Name: Aura Sofía García Pastrana 2963691

Doing Business in the Americas Profesor: Rodrigo

Activity number 7 Date: 28-October
Bibliography The Unstoppable Mexican Wave. (2013, April 2).
Grupo Bimbo.
https://www.grupobimbo.com/en/press-
room/news/unstoppable-mexican-wave
BIMBO. (2006). RISK FACTORS. 2021, de GRUPO
BIMBO Sitio web:
https://grupobimbo.com/sites/default/files/RISK-
FACTORS.pdf

INSTRUCTIONS

Select a Mexican multinational company with operations in another Latin American country, and
research its history, the people involved in its expansion, and the business decisions it took along
the way.

Grupo Bimbo

Grupo bimbo has come a long way since CEO Daniel Servitje’s grandfather emigrated
from Catalonia, Spain, to Mexico in 1928 and opened his own bakery there. In the end,
everyone settled on Bimbo, a diminutive of the Italian word “bambino” to refer to
small children, which they felt best captured the tender essence of their bread. later
founded Bimbo in 1945. Today, Grupo Bimbo has more than 126,000 employees, a presence in 19
countries and more than two millions ales points. Among the early names suggested for the
company were Pan NSE (the Spanish word for “Bread” followed by the acronym in Spanish for
“Nutritious, Tasty and Economic”), Pan Nieve (“Snow Bread”) and Pan Azteca. In the end, everyone
settled on Bimbo, a diminutive of the Italian word “bambino” to refer to small
children, which they felt best captured the tender essence of their bread. A picture of a cuddly
white teddy bear spotted on a Christmas card ended up inspiring the company logo for its “white
as flour, soft as bread” image.

“In globalization, you can’t be a spectator. You either participate or you become a victim.

”He took part in a panel discussion on “Charting Connectedness Across Borders,

Leveraging Global Business Opportunities,” which was moderated by IESE Prof. Pankaj
Ghemawat, an expert in globalization and international business strategy, and producer of DHL’s
Global Connectedness Index. Grupo Bimbo has shown itself not to be a victim of
globalization. When the governments of the United States, Canada and Mexico signed the North
American Free Trade Agreement (Nafta), eliminating duties and restrictions on goods
and services traded within that continent, some feared that Mexico might lose out
against the sheer business dominance of its powerful northern neighbor, good stride
deficit with Mexico was running at $66 billion. Grupo Bimbo has been at the forefront of
 this Mexican wave. While internationalization might be the norm among food
processing companies, few whole-sale baking companies have a major presence beyond
national borders. Grupo Bimbo is an exception. In 2006, Grupo Bimbo became the first major
Latin American firm to gain a foot holding the coveted Chinese market. Crucially, too, in 2011,
Grupo Bimbo became the largest baking company in the world after acquiring Sara Lee North
American Fresh Bakery, Fargo in Argentina and Sara Lee in Spain and Portugal. But more than
being the largest, Servite aims to make Grupo Bimbo the best baking company in the world

Highlight the pros and the cons of their experience in the foreign business environment, based on
these criteria (select five): cost of capital, transparency and corruption, ease of doing business,
procedures to start a business operation, bureaucracy, foreign investments, applicable tax rates,
R&D incentives, human capital, and the local educational system.

3. If you were the international manager of that company, would you continue your business
operations in that foreign country, and why? If not, what other country would you choose, and
what would make you take that decision?

Yes, but now Grupo Bimbo must be careful with its economy due to the effects that the covid-19
may leave in the long term and how it affects the economy where Bimbo has a presence