Publications
Publications
- September 2007 (Revised November 2007)
- HBS Case Collection
Bunge: Food, Fuel, and World Markets
By: Tarun Khanna, Santiago Mingo and Jonathan West
Abstract
In 2007, Bunge, an agribusiness company, had over $26 billion in worldwide sales and was considered, along with Cargill and Archer Daniels Midland (ADM), one of three very integrated worldwide agribusiness companies. Headquartered in White Plains, NY, the company has traditionally possessed a strong presence in Brazil. Describes Bunge's tradeoff between efficiency of global operations and local responsiveness in an uncertain business environment. New world developments were effecting Bunge directly: high oil prices, a growing demand in emerging economies like China and India, and the possibility of agribusiness companies competing successfully in the production of biofuels. Bunge had traditionally followed an organizational model that was integrated but decentralized, trying to strike a balance between the efficiency of a global entity and the speed of local businesses. What would be the best strategy for Bunge to respond to the external changes imposed by high energy prices and increasing demand from emerging economies? How aggressively should Bunge invest in the rising biofuels markets?
Keywords
Globalized Firms and Management; Operations; Organizational Design; Situation or Environment; Strategy; Agriculture and Agribusiness Industry; White Plains; Brazil
Citation
Khanna, Tarun, Santiago Mingo, and Jonathan West. "Bunge: Food, Fuel, and World Markets." Harvard Business School Case 708-443, September 2007. (Revised November 2007.)
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