Grupo Bimbo: Growth and Social Responsibility Harvard Case Solution & Analysis

Introduction

Gruop Bimbo is one of the leading global bakery companies in the world, the product profile of the company includes more than 7000baked products. The list of the baked products includes cakes, biscuits, cookies, bread and tortillas. In 2008, with the sales of approximately $7 billion, it has been recognized as the second largest and profit oriented company all around the world. In addition to this, it has been growing spectacularly in the last decades and maximizing its profit return through offering quality products to its customers.

The portfolio of Bimbo is broad-ranged and it is a well-established bakery, headquartered in Mexico. Not only this, the company has also earned excellentrepute in the corporate social responsibility. It urgesthe development of the environment as well as community and to ensure the provision of benefits to the society. By doing so, it has created products with improved nutritional profiles, it has also provided better care andconservation in rescuing the environment. It has been engaged in the development of an environmentin which it operates, additionally, it also promotes professional and personal development of employees.

As the company intended to expand its business in oversea markets, it has set its sights on the international expansion plan, but the current CEO of company has cleared that the international expansion would not be at the cost of growth and corporate social responsibility activity. The objectives of CSR and growth plans must be aligned with each other.      

Grupo Bimbo Growth and Social Responsibility Harvard Case Solution & Analysis
                

 

Description of problem

The primary issue is that the CEO has contemplated to expand its business further in the overseas market, starting from US and all way to China, for this purpose it has to compete with the competitors existing in those markets. In addition to this, the company has decided to not to compromiseCSR for the sake of the growth of the business as the company has positioned itself in the market through maximizing high market share; it would worsen for the company if it concedes the CSR activities.

The CEO has to alignits growth through expansion strategy with CSR activities in order to become profitable and strengthen its control in the overseas markets.Most importantly, the company has desired to pursue commitment and passion in the overseas market as well as it has to blend the mission statements, values anddevelopments in the strategy of the company. Another issue is the globalizationchallenges, the company would face conversely in the business expansion.

All these considerations are equitably important to foster the growth of the company in the international arena. By doing so, the probability to beat the existing competitors of the company would be higher.

Business profile

It is one of global leaders in baked products engaged in manufacturing, distribution and selling of high quality and appetizing baked products. It was originated on December 2, 1945 by Lorenzo Servitje, Jaime Sendra, Jaime Jorba, Roberto Servitje Sendra and Alfonso Velasco.Currently, the global revenue of Bimbo is $10.7 billion. The human capital, expertise, efficiency and market leadership in Mexico are the core strengths of the company. The company isstrongly recognized in theinternational markets..................

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