Master Thesis 2014 - Juan Carlos Rosales V4

57 Pages·2015·1.78 MB·English

FUNDAÇÃO GETULIO VARGAS
ESCOLA BRASILEIRA DE ADMINISTRAÇÃO PÚBLICA E DE EMPRESAS
MESTRADO EXECUTIVO EM GESTÃO EMPRESARIAL

A TECHNOLOGICAL INNOVATION FOR CAPSICUMS PRODUCTION
IN PERU: THE MECHATRONIC ARMS

DISSERTAÇÃO APRESENTADA À ESCOLA BRASILEIRA DE ADMINISTRAÇÃO
PÚBLICA E DE EMPRESAS PARA OBTENÇÃO DO GRAU DE MESTRE

JUAN CARLOS ROSALES SEPULVEDA
Rio de Janeiro – 2014
Ficha catalográfica elaborada pela Biblioteca Mario Henrique Simonsen/FGV

Rosales Sepulveda, Juan Carlos
A technological innovation for capsicums production in Peru: the
mechatronics arms / Juan Carlos Rosales Sepulveda. – 2014.
57 f.

Dissertação (mestrado) - Escola Brasileira de Administração Pública e de
Empresas, Centro de Formação Acadêmica e Pesquisa.
Orientador: Alvaro Cyrino.
Inclui bibliografia.

1. Planejamento estratégico. 2. Inovações tecnológicas. 3. Inovações
agrícolas. 4. Pimenta - Produção. 5. Mecatrônica I. Cyrino, Alvaro Bruno. II.
Escola Brasileira de Administração Pública e de Empresas. Centro de Formação
Acadêmica e Pesquisa. III. Título.

CDD – 658.406

A TECHNOLOGICAL INNOVATION FOR CAPSICUMS PRODUCTION
IN PERU: THE MECHATRONIC ARMS

ABSTRACT

Peru agricultural exports have increased in recent years due to (i) free trade agreements with
many countries (United States, Canada, European Union, China, Thailand, Singapore, Japan,
Chile, among others), (ii) an increasing international demand for healthy products, (iii) country´s
economic development and (iv) more private investments in this sector (Velazco 2012).
Also, if we can compare among Peru three main regions (Coast, Andean highlands and the
Jungle), It is the Coast (western region) that has a developed agricultural production due to
unique weather conditions, private investments, public infrastructure, transport costs and quality
of land (Gomez, 2008).
This country development is also related to the production of non-traditional products for export
like asparagus, artichokes, capsicums, bananas, grapes, among others; produced by agro
industrial companies and small farmers and that are mainly labor intensive (Gomez, 2008 and
Velazco, 2012).
This very successful export diversification and self-discovery process was the result of a
combination of strong natural comparative advantages (mainly excellent agro climatic
conditions) and a significant innovation effort. It meant the introduction and expansion of new
products and markets, the entry of new firms, and experimental research and the adoption of new
techniques and process technologies developed abroad (in irrigation, crop management, post-
harvesting, sanitary control, storage and packing) to produce high-quality, niche (gourmet) and
higher value-added products, in line with consumer trends in sophisticated food markets. In
products such as asparagus, mango, organic coffee and capsicums, Peru has become a leading
world exporter (OECD).
For this reason one of the government main tasks for the next years is to meet urgent agriculture
producer’s needs in the areas of technological Innovation and business management (MINAG).
In this context, this thesis analyzes the applicability of a new technology – the mechatronic arms
– specifically to capsicums production sector in Peru.
We chose Capsicums production sector (paprika, chilli pepper) because is mainly labor intensive
and is the sector where my family company (DIROSE SAC) operates.
This innovation consists in a 40 arms mechatronic combine, and it was first created in order to
improve the efficiency on the labor intensive phase of harvest for this kind of agriculture
products.
It is estimated that a laborer with brief training operating the machine would be equivalent to 40
people that not only would work during daytime, but also on the night shift as well.
Also, using this new technology can allow a company to make additional crops that would
increase their yields and annual revenues.
This thesis was developed as a business plan to make this new product available for other
agriculture companies that operates in the capsicums production sector in Peru; however, this
new technology has the potential to be modified in order to be available to other kind of
agriculture products, in Peru and other countries.
TABLE OF CONTENTS

LIST OF TABLES .......................................................................................................................... 1
LIST OF FIGURES ........................................................................................................................ 2
ACKNOWLEDGEMENTS ............................................................................................................ 3
1 INTRODCUTION ................................................................................................................... 5
1.1 Objectives ......................................................................................................................... 9
1.2 Mission ........................................................................................................................... 10
1.3 Keys to success............................................................................................................... 10
2 THE COMPANY .................................................................................................................. 11
2.1 Company ownership ....................................................................................................... 14
2.2 Company location and facilities ..................................................................................... 16
3 PRODUCT............................................................................................................................. 16
3.1 Product discription ......................................................................................................... 17
3.2 Competitive comparision ............................................................................................... 18
3.3 Technology ..................................................................................................................... 24
3.4 Service and support ........................................................................................................ 26
3.5 Future products ............................................................................................................... 27
4 MARKET ANALYSIS.......................................................................................................... 27
4.1 Market segmentation ...................................................................................................... 29
4.2 Target market segment strategy ..................................................................................... 30
5 STRATEGY AND IMPLEMENTATION ............................................................................ 31
5.1 Competitive edge............................................................................................................ 31
5.2 Value proposition ........................................................................................................... 32
5.3 Sales strategy .................................................................................................................. 32
5.4 Sales forecast .................................................................................................................. 33
5.5 Milestone ........................................................................................................................ 33
5.6 Marketing strategy.......................................................................................................... 34
5.7 Strategic alliances ........................................................................................................... 35
6 MANAGEMENT SUMMARY ............................................................................................. 35
6.1 Management team .......................................................................................................... 36
6.2 Management team gaps .................................................................................................. 36
6.3 Personnel plan ................................................................................................................ 36
7 FINANCIAL PLAN .............................................................................................................. 37
7.1 Important assumptions ................................................................................................... 37
7.2 Initial investment ............................................................................................................ 38
7.3 Sources of funding ......................................................................................................... 39
7.4 Break even analysis ........................................................................................................ 39
7.5 Projected profits and losses ............................................................................................ 42
7.6 Projected cash flow ........................................................................................................ 44
8 CONCLUSIONS ................................................................................................................... 46
9 REFERENCES ...................................................................................................................... 48
10 APPENDIXES ...................................................................................................................... 49
LIST OF TABLES

Table 1 DIROSE SWOT analysis ................................................................................................. 13
Table 2 DIROSE Balance Sheet - 2013 ........................................................................................ 15
Table 3 Product market price ........................................................................................................ 18
Table 4 Assumptions..................................................................................................................... 19
Table 5 Monthly wage rate in agriculture sector .......................................................................... 20
Table 6 Monthly costs per worker in the agriculture sector ......................................................... 20
Table 7 First potential clients list .................................................................................................. 30
Table 8 Financial Assumptions ..................................................................................................... 37
Table 9 Initial Investment: Fixed Assets ...................................................................................... 38
Table 10 Initial Investment: Operating Capital ............................................................................ 39
Table 11 Sources of funding ......................................................................................................... 39
Table 12 Cost or Arms .................................................................................................................. 40
Table 13 Cost of Carrier and Tractor ............................................................................................ 41
Table 14 Warranty Costs .............................................................................................................. 42
Table 15 Projected profits/loss details .......................................................................................... 44
Table 16 Projected Cash Flow ...................................................................................................... 44

1
LIST OF FIGURES

Figure 1 Peru GDP growth rate ...................................................................................................... 5
Figure 2 Peru Annual Inflation rate ................................................................................................ 5
Figure 3 Peru Map .......................................................................................................................... 6
Figure 4 R&D intensity, Peru and selected countries, 1990-2008 .................................................. 8
Figure 5 Main capsicums producer's regions in Peru ..................................................................... 9
Figure 6 DIROSE main products .................................................................................................. 11
Figure 7 DIROSE selection process in Zaña, Chiclayo ................................................................ 12
Figure 8 DIROSE packaging process and facilities ...................................................................... 13
Figure 9 Mechatronic Arms Machine ........................................................................................... 17
Figure 10 Example of a combine machine sold in Argentina ....................................................... 18
Figure 11 Mechatronic Arms Machine price vs Manual Labor Costs .......................................... 22
Figure 12 Manual Labor vs Mechatronic Arms Machine - additional costs ................................ 23
Figure 13 Current Paprika Combine ............................................................................................. 24
Figure 14 First Designs ................................................................................................................. 25
Figure 15 Version 2 designs ......................................................................................................... 25
Figure 16 Example of possible future development ..................................................................... 27
Figure 17 Agriculture exports distribution 2006 - 2011 ............................................................... 28
Figure 18 Traditional manual harvest ........................................................................................... 28
Figure 19 Sales Forecast ............................................................................................................... 33
ACKNOWLEDGEMENTS

I offer my enduring gratitude to Georgetown, ESADE and FGV universities, their staff and my
colleagues at the Corporate international Master Program, who have inspired me with my work
in this field. I owe particular thanks to my advisor Mr. Alvaro Cyrino, for his support and
guidance.
Special thanks are owed to my family, for their support and patience throughout this program.