To paraphrase Gehmawat, the world is not flat it’s semi-globalized,
In order to understand the global environement where Grupo Bimbo intervene, a CAGE analysis based on the framework developed by Ghemawat will be performed at a country level (Mexico – USA & Mexico – China) and also at a food industry level.
Armed with this analyisis we will check the relevance of each of the AAA strategy (Ghemawat, redefining global value), the recommended strategy will be then submitted to the 4I’s framework developed by Burton to understand the non-market environement. To complete the market strategy, we will then elaborate a non-market strategy to create an integrated strategy (Burton).
CAGE distance analysis – Mexico /US
Cultural Distance:
Mexico and the United States share a common border on the northern side. Despite their close physical proximity and mexican adaptations to western styles, lots of dissimilarities are observed in the culture, beliefs, traditions and norms of social conduct of the people in these two countries.
A vast majority of Mexican people use Spanish language. In fact, Mexico is the country which has the largest Spanish speaking population in the whole world. On the other hand, English is the most popular language among the Americans. However, the Spanish language is the second most common language in the United States after English.
Mexican foods are famous all over the world. They are very appetizing because of their flavors as well as the use of colors and decorations. Americans have a large variety of styles of cooking. Most of their traditional cuisines have undergone a sea change over a period of time, due to the influence of various immigrant communities.
Administrative Distance:
The politics of Mexico are somewhat similar to those of the United States. The United Mexican States are a federation whose government is representative, democratic and republican based on a presidential system according to the 1917