Welcome to Management in Focus, the monthly newsletter from Galeazzi & Associados. In the last week of each month, you receive exclusive analyses, topics to keep an eye on, and viewpoints from Galeazzi & Associados on what's driving the market and businesses. This aims to enhance your planning and make better decisions based on insights and the perspective of our professionals.

Still amidst the aftermath of Black Friday (the second-worst in history, according to Confi.Neotrust, a data intelligence company in partnership with ClearSale, following a 15.1% decline compared to 2022's e-commerce figures) and the final moments of "Cyber Monday", we aim to provide a brief overview of what 2023 meant for Brazilian businesses and what we can anticipate in 2024.

Undoubtedly, this year will be remembered as the one where the financial situation of Brazilian retail was laid bare, alongside the revelation of management practices considered exemplary throughout the market. Amid geopolitical tensions from the Ukraine-Russia and Israel-Hamas conflicts, rising inflation rates, and the slowdown of the Chinese economy, Brazil witnessed a growing wave of judicial recoveries, particularly in retail, causing concern. Simultaneously, the belief that great management experts are superheroes has significantly diminished, prompting everyone to wonder: Is it possible to conduct sustainable and ethical business in Brazil?

Despite the complex and challenging months (including the loss of our founder at Galeazzi), we believe that the difficulties of 2023 were necessary for businesses nationwide to engage in deep reflections on their operations and finances, moving toward the development of effective strategies and appropriate governance structures. Restructuring is undoubtedly delicate, but it should not be avoided. After all, it is through restructuring that many businesses can strengthen themselves and regain the path to positive financial results, benefiting all stakeholders.

Lastly, what lies ahead? In our assessment, 2024 still promises to be a cycle marked by high interest rates in various countries (let's see if Brazil can reverse this condition) and the pursuit of a balance between growth and productivity opportunities and the effects of inflation and restrictive monetary policies. The outlook is for a 2024 divided between tidying up and taking the first steps toward more conscious, resilient, and less risky management.

We're on the brink of another turning point, but we must all keep the caution light permanently on, so we are prepared to face any earthquakes that may arise.

Until next time!