Case: Grupo Bimbo

1036 Words5 Pages
Grupo Bimbo continuous expansion with an ambition to become one of the five-largest bakers in the world, while the company 's performance in existing foreign markets should be improved so fore made profitable and keep company away from financial hazard due to acquiring losses and lack of substantial profit from foreign markets.

Almost 70% of Grupo Bimbo 's sales came from Mexico, where the company had built a 90% market share in the packaged bread segment, the business was very profitable and the company operated in growing market.

However, the investments in U.S. and Latin America, where markets were highly competitive, have not been profitable. According Grupo Bimbo 's global strategy - to become one of the five-largest bakers in the
…show more content…
It could result in the wrong understanding off Chinese market.

•Geographic Distance - China is geographically far from Mexico, what could influence such business sides: control and strategic business development. Different infrastructure approaches, for example employees in China were riding bicycles to transport the products and manage the shelf space, for example, in the America products were transported by trucks. Speaking about the size of the market - The Grupo Bimbo overestimated the size of the market, as says in the case, the large proximate market the company could serve. The size doesn 't ' guarantee the prognoses sales.

•Economic Distance - diverse work organization approaches. Human resources side, the 775 employees acquired with the purchase of Beijing Panrico, their different work style. Bimbo successes in improving the manufacturing productivity - they made the operational upgrades in standards. Economic Distances: Chinese Bimbo Company served a regional area of 40 million people, its 186 routes were linked by a combination of trucks and bicycles and all that is maintained by only 775 employees. It was able to access over 4000 points of sale, what was too small figure for the served population number. Grupo Bimbo should expand the distribution network and improve efficiencies. Previously the Chinese plant 's
Get Access