In 1994 Roberto Egydio Setubal, Banco Itau's president and CEO, is charged with the task of overseeing the adoption of the newly implemented Real Plan, a strategy designed to reduce Brazil's growing inflation problem. This case discusses how Setubal prepared Banco Itau for this national economic transition: making sure that Banco Itau's more than 1,000 branches had the proper amount of the new Brazilian currency, converting all of the banks holdings to the new currency, and implementing a strategy that would make money in this new economic environment. In this case, students will analyze the bank's financial statements, Brazil's economic statistics, the competitive environment for Brazilian banks, and the dollar/real exchange rates in order to discuss the bank's strategic alternatives going forward.
Case id: 080330
Supplemental Material: Teaching Note