Books 19 Feb 2014

VII Report on the Spanish Investment landscape in Latin America in 2014

The growth in the internationalization of Spanish businesses during the last five years is becoming a critical lever to help the Spanish business sphere face the consequences of the Great Crisis and, more specifically, to balance their P&L accounts given the drop in domestic demand.

But this process of internationalization and increased outflows of direct investment, particularly in Latin America, is taking place in a business context marked by the transition from Share of Market (SOM) towards the Share of Mind (SOM).

Companies no longer exclusively measure the success of their efforts based on economic and financial returns; they have witnessed that these are mere short-term indicators and they need to enhance their social license to operate in the markets through an enhancement of both their influence and the relations with critical stakeholders for the business, genuine business success catalysts.

However, at the start of these ventures, many companies, especially SMEs, seem to ignore the tools they could use in order to promote their products or services abroad.

The key is to take into account all stakeholder groups related to each business model. In the Share of Mind era implementing a responsible strategy is not enough, it is essential to carry out an effective strategy.

I would like to encourage you to read this report which analyzes Spanish investment in Latin America in 2014, drafted by the IE Business School, with the collaboration of Casa de América, Air France, KLM and me.

Jorge Cachinero, Corporate Director of Innovation in LLORENTE & CUENCA, Professor at the IE Business School of Madrid and member of the Scientific Council of the Real Instituto Elcano

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