Mission Produce

Jose B. Alvarez; Mary   Shelman

Case | HBS Case Collection | February 2014 (Revised August 2015)

Mission Produce

Abstract

As the leading distributor of fresh avocados in the U.S., Mission Produce was at a crossroads in late 2013. Avocado consumption was booming and CEO Steve Barnard wanted to acquire additional land in Peru and develop new avocado farms to help fill a projected supply gap. Mission could also buy avocado farms in other countries, expand its international marketing efforts, invest in brand building in Asia, and/or add processed avocado products. This strategy case describes Mission's growth, entrepreneurial leadership, future opportunities, and financing alternatives.

Keywords: Agribusiness; Fresh produce; food; Peru; Vertical Integration; supply chain; Agriculture; Agribusiness; Food and Beverage Industry; Agriculture and Agribusiness Industry; United States; Peru;

Language: English

Format: Print

26 pages

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Citation:

Alvarez, Jose B., and Mary Shelman. "Mission Produce." Harvard Business School Case 514-023, February 2014. (Revised August 2015.)

Case | HBS Case Collection | December 2019

CME Group in 2019

José B. Alvarez, Forest Reinhardt and Natalie Kindred

Chicago-based CME Group is the world’s largest futures and options marketplace, with annual trading volume of over 4.8 billion contracts in 2018. This case is set in late 2019, as heightened perceptions of risk stemming from the U.S.-China trade war are driving record trading volumes of agricultural futures. CME Group leads the agricultural futures market, but changing global dynamics are raising new questions about the security of its competitive position. With roots dating to the 1850s, CME Group became the market leader by developing liquid markets for reliable products tied to U.S. agricultural production. But the U.S. no longer dominates global grain and oilseed production and trade, raising questions about whether U.S.-domiciled futures and options will remain relevant globally. Other pressures on CME Group include the U.S. political environment—there is talk of taxing futures trades—and potential competition from Chinese futures exchanges. How should the management team adjust their strategy? While this case focuses on CME Group’s agricultural products business, some of the questions at play—e.g., about the role of speculators, the usefulness of a financial transactions tax, and the positioning of price discovery in commodity source markets versus destination markets—apply to other lines of business such as foreign exchange or precious metals.

Keywords: Financial Markets; Risk Management; Futures and Commodity Futures; Trade; Price; Competition; Risk and Uncertainty; Competitive Strategy; United States; China; Brazil;