Bunge Poised for Growth Case Solution

2. How would you describe Bunge’s unique business model?

A business model refers to a part of a plan or strategy through which the particular company makes, allocates and combines the value of its production. There are various components of a business model which are equally important in a particular business. Bunge has two types of customers, retail customers and wholesale customers. It opts for the basic marketing strategies of above the line and below the line advertisement for retail customers and uses public relations for the other type of customers. Company’s products are differentiated in the market on the basis of their quality and innovative ways of production. Prices are competitive, making it easier to increase the customer base. The company has a strong interrelated management system, closely interconnected with each other, complementing each other in an effective way. Customer satisfaction is taken into consideration and given the importance. Hence, the business model of Bunge group is working successfully without any issues and problems.

3. What are some of the fundamental trends and structural changes in the international agribusiness market?

Agribusiness deals with the business of products related to the agricultural field. It incorporates crop creation (cultivating and contract cultivating), seed production, agricultural chemicals, ranch apparatus, dispersion, preparing, advertising, and retail bargains. Inside the agribusiness business, "agribusiness" is utilized essentially as a blend of farming and business, alluding to the extent of exercises and trains incorporated by cutting edge nourishment preparation. There are scholarly degrees in and bureaus of agribusiness exchange cooperation’s, agribusiness distributions, et cetera, worldwide. In this connection, the term is just enlightening and is synonymous in the broadest sense with sustenance industry. The UN's Food and Agriculture Organization (FAO), for instance, works as a segment committed to Agribusiness Development which looks to push nourishment industry development in advancing countries. In the connection of agribusiness administration in the scholarly world, every singular component of horticulture handling and dissemination may be depicted as agribusinesses. Notwithstanding, the expression "agribusiness" regularly stresses the "relationship" of these different parts inside the preparation chain.

4. Which countries are the leading soybean producers?

Soybean is a mass produced product in the world mainly produced due the requirement of its oil seed in the international market. It’s a natural product, free from fats and a rich source for proteins for the body. The main soybean products are vegetable oils, margarines, butter, soymilk etc. The increasing demand for this crop has lead many countries to prosper in this field of agriculture. The countries topping the list of soybean production are as following. The United States of America produces a total of 72,860,400 metric tons of soybean which is being sold in the domestic market as well as in the international market. Brazil produces 57,857,200 metric tons, Argentina produces 47,482,784, China produces 12,725,147 and India come on the fifth place in the soybean production competition by producing a total of 10,968,000 metric tons of soybean.

5. Is Alberto Weisser’s view of the future, as expressed at the very end of the case, correct?

The idea of Alberto Weisser was to ensure the consolidation of the major production players include in the product cycle. He envisioned the future of the company to be as a successful and growing company in the world. The focus of Weisser is on the globalization of the company’s operations and the expansion of its target countries and regions. The vision of growth and expansion is correct in the case because if the current position of Bunge is analyzed, it is clearly to be seen that the company is on its way to expand and increase in size. Wesisser envisioned that there should be a decentralized system in the company, and there should be healthy relationships with suppliers and farmers belonging to a lower background in the society. A closed network of the company with farmers and whole sellers will result in an immense stability and predictability of the company’s secure and long lasting success in the future.

6. Are partnerships a temporary measure for Bunge as their transform themselves, or should they be a permanent part of their strategic approach?

A partnership is defined as the process in which more than one companies collaborate in their operations and production cycle in order to achieve the maximum benefit out of the limited resources available to both of them. Partnerships are necessary where the scale of the business is large, and management of every sector is difficult for a single unit of the business. Hence, companies collaborate for the purpose of fulfilling their mutual interest in the profitability of the business. Bunge forms partnerships with the companies in order to complete its product cycle effectively and maintain the position of market leadership. The strategic approach of the company relating to the formation of partnerships is to be maintained in order to grow and expand exponentially. Partnerships will let the company grow and go global according to the future envisioned by the management of the company. Hence it should accept partnerships as their permanent strategic approach.

7. Is Bunge moving too quickly or too slowly (pick one) in developing marketing in Asia?

Bunge is moving at a steady rate in Asia because of various reasons concerning the management of the company. First of all, there is a difference in the culture, which is making it difficult for the management to follow a particular predefined strategic approach. It has to stay in the market and learn from the current companies because there is a lot of difference of conducting operations in Asia. The culture of China tends to promote its own companies and entrepreneurs. There is a negative feeling attached with the international firms operational in China. Bunge has to be careful in this regard, and thus it is not moving too quickly, and it is handling the operations in a different way than that of other continents. The main issue foe Bunge limited is the sustainability of the company in a completely different culture and that requires time and effort by the management and strategic advisers.