Arcor Firm Analysis Overview

A. What is the strategic scope of the company? What products and markets does the firm compete in?

B. What are the company's stated missions and objectives? How have these missions changed over time?

C. What has the recent history of the firm been?

D. What recent events have significantly affected the firm?

E. How well has the firm recently performed?

To begin the firm-level analysis of Arcor Group, we start with a brief historical overview of the company. Strategic scope defines what a company’s business is and how it operates in that business. In regards to the Arcor Group the company’s strategic scope is based on two core components: global diversification and product diversification. The company opened its first plant in Argentina in 1951, and as of 2011, it has expanded to operate 40 plants with 29 located in Argentina and rest spread across Brazil, Chile, Peru, and Mexico. Arcor is known as the world’s largest producer of candies and is the leading exporter of confectionary in Argentina, Brazil, Chile, and Peru. In total, the company exports to about 120 countries. Arcor’s product mix is defined in four main categories: chocolate, candy products, cookies and crackers, and packaged food (i.e. jam and canned fruit). The company owns over 25 brands that offer a variety of food, candies, chocolates, cookies, marmalades, and desserts.

Next, we will discuss how Arcor’s mission and objectives have evolved over the years to where it is now. In 1951, Founder Fulvio Salvador Pagini built a factory of candies together with other people and their main goal was “an important production volume, with the purpose of reducing costs.” By 1958, daily production volume of sweets had reached 60,000 kg (140,000 lbs), but Arcor was still not yet exclusively a candy manufacturer. The company began its first sales outside of Argentina to European countries in 1964 and eventually reached the United States in 1968. Since then, the company has expanded its activities to numerous countries