Question
Considering the Gruma case, please select the four best strategic options given in the case and explain why. 1. Backward integration. Purchase a 10,000-acre corn
Considering the Gruma case, please select the four best strategic options given in the case and explain why.
1. Backward integration. Purchase a 10,000-acre corn and wheat farm to gain better control over supplies needed for production operations.
2. Forward integration (a). acquire chipotle Mexican grill (cMg). chipotle is a chain of about 1,700 restaurants in the United States, United Kingdom, canada, and europe, specializing in burritos, tacos, and salads. Chipotle is Spanish for smoked or fried jalapeno chili pepper.
3. Forward integration (b). acquire chuys (cHUy). chuys is a chain of 59 small Mexican restaurants in the United States. chuys is not fast casual like chipotle, but rather is a sit-down table-service restaurant that is uniquely festive. chuys revenue soared 20 percent to $64.1 million in its latest quarter. chuys opened 11 more locations in the last year.
4. Horizontal integration. acquire grupo Bimbo, S.a.B. de c.V. Founded in 1945 in Mexico city, grupo Bimbo employs over 129,000 and does business worldwide with167 plants, but the companys principal operations are in Mexico and the United States. top brands in Mexico include Bimbo, Marinela, Barcel, and ricolino.
5. Market development (a). Build a manufacturing plant in china to begin servicing that country.
6. Market development (b). Build a manufacturing plant in South africa to begin servicing all of africa.
7. Market penetration (a). launch an advertising, promotion, and publicity campaign in Mexico to increase market share in Mexico.
8. Market penetration (b). launch an advertising, promotion, and publicity campaign in the United States to increase market share in the country.
9. Product development (a). Develop, produce, and launch a full line of organic tortillas, chips, and taco shells.
10. Product development (b). Develop, produce, and launch new products, including spaghetti, linguine, and bread.
11. Related diversification. acquire the Prego trademark brand name pasta sauce from campbell Soup company. Prego pasta sauce is available in 19 different flavors, including marinara, tradi-tional, mini meatball, zesty mushroom, and roasted garlic parmesan. Several Prego flavors are made with all organic ingredients.
12. Unrelated diversification. acquire a construction company in Mexico, such as one of the fol-lowing companies: cemex, grupo Villacero, tubacero, lamosa, or ica.
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