S. A. Chupa Chups is a Multi-National Company that has grown internationally since its inception in 1958. Reasons for successes of this company have been their aggressive approach in developed and developing nations as well as the partnership they do with existing firms in those nations. The problems I noticed with their development were their efforts to diversify from core competencies and their organization structure that was central-based and did not highly promote worldwide learning from experiences.

Problem I:

The first problem I'm noticing in this case is the effort being put forward to diversify from their core competence, making confectionery products. I do understand that it may be economically sound to diversify into markets that are complimentary to your core where economies of scale could be realized. But in this case it seemed like Chupa Chups was trying to build a kingdom where everything they needed would be...