Presented by:

Amanjot Singh

Shivam Shivam

Harjot Singh

Jijo Francis

Navtej Singh Sran

Mabe:

Learning to be a

Multinational

Agenda

• Introduction : Amanjot Singh

• Company Profile: Navtej Singh Sran

• SWOT Analysis: Jijo Francis

• PEST Analysis: Harjot Singh

• Questions: 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 ?