Arcor: The Challenge of Becoming a Global Competitor

This case study is concerned with the challenges posed for companies in emerging markets that seek to expand their operations beyond their borders, while maintaining leadership in their industry. The case deals with Arcor, an Argentine-based manufacturer of confectionary, chocolate, cookies and crackers. A companion reading, The Confectionery Industry: Latin America and the Global Market in 2006, Stanford GSB IB-65, provides background to Arcor’s industry.
Founded in 1951 in Cordoba, Argentina, Arcor has evolved from being a local player selling candy in cities in Argentina to become the world largest candy manufacturer, the main confectionary exporter of Argentina, Brazil and Chile and one of the leading chocolate manufacturers in Latin America.
As Arcor grew, it expanded regionally and internationally to become an important actor in the global confectionery industry. The case sheds light on the key factors that enabled Arcor to escape the destiny of most of the industrial sector in Argentina, to become a leader in its industry. Students are encouraged to consider how the firm’s strengths in Argentina both enhance and inhibit its foreign expansion and how the company can implement its strategy for future expansion into new foreign markets.
Finally, the case considers the challenges that Arcor faces in operating 35 manufacturing facilities in four countries and the organizational consequences of managing affiliates throughout America, Europe and Africa.