Cosan: Thinking Outside the Barrel

Posted: 7 Feb 2012

See all articles by Forest L. Reinhardt

Forest L. Reinhardt

Harvard Business School

Noel Maurer

Harvard University - Business School (HBS)

Ricardo Reisen de Pinho

Harvard University - Business School (HBS)

Date Written: October 4, 2010

Abstract

The Cosan case introduces students and executive education participants to political economy and business strategy in the biofuels industry. Cosan, based in Brazil, is the largest grower and processor of sugarcane in the world, and the largest sugar and ethanol producer in Brazil; it is also the world's largest exporter of ethanol for vehicle fuels. Rubens Ometto, Cosan's CEO, has staked out a leading position in the Brazilian ethanol and sugar industries by virtue of his efficiencies in agricultural production and in downstream logistics. He now needs to consider whether, and how aggressively, to expand abroad, either with production facilities or by exporting Brazilian output. He also needs to decide the appropriate vertical structure for the firm: whether he should be involved more extensively in agriculture, processing, distribution, or retail. The answers to these questions depend on his views of the future of the industry, and on the governmental institutions that will affect the distribution of value along the value chain.

Learning Objective: Students of the case should understand the politics and economics of biofuels production, and should learn to formulate business strategy in an environment with pervasive regulatory uncertainty.

Suggested Citation

Reinhardt, Forest L. and Maurer, Noel and de Pinho, Ricardo Reisen, Cosan: Thinking Outside the Barrel (October 4, 2010). Harvard Business School BGIE Unit Case No. 710-017, Available at SSRN: https://ssrn.com/abstract=2000863

Forest L. Reinhardt (Contact Author)

Harvard Business School ( email )

Cambridge, MA
United States
617-495-6610 (Phone)

Noel Maurer

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Ricardo Reisen De Pinho

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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