Arla Foods

El caso fue escrito por el Profesor Asistente Jacobo Ramírez y el estudiante Sven Benjamin Modrow del Departamento de Comunicación y Administración Intercultural en Copenhague Business School (CBS), con el propósito de ser utilizado como base para la discusión en clase, sin la intención de ilustrar el tratamiento correcto o incorrecto de alguna situación en la gestión.

In this case responsible management concerns the ethical challenges that Arla meets when wanting to enter and expand their market share in Mexico, and also whether it is actually possible for Arla to run a profitable business under these circumstances. The protagonist is considering what market strategy to use – joint venture, local partnerships etc. But would it be possible to target low income consumers with premium products as Lurpak?

For more than 60 years, cooperation with local partners has been the basis for Arla Foods’ strategy for internationalisation in Latin America and the Caribbean (LATAM). However, in 2013, Arla Foods decided to open an office in Mexico City to develop a stronger presence in the region; further, in September 2014, it announced a shared ownership with its long-term partner in Brazil, Vigor Alimentos S.A. This case presents the background for Arla Foods’ presence in LATAM and its integration of the regional office in order to build a competitive advantage. In this case, the responsible management is addressing 1) the ethical challenges that Arla Foods must meet to enter and expand its market share in LATAM, 2) whether it is actually possible for Arla Foods to run a profitable business considering the differences found in LATAM’s consumers, and 3) issues related to managing employees in fragile institutional settings. Janus Skøt, the protagonist in the case, is considering potential strat...

Purpose The purpose of this study is to explore how Danish and Mexican communication and management practices are recontextualized at the Latin American office of a Scandinavian multinational corporation (MNC) located in Mexico. Design/methodology/approach A case study based on interviews, observations and company documents was conducted. Findings Well-educated Mexican middle managers appreciate the participative communication and management practices of Scandinavian MNCs, which transcend most experiences at local workplaces, but their interpretations and meaning system are influenced by the colonial legacy and political and socioeconomic context framing their working conditions. Originality/value This paper provides a contextualized analysis of a rich case study to further illustrate the challenges faced by MNCs in their quest to establish a regional office in a Latin American context and offers a theoretical model of the elements involved in complex recontextualization processes.