests, because we must know they sleep aboard the airplanes and go by the world looking for clients and investigating potential markets with passion. Second, if we thought with Morita´s philosophy, he said: the companies (and I say the countries) must create goods and services independently of which the markets request, since the markets cannot request what it does not exist. The soybean ice cream does not exist. - Then how many people eat Milanese and pasta of soybean. Japanese companies as SONY, TOSHIBA and other that sell billions dollars per year, invest between six and ten percents of their income in R&D. This would be something as well as an annual average 8,000 million dollars. What would Argentina be investing that figure in researching and development in agriculture-foods for the world? For example other soybean products, but not as eccentric as the one of the example before, but one that eats in other parts of the world.