Free Essay

Bimbo Case

In:

Submitted By faizanrashid
Words 845
Pages 4
Problem Statement

In this case there are 2 problems the first is related to the Social Responsibility and the second with the growth of the company.

Mexico is the first country in the world with obesity problems. The growth rates of obesity have increased from 10% to 20% in children, 30% to 40% in adolescents and 60% to 70% in adults. One cause of the increase in obesity in children is the change in eating habits, which include a high intake of calories, refined carbohydrates and sodas. While Grupo Bimbo has a set of values that focus on the person and maintains an active agenda of social responsibility among which include caring for the environment and supporting the community, the nature of most products Bimbo are among those that contribute significantly to obesity, especially in children way. This places Bimbo in a difficult situation, because on one hand the Group has a strategy of growth with social responsibility, but the effect on the health of the population through the consumption of their products placed in a contradiction Bimbo

The second problem that arises is to continue its growth in new markets such as China. This represents a challenge because although Daiel Servitje's have no doubt that the internationalization of Bimbo is part of its strategic growth, this can not be at the cost of sacrificing the values and principles implemented by their predecessors.

How could Bimbo resolve this contradiction without compromising growth of the company?

Solution to Case

Grupo Bimbo is an ethical conflict of marketing due to an increase in sales can mean an increase in obesity rates, especially in children and adolescents. The challenge is to reduce the externality without ceasing to be a profitable and growing social responsibility.

"Ethical Conflicts in marketing Arise in two contexts: First, When there is a difference Among the needs of the Aforementioned three groups (the company, the industry, and society) to May Arise conflict. Second, an ethical conflict May Arise When One's Personal With The organization values conflict. In Either case, a conflict of interest is a possible outcome.

An example of the first type of conflict is the tobacco industry. Cigarettes for many Decades Have Been a lucrative business. Cigarette and tobacco marketing have been good for companies and good for the tobacco industry. Many Thousands of people around the world are employed in the tobacco industry. So, the world economy has-been somewhat dependent on cigarettes and tobacco. However, cigarettes are harmful to society. There is documented proof That cigarette smoking is harmful to health. This is an ethical conflict for cigarette marketers. "(Chandler, 2011)

We believe that the campaign Grupo Bimbo Nutrition is the key to achieve this challenge, join the World Health Organization, Grupo Bimbo has been able to guide consumers with recipes and personalized eating plans that include the proper use of their products. That way you encourage consumer preference and increase sales responsibly.

"At Grupo Bimbo, our main concern is the health of people. Therefore, since 2004 we structure our program "Committed to Your Health" aligned to the Global Strategy for World Health Organization (WHO) on Diet and Physical Activity "(Grupo Bimbo, Online) http: // www.. nutriciongrupobimbo.com/

The success of this program lies Nutrition deep customer knowledge, Grupo Bimbo products are easily accessible to consumers aligned to your needs. The pace of life has led the market to find quick and ready-to-eat foods. Building on this concept Grupo Bimbo combines customer requirements with programs that promote balanced nutrition and sport.

"Managers can not expect to succeed without understanding how market forces shape the firm's Ability to earn profit." (Christopher R. and S. Charles, 2011)

As for growth in new markets here faced the differences in market structures:

Market Structure: is a set of market características That determinates the economic environment in Which a firm Operates. (Managerial Economics, Christopher R. and S. Charles, 2011)

While the market share in Latin Bimbo is very large in these new markets must take into account economic characteristics such as:

• The number and size of companies operating in that market.

• The degree of product differentiation in relation to its competitors.

• The culture, customs and food of the region.

• economic and political issues.

• The way to go to market.

The Chinese market is highly fragmented, with hundreds of competitors at local and regional level are pushing to attract highly demanding consumers in a matter of tastes and flavors

When Bimbo entered China had great confidence that its flagship product "THE Gansito" would be preferred among the population, but this was not so, this is mainly due to its power, where the bread does not play an important role consumption bread per capita remains 2 kilos, compared with 96 kilos consumed in Chile and 106 kilos in Germany.

As for the way they do get their products to market Bimbo found many familiarities with Mexico since like that in our country the M & Ps play an important role. Currently used as a means of distribution are adapted Socratic bicycle with a cabin to keep the product

Similar Documents

Premium Essay

Grupo Bimbo Case Study

...! ! ! ! ! ! Regan Nelson! Section 10! G40696771! Grupo Bimbo Case Study ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Regan Nelson! Section 10! G40696771! Grupo Bimbo! The Servitje family was already in the bread business before the founding of Grupo Bimbo. Daniel Servitje’s grandfather Juan invented Mexico’s first machine for mass-producing bolillo breads in 1918. Grupo Bimbo, originally called Panificacion Bimbo, was officially established in 1945 by a group of siblings and close friends. In the company’s beginning, one of the younger members of the family decided to draw a bear by placing a hat and a bread maker’s apron on it and a large bread loaf under his arm. This bear, now known as the Bimbo Bear, immediately became the mascot for the company partly due to its childlike appeal and soft appearance- which were fitting qualities associated with bread. In the first Mexico City plant, Grupo Bimbo was already able to distinguish themselves from their competitors by wrapping their bread and toasted products in cellophane- instead of the usual wax paper. This allowed for customers to clearly see the product’s freshness and quality. Since its conception, the Mexicanbased company has come a long way. By 2007, Grupo Bimbo had become one of the world’s largest bread and sweet-goods makers. In 2007, Daniel Servitje, CEO of Mexico-based Grupo Bimbo, wondered how far he could take his business/dream into making his company a world leader in the baking industry. There were...

Words: 628 - Pages: 3

Premium Essay

Cemex/Bimbo Business Cases

...for the 2007 acquisition of Rinker, an Australian cement maker, for USD$17,298 mm, increased its leverage issues. This increase combined with the credit crisis of 2008 resulted in a lack of solvency and a high level of indebtedness for CEMEX. The best way for CEMEX to translate its past success in an increasingly complex business environment is to modify its capital structure by refinancing debt, consolidating operations by reducing costs, expenses, and selling useless assets to increase efficiencies. CEMEX must also focus on its current operations in order to increase cash flows. In the long-term, once the prior issues are addressed, it must acquire companies by using short-term financing to cope with volatile market conditions. GRUPO BIMBO According to...

Words: 583 - Pages: 3

Free Essay

Grupo

...What changes, if any, should Grupo Bimbo make to its global strategy in order to be more successful internationally? Grupo Bimbo’s global strategy is experiencing growing pains at different international markets but I think it’s natural and makes sense for them to go global given that they already have a huge market share in their domestic market. In order for Grupo Bimbo to be more successful internationally, they need to follow the changing consumer demand patterns and customize their products to match to the different cultural tastes and preferences. The production and distribution processes need to be more flexible and not just simply follow the process that they have in Mexico. As long as they have the continued stream of cash flow coming from the cash cow, Mexico, Grupo Bimbo should continue to implement its global strategy to expand and adjust to the challenges that other markets present. What changes should they make in the US market? Because of the high proportion of unsold inventory in the US supermarkets, as high as 14%, compared to the Mexico supermarkets, margins are being cut. This could be due to the high competition and not enough of a recognizable core brand in the US. This problem could potentially be solved by increasing marketing and branding so that they be distinguish themselves a bit more from their competitors and thus reducing that unsold inventory. Grupo Bimbo should also reduce the number of products that it offers in the US. Some products...

Words: 548 - Pages: 3

Free Essay

Grupo Bimbo

...Grupo Bimbo: Executive Brief Changes to Global Strategy Grupo Bimbo should overcome the cultural and administrative distances and better respond to its consumers needs around the world. The management should develop, produce and deliver the products that meet the consumers’ current needs and preferences for every type of consumption occasion. This can be reached by constant innovation and a commitment to quality as the company broadens its reach around the world. In order to maintain its leading position in this highly fragmented and competative industry and successfully expand into new territories, Grupo Bimbo needs to have a strong presence in Brazil, overcome its administrative and cultural challenges in the US, and gain a strong position in China. Changes to the US Market In the US, the baking industry has been hurt by the advent of the low-carb movement which decreased the consumer demand for bread products. (Per capita bread consumption in the US decreased by 2 Kg between 1998 and 2006). The company is also under pressure from strong retail stores and supermarkets to keep prices low while the wages keep increasing due to unionization of its workers and truckers. To overcome the administrative and cultural distance in the US, Grupo Bimbo should produce healthier choices and earn a price premium by improving quality. Since it is difficult to bust the union, the company should create an incentive program to get drivers and employees to improve their efficiency. ...

Words: 513 - Pages: 3

Free Essay

Production Flow Chart Paper

...Flowchart Paper Assignment Sodney Theodore University of Phoenix Operations Management Abstract This paper will underline a flowchart of Bimbo Bakeries USA production process and how the business operates on a day-to-day basis. There will also be a metric chart that will show the amount of time it takes for each process to be completed within the production process. A short description of Bimbo Bakeries will also be addressed in this paper as well. Bimbo Bakeries is an International manufacturing company who specializes in producing products such as, Thomas muffins, Entenmanns cakes, and etc. They’re also one of the largest bakeries in the world, and they have bakeries in over a hundred countries. Bimbo has also purchased companies such as, Sara Lee and Hostees, they are expanding very quickly in the U.S. and around the world. Process The process that I perform on a daily basis at work is mixing, which is the second step in the process of producing muffins. Currently, in order to load the ingredients into the mixer, is manually. This concept to me takes up more time to complete, and I think there’s a faster way to complete this step. The type of process for this chart will be a multistage because it has many steps to complete within the process of production. According to the text, “A multiple stage process has multiple groups of activities that are linked through flows( Chase,Jacobs,Aquilano 2006)”. Metric Measure Performance Efficiency ...

Words: 264 - Pages: 2

Free Essay

Family

...With these developments, it is obvious that conflicts between parties of different nationalities occur and liability to tax on income of foreigners especially among those engaging in trading venture. Whilst the laws affecting domicile and residence may be sufficiently settled, it is paramount for courts to pursue a detailed analysis to ascertain specific preliminary issues so as to avoid controversial rulings. Courts often handle numerous financial cases that involve what can be best described as foreign or international elements. In such cases, court must decide whether it has the jurisdiction under the Family Law Act 1975 to make a decision on such cases. In the event that it is determined that the court is invested with the jurisdiction to determine the case, the court has to consider whether there is a system of law in foreign country that also has the jurisdiction to handle the case. As it was addressed in the case Attorney General of New Zealand v Ortiz [1984] AC 1, these benefits and costs to either party if the case resolution is made in foreign country as compared with the apparent country should also be a subject of concern. [1] Legal systems in most countries around the world adopt community property regime, which takes effect at the inception of marriage or at the time of divorce. For instance, California and Massachusetts in the United States have adopted community property regimes that support equal division of assets upon divorce. However, this provision...

Words: 659 - Pages: 3

Premium Essay

None

...Adapted from Bernhardt & Kinnear (1988). Cases in marketing management, pp. 6-16. Plano, TX: Business Publications, Inc. Pay careful attention to the following points. They are often used by instructors to evaluate either a written or oral analysis. 1. Be complete. Each area of the situation analysis must be discussed, problems and opportunities identified, alternative presented and evaluated using the situation analysis and relevant financial analysis, and a decision must be made. An analysis that omits part of the situation analysis or only recognizes one alternative is not a good analysis. Second, each area must be covered in-depth and within insight. 2. Avoid rehashing case facts. Every case has a lot of factual information. A good analysis uses facts that are relevant to the situation at hand to make summary points of analysis. A poor analysis just restates or rehashes theses facts without making relevant summary comments. 3. Make reasonable assumptions. Every case is incomplete in terms of some piece of information that you would like to have. A good case analysis must make realistic assumptions to fill in the gaps of information in the case. For example, the case may not describe the purchase decision process for the product of interest. A poor analysis would either omit mentioning this or just state that no information is available. A good analysis would attempt to present this purchase decision process by classifying the product and drawing upon real life...

Words: 487 - Pages: 2

Free Essay

Save Me

...are given. It is understandable then that we should seek out more opportunities to apply our skills and make more positive impacts within our jurisdictions. It is this general attitude that led us to get involved in investigating cold cases. How We Got Started Mark had, for several years, been consulting with our Coroner’s Division as a forensic anthropologist. During this time he came to learn that there were numerous coroners’ cases in which the identity of the decedent was unknown. These cases were kept in three-ring binders on a shelf in the Sergeant’s office. Over the years, in the course of this forensic work, we would discuss these cases and the progress that was being made on them. The conversation usually ran along the lines of us asking “any luck with that 1980 homicide victim?” and the sergeant answering “well, we’ve gotten so many new cases that I haven’t been able to even look at it yet.” This went on for a few years and through two different sergeants. One day we, as a crime analysis unit, were brainstorming about how we could broaden our “client base”, as it were. We had been successful in integrating ourselves into our Investigations Bureau and had been involved in numerous major cases. And, of course, we had always been active in producing tactical and strategic analyses for our patrol personnel. But we knew that we could be doing more, particularly given the size and responsibilities of our agency. It was during...

Words: 412 - Pages: 2

Free Essay

Business Case

...BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACCTBA2 (C33) March 2, 2015 A stakeholder is typically concerned with an organization delivering intended results and meeting its financial objectives. In general, a stakeholder can be one of two types: internal (from within an organization) or external (outside of an organization). The stakeholders in this situation are Lanie Marquez and Tim Rodriguez who are also partners in the retail distribution business and their capital contributions are as follows P500,000 and P300,000 respectively they are an internal stakeholder since they are also the owners. The total Capital of both stakeholders is P800,000 and with a monthly salary for both partners at P15,000 on the assumption that both of them will contribute to manage the business equally. Assuming that both managed the business equally the total salary for the year for Lanie and Tim are P180,000 each. They share profit and loss equally and no interest will be given on capital contributed. The problem for this situation is that Lanie is starting to get concerned with the behavior of her other partner Tim. He only manages the business 50% of the time, which will mean that his salary of P15,000 will need to decrease by also 50% since he does not manage the business equally with his partner. The business has seen a downturn in the profit outcome and for the current financial...

Words: 758 - Pages: 4

Premium Essay

Ralph's Grocery Case Summary

...Ralph’s Grocery and United Food and Commercial Workers Union The case that I chose for the week 6 critical thinking assignment concerns Ralph’s Grocery Company, located in California. It applies to this week’s material due to the fact that the case involves unlawful suspension and discharge of an employee, as reviewed by the National Labor Relations Board. Background In May 2011, Vittorio Razi was an employee at Ralph’s Grocery and was suspended and terminated after he refused to take a drug test without first consulting with his UFCW Local 324 representative. The company (Respondent) says that on the day in question, Razi’s behavior was in question, acting nervous, anxious, agitated, and slurred speech. After a couple managers discussed the...

Words: 750 - Pages: 3

Premium Essay

Chromogens Affecting Wealth Wear Staining Teeth

... Many people wonder why their own teeth stain so easily. The enamel on your teeth and chromogens are what stains your teeth, but what exact beverage stains teeth the most? I chose this topic because I was curious to know what stains teeth the most. It affects us daily because it could rot your teeth or you can’t pick up hot chicks anymore. So what causes teeth to stain? The temperature causes teeth to expand or contract making it easier for stains. So hot and cold drinks affect that. Color in foods and beverages come from chromogens. Chromogens are intensely pigmented compounds that stick to teeth enamel. Chromogens cause a lot of trouble when they mix and react with other stain causing and stain promoting factors. Tannis may be natural or synthetic tannis is another factor that stains teeth. Tooth enamel is porous making it extremely susceptible to stains. The darker the liquid the darker the stain. There are some examples that stain teeth. Not only sodas bad but also Gatorade. Beets are bad for you also. Mostly cause they’re concentrated. Berries dark skins stain teeth. Ketchup is also really bad because of its bright red color and high levels of acid. Dark liquids and sauces you put on your foods also stain teeth. Colored candy and popsicles both contain colorants that will transfer to the teeth and embed in the porous enamel. Fruit juices, especially grape and cranberry, leave a colorful tinge on the teeth and tongue. Colored sodas instantly discolor teeth. The citric acids...

Words: 594 - Pages: 3

Free Essay

Fin 571

...efficient investigative products and services. As a result, the coverage requirements for ANACI and NACLC investigations have been enhanced to support a common content baseline for all agencies. Note that these enhancements apply only to those ANACI and NACLC cases submitted on an SF 86. The purpose of this FIN is to provide you with information concerning what case coverage changes have been made. The case price adjustments necessary to support these changes will be reflected in the FY 2007 case prices. ANACIINACLC Cases Currently, listed and developed issues which are identified in ANACI and NACLC cases (for non-DoD customers) are not pursued beyond the normal scope of the investigation. These cases are returned to the requesting agency so that the agency may decide whether to adjudicate the case based upon the information in hand, conduct additional follow-up themselves, or request a Reimbursable Suitability Investigation (RSI) from FISD to cover the additional issues. Beginning with FY 2007, expansion of these issues will become a standard part of both the ANACI and NACLC products. Effective October 1, 2006, issues apparent at scheduling or developed during the course of the investigation and which fall within the 5-year case coverage period, unless otherwise noted, will be expanded upon according to the following chart (exception: issues which are known to have been covered in previous investigations, or which would reasonably have been expected to...

Words: 772 - Pages: 4

Free Essay

Getting Ready for a Midterm

...find that you would like even more time. I recommend that you enter the exam promptly since I will make deductions for those exceeding the 9:00 o'clock end time even if you enter late. Third, know that the legal reasoning essay will come from Module 4 on immunity. The variety of scenarios in that question will force you to think about and explain the nuances between sovereign and personal immunity, between absolute and qualified immunity, about loss of immunity, etc. You will want to understand all four cases from that module well before the exam. I will expect specific citations to the cases and the principles that they enunciate. An additional case that might be useful for you to look at is Canton v. Harris. A second question will address the rulemaking process and the principles underlying it. You should "walk into" the exam (in a virtual sense) with a clear sense of a fully articulated rulemaking process, so that you can pick and choose elements as appropriate in the case you will be presented. The third question will be drawn from the text regarding the Constitutional framework. Finally, remember that "open book" exams can be as challenging as closed book because the "bar" (the expectation) is higher. I think you will find that prior preparation will make a good deal of difference. As stated before, when you open the exam, answer the questions initially in word and copy it back to the exam. That way, you will not lose work, time...

Words: 342 - Pages: 2

Premium Essay

Compensation Culture

...in which it is acceptable for anyone who has suffered a personal injury to seek compensatory damages through litigation from someone connected with the injury. It’s the idea that for every accident someone is at fault. For every injury, there is someone to blame. And, perhaps most damaging, for every accident, there is someone to pay. There are so many ridicilous cases througout history where people sue somebody or some company for no reason and get a lot of money from them. For example . A caretaker fell off a ladder and sued the local authority for not training him to use a ladder - and won.He could get up to 50.000 pounds compensation. One former ex policeman received nearly £90,000 compensation for the trauma of seeing a woman die after he crashed into her car during a 999 call .The husband of the woman killed by the policeman received £16,000 compensation. Policemen cause a tremendous number of accidents - so many, indeed, that one force has stopped its drivers from speeding. The effect is damaging to society. The courts become clogged up with greedy people out for themselves, many with no real case at all while other people with real compensation claims, the people disabled in accidents, crippled in operations or people who have lost loved ones due clear negligent behavior. All the other who just sue somebody with ridicilous acusations should be ashamed of themselves and I hope that in the future others avoid trying to cash in just because it seems so easy...

Words: 266 - Pages: 2

Premium Essay

Business

...Case - Swisher System Corporation I. Company Background: Swisher Systems Corporation (SSC) is an industrial heating company which was established in 1949. SSC is an innovator of flexible heating products, especially with its knit and braided heating element. The heating element is multi-stranded resistance wire that is knit and braided with fibreglass and is the base technology for almost all SSC products. SSC is known in the industry as being the highest quality flexible heat supplier which produces control devices and heating cable. SSC’s competitive advantage is on the quality products which maintains higher and safer temperature that are more flexible than their competitors or other products in the market. II. Facts of the Case: A. Mike Watkins  Director of Purchasing for Swisher Systems Corporation  Solely responsible for purchasing all materials of SSC.  Has various experiences in material management prior to SSC.  Has more than thirty-five (35) years of industrial purchasing experience. B. Products at Swisher Systems  All SSC products are solutions to industrial heating applications  SSC manufactures fifty percent (50%) standard products and fifty percent (50%) custom orders. o The custom products can be applied to virtually all industries that require heating products. Industries like semi-conductors, food processing, medical, petrochemical and others.  Biggest contributor of SSC’s sales is the cloth heating jacket, though expensive...

Words: 296 - Pages: 2