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Mabe:

Learning to be a

Multinational
Presented by:
Amanjot Singh Shivam Shivam Harjot Singh Jijo Francis Navtej Singh Sran

Agenda
Introduction : Company Profile: SWOT Analysis: PEST Analysis: Questions:
Amanjot Singh Navtej Singh Sran Jijo Francis Harjot Singh Shivam Shivam & Amanjot Singh

Introduction
A Mexican appliance manufacturer, MABE, has evolved quickly after selling nearly half its stake to a large multinational company. Just before the 2008 financial crisis, the manufacturer formed a joint venture with a Spanish company and entered the Russian market, but it was not successful. The manufacturer faced a dilemma: Should it leave the Russian joint venture with its Spanish partner and refocus on other emerging markets? Should it acquire a local manufacturer?

Should it remain as it was?

Company Profile
Controladora Mabe, Private Mexican equipment manufacturer Leading brand & exporter of home appliances in Mexico. Founded by Mabardi and Berrondo families (1946 ), HQ: Mexico city, Mexico Chairman and CEO : Luis Berrondo Avalos , Vice President : Ramiro Perez became a joint venture with GE (1987 )

Revenue: $4 billion, 21,000 employees Products: White appliances 70% market share in home appliances

Top 3 Competitors:
Whirlpool Corporation LG Electronics Inc. Electrolux Home Products - North America

SWOT Analysis
Strength
Strong brand name Wide range of products Strong R&D Partnership with leading MNCs 70% market share in home appliances

Weakness
Faulty products Weak credit rating Dependence on 3rd parties for raw materials

Opportunities
Growing demand Infrastructure spending Investment in premium market

Threats
Strict govt. and environmental policies Tough competitors Fluctuating currencies and economic recessions

PEST Analysis
Political/Regulatory Factors:
Has to deal with different Political and Environmental policies in different countries.

Variation of

working conditions in different countries (Good and Bad

working Conditions) Tax system is different for different countries

Economic Factors:
Rate of interest and exchange rates has great influence on activities and operations of the company.
Inflation, deflation and Govt. spending can have a big influence on business productivity and profitability of the company. Energy efficient and smart appliance agreement have been placed in order to improve the product and to reduce the power consumption. Increase in tax credit for smart appliance production

Socio-cultural Factors:
The employment policies and working hours depend on the different cultures within a country.
Higher employee wages due to inflation in some countries. Demand of products varies with different countries

Technological Factors:
Introduction of innovative products due to the presence of advanced technology. (Success of the Company) Improved and High Speed Production of Appliances Up to date with the latest technology.

Questions

What action should Ramiro Perez take with regard to Mabe's JV in Russia?

What lessons has Mabe learned that it can apply to future international expansions?

Would another emerging country have been


a better investment for Mabe than Russia?

Assess whether Fagor is the appropriate


partner for Russian JV ?

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