In 2007, Bunge, an agribusiness company, more than 26 billion dollars in sales worldwide and was considered, along with Cargill and Archer Daniels Midland (ADM), one of three highly integrated agribusiness companies worldwide. Headquartered in White Plains, NY, the company has traditionally had a strong presence in Brazil. Describes Bunge’s tradeoff between efficiency of global operations and local responsiveness in an uncertain environment. New world developments were effecting Bunge direction … Read more »

In 2007, Bunge, an agribusiness company, more than 26 billion dollars in sales worldwide and was considered, along with Cargill and Archer Daniels Midland (ADM), one of three highly integrated agribusiness companies worldwide. Headquartered in White Plains, NY, the company has traditionally had a strong presence in Brazil. Describes Bunge’s tradeoff between efficiency of global operations and local responsiveness in an uncertain environment. New world developments were effecting Bunge directly: high oil prices, growing demand in emerging markets such as China and India, as well as the possibility of agribusiness companies competing successfully in the production of biofuels. Bunge had traditionally followed an organizational model that was integrated but decentralized, trying to strike a balance between the efficiency of a global company and the speed of local businesses. What would be the best strategy to be imposed from the emerging markets react to external changes for Bunge by high energy prices and the rising demand? How aggressively should Bunge invest in the rising biofuels markets?
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from
Tarun Khanna,
Santiago Mingo,
Jonathan West
Source: Harvard Business School
25 pages.
Release Date: 04 September 2007. Prod #: 708 443 PDF-ENG
Bunge: Food, Fuel, and World Markets HBR case solution