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Case Code: BSTR497
Case Length: 20 Pages 
Period: 2006-2016  
Pub Date: 2016
Teaching Note: Available
Price:Rs.600
Organization : JBS, SA
Industry : Animal protein
Countries : Brazil; Global
Themes: Growth Strategy/Competitive advantage /International Management
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JBS S.A.: A Latin American Success Story

 
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EXCERPTS

 

JBS’S STRATEGY

JBS’s strategy was to grow, lead, expand, and profit in a sustainable way by refining its value-added products, expanding its distribution network and customer base, strengthening its brands through investments in marketing and research and development, and seeking investment and acquisition opportunities in foreign as well as domestic markets. The company focused on reducing costs, increasing operational efficiencies, and leveraging growth in both domestic as well as global markets . According to analysts, the aim of this strategy was to make JBS a market leader in the global animal protein sector protein and to boost profitability.....

 
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COMPETITIVE ADVANTAGES

As of September 2015, JBS was the largest animal protein company in the world. According to industry experts, the company’s market leadership and scale allowed it to take advantage of market opportunities and expand its business and market share in domestic as well as international markets. According to them, JBS was able to access the major world markets due to economies of scale, production optimization, reduction of fixed costs, and an advantaged position to negotiate purchase and sale prices with its suppliers and customers respectively...

GLOBAL EXPANSION

A key element of JBS’s strategy was to expand to new geographical markets and to consolidate its position in all the countries in which it operated. The company expanded its business into countries that it believed were cost effective and profitable. As of September 2015, JBS had a presence in 22 countries in five continents with production platforms and sales offices in Brazil, the US, Australia, Canada, Italy, Argentina, Uruguay, Paraguay, Mexico, China, Russia, and others. JBS derived about 75% of its income from foreign operations...

RESULTS
 

As of 2015, JBS was the only company in the animal protein sector with direct operations in the world’s three main producing countries – Brazil, the US, and Australia...

CHALLENGES
 

According to industry observers, JBS’s incredible growth had been accompanied by its own set of challenges.......

THE ROAD AHEAD
 

During the second quarter of 2015, JBS’s profit declined by 68.5% to R$80 million (US$22.7 million) compared to the corresponding period of the previous year...

EXHIBITS
 

Exhibit I:JBS –Business Units

Exhibit II:JBS’s Strategy

Exhibit III:Culture at JBS

Exhibit IV:Selected JBS’ Mergers and Acquisitions

Exhibit V:Financial Highlights

Exhibit VI:Performance by Business Unit

Exhibit VII:JBS Net Revenue (in R$ billion)

Exhibit VIII:Top Global Food Companies by Sales (US$ Million)

Exhibit IX:Global Protein Demand Estimates