Mabe's President Luis Berrondo Avalos on teams and industry competitiveness

Abstract

Executive Overview Luis Berrondo Avalos is president of Mabe, the largest manufacturer of appliances in Latin America, with annual sales of nearly $1 billion. Its 14 production plants throughout Mexico and South America manufacture white goods such as refrigerators, ovens, and laundry appliances. The Berrondo family founded the company in Mexico City in 1947. By 1960, Mabe had grown to become the leading exporter of appliances in Mexico, and has continued to grow at an annual rate of 15 to 20 percent. Nearly one-third of Mabe products, more than one million units annually, are exported to the United States, Canada, Europe, and Latin America under a variety of brand names. In 1987, Mabe entered into a joint venture with GE, and has become GE's number one joint venture in Latin America. More than one-third of all gas ranges and mini-refrigerators sold in the U.S. are manufactured at Mabe plants in northern Mexico. The company's state-of-the-art research and development facility in Mexico is a leading source of new product development for GE gas stoves and other Mabe products. Mr. Berrondo is dedicated to the development of world-class manufacturing capabilities and products. He has been infusing his philosophy of excellence and innovative management practices into Mabe for many years, and has seen continual progress in his company's results and capabilities. A strong promoter of Mexico and Mexican workers, Mr. Berrondo has been quoted as saying, “Mexican workers with a good design, the right manufacturing facility, and adequate training can produce exceptional products. We are now changing the face of Mexican management and giving workers those better designs, processes, and training. Mexican workers now have the ability to produce world-class quality appliances.”1 In this interview Mr. Berrondo discusses the challenges of maintaining his company's competitiveness, and the important role that training and development play in managing Mabe's 15,000 employees.