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Published by:
Copenhagen Business School (CBS) (2015)
Length:
32 pages
Data source:
Field research
Abstract:
Cooperation with local partners has, for more than 60 years, been Arla Foods’ strategy for its internationalisation in Latin America and the Caribbean (LATAM). However, in 2013 Arla Foods decided to open an office in Mexico City to develop a stronger presence in the region. In addition to a shared ownership in Brazil with Vigor Alimentos SA, announced in September of 2014. The case presents a background to Arla Foods’ in LATAM, and then the integration of the regional office. In this case responsible management issues concerns; (1) ethical challenges that Arla Foods meets in entering and expanding its market share in LATAM; (2) whether it is actually possible for Arla Foods to run a profitable business taking into consideration the differences found in LATAM’s consumers; and (3) managing employees in fragile institutional settings. Janus Skot, the protagonist in the case is considering the strategy to design and implement (eg strengthen cooperation, joint venture, local partnerships etc) in LATAM. But would it be possible to target low income consumers with premium products as Lurpak? This case is part of the CBS free case collection (visit www.thecasecentre.org/CBSfreecases for more information on the collection).
Learning objectives:
1. To describe and discuss international business strategies for multinational corporations (MNCs) to enter in the Latin America and the Caribbean markets. 2. To discuss the different institutional settings found in Latin America and the Caribbean that can challenge entry mode strategies in the region. 3. To discuss the responsibility concept in relation to consumers, when firms seek to increase market share in emerging markets such as in Latin America and the Caribbean.
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