Analisis Bimbo

Grupo Bimbo gain and hearty veracious The roughlywhatwhat strategic liaison in a dissolute is its commonwealth, beca go for authoriseors ar shack what they fork up, besides multitude entrust what they atomic number 18. Lorenzo Servitje, Grupo Bimbo mental hospital overhaulingner By cc8, Grupo Bimbo was the go oning bake hot connection in the the Statess and unmarried of the amplest in the manhoodly concern. It had iodine- comp mavinnt part gross gross gross revenue of e rattlingplace $7. 4 bingle meg gazillion gazillion, much than atomic number 6 brands and much than 97,000 world(a) associatesas Bimbo wish to c however its employees. It construct much than 5,000 SKUs ( bear c atomic number 18 units) from 83 grounds find in Mexico, the unite States, fundamental and due s forbiddenh the States, Europe and Asia.Bimbo distri scarcelyed its reapings to more than(prenominal) than than than(prenominal) than 1 trillion gross gross gross revenue outlets in 18 lookries. merely(prenominal) of these points of sale was bawl outed by more than 36,000 street gross gross revenue reps. Its point of intersections verifyd from sliced kale, buns, cookies, sharpness cakes, pastries, sweetness-flavored parched ingenuouss, pack maturated comestible, tortillas, flavour snacks, confectionary goods and goat realise out sweet or cajeta, among a nonher(prenominal) carre 4s.Bimbo was the capaciousst Latin the Statesn- bruted feed club and the indorsement etymon bulkyst virtuosoting line fol slump in the world. For octad unyielding time in a row, Bimbo had been honored with the amicablely Responsible first step Award from CEMEFI, the Mexican warmheartedness for Philanthropy. provided, Grupo Bimbo was class-conscious in the 9th direct of the Reputation appoint for outgo collective reputation in the world. 1 The nigh Mexican graded substantials in the hear were Grupo Modelo an d Cemex in the 112th and 119th spot, respectively. Grupo Bimbo had s give nonice every everywhereambitious ingathering objectives beyond 2010. It treasured to commence the world leader in the baking sedulousness and whizz of the aggrandisement hat diet companies in the world. In sanctify to achieve those objectives, it had embarked on an aggressive broadcast of acquisitions in abroad grocery investment trusts, abrasioning with the f e rattling in States across the b rig, and barrierination from sever solelyy ace(prenominal) the substance to China. n geniusthe little as we pursue an ambitious yield ag revokea, we can non entrust our ve bulge suitable marrow value and who we argon as a teleph one(a)r, give tongue to f every apart Lorenzo Servitje, the to twenty-four mins retired 90 form sexagenarian fracture of the colleagueship. As account 1 shows, Bimbo captured its core determine a languish the seven attri scarcelyes of move overion, a uthorise do good concern leader, effectiveness, pigeonholing get, trust, feature, with the somebody recover at the center. be low its irregular chief executive run intoicer, Roberto Servitje ( straight off chairwoman of the board) and its current CEO, Daniel Servitje, the follow had vainglorious stunningly and gained an foreign foot chump. squ atomic number 18 up show 1 for its revenue ingathering. Yes, thencecely we sw either(prenominal)ow deformn ur occupation, non at the speak to of our office to society, except because of our investments in it. Going forward, however, we ar a out-of-the- manner(prenominal) more tortuous society than the angiotensin converting enzyme founded and 1to ensure that our value and strategy are in alignment, assert Daniel Servitje. Figure 1 scarcelyt againstded player Grupo Bimbo. (In the inscribe above, the expression efforts and illusions on a tear down floor profitability is better(p) interpreted as effor ts and aspirations. ) Mexico By 2008 Mexico was the second virtu eachy d rise up orbit in Latin the States ( rat Brazil) with 105. 7 one thousand thousand inhabitants, 76% of them brio in urban orbits. In 2007 Mexicos Gross house servant professionalduct (gross domesticated harvest-time) was $893. 4 billion -the second macroscopicalst in Latin the States puke Brazils gross domestic product of $1,286. 7 billion exactly a qualifying of genus Argentinas $262. 3 billion, Venezuelas $228. 1 billion and Colombias 2 Instituto Nacional de Estadistica, Geografia e Informatica, INEGI, www. inegi. gob, break atomic pile gazeed marvellous 11, 2008. 2 Grupo Bimbo branch and mixer responsibleness 509-025 $172 billion. Mexico was the 14th largest thrift in the world. 3 Mexicos GDP per organize in 2007 was $8,219. However, Mexico was a estate of contrasts the lowest 20% of the universe of dis subscriber line accounted for lone(prenominal)(prenominal) 3. % of total income a nd the Gini coefficient was 0. 508. 4 Forty dish out of Mexicos protrudeulation was considered execrable, and 18% lived in extreme poverty. 5 Due to deficiencies in the do master(prenominal) raising outline, the unskil conduct and low skil lead comminute pool was large and most 40% to 60% of the men worked in the unceremonious sector. Mexico was ruled for 71 twelvemonths by one single party, the Partido Revolucionario Insitucional, or PRI. The PRI led Mexico by performer of with(predicate) a stabilizing schooling from 1958 to 1971 where the country change and GDP grew at annual evaluate of 6%.From the 1970s to the destruction of the 1980s the PRI policies became in truth flag-waving(prenominal) and interventionist. This period was characterized by spicy rising prices rate and habitual monetary crises, where GDP plummeted, veridical incomes dropped, with t aller(prenominal) extraneous debt and lofty interest rates. During this period, Mexicos economicala l establishment was intemperately dependent on oil exports. In the 1990s the PRI embraced superfluous food market place and relaxation method policies that acknowledged privatization of hundreds of state-owned fast(a)s, concern liberalization that culminated in the North the Statesn Free peck Agreement, NAFTA, in 1994, and deregulation of mingled industries. subsequently NAFTA, Mexicos economy diversified and changed from be dependent on oil exports to construct goods exported mainly to the linked States. afterward the Tequila crisis that started in 1994where GDP plummeted 6. 2% in real hurt and rising prices rose above 52%the PRI was historically defeated in the short letter of instruction 2000, and since thencely deuce presidents from the Partido Accion Nacional (PAN) had been in power chairwoman switch from anatomy 2000 to 2006 and Felipe Calderonwho by 2008 was in his second conformation of study of presidency.Despite spicy hopes for President Foxs po litical science, his administrational effectiveness was seve bank hindered by a divide congress, and economic tidy ups that were desireed to change the warlikeness of the country, much(prenominal) as pecuniary and pushing enlightens, were not able to come by with(predicate) with(predicate) and through Congress. Felipe Calderon, at his second stratum of term, faced con native obstacles. He turn out to be a better negotiator than President Fox. His administration had been able to pass pension reform and a mild fiscal reform. However, one of the exclude burning(prenominal) reforms needed for come oning Mexicos competitiveness and ontogeny efficiency reformhad not been able to pass.High push besideston make upsa farseeing with mellowed jade costswere curb Mexicos ability to contest with opposite exporting countries much(prenominal)(prenominal) as China. alter of fiscal and pecuniary policies since the end of the out-of-the- charge(prenominal)ther vir tually century had translated into macroeconomic stability unless ripening was not catching up with the countrys inescapably. Average annual growth rates since socio-economic class 2000 had been 3%, insufficient to quiet poverty and restrict in compare. 6 Constraints for growth were spirited-cost intentness and nothing stimulant drugs, a idle non-oil tax income base, go along dependence on US markets for exports, tender skill base and a change recognition market.Calderon was es hypothesise to pass the energy reform provided it was spartan to boost growth precondition high input costs and Mexicos dependence on the slowing US economy. 3 domain of a function discipline indicators database, adult male Bank, July 2008, www. worldbank. org survive viewed direful 12, 2008. 4 reference work land outgrowth indicators, www. worldbank. org, buy the farm viewed 8/13/2008 and Mexico res human racea Profile, Economist discussion Unit. A high Gini coefficient indic ates a high level of income inequality, 0 corresponds to entire equality and 1 to perfect inequality with one soulfulness having all the income. piece good Gini coefficients trope from 0. 49 in Japan to 0. 707 in Namibia (www. wikipidia. org run short viewed 8/13/2008). 5 Mexico bucolic Brief, World Bank, www. worldbank. org, experience viewed majestic 13, 2008. 6 get-go Banco de Mexico, www. banxico. gob, pull through viewed expansive 13, 2008. 3 509-025 Grupo Bimbo growing and complaisant debt instrument Grupo Bimbo tarradiddle The Servitje family started doing task in the baking industry earlier in the twentieth century. When Lorenzo Servitje was 18 historic period old, his donwho had a well-known bakehouse called El Molinodied from a stroke. Lorenzo had to leave screw his accountancy flight in regulate to attend to his tyros bakery.On taking over, Lorenzo cute to earn the bakery something bigger and more ambitious. He wished to start a gelt action and scattering business. On declination 2, 1945, Bimbo was founded. It had cardin in like mannerme foundation garment piece of landholders, all family members Lorenzo Servitje and his junior comrade Roberto Servitje among them. The logo, the Bimbo bear, was skeletal by the married woman of one of the fo infras. Bimbo started with only one brand, 38 workers, and 10 trucks to give birth the wampum do in one give in Mexico city. The first products were sportingn en berth cabbage and toasted white swag. The ware march was plumply manual and rudimentary.Bimbo profit was promptly original by Mexicos households because it was jammed in gauzy cellophane paper preferably of the customs dutyal rebel paperwhich unploughed it fresh and in increase because its quality was substantially chequern. Anformer(a) mold to Bimbos prefer was its huge packaging campaign in refreshingspapers, piano tuner and the movies. neer ahead had so much been indemnify t o universalize bread. 7 In the side by side(p) a few(prenominal) years, Bimbo rapidly incorporated more products into its product line, much(prenominal) as totally wheat bread, sweet breads, cakes and sweet loafs. Its dispersal ne 2rk, however, only r individuallyed Mexico city and cities nearby.To reach another(prenominal) cities, Bimbo embellished its diffusion brass in a way exchangeable to how un well-triedspapers were distri exactlyed at the time. By 1956, Bimbo had com burstered its first plant outside Mexico City. Having sure-firely built the community from scratch, in 1963, slang Lorenzo Servitje took on the part of CEO of Grupo Bimbo and his brother, Roberto Servitje, became CEO of Bimbo breads divergence. everyplace the undermentioned 15 years, the cardinal brothers rapidly grew Bimbos sales to $425 gazillion and 16,125 associates. At the outgrowth of the 1970s, Bimbo opened the largest bread grinder in Mexico and Latin the States and one of the 1 0 largest factories in the world.In this factory, bread production was completely automatic. The factory divulged one-and-half, big boxed bread, per second, which was completely unprecedented in Latin America. In 1979, Lorenzo Servitje pass over Grupo Bimbos presidency to his brother Roberto and he false the chairmanship of the board. In 1980, Bimbo went common with 15% of its stock in the Mexican stock exchange. The phoner was then determine at $12. 5 one thousand million dollars. The undefeated IPO gave the lodge arrogance to flesh out into the fall in States. Bimbo displace its first trucks with bread to the U.S. to explore the fortuity of catering to a burgeoning world of Hispanic consumers precisely northern to the highest degree of its b set out. Satisfied with the populace of demand for its products, in 1987 Bimbo started to distribute products in Houston and Los Angeles. By the end of the decade, Bimbo had grow to Central and Latin America as well. In 199 7, Daniel Servitje, Lorenzos son, at the age of 39 with an MBA from Stanford University, became CEO of the group and continued to lead Bimbos planetaryization effort through grievous acquisitions.Roberto Servitje took on the chairmans office staff and Lorenzo stepped down from all testis positions. Daniel Servitje continued with the growth strategy of his predecessors, and in the year 2000, Grupo Bimbo expanded to Europe by acquiring dickens plants one in Austria and the other in the Czech Republic- and in 2001 it expanded into Brazil. secure evidences 2 and 3 for the keep connections historical fiscal performance, and regional indicators. By 2007, the follow had a sales overturn of Ps 72,294 million (or $6. 65 billion) and a net 7 Bimbo A 60-year History of imagine and arrive at theme www. rupobimbo. com. mx/admin/content/uploaded/Historia% 20Grupo%20Bimbo. pdf. function viewed July 8th, 2008. 4 Grupo Bimbo ontogeny and friendly office 509-025 profit of Ps 3,914 m illion (or $360 million). 8 Of its total sales, 67% were in Mexico, 22% in the U. S, and 11% from twelve Latin American countries. patch Roberto Servitje at age 80 served as the chairman of the board, Lorenzo Servitje at age 90 was motionlessness ready in its complaisant responsibility affairs. Products and Brands done the years, Bimbo grew in its bread production and likewise added legion(predicate) parvenue-sprung(prenominal) products and brands.With tight 5,000 items in its portfolio, and the on the button about one hundred new products cosmos added each year, the corporation crack cocaineed something for e really in view and every occasion. some(prenominal) of these additions came through acquisitions of diametric theatres and brands. Its Bimbo bread division was undoubtedly the flagship of the come with, accounting for nearly 50% of all its revenues. Of its main brands, Marinela produced all sweet breads, buns and cakes. Its star product was the gansito or little duck, which was a cake fill with marmalade and cover with chocolate.By 1975, one million gansitos were sold fooling. Barcel started off by producing candies, but by 1977 it had begun to produce a wide range of brine-cured snacks. Production of candies was transferred to a new star sign called Ricolino. By 2007, Bimbo dominated the market in the packaged bread segment in Mexico. In the piquant snack category, Barcel was second to its main contest Sabritas, owned by PepsiCo. se parityte master(prenominal) brands were transient ischemic attack genus Rosa, which produced distinctiveness sweet breads and flour tortillas, Milpa Real, which produced corn tortillas and Lonchibon, which make ready-to-eat food and snacks. or so of Bimbos internationalizations efforts were carried out through local anesthetic anaesthetic acquisitions. Bimbo looked to acquire truehearteds in regions and segments that provided a weapons platform for growth. It overly looked for wellnessfu l brands that were complementary to its alert portfolio of products and brands, and likewise provided opportunities that could change Bimbo to scale up and achieve cost economic systems. video display 4 provides a analysis overview of its sundry(a) brands, the associated product lines, and their country of operation. sales and Distribution dodgeBimbo had one of the largest and good to complex diffusion ne devilrks in the countrysecond only to coca plant-Cola. With time, Bimbos scattering corpse had manufacture more educate and larger but qualitatively, it was es displaceially the aforementioned(prenominal) as when Bimbo started 63 years agoneproducts were delivered fresh in a flash from Bimbo storages to the retail stock, at that place were no intermediaries in amidst. Bimbo products were distributed in to tercet diametrical convey supermarkets, doojigger retentivenesss and through what was called the concomitant occupation to mom pop gunstocks (mononu clear phagocyte formation).The importance of the tip shift was fall as system of macrophages found it harder every twenty-four hours to compete with expanding supermarket imprisonment and gadget origins that offered other run much(prenominal)(prenominal)(prenominal)(prenominal) as ready-to-eat food. In the last 10 years, the supermarket chains had grownup easily and the traditional MP product line was losing share ( enter portray 5). stratagem encloses especially, were showing stiff growth as they expanded into suburban and headquartersspun areas. Moreover, large chain retailers much(prenominal) as Wal-Mart and Chedraui were whirl banking work to their customers, thus making it harder for system of macrophages to compete.The total food market retail market in Mexico was estimated at $125 billion in 2007. 9 8 orthogonal exchange as of December 28, 2007 was 10. 8662. base Diario Oficial de la Federacion. www. dof. gob. mx. start viewed July 3rd 2008. 9 ret ail Mexico Country Market Insight, Euromonitor International, whitethorn 2008 and Top 5 retailers in Mexico, orbiter Retail, family 2008. 5 509-025 Grupo Bimbo growth and favorable tariff whole Bimbo productsfrom all brands and from all plantswere registern to depots from where they were distributed to all channels.In Mexico, around 40% of Bimbos total manpower consisted of avenue-sales associates. Its flagship brand, Bimbo bread, was distributed in large trucks serving metropolitan cities and towns. The rest of the brands were distributed in footlinger trucks by independent sales forces. The dispersion system was extremely broadcastmed. A hold data growthor contained all the discipline on customers, their clean armys, product assortments, and their detail itinerary. That entropy was synchronized with Bimbos legion at the end of each twenty-four hour period. Mexico has nearly 1 million sales outlets, of which Bimbo reached nearly 750,000. gross salesmen arrived a t the depot around 630a. m. to load their trucks. thank to the handheld, they knew which products to load depending on the routes they were assigned that daytime. Trucks were promiscuously inspected to cross-check the teaching in the handheld with the actual essential stock in the truck. gross salesmen started their routes around 700a. m. At each sales point, salesmen delivered products that they schedule and took back products in advance their shelf deportment had expired. This practice was infallible to insure that consumers had glide slope to fresh product in the market at all generation. whole sales information was entered into the handheld for control of day-to-day sales. At the end of their route, sales hoi polloi returned to their appropriate depots, where stocks were look into and the recalled products were readied to be sent to an expendio or implication reposition. Sales batch had sales finales that they could piss through ontogeny sales in each pedigre e or improver the number of lymph nodes in their route. Daily recompense to salesmen consisted of a base relent nonnegative commission, which was a constituent of their chance(a) sales. Commission, on mean(a), was more than twice the base salary.On average, a Bimbo salesperson earned more or less more salary than the one ordinarily offered by food industry for equal positions. The traditional or detail channel was the most authorised channel for Bimbo because it correspond its largest source of sales. Bimbo supervisors were forever and a day trying to sanction their team to expand their sales points to include nontraditional outlets such as bobble stations, witness parlors, internet cafes, among others. A large fraction of low-income plurality, who lived in rural areas or exquisite towns, depend on the traditional system of macrophages to buy their groceries. 0 uplift show 6 for a view of 3 semi-urban outlets. system of macrophages usually sold at highe r prices than supermarkets but lower than whatchamacallum stores. or so system of macrophages had a very close wrinkle with their clients who often relied on the cite prone by the store owner for their purchases. Most of the time customers readable their accounts by pay day. Such ac attribute was usually not offered by whatchamacallum stores or supermarkets. In spite of its service levels, the traditional channel was slowly dis poping.It was neat increasely problematical for the downcast system of macrophages to compete with convenience stores and supermarkets. Their stores were smaller, the product range more limited, and the layout and centering of the stores less professional. MPs had to pay for most of their inventory in cash. They received well-nigh no quotation entry from supplierssome distributors such as Coca Cola, Sabritas (PepsiCo. ), had only tardily started to offer confidence to MPs. Moreover, because their purchase volumes were relatively smaller, they received no quantity-discounts such as those offered to convenience stores and supermarkets.As a rejoinder to the needs of the MPs but as well as a way of maintaining Bimbos most outstanding channel, in 2004 Bimbo initiated a bold new plan called Pesito. 10 From field images, the case writers estimated their size of it to be about 250 to five hundred square hiret. The owners account average occasional sales of between $200 and $450, of which sodas, juice and weewee accounted for 50%, food-30%, and tobacco-20%. Larger stores alike carried cleaning and some wellness and beauty products. Some carried beer. Margins alter widely by product, averaging about 20%. 6 Grupo Bimbo fruit and affable righteousness 09-025 Pesito During the course of their quotidian route selling, salesmen offered figurer address on purchases of Bimbo products. chisel in owners emergencying the reference point gainful a flat fee of 2 pesos (20 cents) heedless of the size of the nightclub placed. The sales person entered the ascribe information on to his handheld so the lay of each credit could be uploaded into Bimbos central system once the sales person ended his daily route. At the next visit to the storewhich could be anytime between two days to one workweek, the store owner had to pay the credit to the sales person.The sales person would then give the store owner a receipt, which was printed from the handheld and the operation was closed. If the store owner was unable to punish the credit, for a allowance of 2 pesos the credit could be trilled over, but no new transactions would be do. some Bimbo clients recognized that Pesito was a way to enlarge their income, without having to invest in inventory, help oneselfing them to grow their business. Consequently the default option rate was very low. Bimbo had antithetical sales forces for different brands, thus in that military position were enlighten Pesito programs for each brand.For examp le, a store could make great(p) credit with Bimbo, Marinela, Tia Rosa and Barcel. The store would appear in the Pesito accounts under four different identifiers. There were limits to the measurement of credit that a sales person could give per client, in most cases the analogous of one weeks order and then there were overall limits per route as well. done steady efforts by Grupo Bimbos route sales batch, approximately 350,000 of the small store owners go ind in the Pesito program and paid on time, and Bimbos goal was to get along cast up that in the approach path years.Microfinance for remembering Owners arrogate Lorenzo Servitje had, among many another(prenominal) other of his sociable concerns, the report of helping the poor through little attribute. tangle with Lorenzo was curiously enkindle in the MPs store owners because, through Bimbo, he had observe how they lived day by day solely with the income from their store. They had no wellness or life damages and Don Lorenzo noticed how many clock MPs had to close due to unwellnessiness or ending in the family. Store owners similarly had no access to the testicle financial system so they had to rely on property lenders, especially to make seat of government overtures in the store.They seldom had resources to invest in their store to make it more productive or more enchanting to customers for example by installing new equipment, refrigerators, meat cutters, or a PC to access the internet. hence in 1994, Bimbo started an partnership with Fincomun, a microcredit mental hospital with the goal of providing further financial services to its MP clients. The give process with Fincomun was simple. A Bimbo salesperson could propose a client to Fincomun. Bimbo sales mess knew their clients quite well, their business model, their cash flow, and their credit reputation.If the client accepted the offered credit, Fincomun agents visited the store and gave them a check that could be cashed at a bank. If the Bimbo sales person aided in the follow-on collection, they were paid a small fee for the effort. solo a very small dimension of Bimbos clients, however, were Fincomun customers (less than 5%). By June 2008, Fincomun as well offered Life and hospitalization amends and had four hundred clients in the airplane pilot stage of the insurance program. History of Bimbos Corporate loving function From its very beginnings, Bimbo prided itself on its dedication to social causes and Mexicos phylogenesis.In 1954, not even 10 years after(prenominal)ward its founding, Bimbo opened a school for workers 7 509-025 Grupo Bimbo result and loving state children. Since then, a office of Bimbos pre-tax profits were earmarked for social and didacticsal causes. I precious to give myself to something more than just making cakes and bread. I aspired to serve others, Don Lorenzo was reputed to shake up give tongue to in a newspaper interview. 11 Even in hard times, Bimbo ha d avoided exit plenty and reduction the CSR budget. Roberto Servitje utilize to say, Entrepreneurs are meant to create and grow, not to destroy. everyplace time, Bimbos portfolio of CSR programs had grown two in size and in sophistication. At the beginning, the programs were more accommodate internally, toward Bimbos associates. Over time, they expanded outwardly as well. Bimbos CSR programs were split up into a matrix (for a detailed commentary of programs see evince 7). Daniel Servitje asserted, Our CSR programs are divided into six categories that crossroad with each other. We con besotted internal and external programs, and then we brace economic, social and env cast-ironmental programs. When Bimbo was founded, CSR was neither merged nor formal.It was something that we did because we believed in it because the values of social cognisance were embedded in all of us since we were children. Martha genus Eugenia Hernandez, head of baseal dealing and CSR and who had been at Bimbo since 1981, recalled Don Lorenzo used to say, Your unexpended hand should neer know what your right hand is giving. And that was the philosophical system behind CSR at that time it was low key. Roberto Perez Gomez, head of labor transaction and a 20-year-old veteran of the company added, With Don Lorenzo, Bimbo was a small and snobbyly held firm pass on with associates was very in the flesh(predicate).Even though Bimbo has grown rapidly and is now a public company, the social responsibility philosophy is distillery the homogeneous. Contact with associates is still personal. Daniel Servitje visits each plant every year and has annual meetings with associates of different areas. The companys CSR budget was dogged as a percentage of its profits. This percentage was obdurate by a CSR delegation comprised of five members of the board. The commission as well as decided which programs to support and to what amount. The profit percentage varied from year to year, and was impelled independently for each country.Bimbos CSR programs were divided into four areas of lading Employees or Associates, health, surround, and the Community. Associates Since the beginning, one of our greatest concerns was our alliance with associates. We insufficiencyed citizenry to work happily, we lacked them to come across with the company and we wanted them to be see, having a non slavish view of people we wanted relations with personnel to be harmonious and cordial. With the years, the view of a extremely productive firm that could besides be a deep humane company con unscathedated.Profit overlap with our associates was higher than that required by constabulary and many of our associates purchased shares with their periodical prudences. 12 (Don Lorenzo Servitje13) 11 Lorenzo Servitje Sonar y Realizar, Reforma, Club section, whitethorn 16, 2008. 12 jural profit communion in Mexico was 10%. Profit communion in Bimbo was linked to productivi ty and could go from 11% to 13. 5% of profits depending on the results of the company. acknowledgment troupe information. 13 Bimbo A 60-Year History of Believe and Create. cum www. grupobimbo. com. mx/admin/content/uploaded/ Historia%20Grupo%20Bimbo. pdf. brave viewed July 8th, 2008. 8 Grupo Bimbo return and companionable accountability 509-025 In 2005, Bimbo engage a Canadian company to dissect Bimbos competitive advantages. They concluded, We have analyze their engine room. They have the best in the world. They are leading in the markets where they are expose and have a great dissemination network. However, what strikes us the most is that people are attached far beyond what is rulerly seen in other companies. People identify with the company. We see all workers, at all levels, seeking to give the best in them. That is what very makes them special. 14 Bimbo was rated one of Mexicos best places to work during the last eight years. In September 2008, Grupo Bimbo as a w hole had more than 97,000 associates, of which around 60,000 worked in the baking division in Mexico. round 25% of them were international associates and 13% were women. properly from the beginning, Bimbos top circumspection did not merely cover their associates as a labor resource, but rather as people who were partners in Bimbos mission to create value. They were tough with care, and provided opportunities to grow and go steady and advance their quality of life.Grow and innovate was the motto driving force Bimbos relationship with its associates. Javier Millan, head of sympathetic Relations, put it simply Our competitive advantage lies deep down our values, outstanding among which is the person. Viewing a person as an individual is the small difference that makes all the difference. Once they are treated that way people get involved, they die interested in the companys objectives. Bimbos programs for its associates were divided into two areas of support economic or inc rement. inwardly economic benefits, Bimbo had health assistance, support for firm progress, and help with gives and plant. It strongly encouraged semipermanent wave retirement savings among its associates. Roberto Servitje said What you truly gain is what you lay aside and invest. Under personal increment, Bimbo offered its associates various courses that cover much more than just discipline for the workplace. Many courses turn to personal tuition opportunities such as, up(p) communication skills, raising strong families, and so on.There were also educational offerings that enabled associates to complete a high school program, online and on-the-scene(prenominal) incline technique courses, and a requisite course on how businesses work and top to the economy (to see a interpretation of Bimbos programs for its associates, see confront 8). Roberto Servitje said, The firm is what its people are, and the people are what their leaders are. From among the many benefits p rovided to associates, the health and education offerings were highly valued. Mexicos public health system was known to be inefficient.It often took long hours to be seen by a doctor and receive treatment, and many visits to the doctor before one could see a specia dip. Moreover, few people had access to healthful practice of medicine. Bimbo tried to bridge the spreading by providing exempt complete checkup exams to all associates over 40, once a year preventive medical exams for cardiovascular illnesses at Bimbo facilities and experience checkups for those identified as needing further monitor and care. All Bimbo associates were cover by the Mexican governments health plan, to which Bimbo make a contribution, as did the associates through paysheet deduction.In order to enable its associates quiver the poor system of public care, Bimbo do available its facilities for the government to operate its clinics. Because of their location most of these operated as exclusive clinic s for Bimbo employees. Moreover because these clinics were on Bimbo premises, the company was able to offer better al-Qaeda than what would normally be available to such clinics. 14 In Grupo Bimbo, People imprint the Difference, paradeation presumptuousness by Javier Millan, head of Human Relations, 2007. 9 509-025 Grupo Bimbo process and mixer responsibilitywellness and fare inwardly transcription for economic Cooperation and festering countries (OECD), Mexico had the dubitable reputation of be second in fleshiness rankings after the unify States. 15 Recent studies16 showed that fleshiness in Mexico within the total population had increased during the last 60 years, but that this growth had deepen at an terrific pace in the last 20 years. Obesity growth rates intensify 10% to 20% in children, 30% to 40% in adolescents, and 60% to 70% in adults. The increase in obesity was most torture in children (see queer 9).The com parable composition linked the reasons f or the increase in childhood obesity to changes in eating habits, to diets high in calories, bang-up carbohydrates and sodas, and decrease in enjoyment of fruits and vegetables. This same study tell that the increase in obesity was also related to a decrease in tangible exercise. In Mexico, the obesity guess for children 9 to 16 years old increased 16% for each hour that they watched TV or compete videogames. On average, Mexican children watched TV or played videogames 4. 1 to 6. 3 hours daily. 7 To tabulator the varied causes of obesity, in 2007 Bimbo launched a health program called affiliated to Your wellness. The program had many different components slightly divided into five areas improving product healthiness, education in health and nutrition, publicity of physical activity, research, and being an warning(a) firm in monetary value of health and nutrition (for details of the programs see viewing 10). The company published Nutrinotas, which reached 1 million prin t and online subscribers, and distributed sports and nutrition materials for 21,000 students.As part of its efforts to provoke physical activity, the company staged a nationwide association football tournament for children, Futbolito Bimbo Stars. In 2007, 46,000 children aged 9 to 12 participated in the program and the triumphant team traveled to Venezuela for the Americas Cup association football tournament. In 2008, more than 50,000 children attended, winning a trip to Disney World. In its 2007 annual report, the company affirmed its payload to health The millions of people who enjoy our products each day count on them for quality, trunk and taste. The success lies in staying attuned to consumer tastes and trends.That means enhancing the nutritionary value of our products and introducing new, reasoned options. In this regard we follow the guidelines of the World health Organization on minify fat, salt and saccharify content, and decreasing portion sizesWe are also inn ovating by adding running(a) ingredients to numerous products, for example, to lower cholesterol or enhance mineral absorption. We have created a range of products with less than degree centigrade calories each and just as importantly, we are investment in mass-market educational campaigns to encourage active, healthy lifestyles.In order to create the inevitable research and development infrastructure, Grupo Bimbo had built four Innovation and Nutrition Institutes (Institutos de Investigacion y Nutricion de Grupo Bimbo), two of them located in Mexico, one in the joined States and one in mho America. 15 World wellness Organization, www. who. org last viewed July 8, 2008. 16 Obesidad Infantil, Instituto Nacional de Salud Publica, Nov. 2006. www. insp. mx/Portal/Centros/ciss/nls/boletines/ PME_14. pdf. last(a) viewed July 7, 2008. 17 Obesidad Infantil, Instituto Nacional de Salud Publica, Nov. 2006. www. insp. x/Portal/Centros/ciss/nls/boletines/ PME_14. pdf. depart viewed July 7, 2008. 10 Grupo Bimbo harvest-home and Social tariff 509-025 Environment Bimbos programs in terms of environment egis were divided into five areas emission reduction, saving pee, saving energy, solid waste vigilance and CSR on environmental matters through an initiation consecrate to wood preservation and re-afforestation called Reforestamos Mexico. In the nomenclature of Martha Eugenia Hernandez, we want to be a Green confederacy, both(prenominal) inside and outside. See Exhibit 11 for the impact of its natural resource conservation effort.In 1998, Mexico suffered all-encompassing fires in its forests Mexico befogged 800,000 hectares of forests. The government invited companies to participate in get lost forests. Bimbo responded speedily. Its associates raise money, and each peso donated by them was matched by Bimbo. As a result of the companys (and its associates) efforts, 1 million trees were place and 8 natural areas were targeted for improvement. After that dazzling achievement Bimbos directors decided to debase their commitment to Mexicos forests on a more permanent basis.As a result, in 2002 Bimbo created a non-profit organization dedicated to protecting the forests and trees of Mexico and named it Reforestamos Mexico. The administrative costs of Reforestamos Mexico was all in all borne by Bimbo, term the costs of the various projects were shared by Bimbo and other firms such as Wal-Mart, Banco Santander, Hewlett Packard, as well as individual donors. 20 percent of Bimbos saving from energy conservation was used to fund Reforestamos Mexico. All Reforestamos employees, including the director, were independent.Its director, Ernesto Herrera, had worked for Bimbo prior to this fitting and was making loveately committed to its mission. I have worked for the environment for 10 years. For me, Reforestamos Mexico has been a dream-cometrue. I work in something that I passionately care about, and in one of the most committed companies in the world. I show Reforestamos Mexico expanding into Latin America and working along with some of Americas most important environmental NGOs. From the 27 people that constituted Reforestamos Mexicos advisory board, only 3 worked for Bimbo.In addition to its Reforestamos Mexico activities, in August 2008, Grupo Bimbo announce that it had begun the use of degradable polythene packaging for its products, which make it the first Mexican company to use a c% environment-friendly material. Ramon Rivera, Operations managing director of Grupo Bimbo, commented, the products packaged in degradable wrapping husband their freshness and all of their characteristics exactly the same as those development traditional wrapping, and so consumers can have total confidence that the product will continue to be exactly the same. With the technology known as d2w, the degradation of the malleable began as shortly as its expedient life was over and the malleable discarded. The plastic was pro grammed to be consumed by bacteria and fungus kingdom in the soil, through an additive that bring down its molecular structure. This process of degradation would take a level best period of 3-to-5 years, in comparison to the normal process that could take as long as coke to four hundred years. 18 Community Bimbo was crisply aware of its close linkages to the community, and therefore had instald various programs in support.It worked jointly with the case growing Bank for the small and micro try (Nacional Financiera or NAFIN) to help its suppliers with working capital needs. Bimbo also back up many educational programs for both its suppliers and its store owners. For suppliers, Bimbo provided a course that helped them improve their business skills. The topics included cost reduction, quality improvement, and bring in operations online. For store owners, 18 Grupo Bimbo Incorporates Degradable promotion 100% Environment Friendly, http//www. grupobimbo. com. mx/ salaprensa/ b usiness leader. php? fuseaction=home. oletinlangID=2bolID=212. 11 509-025 Grupo Bimbo exploitation and Social certificate of indebtedness Bimbo develop a course jointly with local universities called the store-owner university or la Universidad del tendero. This course covered basic management tools such as accounting, market, customer service, operations planning and control, and some basic computer skills among other things. By June 2008, Bimbo had delivered 38 classes to some 1,000 store owners. In 2007 and 2008, through Televisa al-Qaida, an institution that sought the development of children and young people of Mexico, Grupo Bimbo istributed 550,000 copies of a determine Calendar and teachers sustenance Guide, to almost all Mexican simple- thinkered schools. Each year the company invited 1 million children to visit its many plants and limit about the food industry. The company had long been a friend of the Papalote Museo del Nino (childrens museum), providing the l iving support for a school program for children from low-income communities to visit the museum. Over 4,500 children visited the museum every year as part of the program. In addition the company straight back up Crisol, an simple-minded school for low-income children.In addition, Grupo Bimbo back up the activities of the Mexican behind for agricultural festering (Fundacion Mexicana para el Desarrollo agrestic), an organization with more than 40 years of experience that promoted the development of the agricultural sector, and low-income rural families. The company also supported the Center for Integrated Development of the Countryside, A. C. , (Centro para el Desarrollo Integral del Campo, A. C. ), which benefited one of the poorest populations of Mexico in the Nayar zone.In a similar vein, the company supported various development programs for indigenous communities in areas such as health, nutrition, and education, through workshops organise by innovation Mazahua Region ( Patronato Pro Zona Mazahua) benefiting more than 20,000 people from the Mazahua area of northwestern Mexico State. All-in-all, Bimbo supported many different projects and organizations (for a list of institutions supported by Bimbo, see Exhibit 12), leading Martha Eugenia Hernandez to conclude, We have a lot of requests for help and we would passion to help everyone.We want to be Santa Claus but we just cannot It is hard to say no, but it is hard to say yes to everything. Going front There was no question in Daniel Servitjes mind that the internationalization of Bimbos business was important for its growth strategy. In addition to increasing Bimbos figurehead in markets such as the United States or Latin America, he also wanted to come home markets where Bimbo was not present or where it was just entering, such as China. An important repugn was to improve international profitability, which was lagging behind Mexicos operations. just the leadership position it had gained in th e domestic market and thence in many markets of Latin America was something that Daniel Servitje did not want to lose sight of. He recalled the passion and commitment with which his predecessors, his father Lorenzo Servitje, and then his uncle, Roberto Servitje, had led the company. They were able to die the companys strategy development and its mission and values. He wondered what he could do for an encore. Bimbo was undoubtedly one of the most respected companies in Mexico. How should he go about continuing the tradition in Mexico and rest of the markets it had entered? 2 Grupo Bimbo Growth and Social Responsibility 509-025 Exhibit 1 Historical Bimbo Sales 800 700 600 500 400 300 200 100 0 1980 82 84 86 88 1990 92 94 96 98 2000 02 04 06 2008 Historical Bimbo Sales (1980 =100) address Company information. Exhibit 2 Consolidated Income recital (million dollars) 1980 426 225 201 150 51 (4) 1 47 24 24 0. 4 23 12. 3% 9. 1% 1997 2,302 1,123 1,179 966 214 11 (14) 211 90 121 5 126 10. 3% 7. 3% 2000 3,279 1,435 1,844 1,506 338 (8) (13) 317 cxxx 187 5 192 12. 0% 7. 5% 2006 5,851 2,724 3,127 2,588 539 (27) 12 524 194 330 3 333 15. 6% 8. % 2007 6,653 3,138 3,515 2,926 590 (22) (36) 537 177 366 6 360 14. 0% 8. 7% USD MM electronic network sales Cost of sales Gross profit in operation(p) expenses Operating income Integral financial result early(a) income or expenses, net Income before income taxes Income tax expense Net income before participation in partner companies Equity in income of associated companies Net income hard roe ROA generator Grupo Bimbo, 1980, 1998, 2000 and 2007 yearly report, www. grupobimbo. com, last viewed June 5th, 2008. 13 509-025 Grupo Bimbo Growth and Social Responsibility Exhibit 3 financial Information by Region (million dollars)Mexico 1998 clear gross sales run INCOME EBITDA 1,923 266 338 Mexico 2000 network sales run INCOME EBITDA 2,431 356 443 Mexico 2006 NET SALES OPERATING INCOME EBITDA 4,110 510 634 Mexico 2007 NET SALES OP ERATING INCOME EBITDA 4,575 542 686 regular army 364 11 23 the States 599 (9) 12 ground forces 1,399 21 52 USA 1,524 19 51 Latam 238 (32) (14) Latam 249 (9) 9 Latam 490 4 25 Latam 699 25 55 nitty-gritty 2,524 245 348 check 3,279 338 463 Total 5,851 539 714 Total 6,653 590 796 denotation Grupo Bimbo, 1980, 1998, 2000 and 2007 Annual report, www. grupobimbo. com, last viewed June 5, 2008. 14 509-025 -15- Exhibit 4 Bimbos Products and Brands Division Bimbo MexicoMexico United States Argentina, Brazil, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela China Barcel Bimbo Bakeries USA Bimbo Latin America Bimbo Asia Country Mexico Brands Bimbo, Marinela, Tia Rosa, Wonder, Milpa Real, Suandy Lara, Lonchibon, Gaby, El Globo, among others Barcel, Ricolino, Coronado, La Corona, among others Oroweat, Mrs Bairds, Bimbo, Entenmanns*, doubting Thomas*, Tia Rosa, Marinela, Francisco, sexagenarian Country, Boboli*, Webers*, a mong others Bimbo, Marinela, Plus Vita, Pullman, Ideal, Holsum, Trigoro, PyC, Bontrigo, Cena, Fuchs, among others.Bimbo author Grupo Bimbo 2007 Annual Report. www. grupobimbo. com, last viewed Sept. 9, 2008. * Under license. slip of products 509-025 Grupo Bimbo Growth and Social Responsibility Exhibit 5 foodstuff Retailers Market dowery 1999 Wal-Mart Safeway Soriana OXXO Comercial Mexicana Gigante Carrefour Chedraui Costco Casa Ley Comextra 7-Eleven HEB Comercial VH Almacenes Zaragoza Casa Chapa Controladora y administradora de pastelerias Grandes superficies de Mexico Others ( Mostly florists chrysanthemum Pops) Total 0. 8 1. 4 0. 5 0. 2 0. 2 0. 3 0. 2 0. 2 0. 1 0. 9 78. 8 100. 0 6. 6 1. 5 2 1 2 2. 4 0. 9 002 6. 1 3 1. 2 2. 6 3. 2 0. 9 2 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 0. 9 78. 1 100. 0 2004 10. 2 4. 7 2. 6 3. 4 3 1 1. 9 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 0. 9 70. 4 100. 0 2005 11. 5 4. 8 2. 9 3. 4 2. 6 1. 5 1. 8 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 69. 4 100. 0 2006 12. 7 5. 2 4 3. 5 2. 4 2. 1 1. 7 0. 8 0. 5 0. 3 0. 3 0. 2 0. 2 0. 1 66. 1 100. 0 2007 14. 6 5. 7 4. 5 3. 6 2. 4 2. 2 1. 8 1 0. 5 0. 3 0. 3 0. 2 0. 2 0. 1 62. 7 100. 0 pedigree Retailing Mexico, Country market insight, Euromonitor International, May 08 and Retail planet. 16 Grupo Bimbo Growth and Social Responsibility 509-025Exhibit 6 Views of Semi-Urban MPs Source Casewriters. 17 509-025 Grupo Bimbo Growth and Social Responsibility Exhibit 7 Bimbos CSR Programs Source Company information. 18 Grupo Bimbo Growth and Social Responsibility 509-025 Exhibit 8 Bimbos Programs for its Associates Development benefits Development courses for associates o personal development course 3 day course on meditation on oneself and life. The topics ranged from ones ideals, work as a means of personal development and community contribution, the company, health and spirituality, role in society, among others. Leadership course for bosses where the motto was The firm is what its people are and the people are what its boss is. o What is a firm one day course on the firm? Topics were savings, investment, work, CSR and profits. The firm was explored so that associates would perk the need to have profit and how in a successful firm everyone benefited. o Family integration workshops for associates and their spouses teaching method courses o unfastened schooling to associates so that they could finish mall and high school. Online English proficiency courses and on-the-spot(prenominal) English courses o champion for uncomplicated to masters education for associates in Mexico and the United States o intensifier mandate learning course on driving for all sales personnel. o Many production associates wanted to become sales people because reinforcement were higher. Bimbo offered education in sales and driving to production associates so that they could become sales people. o Bimbo offered, in some of its production facilities, summer camps for associates children during the summer va cations. nest egg Voluntary saving program where 1 to 2% of associates wages were kept for a long term etirement savings program. frugal assistance Health o Bimbo form a health week where social guarantor came to Bimbo to do preventive medicine tests on associates such as sweeten level tests, cholesterol, blood military press, among other things. o Associates that came out giving in any of the tests were given review article checks up end-to-end the year. o Bimbo had mandatory health checks for associates over 40. o In case of heartrending health problem, Bimbo helped by putting hale into the social security system so that the associate got up to(predicate) treatment. Bimbo also got reclusive labs to make specialize tests to associates at very low prices. shoes improvement o Bimbo organized a home improvement fair through the Mexican institute for home equipment, IMEVI, so that associates could get home improvement credits and better prices on home improvement mate rials. Wills and deeds o Bimbo got associates special prices with public notaries so that they could range their land or home by making deeds as well as wills. Bimbo also helped associates by allowing them to pay for their will or deeds procedures in a monthly basis instead of in a lump sum. dietitian and doctor in Bimbo offices to help associates guardianship a healthier diet. Company information. Source 19 509-025 Grupo Bimbo Growth and Social Responsibility Exhibit 9 Obesity and heavy(a) Prevalence in Mexican Children 1999 5. 3% 5. 9% 1999 18. 6% 2006 9. 4% 8. 7% 2006 26. 0% % heighten 77. 0% 47. 0% % Change 39. 7% Obesity in children 5 to 11 year olds Boys Girls big(p) and obesity in children 5 to 11 year olds Boys and girls Source Compiled by casewriters utilise data from Encuesta Nacional de Salud y Nutricion 2006, Instituto Nacional para la Salud Publica, http//www. nsp. mx/ensanut/resultados_ensanut. pdf, last viewed July 7, 2008. Exhibit 10 Health programs in Bimbo Social marketing campaign advocating 30 minutes of daily exercise through television commercials, billboards, radio announcements and packaging. Futbolito Bimbo Stars Tournament Bimbo invited 46,000 children to a soccer tournament where they were given information on the need for physical activity and healthy diet. get off and e-mail distribution of nutrinotas, an information phonograph recordinglet on health and nutrition, to more than 1 million people annually.Distribution of posters promoting good nutrition in 21,000 public and private schools. Distribution of the book Living a Healthy life-style to all Bimbos associates throughout the world and to MPs owners. excrement of transfats from its products. blushfuluced portion sizes and created products with only 100 calories Decreased fat, sugar and salt in 8% of all Bimbos product portfolio Fortified products with iron that was five times easier to absorb. The Public Health National Institute, in its Nutrition and He alth 2006 census showed that children in Southern Mexico had an important iron deficiency.Bimbo genuine products that appealed to children and met 20% of their daily iron needs Created a new bread that helped edit cholesterol Participated in the Alliance of the stock ticker with Pfizer and Lala where 200,000 people were diagnosed and tested, at no cost, for cardiovascular diseases based on indicators such as cholesterol, glucose and blood pressure levels. Bimbo also made efforts to be an exemplary firm by giving dialogue to associates on health and nutrition, providing nutritionists for consults, having healthy menus in its cafeterias and recommendations to have physical activity in the workplace.Bimbo gave founding to many health organizations such as The Mexican Foundation for Health (FUNSALUD), The APAC foundation providing reclamation for people with rational palsy, the Ronald McDonald Childrens Foundation supporting programs that forthwith improve the health and well-bei ng of children around the world, the Juvenile Diabetes explore Fund, the March of Dimes health education for great(predicate) women and promotion of folic mordant supplements in bread and the Mexican Red Cross.Company information. Source 20 Grupo Bimbo Growth and Social Responsibility 509-025 Exhibit 11 Impact of indispensable Resource saving at Bimbo Since 2003, Bimbo change magnitude its vehicle travel by terminate by 3. 6 million litters and increased their average kilometer per l by 15% by better carburetion technology engines and fuel types Since year 2000, Bimbo change magnitude its energy advocate per ton produced by 13% and the caloric energy index per ton produced by 34%.Since year 2000 Bimbo had saved 194 million liters of water or 23% of its consumption by water treatment, installing water-treatment systems in plants, collecting water from rain, among other things. By 2008 Bimbo was recycling 85% of their solid wastes through recycling policies. Source Company information. 21 509-025 Grupo Bimbo Growth and Social Responsibility Exhibit 12 Organizations and Institutions back up by Bimbo, among others educational Institutions o Instituto Tecnologico de Estudios Superiores de Monterrey (ITESEM) o Escuela Bancaria y Comercial (EBC) o Universidad de Monterrey (UDEM) o Universidad Nacional Autonoma de Mexico (UNAM) o Instituto de Fomento e Investigacion Educativa (IFIE) Other foundations or institutions o Televisa foundation o UNICEF o young League Mexico City o Papalote Children Museum from the Support given to the museum, in 2007 4,500 children from public schools and 30,000 children from marginalized communities visited the museum o Fundacion Pro Empleo Productivo o Impulsa o Fundacion Mexicana para el Desarrollo country-style o Patronato Pro-zona Mazahua o Fundacion Tarahumara o Fundacion CIE o Amigos del Museo de Arte Popular which benefits more than 8 million Mexican artisans comfort efforts o After the 2007 floods, Bimbo mad e a campaign to help associates that were damaged by the flood. Over 33,000 associates donated and donations were matched by Bimbo. o In the United States, Bimbo contributed to food drives for the tornado victims in Texas and Kansas International foundations o Project leaders of the 21st cytosine (Colombia) o National Park Foundation (United States) o Toys for tots (United States) o United management (United States) o jr. Achievement (United States) o Institute of the Americas (United States) o Amigos de las Americas (United States) o preteen Women Association (YWCA) Source Social Responsibility Report 2007, Grupo Bimbo. 22