...Corona Beer "A multi-country strategy is appropriate for industries where multi-country competition dominates and local responsiveness is essential. A global strategy works best in markets that are globally competitive or beginning to globalize." Corona Extra has been the world’s fourth best selling beer in terms of volume in 2005 due to its strategy in differentiation. Corona marketing campaign of “fun in the sun” and its light and citrus flavor helps products to expand its target customers far beyond its competitors. However due to merger and acquisition that occur in the industry, Corona needs to adjust itself in order to sustain its growth and improve its competitive position. 5-Force Analysis Rivalry (High Threat) * There is competition from both domestic products and import products as well as threat from merger and acquisition which large company may dominate the industry as they might gain advantages from cost efficiency and market share after merging. New Entrants (Low Threat) * There is low threat from emerging entrants since the large companies will have advantages in economy of scale. Also new entrants will need to have heavy start-up cost of capital. Substitute (High Threat) * High threat from substitute because there are various kinds of liquor in the market. Altogether with non-liquor drinks in the market are also considered as substitutes for beer. Consumer (Moderate) * Since there is price sensitive for beer in the market, company needs to...
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...Case Analysis for Corona Beer (Modelo) BUS599 Identify and discuss the trends in the global beer markets There is a common item found at sporting events, entertainment venues, restaurants, bars, and mainly in the refrigerators of Americans. This item is beer. Of the 67% of Americans who consume alcohol 42% prefer beer (Frank Newport, 2010). Beer consumption is continuously increasing not only in the United States but also globally. There are several trends within the global beer market which accounts for the potentials seen throughout the industry. One of the main trends of the global beer industry is the growth rate. The growth rate globally over the past five years is reported at 3.5%. “The largest contributors to this growth have been China (now the world's largest beer market), Africa and Eastern Europe” (SABMiller Investors, 2011). Another trend seen in the industry is consolidation. At the beginning of the twenty first century there were ten major brewers accounting for one third of the beer sales. Today there are four top brewers which include “Anheuser-Busch InBev, SABMiller, Heineken and Carlsberg – accounting for almost 50% of beer sales volumes and up to 75% of the global profit pool” (SABMiller Investors, 2011). This is due to the increase in consolidation. Another trend in the beer industry is premiumisation. This term refers to the sales of premium beer brands. “As economies improve, the trend towards premium will resume as consumers become...
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...CORONA BEER (MODELO) FOREIGN MARKET ENTRY AND DIVERSIFICATION Assignment #3 BUS 599 CORONA BEER (MODELO) Indentify and discuss the trends in global beer markets The consumption of beer began in the 14th century. Most breweries were local due to the tastes of certain geographical locations. In the 1990’s a tread began to form of companies acquiring smaller breweries to have a larger span of sales. This was due to the high costs of operations but having an extended stream or constant cash available for maintenance the structure of this industry supported concentration in this area. Beer consumption in developed markets continues to suffer from high unemployment, high fuel prices and constrained consumer spending. In the USA, where unemployment is particularly sever among key beer drinkers, beer volumes have fallen slightly although accompanied by consumer uptrading between industry price segments. Beer growth trends by volume% Forecast five-year compound annual growth rate (CAGR) by region – 2011 to 2015 Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets. | | | | | | | | | | | | | | | | | | | | | | | Grupo Modelo first introduced Corona in Chicago through Barton Beers Ltd. Barton was one of the largest beer importers in the 25 western states and was experienced in the marketing and sales of imported beers. The second distributor that was chosen...
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...Corona Beer: Challenges of International Expansion Corona Extra has been the world’s fourth best selling beer in terms of volume in 2005 due to its strategy in differentiation. Corona marketing campaign of “fun in the sun” and its light and citrus flavor helps products to expand its target customers far beyond its competitors. However due to merger and acquisition that occur in the industry, Corona needs to adjust itself in order to sustain its growth and improve its competitive position. Environmental Analysis PEST Analysis Political Factor: * Government regulation prohibits to import alcohol product in some country. * Tax policies on alcohol beverages may result in higher price of alcohol product in some countries. Economic Factor * Trading agreement such as NAFTA, can help firm to benefit from exports its products into the emerging market, however this might also open up the opportunities for new competitors to come into Mexico‘s beer market as well. * Instability of Mexico economic condition can affect the cost of goods sold of the products that export out of the foreign markets. Social Factor * Some countries or areas might prohibit to sell alcohol beverages. * Differentiation between global preferences. For example, beer might be popular in US and Germany, however in Italy and France, wine is more popular. Technological Factor * Technology can improve product quality and can reduce scrap or it can also improve distribution system with...
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...-- Corona Beer History of Corona Beer What’s in a name? Who is Grupo Modelo? What is the company’s mission and vision statement? All this and more will be answered in the literature review. According to an article titled “Mexican Beer” by Buen provecho (2010), “Corona Beer, started in Mexico in 1925 by Grupo Modelo, became a dominant brand by 1996, owning 32.7% of the Mexican beer industry. Before it became popular internationally, it had already established itself as a home-grown success. The name and label make Corona one of the most recognized beers in the United States. Corona, which means crown, was introduced to the world in 1925 at Mexico City by Grupo Modelo. It was produced in celebration of the tenth anniversary of the brewery. This is a light pale lager, at 4.6% alcohol by content. Corona has a mild flavor with very little of the hop bitterness. The color is light yellowish.” Also according to Buen provecho (2010), “Corona is one of the top five selling beers in the world. In the United States, Corona became the number one imported beer in 1997. It is the top selling import beer in Canada. Since its introduction in the US, its market share has consistently grown. It is the number one selling Mexican beer in the world and the fourth best selling beer in the world. It is available in 150 countries worldwide. All Corona beer is brewed in seven breweries in Mexico at Modelo Breweries.” According to Buen provecho (2010), “Anheuser-Busch owns 50% of Grupo Model...
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...Case 13: Corona Beer: From a Local Mexican Player to a Global Brand 05/17/12 Identify and discuss the trends in the global beer markets. The global trends in beer markets once were to brew, market, and sell locally. Now, in the global world we live in, the trends are to expand worldwide. International beer sales have shown a steady growth in consumption and sales. With a small downturn in 2009, due to the economic crisis, sales in 2010 have seen increase once again. Global beer market trends also indicate consolidation is a major factor. The four largest brewers produce about half of all beer and claim almost 70% of profits. Africa, Asia, and Latin America have experienced smaller consolidations. (SABMiller, 2011) The global beer market has expanded into other countries with China seeing the largest increase. Until 2003, the United States had the largest beer market in the world, then China gained a larger percentage of the market, even though America recorded six times the consumption rate per capita than did China. (Thompson, 2009) “Beer consumption continues to rise in Africa, Latin America and Asia, driven by growth in population and incomes and improvements in beer quality and appearance.” (SABMiller, 2011) In these emerging countries, commercial beers are seeing an increase in market share over home or local brews. Despite the economic downturn, “over the past five years, the global beer category has maintained an average...
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...Running Head: MANAGEMENT Management Name: University: Course: Tutor: Date: Discussions Week 1 Discussion 1 New world managers are more competent as compared to the old world. This is because new world managers can solve more problems as compared to old world ones. New world managers are more experienced. New world managers also go through learning programs that enable them to be more competent in managing their subjects. Based on the result of my questionnaire I will fit more in the new world. This is because I have the experience needed to carry out my duties. I have undergone training on how to manage a company or organization just like any other new world manager. Of the three strengths conceptual, human and technical, conceptual has changed most moving from the old world to the new one. This is because more and more concepts are being developed with regards to management. In twenty years time I believe human will change more. This is because new concepts will reach a point where there will be no more change. Human will then start changing on how they perceive thing using the new concepts learnt (Jemielniak & Kociatkiewicz, 2008). A new workplace is characterised with confusion and anxiety. This is because most people do not know exactly what is expected of them. This is because the way things are handled in the work place will be changed. A manager who has two year experience will have a lot to talk about in terms of challenges faced. Management competencies...
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...STRATEJİK YÖNETİM DERSİ CORONA BEER: “MEKSİKALI YEREL OYUNCUDAN, KÜRESEL BİR MARKAYA” Grupo Modelo 1922 de Aile Şirketi olarak kurulmuştur. Meksika’nın lider bira üreticisidir. Amerika ve Kanada’nın lider bira ithalatçısıdır. Startejik bir birleşmeyle Nestlé su markasına ortak olup, Meksika’da üretim ve dağıtımını yapmaktadır. Grupo Modelo 1994 de Meksikan Borsa’sında ‘GMODELOC’ sembolüyle işlem görmektedir. Grupo Modelo, 1922 yılında Pablo Diez tarafından Meksika’da kurulmuş olup, 1925’ten beri Corona birasını üretmektedir. Grupo Modelo, dünyanın en çok satan Meksika birası Corona Extra’nın yanında, Modelo Especial, Victoria, Pacifico, Negra Modelo, Estrella, Leonand Montejo’yu içeren 13 farklı marka bira üretmekte ve dağıtmaktadır. 160 ülkede mevcuttur ve 5 marka ihraç eder. Meksika’daki Budweiser, Bud Light ve Oapos’ un bağlı olduğu Anheuser- Busch InBev’in ithalatçısıdır, ayrıca Çin markası Tsingtao ve Danimarka birası Carlsberg’i de ithal eder. Corona Beer Zaman Tüneli 1925 yılında Cervecería Modelo, başkent Meksiko City’de ilk bira fabrikasını açmıştır. 1928 yılında Modelo ve Corona markalarından 8 milyon şişe satılmıştır. 1930 yılında Negro Modelo birası ilk kez satışa çıkmıştır. 1933 yılında Grupo Modelo, seyrek olarak ABD’ye ihracata başlamıştır. 1935 yılında İlk extralight birası Moravia’yı piyasaya sürmüştür. 1935 yılında Grupo Modelo, Victoria ve Pilsener markalarının üreticisi olan Compañía Cervecera Toluca y México’yu satın almıştır. 1939...
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...THE CORONA PROJECT: AMERICA’S FIRST SPY SATELLITES Curtis Peebles is empowering readers with the newly declassified information on how the first American satellites were set into use for intelligence gathering. Through his book, “The Corona Project: America’s First Spy Satellites”, the author gives detailed information on the birth of the satellite program by watching the Corona project from its beginnings in the late 1940s to the declassification of the project and its exhibitions at the Smithsonian’s National Air and Space Museum. The book begins with a look into World War II and how the event of Pearl Harbor pressed the need for aerial reconnaissance. The first chapter gives the different technological challenges that had to be faced in order to achieve aerospace superiority. This chapter takes a close look into the development of the WS-117L reconnaissance satellite and how the two projects are related. The main thrust that the project received was from the launch of Sputnik I. With the Soviets now seemingly ahead, the author explains how the project was taken away from the Air Force who was failing with the WS-117L and passed the mission onto the CIA for the development of the Corona satellites. Peebles explains that the difference between the two programs is that the WS-117L promised almost real-time through radio-transmitted imagery while the Corona missions would drop the film from the nose cone for development. The engineering team faced numerous...
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...CHAPTER 8—THE SUN-OUR STAR Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Granulation is caused by |a. |sunspots. | |b. |rising gas below the photosphere. | |c. |shock waves in the corona. | |d. |the solar wind flowing away from the corona. | |e. |the heating in the chromosphere. | ____ 2. In some regions of the corona, the magnetic field does not loop back to the sun, and the gas escapes unimpeded. These regions are called _______________ and are believed to be the source of the solar wind. |a. |prominences | |b. |flares | |c. |granules | |d. |auroras ...
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...ABSTRACT: A solar tsunami is a rare astronomical phenomenon, caused by the magnetic explosion in the sun. The sun has spurted a huge cloud towards the earth which is full of electronic ions. The planet was hit by a “Solar Tsunami” racing 93 million miles across the space. Scientists have warned that the earth could be hit by a wave of violent space storm(Coronal Mass Ejection) after a massive explosion on the sun. This huge explosion could shut down the global communication and the satellites might get destroyed. “These eruptions occur when immense magnetic structures in the solar atmosphere lose their stability and can no longer be held down by the Sun’s huge gravitational pull. Just like a coiled spring suddenly being released, they erupt into space.” This means we have a very good chance of seeing major and prolonged effects, such as the northern lights at low latitudes.” The solar explosion that causes the tsunami has been observed by many satellites along with the Solar Dynamic Observatory, NASA. The blasts will reach to a maximum level in 2020 it is estimated. Along with this blast there was another blast of cold air circumference of the sun’s northern pole. A huge cloud has been thrown in to the space with these related developments. This paper focuses on the global changes caused by the future solar activity and also presented pre actions for safe guarding our lives. Key Words: Coronal mass Ejection, Solar storms, Magneto Hydro Dynamic Waves, Solar electric...
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...activity, having a high degree of N-S asymmetry, could be the cause of the "abnormal" appearance of SC 23. The new magnetic dipole begins to lose part of its energy even during the descending phase of SC 22, so that the activity of SC 23 proves to be below the predicted values. Key words: Sun − solar flares – solar activity cycles − N-S asymmetry. INTRODUCTION Solar flares are wonderfully complex phenomena, seen as sudden and intense increases in brightness on the solar disk. They occur when magnetic field loops undergo reorganization, releasing energy into the solar coronal and chromospheric plasma. It is widely accepted that they are the result of the rapid conversion of a large amount of magnetic energy, previously stored in the solar corona, and dissipated through magnetic reconnections. The release...
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...Case Study – Corona Beer (Modelo) Foreign Market Entry and Diversification BUS599 – Strategic Management Identify and discuss the trends in the global beer markets. Beer markets have been primarily a local industry, with only a few of the companies having international presence. “Beer was first brewed in the 14th century in Europe and developed different in every country in order to address local tastes and specific recipes” (Thompson, Strickland, & Gamble, 2010). There was an increase in industry consolidation, a development that took off in North America and Western Europe. “The consolidation began to include brewing companies in the growth markets of Eastern Europe, Asia and Latin America” (carlsberggroup.com). “The United States had the largest beer market in the world until China surpassed in 2003” (Thompson et al, 2010). In the past ten years, global consolidation has accelerated. Due to lack of transportation networks made exportation impossible and brewing remained a local industry. Other countries like Italy and France, they preferred wine over beer for consumption and then you had Germany and Ireland, who both have a few national beer brands. The trend of consolidation by national leaders started expanding in the 1990’s; “Interbrew acquired several breweries in 20 countries and expanded its sales to 110 counters, leaving local managers to control the local brands” (Thompson et al, 2010). The top 10 brewers accounted for 34% of the...
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................................................................................................Pg.7 Weaknesses.....................................................................................................Pg.7 Opportunities..................................................................................................Pg.7 Threats............................................................................................................ Pg.7 Recommendations................................................................................................................Pgs.8-9 Exhibit 1: Financial Ratios......................................................................................................Pg. 10 Exhibit 2: Top USA Beers by Brands 2009..............................................................................P.11 Income Statement………………………………………………………………………………………………………………Pg.12 Balance Sheet……………………………………………………………………………………………………………………..Pg.13 Cash Flow……………………………………………………………………………………………………………………………Pg.14...
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...Grupo Modelo (GM) is a Mexican brewer company with a 57% share in Mexico. The Mexican beer market is the world's eighth largest beer market. The company is also an important player in the United States premium beer segment with a market share of about 6%. Three of its brands ? Corona Extra, Modelo Special and Corona Light ? are among the top ten highest selling imported beers in the US. Grupo Modelo has a distribution system covering more than 122 countries, with its flagship brand, Corona, being the fourth largest selling brand in the world. The major beer brands of the company are: Corona Extra, Corona Light, Modelo Especial, Pacifico, Victoria and Negra Modelo. Grupo Modelo operations comprise of mainly two areas: brewing process and sales. The brewing operations include five breweries located in Mexico with a total processing capacity of more than 50 million hectoliters per year. The group has several subsidiary / affiliate companies that provide support services to the core business of producing beer. GM has followed a strategy of vertical integration since the 60's which has resulted in this network of companies engaging in the brewing and ancillary operations. GM has an established distribution network in Mexican market, which is a key factor in maintaining market shares in the domestic beer market. The export sales of beer are coordinated through a set of representative offices around the world. It may also be mentioned that the distribution network of the company...
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