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Mabe

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CASE ANALYSIS: MABE: LEARNING TO BE A MULTINATIONAL
STRATEGIC MANAGEMENT
04-75-498-02
Dr. Gerry Kerr
July 7, 2016
Shawn Phaneouf 103801474
Kevin Victor 103798446
John Yahaya-Joe 103830915
Boyu Lu 103677756
Lichen Liang 103483267

2
Introduction
Within just 60 years, Mabe had conquered the Latin American electrical appliance market and was continuing to press on towards global success. Through leveraging their foundational strategic partnership with General Electric (48% ownership) and developing others in new markets, Mabe was able to quickly spread it’s influence in international markets however, it now faced the challenge of pushing beyond Latin and North American markets. Boasting a sizeable and highly profitable appliance industry, Russia represents an attractive opportunity for Mabe however, with opportunities come a number of potential issues. This paper will address the core issue of whether Mabe should remain in the Russian market. The symptomatic issues that arise from this concern the suitability of Mabe’s joint venture partner Fagor, it’s future pricing strategy, whether to start producing locally and if other geographic markets should be entered.
Various strategic and financial tools will be utilized to capture the relationship between the aforementioned issues and Mabe’s positioning as a whole, allowing the presentation of recommendations and thorough implementation plans.
PESTEL Analysis
Many factors define and impact the environment of an organization, which should be identified, understood and analyzed by the company so it can achieve optimum performance. With the case of Mabe’s entry of Russia, it is evident through the following analysis that there are strong factors at play which must be addressed in order to achieve success.
Political: the Russian political landscape is quite tumultuous. Although there are positive indicators such as a…...

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