FLOW • • • • • • • • • • •
A Brief History of BUNGE BUNGE LIMITED. Bunge’s current strategy. Bunge’s Agribusiness. Their a!ue a!ue chain. chain . Turnaroun" an" I#$. Bunge’s o%erations in agribusiness. $%eration strategy &atri'. Bunge G!oba! Mar(ets an" cha!!anges. $rganisation an" )u!ture. Integrating )ereo! an" cha!!anges. )o&%etitors.
A BRIEF HISTORY •
1818: *oun"e" in A&ster"a& by +ohann #eter Bunge , )o.
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1884- Bunge as estab!ishe" in Argentina by gran"son/ Ernest Bunge
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1905- Bunge then e'%an"e" into Bra0i!
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2001: )hange" its na&e to Bunge North A&erica %rior to the initia! %ub!ic offering of Bunge Li&ite"
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2002: Bunge Li&ite" ac2uire" )ereo!/ hich inc!u"e" )entra! 3oya in the Unite" 3tates an" )ana&era *oo"s in )ana"a
1923- Bunge North A&erican Grain )or%oration foun"e" in Ne 1or( )ity to tra"e ra agricu!tura! co&&o"ities
CURRENT STRATEGY Bunge’s strategy rests on its newly founded Bunge Global Agribusiness divisions whose focus is on vertically integrated operations improving value by linking dierent regional and international markets together.
Global Agribusiness
AGRIBUSINESS • 3oybean / heat an" corn accounte" for &ore than 456 of U3 cro% area %!ante" in 7889. • In 7889 / &ore than 948 &i!!ion tonnes of soybeans ere consu&e" or!"i"e as &entione" in E'hibit 5. Unite" states/ bra0i! an" Argentina accounte" for &ore that :86 of or!" soybean an" corn e'%orts an" &ore than 586 of heat e'%orts. • Groth in agricu!tura! %ro"uction ha" &o;e" toar"s 3outh A&erica !arge!y because of cost a";antages an" the !arger tracts of arab!e !an"s a;ai!ab!e there. • *or Euro%e/ ith Asian crisis in 9??@/ the in"ustry continue" the "oncyc!e of %rocessing ti!! 7888. $;erca%acity in oi!see" %rocessing %ut %ressure on the &argins/ !ea"ing to 98ton fro& an a;erage of 9:ton. • In 9??4/ genetica!!y &o"ifie" see"s ere a"o%te" by far&ers in U3 , Argentina. Hoe;er/ they beca&e %rohibite" in Bra0i! in EU.
VALUE CHAIN
E!e;ators- *aci!ities that ere ser;e" as conso!i"ation an" storage %oints
The abo;e chain cou!" in;o!;e a sing!e integrate" grain co&%any or &u!ti%!e co&%anies ith se;era! changes in onershi% an" ith %rices estab!ishe" &any ti&es at "ifferent !ocations
STRATEGY • • • •
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Goa! as to beco&e the best integrate" agribusiness an" foo" co&%any in the or!" In a""ition to its strong &ar(et %ositions/ it cou!" "ifferentiate itse!f by its business &o"e! an" its organi0ation an" cu!ture 3u%erior !ogistics C )ost a";antage Three "i&ensions to !ogistics C Trans%ort C Ha;ing the right in"ustria! foot%rint an" !ocationa!!y a";antage" %ro"uction assets C E'tre&e!y goo" &anage&ent in the ca%ture an" ana!ysis of i nfor&ation Logistics C Getting the right %ro"uct to the right custo&er/ in the right 2uantity/ at the right ti&e an" the right %!ace
TURNAROUND • In or"er to co&%ete g!oba!!y/ it as suggest that Bunge shou!" refocus on consu&er foo"s an" agribusiness o%erations/ "i;est noncore assets/ an" intro"uce %rofessiona! &anage&ent. • In 9??@/ Bunge returne" to its roots in agribusiness/ i&%!e&ente" ne strategy an" ac2uire" )e;a! A!i&entosFBra0i!’s !argest 3oybean %rocessor. • In 7889/ Bunge ent for I#$s an" so!"
[email protected] &i!!ion ne shares at 94share.
BUNGE’S IO
BUNGE’S STRATEGY • The co&%anies &o"e! nee"e" itse!f to be integrate" in a ho!e chain. • This can be attain by focusing on integration , the &ost "efining factor ou!" be !ogistics as state" by >eisserF)*$/ Bunge !t". • >eisser thought/ !ogistics not to be on!y trans%ortation but getting the right %ro"uct to the right custo&er/ in the right 2uantity at the right ti&e an" the right %rice. • Manage" !ogistics ou!" gi;e Bunge a cost a";antage o;er co&%anies that co&%ete" in on!y one %art of the ;a!ue chain. This ou!" a!so enab!e Bunge to offer custo&ers better ser;ice in ter&s of trac(ing their or"ers. • Accor"ing to >eisser/ !ogistics cou!" be bifurcate" into three "i&ensionstrans%ort ha;ing the right in"ustria! foot%rint an" !ocationa!!y a";antage" %ro"uction assets an" e'tre&e!y goo" &anage&ent in the ca%ture , ana!ysis of infor&ation.
BUNGE’S OERATIONS IN AGRIBUSINESS • Bunge’s agribusiness "i;ision consiste" of Geisser ante" Bunge to be the or!"’s best integrate" agribusiness co&%any. 3o he as confuse"/ hether the ac2uisition on )ereo! re2uire a change in Bunge’s organi0ation &o"e! or not
CO-ETITORS AD• • • • • • •
Large an" "i;ersifie" than Bunge $%erate" in oi!see" %rocessing/ et corn %rocessing/ heat &i!!ing etc. High!y centra!i0e"/ U3focuse" an" @86 re;enues fro& North A&erica Lo cost %ro;i"er/ an" &ore &ar(et share , %ro"uction oriente" than custo&er "ri;en isua!i0e" itse!f as a !arge foo" in%ut an" fue! factory- ra &ateria!s entere" at one en" an" e'ite" as ;a!uea""e" %ro"uctsO Has &a=ority onershi% sta(e in A) Toe%fer Internationa!/ a grain tra"ing co&%any Toe%fer ha" &ore than 8 sa!es offices or!" i"e an" tra"e" 8&i!!ion tons of grains annua!!y
CARGILL • Large an" "i;ersifie" than Bunge • Largest %ri;ate co&%any in the or!" ith sa!es of 58 bi!!ion in 7887 • Acti;e &e&ber throughout the agribusiness chain/ fro& su%%!ying in%uts to far&ers to se!!ing %rocesse" foo"s to consu&ers • Its strength as in co&&o"ity %rocessing • Ha" !e;erage" its ca%abi!ities in co&&o"ity tra"ing/ !ogistics an" %rocessing into nonfoo" businesses inc!u"ing stee! &ini&i!!s an" &eta! tra"ing
