Mabe: Learning to Be a Multinational (A)
(9 pages of text)
AWARD WINNING CASE - Latin American Business Cases Award, 2013 European Foundation for Management Development (EFMD) Case Writing Competition. A Mexican appliance manufacturer, MABE, has evolved quickly after selling nearly half its stake to a large multinational company in the early 1990s. The manufacturer was then able to dominate the Mexican appliances market and venture into other Latin American countries. 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?
This case can be taught on its own, or in combination with Mabe: Learning to Be a Multinational (B) 9B15M121
This case is suitable for a global strategy/international business class where it will broaden students’ understanding of the motivations and means of international expansion. It is also suitable in an organizational behaviour class to underscore the importance of researching and respecting cross-cultural differences when entering new markets and to highlight the role of learning from alliances. In a strategy course, students will learn to understand the importance of economies of scale and global competition as drivers of strategy.
Latin America; Russia, Large, 2012
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