...Global forces and the European brewing industry Mike Blee This case is centred on the European brewing industry and examines how the increasingly competitive pressure of operating within global markets is causing consolidation through acquisitions, alliances and closures within the industry. This has resulted in the growth of the brewers’ reliance upon super brands. In the mid 2000s the major centre for production of beer in the world was Europe; its production was twice that of the USA, which in 2003 was the world’s largest beer-producing country. In the alcoholic drinks sector beer sales are dominant: total sales across the world accounted for 74 percent of all alcoholic purchases (Euromonitor 2002). Although the European market as a whole is mature, with beer sales showing slight falls in most markets, Datamonitor 2003 reported that the alcoholic beverage sector grew at an annual rate in value terms by 2.6 per cent year between 1997 and 2002. Table 1 European beer consumption by country and year (000 hectolitres ) |Country | |1980 |1997 |1998 |1999 |2000 |2001 |2002 | | | | | | | | | | | |Austria | |7651 |9145 |8736 |8810 |8762 |8627 |8734 | |Beigium ...
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...a bill to remedy Guador’s alleged unfair trade practices in the citrus fruit industry. The bill provides for a unilateral threefold increase in the tariff solely applicable to citrus fruits originating in Guador. Furthermore, the bill imposes periodic testing procedures upon Guadorian citrus fruits from which American producers are exempt. Finally, the bill caps imports of Guadorian citrus fruits into the United States at $20 million in value annually. If enacted, would the bill violate American obligations pursuant to the GATT? Why or why not? Yes the bill would violate the American obligations pursuant to the GATT because GATT is that one nation will not take unilateral retaliatory action against another nation in a trade dispute.GATT obligates each country to accord nondiscriminative. No other countries with some exceptions receive better treatment or lower tariffs. Question 2 Compare and contrast the actions of foreign countries regarding cigarettes (as seen in the text) with recent attempts within the U.S. to regulate cigarettes. Bulgaria has banned all tobacco advertising outside of tobacco shops and threatened violators with a $50,000 fine per violation. British do not forbid tobacco advertising, they insist on self-imposed and highly subjective industry guidelines. Belgium permits cigarette ads, but only those that focus on the package or on part of its design. A directive by EU that would have effectively banned all advertising of tobacco products was annulled...
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...Organic development 10 Question 4 10 Johnson and Scholes framework of Suitability, Feasibility and Acceptability 11 SABMiller’s strategic priorities: 11 Constraint of acquisitions 13 Reference 14 Question 1 Using information exclusively from the European Brewing Industry and SABMiller cases as supplied and appropriate models from the course analyse the external environment in which SABMiller operated in 2010. After conducted a series of cross broader mergers and acquisitions SABMiller successfully become the second largest brewer by volume in the world. SABMiller is now operating worldwide: Latin America, Europe, North America, Africa, Asia, and South Africa. Nevertheless, the environmental condition and potential of growth vary between each region (Blee and Whittington, 2010). European brewing industry was one of the world’s major beer consumption regions. Recent years, the market has come into mature stage of the industry life cycle and demand is now decreasing (Euromonitor, 2010). PEST analysis and Porter five forces model are the appropriate methods to evaluate external environment on European Brewing Industry (Johnson, 2002). PEST analysis Political / Legal Governments were strongly against drunken driving, meanwhile, increasing the awareness of the effects of alcohol on health and fitness. This campaign has beaten beer consumption and furthermore shifted the selling pattern from on-trade (sales in restaurants...
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...Bobmarlay Brewing Company | MARKETING PLAN | | The rationale of BBC marketing plan is to serve as a quick blueprint towards, achieving our objectives. | | Presented by: A Group of Northern Caribbean University Students | 6/24/2013 | | NORTHERN CARIBBEAN UNIVERSITY College of Business & Hospitality Management Department of Professional & Continuing Education Salem Runaway Bay Campus Presented in partial fulfillment of the course MKTG490: Strategic Marketing Assignment Facilitator From: Date June 24, 2013 Lot # 2 Main Street Ocho Rios St Ann Tel. 1876 Website: www.bobmarlay.com Email: Sales@bobmarlay.com customerservice@bobmarlay.com TABLE OF CONTENTS PAGES Company Overview 6 Executive Summary 6-7 Marketing Strategy 7 Mission 7 Marketing Objectives 8 Marketing Mix ...
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...Bobmarlay Brewing Company | MARKETING PLAN | | The rationale of BBC marketing plan is to serve as a quick blueprint towards, achieving our objectives. | | Presented by: A Group of Northern Caribbean University Students | 6/24/2013 | | NORTHERN CARIBBEAN UNIVERSITY College of Business & Hospitality Management Department of Professional & Continuing Education Salem Runaway Bay Campus Presented in partial fulfillment of the course MKTG490: Strategic Marketing Assignment Facilitator From: Date June 24, 2013 Lot # 2 Main Street Ocho Rios St Ann Tel. 1876 Website: www.bobmarlay.com Email: Sales@bobmarlay.com customerservice@bobmarlay.com TABLE OF CONTENTS PAGES Company Overview 6 Executive Summary 6-7 Marketing Strategy 7 Mission 7 Marketing Objectives 8 Marketing Mix ...
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...1 2 2 2 Assumptions Processes of Manufacturing Beer DEPARTMENT ONE: STAGE 1 - MIXING DEPARTMENT ONE: STAGE 2 - BREWING DEPARTMENT TWO: PACKAGING 3 4 4 4 5 Process Costing DETERMINING FIGURES CALCULATING COST PER EU 6 7 8 Cost Reconciliation Recommendations CAPPING & LABELLING BOTTLES & UTILITIES TRANSPORTATION 9 10 10 11 11 Introduction of Outpatient Business Costing Technique Chosen ACTIVITY BASED COSTING (ABC) JUSTIFICATION 12 12 12 12 Assumptions List of Activities and Cost Drivers Traditional Costing COMPARE AND CONTRAST WITH ABC UNDER ABC METHOD UNDER TRADITIONAL COSTING METHOD 13 13 14 14 16 16 Recommendations Conclusion Learning Points Reflections Bibliography Appendix 1 (Heineken) Appendix 2 (SATA CommHealth) 18 20 21 23 24 25 27 ACCT102 Management Accounting ! G8, Group 5 EXECUTIVE SUMMARY ! Our project aims to apply costs concepts in the beer manufacturing and hospital service industry. The companies we will be using for our case studies will be Heineken and SATA CommHealth. We will seek to identify the most suitable cost concept for each industry to allow for better internal decision making purposes. Various costing methods, namely, Activity-Based Costing and Process Costing, will be used to analyse the business models of these companies in the aforementioned industries. Following from our analysis and diagnosis of each company, we will recommend...
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...different foods, creating a gourmet experience generally different from that achieved with the industrial beers. Satisfaction created by BBC translates into the definition that creates the consumer about the brand, in this way; customers classify Bogota Beer Company as a brand of exclusive craft beer within the beer industry, which benefits it because the brands representing the competition in Chile are not well positioned in the market. The challenge of BBC is to increase the market share of microbrew within the beer consumption because it represents only 0,4%. This increase will be done through pricing, product, distribution, promotion and processes strategies, which will generate an environment with more profits, more controlled expenses and the greater public attraction, thanks to the proper management of strategies within the target market. History Bogota Beer Company (BBC) is a company that offers microbrew and was founded by Berny Silberwasser in 2002. This brewery was the search result to decrease the Colombian brewer monopoly and consequently a journey through breweries of the United States and Europe in 1997, where the founder learned the brewing art, which later became the revolutionary able to give Bogota and the country a better beer. (Bogota Beer Company, 20014) The beers are made with traditional natural ingredients like malted barley, hops, yeast and water. In some beers local ingredients like organic honey, orange peel and oats are used, in order to find...
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...Question 1 (i): Using the data from the case (and any other source available), carry out for the European brewing industry a PESTEL analysis. What do you conclude? Beer has been a part of the social fabric of cultures around the world for thousands of years. Even today beer ranks as the third most popular beverage in the world next to water and tea. Considered one of the oldest drinks, the origin of beer dates back to 6000 B.C. With low-cost strategies and lack of marketing and product innovations all created a very stable situation guaranteeing high returns on investments for most breweries in Europe. However, this situation has been changing dramatically and the industry has witnessed different brewing styles over the last decade. The market entry of large multinational breweries resulted in shrinking demand due to changing consumer preferences, the emergence of more aggressive competitive strategies and rapid changes in important distribution channels have created growing competitive pressures for European breweries. An industry that was used to stability must now find its way in an increasingly turbulent market environment. First of all, I need to evaluate the macro environment of the industry. The most suitable tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysis environmental influences are categorized into political, economical, social, technological, environmental/ecological and legal aspects. It helps to identify how future trends...
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...Beer statistics 2010 edition Table of Contents Table of contents ....................................................................................................................................................... p 1 Glossary and abbreviations ....................................................................................................................................... p 2 Foreword................................................................................................................................................................... p 3 Beer trends EU27 2003-2009 ................................................................................................................................... p 5 Beer production 2003-2009 (data) ............................................................................................................................ p 6 Beer production 2009 (chart) .................................................................................................................................... p 7 Beer Consumption 2003-2009 (data) ....................................................................................................................... p 8 Beer consumption 2009 (chart) ................................................................................................................................. p 9 Consumption per capita 2003-2009 (data) ................................................................................
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...UNIT 15: ON-LICENSED TRADE MANAGEMENT Get assignment help for this unit at assignmenthelpuk@yahoo.com LO1 Understand key issues that impact on the licensed trade industry Brewing and the licensed trade: economic, social and legislative history Agreements: freehold; leasehold; tenancy Types of licensed premises: family; themed; community; country; town houses; branded pubs including franchises Future developments: national; EU influences Industry challenges/issues: the health agenda; responsible retailing; anti-alcohol lobby; smoking ban; violence; ethics; social responsibility; alcohol related disorder; gambling; pub closures; sustainability and the environment LO2 Understand the effective development and operation of on-licensed premises Design: interior and exterior design, ergonomics, customer and workflow, economic use of space, provision for family areas (indoor/outdoor) Regulatory constraints: licensing law; health authorities; the police; planning authorities; licensing justices; weights and measures; safety; risk analysis Profitable product development: food; liquor; games; Amusement with Prizes (AWP) and Amusement with Skills (AWS); profit and loss statement analysis Stock and cash security: Electronic Point of Sale (EPOS) systems; associated integrated software and paper systems; the prevention of fraudulent practices; till security; security of cash on premises and transference Staffing: structures; recruitment; training; retention; outstanding performance;...
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...INTERNATIONALIZATION STRATEGIES FOLLOWED BY THREE MEXICAN PIONEER COMPANIES GRUPO MODELO, GRUPO BIMBO and CEMEX ISSUES AND CHALLENGES José G. Vargas-Hernández, M.B.A;Ph.D. Profesor Investigador miembro del Sistema Nacional de Investigadores Departamento de Mercadotecnia y Negocios Internacionales Centro Universitario de Ciencias Económico Administrativas Universidad de Guadalajara. Periférico Norte 799 Edificio G-306 Zapopan, Jalisco C.P. 45100; México Tel y fax: +52(33) 3770 3343 Ext 5097 josevargas@cucea.udg.mx,jgvh0811@yahoo.com,jvargas2006@gmail.com Mohammad Reza Noruzi, EMBA, PhD Candidate Policy Making in Public Sector Islamic Azad University, Bonab Branch, Iran Young Researchers Club Member, IAU Bonab, Iran Tell: +98- 412-7238893-5 mr.noruzi@modares.ac.ir mr_norouzi@pnu.ac.ir mr.noruzi.pnu@gmail.com Abstract The opening of the Mexican economy and globalization bring new opportunities for Mexican companies to expand their markets and get their products around the world. The internationalization process requires a sound strategy for the consolidation in foreign markets. The aim of this study is to analyze the different internationalization strategies followed by three Mexican companies with a global presence: Grupo Modelo, Grupo Bimbo and Cemex. We conclude that the differences in their strategies arise from the characteristics of each of these companies. Keywords: Mexican companies, strategy, expansion, internationalization. 1 INTRODUCTION The landscape of this...
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...SIM336 (Off Campus) Strategic Management Case Study – Reconciling Managerial Dichotomies, Honda Motors in De Wit & Meyer Company Overview: Honda Motor Company was established in 1948 in Japan, on the backdrop of 1 million (Yen) and 34 employees. Over the years the company has grown to become the world's largest engine, motorcycle and automobile manufacturers, with more than 178000 employees and stock holder equity of 4,544265 million Yen (Annual Report, 2008). Honda is the 5th largest automobile manufacturer in the world. Moreover, it recently surpassed Chrysler as the 4th largest automaker in the US. It is the 2nd largest Japanese automaker, behind Toyota and ahead of Nissan (Just Auto, 2008). In the early years, the Company was focused in manufacturing locally and serving its domestic market, after which it began exporting its products internationally. In 1982, it became the first Japanese automaker to setup a plant outside its domestic boundaries (Ohio, USA). Now it has established plants all over the world, covering bases such as North America, South America, Europe and Asia. In terms of Japanese automakers, it has the largest share of plants as a ratio of total business outside its domestic boundaries (Dicken, 2007). North America, with Unit Sales of 1850 (thousands) is the largest Market of the company, noted for the year ended 31 March 2008. In 1963, the company set up its first international motorcycles production plant, in Belgium. Honda...
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...Product and Service Design The Sinebrychoff Company is well known for their wide range of drinks satisfying the tastes of different people. Their strategy is to anticipate abrupt changes in the consumer behaviour and offer consumers the products they desire. Their main products are the popular Finnish beers KOFF and Karhu, Kurko long drinks, Battery energy drinks, as well as internationally recognised Carlsberg beers and Golden Cap ciders. They also provide import variety of foreign beers. The major drivers in the design of the product (not only taste and flavour, but also the container shape, size, material) are, • Cost: KOFF is considered as the comparatively cheaper drink that comes with different good tastes. Hence it is highly important to have same pricing strategy with good quality in order to retain customers. • Quality: The quality of drinks is determined by various factors like o Taste – Able to delight customers with its traditional and modern mix o Variety – Catering to the needs and tastes of different people and even occasions (Like their Christmas drinks, Finnish Sushi with Nikolai drink) o Conformance – adhering to standards like Finnish Food Act and other international standards. o Reliability & Durability – Retaining the same taste for a longer time is a critical requirement for drinks. • Customer satisfaction: Customer satisfaction not only includes gratifying the needs of the...
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...Governments have official exchanges in areas such as education and medical research. With Ireland's membership in the European Union, discussions of EU trade and economic policies as well as other aspects of EU policy have also become key elements in the U.S.-Irish relationship. This long-term relationship, some cultural similarities and a strong educated workforce makes Ireland a good place to go international with a U.S. based business. Ireland Ireland is a nation emerging as a great place for the United States to conduct business. The relationship of the United States and Ireland are deeply based on shared values and common ancestral ties. These ties help breakdown communication issues that could occur in other dissimilar countries when trying to negotiate business. In addition to shared values, these two countries have similar cultures, as well as similar needs and wants in relation to consumer purchasing history, which makes the exchange of business easier, more lucrative and less risky. Economic Overview Ireland is a small, modern, trade-dependent economy, which experienced strong growth until the world economic downturn in 2008. Over the last few years, Ireland has been positioning itself for growth as the world economy improves. Agriculture, once the most important sector, has mostly been replaced by industry and services. Industry makes up 46% of the GDP, 80% of exports, and 29% of the labor force. Although exports remain the...
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...Macro-environment Demographic environment According to Eurostat's data, the population of the EU-27 is growing and is expected to continually grow in future decades. The age structure of population in the EU-27 is becoming older, the age pyramid is narrowing at the bottom while the ageing population grows. This implies that in the future we should be more focus on mature services and adapt our services to a wider range of consumers since our target market is mainly young people. The average age at marriage is increasing noticeably across the EU in recent years. This can be interpreted that people are more likely to travel in less conventional types of accommodation, conducive for meetings and sharing of experiences. Economic environment After the financial and economic crisis, the GDP growth is expected to reach 1,5 % for 2014. The inflation rate is forecast to slightly decrease in 2014 compared to 2013. The household saving rate increased sharply in respond by the crisis and reached 13,2 % in 2009 while it began to decrease in 2010, to reach 10,7% in the end of 2013. The unemployment rate is foreseen to remain stable for 2014. Furthermore, it is interesting to point out that despite the slowdown Europeans keep going on holidays even if they spend less. The slightly increase of the GDP and decrease of inflation rate can be seen as a better economic situation in the EU 27, as a general increase of the wealth of many Europeans and a higher purchasing power. Moreover...
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