Bunge%20Food,%20Fuel%20and%20World%20Market%20case.pdf

Bunge Food Fuel and World Market Case
Table of Contents
3Introduction
3Porters Diamond Model
5Hoffer Model
7Seasonal and cyclical model
9Product Segmentation model
11Product Timeline Model
12Conclusion
13References
Introduction
The underlying assignment is based on case analysis of Bunge Global. Bunge Global is one of the renowned and growing food and agriculture producing firm across the globe. The oilseeds, grains, vegetable oil, palm oil, etc constitute main products of the company. The case analysis will reveal various significant and pertinent findings regarding product performance and overall performance of the Bunge Global in global map. The strategic tools such as Hoofer Model, product Segmentation Model, Porter Diamond, etc will be taken into for strategic analysis of the Bunge Global. The detailed discussion and findings in accordance to each model is presented as below:
Porters Diamond Model
This model is evolved and developed by the Porter through taking into account various national conditions shaping and influencing business performance. (Analoui & Karami, 2003). Porter diamond model of Bunge Global is as follow:
The analysis of all the four factors in context of Bunge Global is as follow:
Factor Conditions
The business units of the Bunge Global have presence in Europe, America, Brazil, Asia, and several other parts of the world. The geographic condition of each country is different and therefore fostered the firm variant factor conditions. The difference in factor conditions led the company to have different labor, technological resources, skilled manpower, raw materials, etc. For instance, Sugar is mostly produced in the Brazil, soybeans in China, vegetable oil in India, Palm oil in Malaysia and Indonesia, etc (Bunge-Food--Fuel-and-World-Market-case, 2006).
Demand Conditions
The Bunge Global has adopted a unique approach to address the demand of varying markets of the globe. The company transfers and supplies the product from surplus countries to deficit countries. It means countries importing food products from other nations are targeted and approached by the Bunge Global.
Related and Supporting Industries
There are various related and supporting industries operating in the field of food and agribusiness. The intensity of rivalry is on increasing trend as number of competitors dealing in food and agricultural products are increasing continuously. The major competitors of the company are ADM, Cargill, Wilmar, Cosan, etc. These industries are engaged in producing similar kind of food and agricultural products (Thompson & Martin,2010).
Strategy, structure and rivalry
Bunge Global has adopted decentralized structure with integrated strategy. The decentralized structure is adopted in order to provide maximum possible freedom and independence to the business units for formulating strategies and adopting courses of action. An integrated approach enables the firm in binding and putting all the business units in a single unified framework. Such unified framework led all the business units to work and function towards main mission of delivering and supplying high quality food and agricultural produce to the global customers (Orcullo, 2008).
Recommendation
On the basis of above diagram and analysis it can be recommended that Bunge Global should continue with its existing approach of decentralized organization structure and integrated strategy. This strategy will enable the Bunge Global in strengthening its existing position and foothold in the food and agriculture industry. Besides, this strategic thinking and approach will also enable the Bunge Global in ensuring optimum utilization of available factor and demand conditions.
Hoffer Model
Hoffer Model is a new approach of analyzing business portfolio of any firm or organization. Hoffer model evaluates the strategic position of business units in light of two dimension- competitive position and stages of market evolution. It can be presented as below:
The case study revealed that Bunge Global operates is a renowned agriculture and food processing company. The three main strategic business units of the company are-fertilizer, food products and agribusiness which can be presented as follow
    
    Strong
    Average
    Weak
    Development
    
Agribusiness
    
    
    Growth
    
    Food business unit
    
    Competitive Shakeout
    
    Fertilizer business unit
    
    Maturity
    
    
    
    Saturation
    
    
    
    Decline
    
    
    
· “A”: The evaluation of all the three strategic business units of the company revealed that agribusiness unit of the company seemed to be potential ‘star’ as it holds significant market share with strong competitive position in the market. The agribusiness unit of the company also accorded high sales figure in the last five years, thus witnessing its strong market share and competitive position. It can also be...