Grupo Bimbo Grupo Bimbo (GB) was established in Mexico as a small bread production and deliver company. Today GB is the third largest baking company in the world and a leader among bread makers in Mexico and Latin America. GB has expanded into the United States and 14 countries in Latin America and Europe. GBs 76 worldwide plants and 25000 truck fleet allow products to reach 600000 points of sales in the markets it serves. The majority of GBs 3600 products are loaf bread, pastries and cakes. GB has nearly 100 brands such as Bimbo, Marinela, Tia Rosa and Mrs. Bairds. The company remains Mexicos largest commercial baking company. GB has begun to expand into the United States through investments and numerous acquisitions. Believing that they have maximized growth in Mexico and Latin America, GB hopes to expand into the united states by gaining market share of the United States bread market. The firm retain 90 percent share of Mexicos packaged bread market. The company is recognized as the predominant bread producer in the region. GB is the leader in bread production in Mexico and many other Latin American nations. GBs Plus Vita brands holds 21 percent share of Brazils packaged bread market. Mexicans associate the GB name with high quality and dependable products. GBs main competitors include ConAgra, Grupo Corvi, FritoLay, Haribo, Hershey, Nestle and Sara Lee Bakery Group. Many of these competitors are American based firms. As competitors expand into the Mexican and Latin American markets.GB is facing new challenges. Quality control has become an increasingly important aspect of food production. This is especially true in Mexico and Latin America where many consumers believe products to be of lesser quality than those produced in the United States. The company has committed itself to obtaining ISO 9000/1/2 certification in its plants. This certification helps to ensure quality control. GB has recently received certification in five of its plants for different production processes. Thirteen more plants are currently undergoing the certification process. GB is the first bakery business in Latin America to receive these certifications. By committing resources to achieving certification, the company is attempting to exhibit a commitment to a healthy product and commitment to international quality. GB sees production quality and international recognition as vehicles for strengthening value and its competitive position. International concerns for nutrition continue to grow. Competitors, such as ConAgra and Sara Lee Bakery Group, have began to present their products as healthy and nutritious. GB is expanding its image as providing healthy and nutritious products. In advertisement, GB presents images of fresh ingredients used to make bread. GB enriches its bread with vitamins and minerals and uses enriched flour. The company has developed brands that target different segments of the market with a focus on nutrition. GB attempts to compete by producing bread and other products at a lower cost and by trying to reach customers more efficiently then its competitors. The massive quantity GB produces allows the firm to produce each unit at a lower cost than competitors can. GBs extensive distribution network creates another competitive advantage for the firm. The firms extensive distribution network allows GBs products to reach more points of sale than its competitors. These products also reach points of sales more quickly, making GB a fresher product. GB expanded northward to capture the growing U. S. Hispanic population. The Hispanic population in the United States has opened the door for GB. Many American firms have taken advantage of lowered trade barriers and expanded into Mexican markets. Latin American markets are generally more receptive to foreign business because they tend to be less developed or competitive than markets in the United States. Being a Mexico based firm, GB entered into the U. S. markets where there are large Hispanic populations, such as Texas and California. The Latino food market in the united States is growing at 6 percent per year.GB hopes to gain significant share of this growth. Few Mexican firms have made a commitment to expand into the United States because they lack the resources needed to enter this fiercely competitive market. Bimbo Bakeries USA has become a leader in Texas and the western United States. GB currently operates 16 plants and has operations in more than 22 states in the United States, offering brands such as Oroweat, Mrs. Bairds, Entemanns, Thomas, Bobli and Tia Rosa. GB acquired some U. S. competitors (eg. Mrs. Bairds) to increase sales. Expansion into U. S. markets has redefined GBs corporate strategy in the sense that the company now focuses beyond its traditional markets. Significant resource commitment, vis-a-vis investment and acquisitions in the United States, exemplifies this new growth strategy at the international level. GB has also capitalized on the expansion of U. S. firms into Mexico. GBs distribution capability has appealed to a number of American firms because it allows products to reach a broad consumer base. Questions 1. Analysing the case elucidate the mission of Grupo Bimbo. 2. What are the key organisational goals for GB? If you could have been in the managerial position what goals could you have set for better effectiveness of GB? 3. What growth strategies are being employed by GB? Do you think those strategies to be effective? Justify your answer by assuming yourself in the managerial position of the company. 4. What are the core competencies for GB? What strategy you suggest to enhance the core competency of the company?