Theoretical analysis of the internationalization process of the Brazilian company JBS

Abstract

This case study presents a theoretical analysis of the internationalization process of the Brazilian multinational JBS, named after its founder Jose Batista Sobrinho; a company in the food sector which over the past few years has expanded its product lines through mergers and acquisitions in various regions. According to economist Stephen Hymer (1976), it is important to understand that different borders also mean different legal systems and  cultural values, which is why this case also analyses the difficulties the company has undergone when internationalizing not only economically but also culture-wise. As mentioned by the Institutional Theory, every multinational more than a business actor is a political one and has social responsibility. One year after its creation in 2005, JBS started internationalizing by acquiring Swift Amour in Argentina. Sharing a mutual border and being the second largest land mass processing region in Latin America made Argentina the most appealing market for Brazil, a common pattern among multinationals  mentioned by the Uppsala Model. This first move also gave JBS the confidence to move into further regions. Currently, JBS has presence in five continents with production facilities in Brazil, Argentina, Italy, Australia, United States, Uruguay, Paraguay, Mexico, China, Russia, among others.