Strategic Cost Management in a Closed Complementary Pension Entity

Authors

  • Brenda de Borba Trajano Universidade Federal do Rio Grande do Sul (UFRGS)
  • Larissa Marx Welter Universidade Federal do Rio Grande do Sul (UFRGS)
  • Ângela Rozane Leal de Souza Universidade Federal do Rio Grande do Sul (UFRGS)
  • Paulo Schmidt Universidade Federal do Rio Grande do Sul (UFRGS)

DOI:

https://doi.org/10.5585/riae.v17i2.2592

Keywords:

Pension Fund. Value Chain. Strategic Positioning. Cost Drivers.

Abstract

Given the current speculation that concern the pension reform in Brazil, proposed by the Federal Government, is timely strategic analysis of private pension sector structural closed in the country. Thus, this study aims to identify how its value chain, strategic positioning and the cost drivers (of costs) in a Brazilian Pension Fund, adapting the guidelines originally proposed by Shank and Govindarajan (1993) and Costa (2011). To this end, we conducted a case study with semi-structured interviews, observation and document analysis. The results present the settings, links and existing activities in the value chain, highlighting the strategic suppliers, since actuarial consultancy, investment and legal; the internal activities of the entity, that start in attracting participants contributions collection, application and granting of benefits; and participants who receive the benefits of retirement, sickness, pension and annuity. External factors are also shown, in addition to the strategic position of the entity. The analysis of the determinants of costs demonstrates the importance of the commitment, experience, quality, technology, model management, scope, scale, and institutional factors in the costs of the organization.

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Published

01.06.2018

How to Cite

Trajano, B. de B., Welter, L. M., de Souza, Ângela R. L., & Schmidt, P. (2018). Strategic Cost Management in a Closed Complementary Pension Entity. Revista Ibero-Americana De Estratégia, 17(2), 62–77. https://doi.org/10.5585/riae.v17i2.2592

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Articles