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Released August 31, 2003

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From the Department of

CORPORATE STRATEGY AND INTERNATIONAL BUSINESS

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CASE STUDY SERIES

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THE INNOVATION. . .
The poor represent a market, a big, lucrative, and sustainable one
with the right financial approach in countries where even Sears and
Wal-Mart have failed.

It is all about fulfilling the customer dream. My sales agent has to be

very well dressed, shaved and always smiling. If he has a personal
problem, he cannot come to work. I will never allow him to transmit
to my customer anything but perfection.
Michael Klein, Chief Financial Officer, Casas Bahia

f=NVROI=~===~==~=k~=~=~I=
p~=h===~==~=~====_~K=f===
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~~===_~=K==

This report was written by Sami Foguel and

Andrew Wilson, under the supervision of
Professor C.K.Prahalad. This report is
intended to be a catalyst for discussion and
is not intended to illustrate effective or
ineffective strategies.

When my father arrived in Brazil, he realized the average population

was not wealthy. Thousands of people were migrating from the
northeast region to work in So Paulo. That is why our name is
Casas Bahia (Bahia is the largest state in the northeast region). This
population needed all kinds of basic goods, such as linens, towels,
and sheets. My fathers vision was to fulfill the needs of the poor
population. But how could they pay for it? The answer was simple:
financing.
Michael Klein

Copyright, The University of Michigan

Business School, 2003

=
LE ADI NG I N T HO UGHT A ND A CT I O N

Released December 12, 2003

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Scope and Size of Opportunity

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Brazilian Stratification Breakdown

FAMILIAR
INCOME
(MW*)
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ECONOMIC
SEGMENT
b=
a=
`=
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^=

POPULATION
(MILLION)
RQKP=
QQKO=
QUKV=
ONKS=
=TKP=

HOUSEHOLD
(MILLION)
=TKS=
=VKQ=
NOKS=
=RKQ=
=OKR=

INHABITANTS/
HOUSEHOLD
TKN=
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OKV=

Gjt=Z=j=t~=Z=oAOMML=

2003 University of Michigan Regents

2 of 24

Released December 12, 2003

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~=~==_~===_lm=~=~=~~=RMBK=p~I=QRB==~=~~=~=
======_lmK=
=
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Total Spending
Capacity ($US)
A
B
C
D
E

70,869
103,61
76,857

24

Total Furniture
Spending ($US)

35

2,763

13

1,880
3,847

26

40,235

Total Appliance
Spending ($US)

37
C

27
16

1,649

2%E

6,631

18

2%

244

1,377
2,177

21
34
29

1,903

13

867

3%

167

pW=q~I=A==
=
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Total Spending Outlays by population categorized as C, D, & E

(Billions of USD)

Food & Beverage

$40.1 or 32%

Housing Payments & Maintenance

$22.5 or 18%

Other

$19.2 or 16%
$12.3 or 10%

Health Related
Transportation

$10.3 or 8%

Apparel

$6.9 or 6%

Appliances

$4.7 or 4%

Travel & Entertainment

$3.1 or 3%

Furniture

$2.9 or 2%

Educational

$1.7 or 1%

0%

5%

10%

15%

20%

25%

30%

35%

=
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2003 University of Michigan Regents

3 of 24

Released December 12, 2003

Penetration of Selected Goods by Economic Status

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SEGMENTS
A AND B
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Typical Customer

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Competitive Landscape

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====~===K==

2003 University of Michigan Regents

4 of 24

Released December 12, 2003

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Casas Bahia Business Model / Positioning

Management Style

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2003 University of Michigan Regents

5 of 24

Released December 12, 2003

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=
We are always auditing our operations. I have an internal audit team. They show up unexpectedly in one
store and check everything: the money on the cashiers, the inventory, the cleanliness and the quality of instore advertising. Everything is checked.
Michael Klein

=
l====~=~~~==~=`~~=_~~===~=a=K=b=~I==
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2003 University of Michigan Regents

6 of 24

Released December 12, 2003

Ja
n
F
M
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ar b
.2
00
3

O
ct
N
ov
D
ec

Ju
l
Au
g
Se
p

Ap
r
M
ay
Ju
n

M
ar
,2
00
2

% Default Rate
Over 90 days

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=
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Default Evolution in New Stores - Sobradinho, DF
=
=
14
=
13
=
12
=
11
=
10
=
9
=
=
8
=
7
=
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Month
=
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FINANCE
Brazilian Overview
Finance here is totally different from what one learns in school. First, the informal market is twice as big as
the formal market, especially in the lower-income population. Most of my customers do not declare income.
I have to believe what they are telling me. Here, several multinational retailers did poorly because they were
not able to understand local needs, for example, Sears and Wal-Mart.
Michael Klein

2003 University of Michigan Regents

7 of 24

Released December 12, 2003

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Current Account
=
Penetration (%)
Segment
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% per month

Evolution of Distinct Interest Rates

18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%

Basic rate
(SELIC)
CDC with
colateral
CDC - Without
colateral
Overdraft

Credit Card

1998

1999

2000

2001

2002

Financeiras
Loan

Year

2003 University of Michigan Regents

8 of 24

Released December 12, 2003

Casas Bahias Role

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2003 University of Michigan Regents

9 of 24

Released December 12, 2003

Monthly default (%)

Monthly Average Default Rate in Retail

18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%

Marabraz
Furniture's
default rate
Industry
Average
Monthly Default
Rate
CB Furniture's
default rate
1998

1999

2000

2001

2002

Year

==

If you look at the default rate for furniture at Casas Bahia, it averages 4.5%. Marabrs, our main competitor
in the furniture industry, has an average default rate of 15% to 16%. One of the driving factors of the higher
default rate is that they dont finance the customers themselves. In the [competitors] store you have a
number of kiosks from various financeiras. The customer simply chooses a kiosk. This creates a large
disconnect between the salespeople and customer. The salesperson has no incentive to build a relationship
with customers or understand their abilities and needs because they are at no risk.
Michael Klein

=
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Training

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2003 University of Michigan Regents

10 of 24

Released December 12, 2003

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2003 University of Michigan Regents

11 of 24

Released December 12, 2003

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Cash Management

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Products

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`I===`~~=_~~=J==~=~=PNB==~=~K==q=
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~=I=I==~=~=~~K==
`~~=_~~=~========~K=f=OMMOI=`~~=_~~==NUB==
=QKR=====_~K=`I==~=~=====
~==~===~=~K=^~=_~I=a==cI=~====~=`~~=
_~~=W=i~=~=j=~======g==aK=f===
======NR===_~~==~K==
a======~=~=~=~==~==~~I=`~~=
_~~=~===~=~==~==~==OMMQ==QMB===~==E==
NRB==OMMNFK=f======~I=`~~=_~~=~=====~I=~=
==~=~=_~~K=m===~=~=====
~=~=====~J====K=`~~=_~~=
2003 University of Michigan Regents

12 of 24

Released December 12, 2003

==~===I==~==~=~==~K=q=~=
==~==~=K=
t===I=`~~=_~~==~===K=cI==~=
=====~=~===I===~===~K=_~=
==~=~I=`~~=_~~=~=~======~K=q==
==K=f=~===I===~=~~~=~=K=^=~==
===~===~=~=========~=
q=i=~=K=q~~I=~==_~==OKO==K=eI=
`~~=_~~==~=~==~==~===~==~=~=OKM=
=K=`~~=_~~==~==~=~===K=q=i==
~==~==K=f===I=TIMMM===I==~=~~===
oANIMPRK=`=~===NR=~==~=oATM=E~=rpAOMFK=f=~===
~=====~I=`~~=_~~==~=~~====
=~=~=~=~==~==~~===~~==~K=
q====~==~=~K=q=~=~=~==~==
~=~I=~=~==~~~=~==~K=q~I=`~~=_~~=~~=PM=
~=====~=QR=~==~==K=
f=~=~===~=======I=`~~=_~~=
=~========~==OMMPI=~=~===oAOR=K=q=
=~===NMMIMMM==OPMIMMM===K=f=OMMOI=`~~=_~~=~==~=
==SMB=====~=K=q=~==~=~====
====~K=c=~I=`~~=_~~==J=~====
==NR=K=q~I=~=`~~=_~~I=J=~===~======
K=
Distribution
The poor are requiring more. Five years ago, giving the customer a seven-day delivery window was
sufficient. Now they require the specific day. The main reason for this change is that now, more than ever,
both the man and woman of the household are working. As a result, we are always looking for new
technology to better serve the customer. Our next step will be to be able to schedule the actual time of
delivery.
Gilberto Duarte, Distribution Director.

=
r==I=`~~=_~~======~===~I==
=~~==~====~K=`~~=_~~=~===~=~=
~=~====~=K=q=~===~====~=
==I=~===~===K=`~~=_~~=~==~===
=~~=~=====K=c=~I=`~~=_~~=~==NIMMM===~=
===~=~====~=~===SIMMM=K=c===I==~===
K=l=~==`~~=_~~=~===~=~==p=^~=E~====
~===F====~~====~=~==~====
K=q=~=~=~=~=`~~=_~~===~==K=q=~==
2003 University of Michigan Regents

13 of 24

Released December 12, 2003

~=~===~====_~=~====~=~===
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q==~=`~~=_~~=~===K=q=~===p=m~I==
o==g~=~=o=mK=^~I==~=~==J=~W=_~~I=
d~I=`~=d~I=_=eI=`~=~=f~~K=a===~=I==~=
===p=m~==~==g~K=q=~==~==~=~=~=
~==~===~==p=m~==~==~=K=^I==~=
=~=~===~==o==g~=~=j~=d~K=q=~==~=NIUMM==~=
=p=m~===~K=
=
`~~=_~~==~=~~=~===~~=NIMMM=W=VM=J~=I TMM=
~~=I=OMM===~=NM=~=K=q=~==~=~==
==~==~====~K=q======
j=K=q=~==~=======~~K=`~~=_~~I=
~==p=m~==I==~=~~I=~=~=~K=
Delivery Drivers

^===~=====~=~==~=~=`~~=_~~K=`~~=
_~~==~=~=~~=OIRMM==~=K=^=======
===~=======K=
f====~=I=`~~=_~~====X===
===I=~~=PB==QBK=q=~=~==~===~=~=
==~=K=`~~=_~~=~====~==K=q=~=
==~~==~=====K=f=p=m~I=`~~=_~~==
=~~=E~=~===FK=c~I===~=====~~K=
a===~=~=~=K=a==~~==I=~I==
=~=~=~=~=K=q=~====~==~=~K=a=~=
~====~=~=~=~=K=q=~~====~====
~==~K=f==~===~==~I==~I======
==~~==K=q==~=~=~====K==
l====I==~==~====~===~=~=
~K=f=~=======~I==~=~==K=^~I=
PB==~==~=~=~========`~~=_~~K==
Delivery Process
Do you know why I do not outsource delivery? Because I cannot permit the delivery person arriving at a
clients house without a uniform, or that he doesnt have enough care and causes damage at my customers
house. If he is my employee, my client knows where to complain.
Michael Klein

2003 University of Michigan Regents

14 of 24

Released December 12, 2003

^=~=~~==~=~==========J=
~=~=~=~~==~==~K=k==~=~===K=f=~==~=
==~=~I===~===K=f==~====~=~=
~===~=~=~=~=~==~====I=`~~=_~~=I=~===I==~=
~=====~K=l=~=~=~=~I==~=====
~==~=K=l==~=====I==~====~~=
==~=~=~==K=q======`~~=_~~====~===
=~=~====K=f==~I====~~===K=p=
=~==~=~~~====~====K=l=
~~I=~==~=NR=~==~==~==~=~~K=
f=~I=~=J~==~=~=~=~~==NOM========J
=~K=^==J=~I===~=====~==
~=~=PM=K=q=~==~=~======K=f=
a=~I=`~~=_~~=~~=OQIMMM===~I==~=~=K==
`=~===~====~==~=K=f=~I==~=
~==QU===~K=eI=~==~=~==~==~=~==
====K=^I=~==~=~=~==~=~==~=~==
==~=~==_~==`~~=_~~=~K==
Stores and Store Fronts

^==~===~=~I===~=~K=b~====
=~===~==K=f=p=`~~==~~=~=K=f=p=m~I==
~==~===K=q=~=========~=~=
~~=~==~=K=d~I=~=~=====~==I=~=~=
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q~==~==~=~========~K=p~=
====~~=~I=~=~==~=====~K=f==
=~===~=~I==~==~J==~=
~====~K=q=======~==~=
~=~==~=~==~=========K=p~=~=
~=~=~===K=t======~===I=
~=~=~==~===~I==~=K=q=~===
~=====~~K=^==~===~=~==RMB===I==~==
==K=
l=~=~=`~~=_~~=~=~===~===K=q=~=
===K=f=~=~~==p=m~=~====~I=~=~==
K=_=======~===~K=j~===~==
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=
=
=
2003 University of Michigan Regents

15 of 24

Released December 12, 2003

~=====K=^I=~=~==~=====
~~==~~I=~=======K=l=~====~=~=
===~====~=~K=p=~~~=~=~=~K=q=
~==~=~=~I==~=~==`~~=_~~=~=~=~~~K=
q==~==I=~=~=~==~=`~~=_~~=I==~==~==
~K=c=~I====~==p=m~I==~=NR=`~~=_~~====
==K=f==~====I==~====~=J=
~K=f=~=~=~=~I=g~=^~I=PRMIMMM==~====K=a=
=~~I=~=`~~=_~~==~~=ORB=PMB==~K=
Marketing

j~=~~=~===~==`~~=_~~=~========K=
`~~=_~~===~~========~=~=~====
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q~I=====~==~=~==~==~K=p=
=====~I===K=q=~===~=
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~===ja~=~=m==^~=E=~=_~~=~=~F===
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~=~==~~=======~=====~=~=
K=j~=h==~I=l===I==J~=~==~==~==
~K==
`~~=_~~=~=~===I==~==VMB==~=_~~=
K=q=~=~==~=~=K=^==`=_~~=^~I=
`~~=_~~===~===NM===~==~=~K=q===
NR=p=m~J~=~=~~=~=NS=o==g~J~=~====~==OMMO=
EgJaFK=q=~=~==NTIQPU=~===p=m~=~=NNINMS==o==g~K=f=_=
eI=`~~=_~~=~===NIUQP=~K=q=_~I=`~~=_~~====
J===~K=
p=====~I=~=~==~===~==I=~=
~=I=~=~==~K=i~=~I=`~~=_~~==~=~~===
~====I======~=~===~=
~==K=`~~=_~~=~=~=~~==~==~I==
=~=~==K=^=~=~====~=~=
~==~~==~=~==~====~=====~=
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b=I=a~~~LjCj=o~==~=~===~=~===
_~~=K=f=j~=OMMPI==~====~W=`~~=_~~=~=
===~=~=~===K=q======~==
=~=~=K=q===~=j~~=~==NNK==

2003 University of Michigan Regents

16 of 24

Released December 12, 2003

^~I=`~~=_~~=~=~=====~=~=====
K===
=
Top of Mind Brands (May 2003)
Brahma
Kaiser
Coca-Cola
Casas Bahia
Omo (Unilever)
Skol
Marabraz
Nestle
Fiat
0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

=
=
`~~=_~~=~===~====~~====~=~==~=
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~===NVVTK=^=~=I=~===~===~==~=~~K=
k=====~=~=~=I==~==`~~=_~~==~=~=~K=
q=~=~=~==~==~~=~K=f=~======I=
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l====`~~=_~~==J=~K=q=~I===
~=~=~~==~~I===~=~==~=K=^=
~===~===~==~==~==~=~==~===~==
~=K=f==~=~======~==~==~=~==
==~====~K=q=I==jK=hI=~====~==
K=^========~~I===~=====
=~===~==~====~====~K=
Technology

q====~=`~~=_~~===~===W=I=J==
~I=~==~~K=

2003 University of Michigan Regents

17 of 24

Released December 12, 2003

l=^=ONI=NVVQI====~=~==I=`~~=_~~=
~==K=q=~==~=`~~=_~~==~==~~~====
~==_~K=q=~=~==J===~K=l=g=NI=NVVQI=_~=
====~=~I==~==~=~K=q===
~====~==_===m~I==~==K=q~I=
`~~=_~~=~==~=NM==K=q======~==
~===~===~==~K==
q=~==~==~=====`~~=_~~K=m==~==I=
`~~=_~~==~=~~==PM==~~==K=b==~=~=~==
==~==~=~===PM=~===~====K=q=~~=~=
===~~=~=PM===~=K=q=~==~===
=~===K=q==~=~=~=~=~=
~K=
q=====~~K=p=======~~K=c=~=
=ASMMI===~==~=K=f==~==~=~=ASMMI=
~~=~======K=f===~====~=====
I==~==~====NM=K=p=~=~====I==
=~=~=~=~=~==~K=
q=~=~===~==~K=^==~===~=
~=~~~==~=K=f~===~===~=~=~=~==K=
q=~=~=~==~=~=~~~==~=~=~=~=~~==
~==~=~=~=~==K=
Example of Technology at Casas Bahia

l=~=~===`~~=_~~==~==~======
====~====K=r=NVVRI==~=~===~===~=
~========~==~==K=f=~==I====
=~=====K=
q==~=~=~==NVVRI==`~~=_~~==~==~===
=~==~=K=q=~=~===~==~======
======K=q==~=~~=====~=
~~~=~==~==~K=eI===~=~=~=~~==
~=~~~K=a=~=====~==I=`~~=_~~==
~==~===~K=
q======K=cI====~=~=~=~=
====~==K=r=I==~==~====~=~==
=~==K=kI======~==K=`=~=~==
===~=======~=~==K=q===~~=
====I=====~K=t=~=~=`~~=_~~=~==~=
==~===K=q==~====~===~===
=
=

2003 University of Michigan Regents

18 of 24

Released December 12, 2003

==~K=^I=~=~=~==~==I=~=====~=
~=====~=~=~=~===K=jI==
~====~==~=~=~K=t==~===~I=~=~=
===~=K==
q===~=~==~~K=b==~==~=~==
~I==~=~=~~===K=q=~===~==~~=
==~=~K=q==~=`~~=_~~==AQ===~~=~=~==
~K=
q=====~====K=^=J~=~~===
~=~=~=K=`~~=_~~===~==~=~=~==I=I=
~=I==~~I=K=~====K=t=~=~~==UMMIMMM==
==I=~=~==~=~=~=~K=
History with IBM / Linux

f=NVVQI=`~~=_~~=~===~=f_j=PMVMK=f=~===~==p=^~I=~==
==I===f_j=OMTQ=lp=NKO=~=NKQK=c=NVVQ==OMMOI=`~~=_~~==f_j=lpO===
JJ~=EmlpF=~K=q==~=I=~=~====K=f=OMMOI=
f_j=~======lpOK==
f~I=====`~~=_~~=~==~==~=t=K=q=
~===~==~=~K=cI=====AOM=K=pI==
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~=====~==~=~==~K=E`~~=_~~====
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~=~K==
`~~=_~~=~==~==~=t=I===~==~=~~K==
`~~=_~~=~=iK=p=i==~==I=`~~=_~~==~==~=
=~========~=~~K=q=~===~=
===~==~=~=~==~K=q=======
K=`~~=_~~=~====~===f_j=lp==iK=q=~=~===
==========mlpK=
oI=f_j=~=`~~=_~~===~=~I==f_j====
==~===~=~~==tK=^==j~=PNI=OMMPI=`~~=_~~====
=~===~==~==f_jK=bI=f_j=~==`~~=_~~=~=
~=~=~=`~~=_~~==OQLT====f_j=~=~====~K=
t=~==`~~=_~~===~=======I==a=
=fq=I=t=~=~~===~=~K=`===~====~=
=~==~=K=

2003 University of Michigan Regents

19 of 24

Released December 12, 2003

Technology Today

`~~=_~~==MKUB=====I==~~=~=~~=K=f==
~=~===~=~~==PB====~=K=q====
~==~=JK=cI=`~~=_~~==~=~====W=PM=I=
RM=~=~=RM=~===~K=pI=`~~=_~~====J~=
K=^====j=~=~I==J~=~==~==~=
=K=c~I=`~~=_~~=====~K=f=~==`fp`l=~=
q~I=`~~=_~~=~=~=~=fm==~==~=I=~=~=J
=~K=`~~=_~~=~===q~===~JJJ~=~=~==
=~=~~==fmI=====~K=_~==~=~=====q~=
~=`~~=_~~I=`~~=_~~=~=~====~=J=~==~==~K=c~I=fq=
~=====~==K=
q=~===~====~===K=q==mlp=~=
~==~====~=~=~====~==~=~=K=
q=mlp=~=~=~==~=~==~=====K=q=
~=~==~=========~=~=~====
==~=~K=`~~=_~~==~=~=~=====
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~=~~=======K=
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~=K=^I=`~~=_~~===~=~===~=~K=f==
===~~=~==~==~=====~=~=K=f==
~==`~~=_~~==~==~===~=~~=K==
In the Store

b=I==`~~=_~~==~=~=~~=UMMIMMM=~K=q==~===
~===========K=^~=~==~===~=
~~~=~I===~=~=~=====~===~==~=
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I===~~=====~I=~===~===I=~=
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K=f=====~~==~=~==~===~===K=q==
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===~=~==I==~~=======~==K=q=~=
==~~=====~====~====~==~==
===K=l====`~~=_~~I====~=K=

2003 University of Michigan Regents

20 of 24

Released December 12, 2003

Uniqueness

^==`~~=_~~I===~=I=======I=~=~~=
fq=~==~==_~K=q===~==~===
~=~========~=~K=^==~==
K=^~=J====~==~=ORSK=q=~==~=
=~=~=~==NOUK=q=~==~=RNOK=t======~==~==
I=======K=l====J~==~=
====I==~=~===~=~==~=K=f==
I=~=c=t~I=`flK=
Ongoing IT Projects

`~~=_~~=~==~=~K=q=I=====I===~=
=~=~==mlpK=q=~===~===I===~=~===
=~=K=^===~===~=~==~=~~K=q=
~========~K=q==~=~===
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K=q====~~=====~==~==~=~==
~==~=K=q======~=~=~==~=J~=
=~=======K=pI=~=J~=~===
~=~=~=~==mlpK=`~~=_~~=~===~=J~=~====~==
~~K=q==~====~==~~~==~====i=~K=
Future
The project next on the horizon is wireless in the stores. We see this as a better way to serve the client. It
will provide an easy and cost effective way to change the layout of the stores to meet changing customer
demands. Our main concern here is the security [encryption] issue.
Frederico Wanderley, CIO

=
q====~=`~~=_~~=~===~=~==~K=q=^=C=_==
~==~I==~==`I=a=C=b===K=`~~=_~~==~==
==~===~K=c==~W=
=
I see a problem, I create a solution. It has to be creative. My development teams are constantly in the stores
talking with the users trying to understand current issues and determine future needs. We are constantly
evaluating requests to see if they make sense for Casas Bahia and are feasible. Casas Bahia works very hard
to foster an environment of trust where people feel safe to share their ideas.
Frederico Wanderley, CIO

2003 University of Michigan Regents

21 of 24

Released December 12, 2003

Human Resources Management

`~~=_~~=~=~~=OMIMMM=K=q=~==~=~~=OIRMM=~=
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~=~==~=K=^==~=~=~==NVVSI=~=eoJ~=I===
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=~==~=~=~~K==
j=====~=~=`~~=_~~=~===~==K=^~=
====NBK=j==~~=~=~=~====~===
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==~I=~~=~I=~=~I=~~I=~=~~=~=~=
~=~~K=
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~~==~===~=K=^~I=====`~~=_~~==~=
====~=====K=q==~=~==~==
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~===~==~====~==K==
`~==~==~==~K=q=~~=~=J~I=
~=~=~~=~=~~==oARMM===EOKR===~FK=_~~=~=~==
=~==NMMB==~~K=q=~=~~=======~=~K=
`~~=_~~====~=~=====~=~=K=p~=~=~=
~~==OB===~==~K=eI=~==~===~~=====
==oARMMI======NMMB==K=q=~~=~=
~=oANIRMM===ETKR===~FX===~=~=oAPIRMMK=j~=h=
~W==
=
If I let them, some of them would work for hours and hours without stopping. They know they can make a
lot of money at Casas Bahia. Any person has to have a motivation, an ambition in his life. Nothing is better
than giving my employees the freedom to pursue their ambitions.

=
`~~=_~~====~=====~=~K=cI=~======
~~====~==K=pI=========
==~===~=~=K=q=~=~==p=m~=~===~=~=
K=c~I==~=====~===~====~=
K=f=====p=m~I==~=~=NMM=~~===~=K=
a==~=~=I=`~~=_~~==~=~~==OMJPM=~==K==

2003 University of Michigan Regents

22 of 24

Released December 12, 2003

l=~~I=~==g=o=c~I=eo=aI=`~~=_~~=~==~==
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====~K=c=~I=_~==~=~=~===~=~=
=====aK=^=`~~=_~~I====I==~===~=

=~=NQ =K=^I=~===~==~=~=~=~=
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~=~==~=~=~=a==l~I=c~K=b=I===~=
==I=`~~=_~~===~=~X===~===~==J
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Future Challenges

q==~=~======`~~=_~~=====~=~=~=
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q==~=~===~~===I==~=~===~==
~K=q~=~I=^=C=_====~==~~=~==~=K==

2003 University of Michigan Regents

23 of 24

Released December 12, 2003

q=~==~=====^=C=_=W=~=~=~=
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jI=~=~=J=~I=~==~=~====~==~==
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2003 University of Michigan Regents

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