What lies beneath the overall growth story for BRIC (Brazil, Russia, India, China) countries?
Not only have BRIC countries made strides as manufacturing and services countries, they are now developing into significant end markets for multinationals. What’s more, they frequently represent the fastest growing (as with Apple) or biggest (as with General Motors) markets. Large multinationals now find large portions of their supply chains focused on the BRIC countries. Not surprisingly, this will add extra strains on existing operational and tax structures.
But implementing new models is hard work. It involves considerable change and requires strong support from all levels of the organisation. But there are major benefits to be gained – especially when tax, financial, and operational considerations are aligned to provide benefits in all three areas. A holistic, systematic approach is essential, in particular the need to map out potential models so that each can be analyzed from key perspectives, as illustrated in this article.