Campus: CSU Hayward -- January 14, 2004
Chile Emerges as an Economic Force With Help from Cal State Hayward
Chile’s largest agribusiness and industrial export associations
have asked California State University, Hayward to help them learn how
to introduce products into the United States.
“Chile is one of the more remote countries in the world, but its
political stability and an open economy have made it one of the most
accessible trading nations on earth,” said Shyam Kamath, director
of the Transnational Executive MBA program, known as TEMBA, at Cal State
Hayward. “Chile already has a free trade agreement with the U.S.
and is an associate member of the MERCOSUR Latin American common market.
“The mechanisms are in place to allow for a tremendous increase
in trade with the United States and the rest of the world.”
In December 2003, Chilean firms began working with participants in TEMBA’s
Global Business Strategic Consulting Program. The first agreement was
signed with the Association of Exporters and Manufacturers of Chile.
The pact was signed Dec. 3 at the association’s headquarters in
Santiago by its president, Roberto Fantuzzi, and James Kelly, associate
vice president for Continuing and International Programs at Cal State
Another agreement was reached with a trade association of more than
80 food exporters representing 80 percent of Chilean agribusiness. The
Chilean Agribusiness and Food Processors Federation has member companies
that produce juice concentrate and products that are canned, dehydrated
When the agreements were signed, Kamath and Kelly were in Santiago with
18 TEMBA participants for a first-hand look at the burgeoning Chilean
economy and to meet economists and scholars in a country of 15 million
people. The TEMBA program is funded by student and client fees and enrolls
mid-career and senior executives in the U.S. who participate in a 13-month
series of global class modules.
As part of their course work, four and five-member teams of TEMBA executives
participate in strategic consulting studies worldwide, demonstrating
to South American, Asian and European companies how to introduce specific
products into the American market.
Cal State Hayward must keep confidential the specific Chilean companies
it works with, but TEMBA consultant Johnson Pushpanathan said he could
disclose that one client’s product currently has just .01 percent
of the U.S. market.
“Our clients realize that in the U.S. market they will have to
face giants in their industry and that the high quality of their product
alone won’t make for a successful introduction,” said Pushpanathan,
product manager at Sand Hill Systems in San Jose, Calif. “To know
the strategic moves in positioning and marketing they need the kind
of research and recommendations we will bring them.”
“Chilean companies are ready to move into the American market,
but they need to know the size and growth of the market for their products,”
said Venugopal Nair, a TEMBA team member and a manager at GDA Technologies
in Gold River, Calif. “It also is important for them to understand
how U.S. consumers perceive Chilean products, and that’s why research
is so important.”
The TEMBA teams will report back to their Chilean clients in October
with recommendations and the results of their research.
Media Contact: Kim Huggett, Public Affairs, (510) 885-2032