This presentation is regarding the mabe company. Mabe is a private Mexican company which is famous for producing high quality kitchen appliances (dishwashers, stove, oven, refrigerators,etc.) Mabe entered into a joint venture with General Electric (GE) Company.

1. Mabe:
Learning to be a
Multinational
Presented by:
Amanjot Singh
Shivam Shivam
Harjot Singh
Jijo Francis
Navtej Singh Sran

2. Agenda
• Introduction :
Amanjot Singh
• Company Profile:
Navtej Singh Sran
• SWOT Analysis:
Jijo Francis
• PEST Analysis:
Harjot Singh
• Questions:
Shivam Shivam & Amanjot Singh

3. Introduction
 A Mexican appliance manufacturer, MABE, has evolved quickly after selling
nearly half its stake to a large multinational company.
 Just before the 2008 financial crisis, the manufacturer formed a joint venture
with a Spanish company and entered the Russian market, but it was not
successful.
 The manufacturer faced a dilemma: Should it leave the Russian joint venture
with its Spanish partner and refocus on other emerging markets?
 Should it acquire a local manufacturer?
 Should it remain as it was?

5. Company Profile
• Controladora Mabe, Private Mexican equipment manufacturer
• Leading brand & exporter of home appliances in Mexico.
• Founded by Mabardi and Berrondo families (1946 ),
HQ: Mexico city, Mexico
• Chairman and CEO : Luis Berrondo Avalos ,
Vice President : Ramiro Perez
• became a joint venture with GE (1987 )

6. • Revenue: $4 billion, 21,000 employees
• Products: White appliances
• 70% market share in home appliances
• Top 3 Competitors:
– Whirlpool Corporation
– LG Electronics Inc.
– Electrolux Home Products - North America

7. SWOT Analysis
Strength
• Strong brand name
• Wide range of products
• Strong R&D
• Partnership with leading
MNCs
• 70% market share in home
appliances
Opportunities
• Growing demand
• Infrastructure spending
• Investment in premium
market
Weakness
• Faulty products
• Weak credit rating
• Dependence on 3rd parties for
raw materials
Threats
• Strict govt. and environmental
policies
• Tough competitors
• Fluctuating currencies and
economic recessions

8. PEST Analysis
• Political/Regulatory Factors:
 Has to deal with different Political and Environmental policies in different
countries.
 Variation of
working conditions in different countries (Good and Bad
working Conditions)
 Tax system is different for different countries

9. • Economic Factors:
 Rate of interest and exchange rates has great influence on activities
and operations of the company.
 Inflation, deflation and Govt. spending can have a big influence on
business productivity and profitability of the company.
 Energy efficient and smart appliance agreement have been placed in
order to improve the product and to reduce the power consumption.
 Increase in tax credit for smart appliance production

10. • Socio-cultural Factors:
 The employment policies and working hours depend on the different
cultures within a country.
 Higher employee wages due to inflation in some countries.
 Demand of products varies with different countries

11. • Technological Factors:
 Introduction of innovative products due to the presence of advanced
technology. (Success of the Company)
 Improved and High Speed Production of Appliances
 Up to date with the latest technology.

12. Questions
 What action should Ramiro Perez take with
regard to Mabe's JV in Russia?

13.  What lessons has Mabe learned that it can
apply to future international expansions?

14.  Would another emerging country have been
a better investment for Mabe than Russia?

15.  Assess whether Fagor is the appropriate
partner for Russian JV ?