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International management: Grupo Bimbo

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  1. Comprehending the case situation
  2. Defining the problem
  3. Causes
  4. Generating alternatives solutions

Since the end of the Second World War, the international exchanges took an increasing scale and continued to develop in all the domains: goods, capital, knowledge, technology and culture. All the continents became interdependent and the ecological problems which touch the whole planet contribute widely to strengthen the awareness of this essential phenomenon. Humanity displays itself in an interconnected system, made up of multiple elements having each a role and a function more or less of strong influence.

Companies, groups of companies and authorities hold the main roles but these actors are apparently uneven in dimension and in power; the problem of the arbitration of their dialogue and their respective power thus raises. Two types of strengths are going to take place: those encouraged by the market which we still qualify as "anonymous forces of the offer and the demand" on one hand, those resulting from negotiations (and balance of power which underlie them) to organize the social life by correcting the not necessarily harmonious results of a market economy, on the other hand.

Management as action (or art, or way) to run an organization, to lead it, to plan its development, to control it, will have to integrate this double dimension of the behavior of a company; this looks for an explicit balanced growth rather than undergoing without reacting to the constraints delivered by the environment.

The manager will thus have at the same time the task to look for the best adaptation to the current evolution or to react to the opportunities that the international environment is offering to him, and to act in a favorable way, for the future of the company. Adaptation and anticipation are the missions of a manager.

[...] Concerning the job satisfaction, Grupo Bimbo faced Human Resources issues with unions and unionized employees, because they did not agree with the daily schedule of truckers, in fact times had changed and customers' demand also, so Grupo Bimbo asked the trucker to be more flexible. Moreover, in some states, Grupo Bimbo wanted to established IOs (independent operator), which encourage drivers to buy their routes with guaranteed financing. Truckers could make more money from each sale than under the prior commission structure, they would have health benefits, they would benefit from US laws and tax regulations that support the growth and creation of small businesses etc. [...]

[...] Grupo Bimbo should not change its corporate culture but maybe its internal policy. So, all the employees would be aware of the changes and of the new way to work. To feel involved, Grupo Bimbo should organize seminars, training, rewards etc. for its employees. Another solution is to hire local people because they know the culture and the customs of the population better, and they can help Grupo Bimbo in making decisions concerning products, distributions, prices etc. Moreover, the company should do more market research to adapt its products to the country it wants to enter. [...]

[...] Comprehending the situation Grupo Bimbo was established in Mexico in 1945, today it is one of the most important baking companies in brand and trademark positioning, sales, and production volume around the world, it has become one of the world's largest bread and sweet-goods makers. In Mexico and Latin America, it is an undisputed leader in its area, with presence in the United States and 18 countries in Latin America, Europe and Asia encompassing over 5,000 products (bread, pastries, candy, chocolates, etc.) and has more than 150 prestigious brands (mainly through acquisitions). [...]

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