Sean has Evelyn contact his pilot to let the pilot know he is heading to the airport for the scheduled flight to Brazil to meet with the president of Diablo Mining. The meeting is in order to outline the intended positioning of Mark Stevens and Global Metal Refining, Inc. in the United States and Brazil. He places the storyboard and the ad copy in his briefcase, then turns around and removes the $100,000 that Mark had given him to compensate Diablo Mining’s president for the increased problem the marketing campaigns may create for them in Brazil. He places the money in the false-bottom portion of his briefcase, confident he will be passed through Brazilian customs without incident.
Sean tells Evelyn he will only be gone over the weekend and shall be back to work on Tuesday. He heads to his Sacramento Street penthouse apartment to pack for the weekend. As he enters his penthouse, Sean pauses momentarily in the living room to enjoy the view. The lights of downtown and the east bay are beginning to provide a subtle and comforting glow on the water. The spacious living area looks out over San Francisco Bay and Alcatraz, and he turns to his right and scans the skyline of downtown, briefly appreciating what all his hard work has gotten him. He grabs the necessities for Brazil and the weekend, then heads to meet the corporate chartered jet pilot. He boards the jet, and the stewardess, Rachel, hands him a scotch on the rocks. She gives him a smile and says, “We will be pushing away shortly. How have you been, Mr. Green?”
Sean takes a sip of his scotch, tips the glass toward her, and says, “Much better now.”
She nods toward the drink. “I hope we got it right this time?”
“Absolutely you did. Thank you for remembering,” Sean replies.
“Will you be dining with us tonight, or would you like to just sleep during this flight, sir?” Rachel asks.
He considers for a moment. “Actually, did you also remember the brie and smoked salmon?”
“Of course, Mr. Green. From Nova Scotia, correct?”
He nods. “Excellent. I think I would like the brie and salmon with red onion and capers, please. It’ll go nicely with my scotch. Then I’ll work for about an hour and retire for the evening.”
“Of course, sir. I’ll get it for you as soon as we hit our cruising altitude. About the time you’ll be ready for your customary second glass of scotch, I believe?”
Sean smiles and says, “That will be perfect.” He enjoys the snack and second scotch, works diligently for a little over an hour, and then heads to the fully equipped master bedroom in the rear of the plane.
He is woken by Rachel, who hands him a fresh cheese danish and a cup of French press coffee. “We’ll be landing in about forty-five minutes. How did you sleep?”
Taking the cup from her, Sean says, “Very well, thank you.”
She smiles. “The limousine will be waiting to take you to Mr. Stevens’ villa for the weekend.” Sean thanks her again and sips from his coffee cup. The jet lands and taxies to the terminal. Customs agents step onto the jet, greet Sean, sign off on all the necessary paperwork, and then wish him a great stay in Brazil.
CHAPTER 5
BRAZILIAN HOSPITALITY
Sean deplanes and gets into his awaiting limo. The driver Fernando says, “Good to see you again, Mr. Green. Is there anything special you need for this trip?”
Sean shakes his head. “Not this time Fernando, thank you.” Upon arriving thirty minutes later at Mark’s villa, the butler, Eduardo, tells him they have already arranged for an early dinner meeting on the veranda with Hugo Montes, president of Diablo Mining.
Sean thanks him and says with a smile, “I love it when you coordinate everything with Mark so I don’t have to be concerned with any details other than what I’m going to present.”
As Eduardo leads Sean through the house, he replies, “Well, Mr. Stevens told us he wanted you to be able to enjoy Brazil Sunday and Monday before your return flight to San Francisco. We have planned a five-course meal for you and Mr. Montes and hope you won’t worry about anything in the time you’re here.” He pauses in the grand living room. “I hope lobster as a main course suits you tonight?”
“Sounds terrific to me.”
Eduardo smiles and leaves the room. One of the maids directs Sean to his suite.
Sean is considering a swim when Eduardo knocks on his door with a mimosa. Sean says, “Thank you. Can I have that by the pool?”
Eduardo nods. “It will be waiting for you.” Sean spends the rest of the day lounging by the pool, soaking up the sun’s rays, before taking a cool shower and dressing for dinner with Mr. Montes.
Mr. Hugo Montes arrives and warmly welcomes Sean back to Brazil, saying, “It’s always good to see you, my friend.”
Sean responds, “You too, my friend. Have a seat, please. I’m not really sure what’s for dinner tonight other than the main course. I hope lobster is acceptable for you?”
Hugo nods. “Sounds wonderful actually. And I’m sure Mr. Stevens’ chef will prepare it to perfection. He always does.”
“I suspect you are correct. What can I get you to drink?” Sean motions for the butler.
“Tequila with lime, please.”
Eduardo nods. “It will be here momentarily.”
Hugo thanks him, and Sean begins their discussion with an overview of the problem from Mr. Stevens’ perspective, both in Brazil and the United States. He further elaborates about Mrs. Stevens’ personal and political sensitivity on environmental issues and how important it is for her to see Global Metal Refining as an eco-friendly organization throughout this process.
Hugo nods in understanding. “But Mr. Green, Diablo Mining’s practices are not unlawful in Brazil, even though environmental zealots seem to think otherwise. They are creating turmoil locally.”
Sean counters, “Well, these same zealot groups have contacted their counterparts in the United States and are attacking the association between Diablo Mining and Global Metal Refining as co-conspirators in raping the precious rain forest of Brazil. Mr. Stevens has come under as much scrutiny in the U.S. as both of you have in Brazil, resulting in his company’s stock prices falling thirteen percent as of yesterday. However, I have a solution.” Sean shows Hugo the strategy adopted by Global Metal Refining while attempting to convince him of the importance of his participation in this plan with Mr. Stevens.
“But this effectively makes Diablo Mining look like the villain in this saga,” Hugo protests.
Sean nods apologetically, “Mr. Stevens has also recognized this dilemma and how regrettable it is. He sent me with this consideration to soften the effect this will have on your personally.” Sean stands and hands Hugo the duffel bag of U.S. dollars.
Hugo briskly opens it and raises his eyebrows. “It looks like about seventy-five thousand dollars?”
Sean corrects him. “It’s actually one-hundred thousand U.S. dollars. Non-reportable, of course, so no worries about personal income tax. This is simply to offset the negative press Diablo Mining will soon have to endure.” Sean clears his throat, then goes on to say, “Mr. Stevens has personally hired me to help with the negative press you’re going to receive locally. But for now, let’s enjoy dinner before concluding this discussion, shall we?”
Hugo places the duffel bag on the floor next to him, looking slightly dismayed, but agrees.
The dinner discussion becomes light and enjoyable, at least momentarily. After dinner and the appropriate compliments to the staff and the chef for a spectacular meal, they move their dealings into the formal living room of the villa. Sean lays out the storyboard and the ad copy for Hugo’s consideration.
Hugo looks over everything, very obviously uncomfortable with the situation he has found himself in, and then makes it abundantly clear that he really isn’t thrilled by the proposal. He runs a hand over his clean shaven face. “I suppose the extra money makes the deal acceptable. But I would like to make a few minor adjustments to the verbiage and plans.”
He presents them, and they are eventually agreed upon by both men. They continue the eveni
ng over Courvoisier and cigars and once again the discussions center around much more pleasant subject matter.
During one of these lighter conversations, Sean seizes the opportunity to pick Hugo’s brain about the fashion and apparel industries in Brazil and Latin America. Surprisingly to Sean, Hugo is very well versed on the subject, as well as the socioeconomic factors and the micro economy of Brazil. During the discussion, Sean learns that the Brazilian consumer market has been touted as a market with progressive policies targeted at foreign organizations for investment opportunities by the Brazil Business Environment Report. The two men discuss the sources and empirical studies that have referenced rising salaries and disposable incomes, and the discrepancies as to the actual amounts involved.
“For instance,” Hugo explains, “one study claims that seventy percent of Brazil’s population is made up of low-income classes, while Business Monitor International claims more than one-third of Brazil’s population lives at or below the poverty level. The consumer behaviors reflected in Brazil’s middle and upper classes continue to mirror their counterparts in developed countries, with consumer purchasing power continuing to rise. Yet the base of the pyramid consumers in Brazil continually strive for middle class identification, while the country’s elite insist upon separation from the middle class.” Hugo pauses to take a sip of his drink, and Sean does the same as he considers what Hugo has just said. Then Hugo continues, “As a result, all three segments of Brazilian culture and consumer markets engage in hedonic consumption as a means of gaining social identification and status. However, with all the positive economic reports on Brazil, the income separation and inequality remains a concern for many foreign investors. Research shows, contrary to this income and social inequality, base of the pyramid Brazilian consumers are willing to make specific economic sacrifices in order to purchase things they want, therefore satisfying their socioeconomic need for inclusion into the middle class or, at the minimum, projecting the appearance of not being excessively poor. The consumer consumption pattern has become well known with marketers in Brazil, like me, who use this type of purchasing pattern to increase brand loyalty by knowing that consumers cannot afford to purchase another product if they make the incorrect decision initially regarding the purchase of any item.” Hugo spreads his hands and leans back in his chair.
“Additionally,” he continues after a moment of letting Sean process this marketing strategy, “Brazil’s labor market and job creation have lagged behind the growth in its labor force. Unemployment rates are high, and evidence clearly supports the notion that racial inequality, prejudice, and discrimination are a social reality. In the past, Brazil enjoyed the image of racial equality, but that has recently been revealed to be incorrect. While the majority of Brazilians don’t even attain completion of high school or college, white men and women that complete at least twelve years of education are five times higher than Afro-Brazilian women. The average age for leaving school in Latin America is fourteen years old and seems to follow along socioeconomic lines. It has also been pointed out that the majority of Brazil’s impoverished population may be the result of geographic polarization between the significantly more rural northeast compared to the more industrialized southeast. Government authorities within Brazil have been highly criticized for their failure to invest in education. This failure and the country’s racial inequality become abundantly clear when one looks at the overcrowding in the schools of the industrialized southeast. It is apparent that, as an emerging marketplace, Brazil presents significant opportunities for business expansion as well as some real challenges.” Hugo takes another sip of his drink.
Sean nods and says, “Nevertheless, the abundance of research and academic inquiry clearly delineates a pattern of social injustice based upon prejudices and socioeconomic stratification, correct?”
“Ah, yes,” Hugo answers, “the majority of the individuals falling within Brazil’s low-income category appear to include women, many of whom are single parents due to Brazil’s high divorce rates, and the uneducated, many of whom are living in the agricultural northeast and racially are either Afro-Brazilian or members of Brazil’s indigenous tribes. Individuals living in the southeast seems to fare better socioeconomically due to the greater access to education facilities and higher-paying employment opportunities. Clearly, the ethnographic tendency in Brazil’s government is to either ignore or condone racial or social prejudice, based on geographical, economic, and employment stratifications.” Hugo polishes off his drink as Sean considers all he has presented. Sean realizes there are tremendous opportunities for the right American company looking to make a difference, not only in Brazil, but also in the company’s growth potential strategies.
“Very interesting,” Sean tells Hugo. “You have been very helpful and have given me a lot to consider. Anyway, as I said before, Mr. Stevens has hired me to devise not only the current strategy for our environmental issues, but also a recovery strategy for Diablo Mining in Brazil and also worldwide.”
Sean elaborates further by clarifying for Hugo that fees for his services will be handled entirely by Mr. Stevens. Hugo admits he is surprised and appreciates that Mr. Stevens is concerned enough about his ongoing relationship with Diablo Mining that he is willing to fix the problems they are about to create. Sean lays out for Hugo a two-pronged approach, starting in Brazil, which will be based upon the law-abiding practices of Diablo Mining.
“However,” Sean says, “since many of the company’s opponents have presented some valid points on this type of strip mining, we intend for you to be positioned as the driving force in correcting these practices. You will sponsor legislation in Brazil on new environmentally friendlier industry standards. Globally, you will become the face for environmentally sensitive mining and restoration after operational completion. You will design economically feasible solutions, and I will provide the marketing expertise to convince the concerned global citizens that these practices will allow the mining industry to coexist with the environment for the benefit of all concerned. If necessary, Mr. Stevens will provide up to two million U.S. dollars to Diablo Mining for industry lobbying and political contributions where necessary.”
Hugo appears satisfied with the deal after the offer of this additional support, and the two once again return to more pleasant after dinner conversation.
After a few polite inquiries into Sean’s business life, Hugo finally breaks down and asks what he’s been wondering since Sean brought it up. “Why the sudden interest in the fashion industry and Brazil’s marketing areas?”
Sean chuckles, “I had the CEO of a fledgling fashion apparel company come into my office with the desire that SGM represent her. I told her I wasn’t interested in becoming involved in the fashion industry and dismissed her.”
Hugo gives Sean an all-knowing smile, his teeth very white against his tanned skin. “She must be extremely attractive, eh? For you to be reconsidering…”
Sean looks slightly puzzled. “Why does everyone immediately jump to that conclusion?” Hugo gives him a deadpan look, and finally Sean nods, then recovers with, “But that isn’t the reason I’m considering accepting her as a client. She recovered very nicely with a gift basket and good scotch, and so I did some research. The fashion industry is a two-hundred and fifty-billion-dollar industry in the United States alone, so I could see some tremendous income potential for the right designer. Furthermore, this woman’s company is performing slightly better than the statistical norm.”
Hugo sighs. “Ah, what we fools will do for a beautiful woman.”
Sean chuckles but protests, “Not at all. My inquiry has been strictly for business purposes.”
Hugo replies, “Well, if you are truly conducting business research, then you would probably be interested in knowing that my cousin owns an apparel factory that Nike has just abandoned. I believe my cousin would be willing to cut a very favorable lease deal for the right manufacturer. Since it’s already set up for apparel, very little modification would
need to be made for production to be up and running. It would take maybe six months? Would you be interested in seeing it tomorrow?”
Sean considers for a moment, then says slowly, “For research purposes only, of course. Why did Nike leave the factory?”
“They built one of their own. They were tired of leasing, I suppose.”
The two men agree that Hugo will pick Sean up the next morning at 9:00 to tour the vacant factory, which is approximately a forty-five minute drive from the villa. They bid each other a good evening, and Sean retires to his suite.
The next morning, Sean meets Hugo in the cobblestone driveway, and they travel forty-five minutes south of the villa. Upon arrival, they meet Hugo’s cousin, Ricardo Montes. Sean is amazed by the condition of the well-manicured facility. After a tour, he is convinced it is state-of-the-art. It is air-conditioned, with a fully functional ventilation system and well-equipped work stations. Ricardo asks the typical questions associated with initial tenant evaluation, but he is also concerned about the integrity of the potential future business considering renting the facility.
Ricardo explains, “Most of the displaced workers who couldn’t move with Nike are still in the area and would be available immediately to resume production with very little training necessary. Are you sure that this business you are considering representing would be an appropriate fit? I do not want to get screwed over again, like I was with Nike.”
Sean reassures Ricardo while attempting to process that these possibilities exist. A fully trained staff, a modern facility, and a landlord willing to bargain to fill an otherwise difficult facility to lease seemed too good to be true.
“I will be meeting with my potential client in a couple of weeks, and I will get back to you with some feedback early next month. Other than that, I can’t really reassure you about much else.”
Ricardo asks Hugo in Portuguese if Sean is seriously interested, and Hugo confirms that Sean is, in fact, a real bona fide prospect with the capability to have his clients deliver what he promises.
Uncontrolled Spin: The Power and Danger of Spin ( Un missable Series Book 1) Page 4
