Ivey Publishing
Gentera S.A.B. de C.V.: The Evolution of an Organization and Its Board of Directors
Product Number:
9B17M173
Publication Date:
11/20/2017
Revised Date:
11/20/2017
Length:
24 pages (12 pages of text)
Product Type:
Case (Field)
Source:
Ivey/IPADE
Financial holding company Gentera S.A.B. de C.V., located in Mexico City and operating in Mexico, Guatemala, and Peru, offered microlending, financial payment, insurance, and money transfer services to individuals at the bottom of the financial pyramid. The company was founded and operated on strong social values—reduce financial exclusion, focus on human and social values (including self-actualization), and enhance economic value—which pervaded the decisions made by the board and senior management. By 2016, the company had evolved from its origins as a non-governmental organization to become a private bank and, more recently, a public company listed on the Mexican Stock Exchange. The company faced questions about its governance structure and processes: should it reduce the number of board committees and alter their function in order to accomplish a stronger strategic focus? It also faced organizational challenges related to growth and the need to both adapt its current business model to encompass financial technology and invest in information technology. How should it allow extensive developments while simultaneously updating systems required to meet current needs?
Learning Objective:
This case is suitable for a strategy or finance course directed towards MBA students. After working through the case and assignment questions, students will be able to do the following:
  • Describe the strategy and business model of a successful microfinancing institution and explain how it operates.
  • Summarize the process of eradicating financial exclusion, including providing social value, economic value, and human value.
  • Explain the role of governance in both strategy and compliance.
  • Explain how a change in organizational structure, from a non-profit microlender to an integrated financial public company, permitted extensive growth over a short period of time.
  • Outline the evolution of the structure and processes of a board of directors to reflect sound governance practices and a clear understanding of a company's values and mission.
  • Explain the role of information technology to not only capture transactions but also enable new business models.
    Issues:
    Disciplines:
    General Management/Strategy,  Entrepreneurship,  International
    Industries:
    Finance and Insurance
    Setting:
    Mexico, Large, 2016
    Intended Audience:
    MBA/Postgraduate
    Price:
    $4.25 CAD / $4.25 USD Printed Copy
    $3.75 CAD / $3.75 USD Permissions
    $3.75 CAD / $3.75 USD Digital Download
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