...AQUAFINA Introduction: • Aquafina is a brand of bottled water. It was first distributed in Wichita, Kansas in 1994, Aquafina is sold in 12-fluid ounce, 500-milliliter (16.9 fl oz), 20-ounce, 24-ounce, 1 liter, and 1.5-liter bottles. • Aquafina was first launched in USA in the year 1994 and with its unique purification system and great taste, Aquafina soon became the best selling brand in the country. • In India, Aquafina’s journey began with the Bombay launch in 1999 and it was rolled out nationally by the year 2000. On the strength of its brand appeal and distribution, Aquafina has become one of India's leading brands of bottled water in a relatively short span. • The growth of aquafina is increasing day by day. In 2004 it was only 11 % as now in 2008 it has been reached at 22 % and in 2010 its been 26%. • Aquafina is an official sponsor of Olympus Fashion Week, Sundance Film Festival, Tribeca Film Festival, Carolina Panthers, and the PGA. • Aquafina is a brand of bottled water and skincare products manufactured by PepsiCo, Inc. pepsiCo produces several other products under the Aquafina label: Aquafina Aquafina FlavorSplash - Grape Aquafina FlavorSplash - Peach Mango Aquafina FlavorSplash - Raspberry Aquafina FlavorSplash - Strawberry Kiwi Aquafina FlavorSplash - Wild Berry Aquafina Sparkling - Berry Burst Aquafina Sparkling - Citrus Twist HISTORY OF AQUAFINA: TYPE ...
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...billionaires behind AAR. On the hand, BP is the second largest private sector oil company in the world. On the other hand, AAR is a very diversified group; it has interests in banking, retail, telecommunications, and medias but also in oil, notably through TNK which owns oil reserves and facilities. Those two companies contribute differently (ii) to the joint-venture. BP brings its know-how and expertise to exploit oil reserves, as well as the required investment (6,8$ billions of equity). AAR provides oil production in Siberia, oil refining, gaz interest and 1400 filling stations in Russian and Ukraine. One could argue that BP needs natural resources and is ready to pay a premium for it, whereas AAR needs the technology and expertise of BP. This alliance (iii) is a joint venture between BP and AAR because TNK-BP is a new entity that is owned equally by BP and AAR without any mergers or acquisitions from BP to AAR or vice versa. This alliance is a scope alliance since it is driven by complementarities in competence and assets, and because their strategies are different. Despite some economy of scale could be achieved; this is absolutely not the purpose of this alliance. 2) According to the case description, why did AAR not break their alliance agreement with BP when the first problem between the two parties arose? According to the case description, AAR did not break their alliance for few reasons. First, AAR still...
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...Case 11 InBev and Anheuser-Busch 1. What is the basis for competitive advantage in the brewing industry? Answer: The basis of competitive advantage for brewing industry is expanding its distribution chains with acquisitions or collaborations and mergers in exotic locations, logically controlling the cost of distributions, recognizing the appropriate market for beer segments and making products readily available and accessible to consumers. As the basic process of beer making is quiet straight forward and maintaining quality control and ensuring costs are closely managed in the production is challenging aspect of the brewing industry. Introducing new brands, setting a trend and keeping the established brands image fresh is also important for advantage. 2. What was the strategic rationale for the deal? Answer: Inbev aimed for top line growth and strong brand equity. It targeted goal of strengthening the position in developed market and maximize its growth. Inbev had a minor position in United States market, which was one of the largest and fastest growing beer markets. Anheuser-Busch dominated the US market. So, the deal was made to capture the US market and save cost significantly and achieve greater geographic stability. At that time, the dollar value was weak too and could be the reason to deal that time. Not only for Inbev, the deal was fruitful for Anheuser-Busch too. The deal would create a good economic value. Anheuser-Busch international...
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...BNP (Banque Nationale de Paris) On March 7, 1848 by the French Provisional Government founded the Comptoir national d'escompte de Paris (CEP) in response to the financial shock caused by the revolution of February 1848. The upheaval destroyed the old credit system, which was already struggling to provide sufficient capital to meet the demands of the railway boom and the resulting growth of industry. The CEP grew steadily in France and overseas, although in 1889 there was a crisis in which it was temporarily placed in receivership. Separately on April 18, 1932 the French Government replaced Banque nationale de crédit (BNC) which failed as a result of the 1930s recession with the new bank Banque nationale pour le commerce et l'industrie (BNCI). The former banks headquarter and staff were used to create BNCI with fresh capital of 100 millions francs. The bank initially grew rapidly through absorbing a number a regional banks that got into financial trouble. After the Second World War it continued to grow steadily. It grew its retail business in France and its commercial business overseas in the French colonial empire. After the end of the Second World War, the French State decided to "put banks and credit to work for national reconstruction". René Pleven, then Minister of Finance, launched a massive reorganization of the banking industry. A law passed on 2 December 1945 and which went into effect on the 1 January 1946 Nationalized the four leading French retail banks: Banque nationale...
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...VTB Bank (Russian: ОАО Банк ВТБ, former Vneshtorgbank) is one of the leading universal banks of Russia. VTB Bank and its subsidiaries form a leading Russian financial group – VTB Group, offering a wide range of banking services and products in Russia, CIS, Europe, Asia, Africa, and the U.S. The Group’s largest subsidiaries in Russia are VTB24, Bank of Moscow, and TransCreditBank. Type | Public company | Traded as | MCX: VTBR LSE: VTBR | Industry | Banking, Financial services | Founded | 1990 | Headquarters | Federation Tower West , 12, Presnenskaya emb., Moscow, Russia | Area served | Russia, CIS, Europe, Asia, Africa, U.S. | Key people | Andrey L. Kostin (President and Chairman of the Management Board)Sergey K. Dubinin (Chairman of the Supervisory Council) | Products | Financial Services | Revenue | RUB 525.1 billion (30 September 2012 IFRS Results)[1] | Net income | RUB 60.2 billion (30 September 2012 IFRS Results)[1] | Total assets | RUB 7 184.7 billion (30 September 2012 IFRS Results)[1] | Total equity | RUB 672.2 billion (30 September 2012 IFRS Results)[1] | Owner(s) | The Russian Federation state (75.5% shares) | Employees | 76 528 (30 September 2012 IFRS Results)[1] | Divisions | VTB Capital | Subsidiaries | Bank of Moscow | Chairman of the Management Board Valery M. Telegin (1990–1993) Yuri V. Poletayev (1993–1996) Dmitry V. Tulin (1996–1999) Yuri V. Ponomaryov (1999–2002) Andrey L. Kostin (from 2002) Shareholders The main shareholder...
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...companies. Post Corus merger, Tata Steel is India's second-largest and second-most profitable company in private sector with consolidated revenues of Rs 1,32,110 crore and net profit of over Rs 12,350 crore during the year ended March 31, 2008. The company was also recognized as the world's best steel producer by World Steel Dynamics in 2005. The company is listed on BSEand NSE; and employs about 82,700 people (as of 2007). Corus was formed from the merger of Koninklijke Hoogovens N.V. with British Steel Plc on 6 October 1999. Corus is a leading European manufacturer providing steel and aluminium products and services worldwide. It focuses on semi-finished and finished carbon steel products. Corus is Europe’s second largest steel producer with revenues in 2005 of £9.2 billion (US$18 billion and crude steel production of 18.2 million tonnes, primarily in the UK and the Netherlands. Corus provides innovative solutions to the construction, automotive, packaging, mechanical engineering and other markets worldwide.. Group turnover for the year to 31 December 2005 was £10.142 billion. Profits were £580 million before tax and £451 million after tax. Company Backgrounds Tata Steel, formerly known as TISCO (Tata Iron and Steel Company Limited), was the world's 56th largest and India's 2nd largest steel company with an annual crude steel capacity of 3.8 million tonnes. Based in Jamshedpur, India, it was part of the Tata group of companies. Post Corus merger, Tata Steel was India's...
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...rP os t 9-207-039 REV: JUNE 28, 2010 BELÉN VILLALONGA RAPHAEL AMIT SUN Brewing (B) op yo In late July 2004, Nand Khemka and his sons Shiv and Uday assembled in Paris to discuss their holdings in SUN Interbrew Limited (SIL), a leading Russian beer producer. SIL was a joint venture formed in April 1999 between their beer company SUN Brewing and Belgian beer giant Interbrew.1 SUN Brewing was part of SUN Group (SUN), an international commercial and investment group owned by the Khemka family. SUN’s shareholders were firm believers in the long-term growth potential of the Russian beer market and in the value creation potential of SIL. The family was extremely pleased with the recent success of the management team led by Joe Strella and felt they shared a common vision with the shareholders and management of Interbrew. However, the last few months had led SUN to consider carefully the situation in which they found themselves. First, the Alfa Group, a large financial and industrial conglomerate in Russia, had accumulated 15.8% of the voting stock in SIL, thereby becoming the third largest voting shareholder in the company.2 Alfa had approached both Interbrew and SUN separately and had expressed their desire to buy out SUN’s interest and to become a partner with Interbrew in the future growth of the business. SUN had also been approached by Interbrew about buying SUN’s stake. tC Although the family was keen to remain a long-term shareholder in the business, the present situation...
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...countries. Since its inception, ArcelorMittal has rapidly grown through a successful consolidation strategy with a number of significant acquisitions ArcelorMittal is the successor to Mittal Steel, a business originally set up in 1976 by Mr Lakshmi N Mittal, chief executive officer and chairman of the board of directors. ArcelorMittal was created through the merger of Arcelor and Mittal Steel in 2006. Mittal Steel’s rapid growth since 1989 has been the result of combining a successful consolidation strategy with a number of significant acquisitions. Since setting up operations in Trinidad and Tobago in 1989, some of its major acquisitions are Siderurgica del Balsas (Mexico) in 1992, Sidbec (Canada) in 1994, Karmet (Kazakhstan) and Hamburger Stahlwerke (Germany) in 1995, Thyssen Duisburg (Germany) in 1997, Inland Steel (US) in 1998, Unimetal (France) in 1999, Sidex (Romania) and Annaba (Algeria) in 2001, Nova Hut (Czech Republic) in 2003, BH Steel (Bosnia), Balkan Steel (Macedonia), PHS (Poland) and Iscor (South Africa) in 2004, ISG (US), Kryvorizhstal (Ukraine), as well as a significant interest in Hunan Valin Steel (China) in 2005, and three Stelco Inc. subsidiaries (Canada) in 2006. Recently, ArcelorMittal, together with its partner Nippon Steel and Sumitomo Metal, acquired ThyssenKrupp's Calvert facility in the US. This is a strategic acquisition for ArcelorMittal, demonstrating the company’s industry...
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...extent is profitability driven by global scale? What else is relevant? 5 5. Is vertical integration a value driver for Mittal? Why? 6 6. How would a merger of Arcelor with Mittal add value? 8 Appendix I 10 1. How has Mittal managed to expand from a marginal position to become the largest steel producer in the world? Mittal Steel advanced from being a marginal company to become one of the largest steel producers in the world through its early investment in new steel making technology and strategic mergers and acquisitions. In the 1970s, 45% of the steel market was comprised of mini-mills which used scrap metal in production (p 3). Scrap metal was inexpensive but lower quality compared to other forms of production which made it difficult for mini-mills to cater to the demands of the most high-end but demanding customer in the steel industry, the automotive industry (p 3). Direct Reduced Iron (DRI) produces a substitute at minimal cost but without the quality issues associated with scrap (p 3). Lakshmi Narayan Mittal (लक्ष्मी मित्तल, LNM) focused many mergers and acquisitions on plants that were already using DRI (p 5). Over time, DRI became a less expensive and reliable input product for the steel industry and by investing early LNM was able to become the industry lead in the use of DRI (p 5). The acquisitions that were central to Mittal’s business model also contributed to company growth. LNM focused many of...
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...Multinational corporations Table of contents Preface 4 1. Introduction; General meaning of MNC 4 2. Ranking multinationals 5 3. Entry of Multinational corporation into new markets, 6 4. Three Stages of Evolution 7 5. Motives for Foreign Direct Investment (FDI) 9 6. The comparison of MNC and TNC 11 7. What are the benefits and problems that MNCs face? 11 8. What are the Russian companies that achieve the multinational status? 13 Conclusion 14 Bibliography 14 Appendix 15 Preface We would like to consider the most interesting topic concerning the multinational corporations. If we called it like that, it means that company made a great success in the market, it operate in several foreign countries. In this mini-course work we will investigate more detailed the structure and strategies of MNCs. In the first part we will look through the history of MNCs. The history, in general, is to be considered as an essential part of every project in order everyone may compare the development of the particular sphere. Next part will show us the statistical data of MNCs, where we will recognize all the most reputable companies from the different industries, such as BMW, Nike, Lego, etc. We cannot leave a side the point of entry into the new market. There it will be explained the strategies of MNCs, such as mergering, joint venture and sequential market entries. Also we will consider investing into the particular companies, weather it is risky or not and the motives...
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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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...paper will conclude with a look at the managing style of Kim as he presided over one of the world’s largest companies. History of Daewoo Woo Choong Kim founded Daewoo Industrial in 1967. Daewoo was a multibillion-dollar enterprise evident in its name meaning “Great Universe” (Clifford, 2003, para. 2). Kim was an ambitious 30-year-old entrepreneur who mastered the ability to acquire troubled companies, mostly from the South Korean government, and turning them back to the profitable side. After many acquisitions, Kim’s organization embarked on its tragic foray into the automobile industry through a 50% acquisition of Saehan Motor in a joint venture with GM Korea. This merger became Daewoo Motor Company. Later purchasing the remaining 50% from General Motors, Daewoo acquired the Worthing Technical Centre in the United Kingdom, Fabryka Samochodow Osobowych, truck manufacturers in Poland and the Czech Republic, and merged with car plants in Uzbekistan, Ukraine, and India. By 1998, Daewoo had expanded to contain fourteen new vehicle plants in thirteen countries with culminated with the purchase of a 51.98% stake in Ssangyong Motor (Kim, p. 279). In 1999 the universe of Daewoo was one of the largest conglomerates in the world. It employed over 320,000 employees, held 590 subsidiaries and was operational in over 110 countries. However, after the investigation of the...
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...The international BCC Corporation, one of the world’s largest corporations, was formed in 1987 by a merger of two national electro-technical companies, the first step in an attempt to restructure a traditionally conservative and nationally based engineering industry into a fully international industry. From this Western base, the group has grown by ‘going East’, investing in and acquiring new companies in Eastern Europe, Russia, South-east Asia and China. The group has attempted to achieve both global scale and decentralised local presence, with component businesses divided into several thousand profit centres, with remarkably few corporate managers at the top, or at Headquarters. English is the designated company language. A strategy of mergers and acquisitions in order to achieve market leadership and, in selected markets, global dominance, has since characterised the company. BCC: The nature of the business BCC now employs more than 200,000 people and last year total sales amounted to US $28,300 million. The group is organised in five Business Segments: Power station design and build Power transmission and distribution Industry systems and building systems Transportation Financial services The five Business Segments are then subdivided into about 50 international Business Areas. Within Power Transmission and Distribution, for example, there are Business Areas responsible for cables, transformers, high voltage switchgear, network control, network installation...
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...Chapter 11 Case Study: Pepsi Background of the Company- 1965-PepsiCo, Inc. was established through the merger of Pepsi Cola and Frito-Lay. Caleb Bradham, a New Bern, N.C. pharmacist, created Pepsi Cola in the late 1890s. The 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. LAY COMPANY, formed Frito-Lay, Inc., founded by Herman W. Lay, also in 1932. Herman Lay, former chairman and CEO of Frito-Lay, was chairman of the board of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi Cola, was president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are: Pepsi Cola Company: Pepsi Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948). Frito-Lay, Inc.: Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961). 1966- Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the United States. Pepsi enters Japan and Eastern Europe. 1971- PepsiCo moves from New York City to its new world headquarters in Purchase, N.Y. The new corporate headquarters features a building by one of America's foremost architects, Edward Durrell Stone (19021978), set on a 144acre...
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...International business or Global marketing is growing at a fast rate and there are more than 180 nations-sates in the world with different market and profitable potential. However for an organization to earn sufficient income in the global market it needs to know the right time and form of market entry mode whilst entering International market (Hill, 2003). Therefore this essay will focus and assess the need for an organisation to use a range of modes of entry while entering the international market. In due course it will give an overview on International marketing literature review, views on variety of entry modes, entry selection criteria, examples based on cased studies and conclusion. General Understanding of International marketing refers to marketing of goods and services from one country to another. Producing and marketing of products in more than one country is also termed as international or multinational marketing. But according to Mc Auley (2001) International marketing can be defined quite simply as “the performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit” much similar to domestic marketing. However Kahler (1983) argues and identifies that “International marketing differs from domestic marketing for one basic reason: it involves doing business with individuals, firms, organizations, and/or government entities in other countries”. The author further argues that the difference...
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