3G Capital

Strategic Concepts & Mechanics

Signature MoveIverson: Four Layers Max, Then Stop Building Hierarchy

Cornerstone MoveIncentives as Architecture, Not Decoration

Strategic PatternStay Half a Step Ahead, Not a Mile

Capital StrategyCash Reinvested for Domination Not Dividends

Cornerstone MoveDominate One Small Thing Before Growing

Signature MoveSchwab: Split Half the Profit and Watch It Multiply

Risk DoctrineTen-Million-Dollar Education, Not Termination

Signature MoveLemann's 3G: Buy the Brewer, Install the Meritocracy

Signature MovePatterson: Educate the Customer Into Needing You

Cornerstone MoveDecentralize Everything Except Culture

Signature MovePrice: Lowest Price as Moral Crusade, Not Marketing Tactic

Risk DoctrineCalculated Bullets Before Cannonballs

Competitive AdvantageCulture as the Only Uncopiable Moat

Signature MoveKelleher: Distill Strategy to Doing, Not Planning

Cornerstone MovePromote From the Ranks, Never Import Generals

Identity & CulturePermanent Dissatisfaction as Fuel

Identity & CultureDream Replaces Mission Statement

Cornerstone MoveTalent Factory as Acquisition Currency

Capital StrategyBonus Pool Tied to EVA, Not Revenue

Cornerstone MoveBuy Beloved Brands Run by Nobody

Signature MoveOwners Recruit, Not HR Drones

Signature MoveBottom 10% Shaved Every Year Forever

Risk DoctrineType IV Leader Purge Despite Results

Cornerstone MoveExit Banking, Enter Boring Forever

Signature MoveFire the Rebellious on Day One

Signature MoveOpen Floor, No Offices for Anyone

Strategic PatternHoshin Kanri Goal Cascade to Factory Floor

Cornerstone MoveLeak the Offer to Shame the Board

Signature MovePeople Chess Not Performance Reviews

Decision FrameworkFive Whys to Kill Surface Excuses

Operating PrincipleComfort-Zone Rotation as Growth Engine

Primary Evidence

"Cristiane Correa, Dream Big: How the Brazilian Trio behind 3G Capital —Jorge Paulo Lemann, Marcel Telles, and Beto Sicupira —Acquired Anheuser-Busch, Burger King and Heinz, (Rio de Janeiro: Sextante,"

Source:Intelligent Fanatics Project

"Francisco Souza Homem del Mello, The 3G Way (New York: Ajax Books, 2014), 177."

Source:Intelligent Fanatics Project

"The trio’s timeline 1971: Jorge Paulo Lemann buys the Garantia broker dealer in Rio, with financing from private individuals 1976: Garantia earns a banking license with the Brazilian Central Bank 1982: Garantia partners acquire a controlling stake in Lojas Americanas, a retailer. Beto becomes its CEO 1989: Garantia partners acquire a controlling stake in Cervejaria Brahma, a beer brewing company. Marcel becomes its CEO 1998: Banco Garantia is sold to Credit Suisse First Boston. Most of its executives won’t work with the trio anymore on a full-time basis (although many remain co-investors in many of their deals) 1999: Brahma merges with (i.e., buys) Cervejaria Antartica, forming Ambev, Brazil’s largest beer brewing company 2004: The trio enters an agreement with Belgian giant Interbrew’s controlling shareholders where the two groups become controlling shareholders of Inbev, the resulting company 2008: Inbev buys Anheuser-Busch, America’s most iconic brewery, on the brink of the subprime mortgage crisis, forming Anheuser-Busch Inbev, AB Inbev, for short 2010: 3G Capital, the trio’s private equity firm, does its largest deal to date, buying Burger King from another private equity fund…"

Source:The 3g Way

"In 2004, the trio decided to diversify its financial holdings, and seeded 3G Capital, an alternative asset management company to be based in New York. Alex Behring, who’d been a partner at GP Investimentos and went on to head ALL (América Latina Logística, one of the firm’s most successful holdings), led the initiative."

Source:The 3g Way

Appears In Volumes

Intelligent Fanatics Project The 3g Way