...afafasfasfasfafafas CASE STUDY – INDIAN BEER INDUSTRY Microeconomics Group Assignment Group 3: Shubham Arora – 3 Karthik B – 4 Manisha Garg – 19 Rama Lakshmi M - 32 Sstitute of Management S.P Jain Institute of Management and Research Research Indian Beer Industry – Case Study Analysis The Indian beer industry has been witnessing steady growth of 7-9% per year over the last ten years. The rate of growth has remained steady in recent years, with volumes passing 100m cases during the 2005-2006 financial year. With the average age of the population on the decrease and income levels on the increase, the popularity of beer in the country continues to rise. Industry Consolidation and Emergence of a new Bi-polar Market Dynamic The Indian beer industry has witnessed a big change during the last five years. The industry was previously dominated by competition between the Vijay Mallya-controlled United Breweries Group and the Manu Chabbriacontrolled Shaw Wallace. The scenario changed, however, with the entry of SABMiller in India. The international beer giant started by acquiring small breweries in the south but then completely changed the landscape with the acquisition of Shaw Wallace’s beer portfolio for a reported US$132m in 2003. This gave SABMiller ownership of strong brands like Haywards 5000, along with its existing brands. After the acquisition, SABMiller focused on spreading its footprint across India, including opening new breweries in states where Shaw Wallace did not have...
Words: 2893 - Pages: 12
...asses SABMiller's external analysis; I have constructed a PESTEL analysis (appendix 1); Porters 5 forces (appendix 2); THE BCG matrix (appendix 3) and its competition Analysis (appendix 4). After conducting Porter's five forces of the Brewing Industry; I have found many interesting outcomes relating to SABMiller as the overall markets of the brewing industry aren't clearly attractive; its performance depends on the ability to expand its market share and exploit opportunities in the emerging markets. However, the brewing industry in growing markets, which SABMiller operates, is highly attractive but not for new entrants; it's especially attractive for the dominant players in the Industry; which in this case SABMiller is one of them. After analysing my Porter's 5 forces; it is conclusive that it would be extremely hard for new entrants to compete in these emerging markets due to the high dominance of the main competitors. I have also observed other good points such as the low level of power within suppliers; however the power of suppliers is increasing especially in USA due to the rising costs of energy and Aluminium but in under developed countries; it is conclusive that SABMiller has the overall power of its suppliers; as it's an international brewer; finding suppliers wouldn't be a major issue. Its Conclusive that the power of Buyers is very high;...
Words: 1632 - Pages: 7
...1 Innovation in Africa: A View from the Peaks and Hilltops of a Spiky Continent* By David A. Wernick, Florida International University College of Business *From the forthcoming book Innovation in Emerging Markets, edited by J. Haar and R. Ernst (Palgrave, 2016). Please do not circulate or quote without consent of author. ABSTRACT: There is growing interest among scholars and practitioners in African innovation. Some contend that the continent's recent economic boom is largely a homegrown phenomenon, driven primarily by indigenous entrepreneurs developing local content for continental consumers. But is this true? To what extent is Africa's impressive economic performance in recent years the result of internal dynamics and which actors and institutions are most responsible? This chapter examines the state of innovation across the African continent, with a particular focus on sub-Saharan Africa. The authors identify key facilitators of innovation in the private, public, and non-profit sectors, as well as obstacles to the continent’s continuing innovation-led economic expansion. I. Introduction In a widely read 2005 article in the Atlantic Monthly, author Richard Florida argued that with respect to innovation, the world is anything but flat. Given the way that creative talent, technical expertise, and financial capital tend to cluster in a handful of hubs or “peaks” around the world – places such as New York, San Francisco, London, Berlin, and Tokyo – the world’s...
Words: 8920 - Pages: 36
...COORS MOLSON MERGER FEBRUARY 28, 2010 Table of Contents EXECUTIVE SUMMARY ii SCOPE 1 INDUSTRY 1 Top 5 Brewing Companies 1 The Beer Brewing Process 1 The Brewer to Retailer Process 3 Beer Importers 3 Beer Wholesalers 3 Beer Retailers 3 COORS 4 Marketing 4 Information Technology 4 Financial 5 MOLSON INC. 5 Marketing 5 Information Technology 5 Financial 6 MOLSON COORS MERGER 6 Four Objectives of Molson Coors 6 Goals from Molson and Coors 7 Coors Goals 7 Molson’s Goals 7 Merger: Good or Bad? 7 EXECUTIVE SUMMARY This document analyzes two world renowned brewing companies, Coors and Molson, in their achievements and efforts as individual companies in order to gain an understanding of the merger between Coors and Molson. The beer brewing industry is briefly reviewed in terms of the top five brewing companies in the world along with the information and beer brewing process flows of the industry. Marketing, information technology, and financials are elaborated upon for Coors and Molson. These three key aspects of each company are compared and contrasted in order to come to a positive decision about the merger. Finally, the merger is concluded to be a great decision for the two companies. SCOPE The merger between Coors and Molson are highlighted in this document. In order to come to a decision about the merger, the companies’ top competitors are mentioned. Information flows, as well as beer processing flows, are discussed. The two companies...
Words: 3215 - Pages: 13
...Heineken Brewing Company Case Study MBA650 Business Policy John Barber Abstract Heineken is a major competitor in the mass production beer industry. The firm is facing internal and external environment challenges which are affecting its sales and profitability. The corporation is involved in a competitive, concentrated, and differentiated industry that has allowed major rivals to achieve growth through mergers and acquisitions. The case study addresses the issues that the organization is encountering. The company is facing declining sales due to changing consumer tastes and increased competitive pressure. Heineken is attempting to increase sales and retain its position as a premium beer, but is faced with a lack of support from two key demographic groups which includes Hispanic American's and young Americans (Dess, Lumpkin, Eisner & McNamara, 2012). A case study of the firm, and its market environment, utilizing value chain analysis, and Porter’s Five Forces was conducted. Recommendations and alternative strategies were developed to increase the position of the Heineken brand and regain sales from Hispanic Americans and young Americans. The implementation of the recommendations and alternative strategies may increase Heineken’s opportunity of sustainable long term growth within the industry. Introduction Heineken is the third largest brewer in the world and currently distributes more than 170 brands of beer in over 150 countries worldwide. However, over the past...
Words: 5428 - Pages: 22
...ABSTRACT In the recent years China has been seen as a major competition in the international economic market. It has been replacing many western states as the top trading and investment partner in many African states, and for decades it has been one of Africa’s best friends, helping in the decolonization process and building key infrastructure projects on the continent. China has been providing many African governments with cheap loans in exchange for securing their means of accumulating natural resources based on the principle of non-intervention and respect for sovereignty, which gives no strings attached. For more than a decade, diplomatic relations between China and South Africa have been marked a great growing relationship between both states. From a period of no official ties to limited interaction between the South African and Chinese Governments, the relationship has subsequently developed to become one of the closest between African and Asian states. Growing economic engagement, which underpins the warm ties between the two states, has put South Africa amongst China’s top three trading partners on the continent. Moreover, China is an emerging market economy; with a fast track of being the next economic rising superpower in the world and its current relations between it and Africa continue to grow fast with foreign direct investment increasing thirty-fold between 2003 and 2011, from US$491m to US$14.7 billion. In 2012, China pledged US$20 billion of loans to Africa over...
Words: 8475 - Pages: 34
...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...
Words: 3674 - Pages: 15
...Stansfield College _ Singapore Literature Review _ HR502 Strategic Human Resource Management (PGDM Unit) Talent Management Shawn Tkatch March 2012 Program: MBA – VUN (Jan-Apr 2012 Term) Lecturer : Juhi Ranjan INTRODUCTION In 1997 a group of McKinsey consultants coined the phrase a “War for Talent” which refers to an organizations effort to improve strategies, policies and practices for the attraction, development, deployment and retention of talent for their business. This brings about the need to understand precisely what the organization requires and to determine the actual and potential talents required of the employees. David Whitwan, former CEO of Whirlpool Corporation stated “The thing that wakes me up in the middle of the night is not the economy or competitors; it is whether we have the leadership capability”. This statement reveals the challenges that organizations face in the new knowledge economy. Developing and retaining good and talented people has become a significant challenge for most businesses, big or small. In the 21st century, talent is being defined as the new wealth. In today’s business, most organizations are talent poachers opposed to talent developers within their existing employee workforce. Once talent is identified, companies use anything and everything to lure that talent to the organization in order to gain the competitive edge. A Harvard Business Review article from January, 2000 explains...
Words: 3765 - Pages: 16
...Economics I Chapter 1: Economics for business ‘David Begg and Damian Ward – Economics for business’ 1.1 What is economics? Economics how individuals, firms, governments and economies deal with the problem of infinite wants and finite resources, it is the study of how the society resolve the problems of scarcity. Microeconomics: addresses the various market influences that impact upon a firm’s revenues and costs. Macroeconomics: addresses the economy-level issues which similarly affect a firm’s revenues and costs. Infinite wants: limitless desires to consume goods and services (big house, luxury car, designer shoes). Finite resources: limited amount of resources that enable the production and purchase of goods and services (salary, consulting fees, royalties from book, generous friends). Factors of productions: are resources needed to make goods and services: land (oil, gas, base metals), labour (China/India or Europe), capital (machinery, computers, office spare, retail shops) and enterprise (brings land, labour and capital together and organize them into business units that produce goods and services with the objective of making a profit, like shareholders). Production possibility frontier it shows the maximum number of products that can be produced by an economy with a given amount of resources. This illustrative tool can be used to highlight crucial economic concepts: Finite resources with a fixed quantity of resources an infinite amount of beer, or pizzas, cannot be...
Words: 12239 - Pages: 49
...Confirming Pages 3 Walmart, the world’s largest retailer, has gone green. Since 2005 it has worked to plan and execute a sustainability strategy that includes using renewable energy sources, reducing its waste, and selling sustainable products. A packaging scorecard helps Walmart’s 60,000 suppliers learn about Walmart’s expectations and guides the firm in making its purchasing decisions. The company has built energy-efficient stores and retrofitted others, and it offers reusable shopping bags made of recycled materials. Although Walmart doesn’t disclose financial details on the green initiative, it says the program is already saving money and resources, and it projects billions in savings over time.1 Ethics and Corporate Responsibility Hear the True Story of how today’s managers do the right thing. Listen to what Derrick and Elaine have to say. “Ethics are crucial in the property management business. We are obligated to abide by fair housing laws in our dayto-day operations. Not only do we have an obligation as a company but also a social obligation to make sure our vendors and contractors are aware of these practices.” “The very nature and mission of my project is that of social responsibility. We are trying to do our part to help out developing countries in a way that an agricultural library is best equipped to do. Good workplace ethics translates into a better product for our subscribers. The better I and my employees perform, the better...
Words: 15103 - Pages: 61
...Confirming Pages 3 Walmart, the world’s largest retailer, has gone green. Since 2005 it has worked to plan and execute a sustainability strategy that includes using renewable energy sources, reducing its waste, and selling sustainable products. A packaging scorecard helps Walmart’s 60,000 suppliers learn about Walmart’s expectations and guides the firm in making its purchasing decisions. The company has built energy-efficient stores and retrofitted others, and it offers reusable shopping bags made of recycled materials. Although Walmart doesn’t disclose financial details on the green initiative, it says the program is already saving money and resources, and it projects billions in savings over time.1 Ethics and Corporate Responsibility Hear the True Story of how today’s managers do the right thing. Listen to what Derrick and Elaine have to say. “Ethics are crucial in the property management business. We are obligated to abide by fair housing laws in our dayto-day operations. Not only do we have an obligation as a company but also a social obligation to make sure our vendors and contractors are aware of these practices.” “The very nature and mission of my project is that of social responsibility. We are trying to do our part to help out developing countries in a way that an agricultural library is best equipped to do. Good workplace ethics translates into a better product for our subscribers. The better I and my employees perform, the better...
Words: 15103 - Pages: 61
...MULTINATIONAL COST OF CAPITAL AND CAPITAL STRUCTURE LEARNING OBJECTIVES The specific objectives of this chapter are to: l explain how corporate and country characteristics influence an MNC’s cost of capital, explain why there are differences in the costs of capital among countries, and explain how corporate and country characteristics are considered by an MNC when it establishes its capital structure. l l An MNC finances its operations by using a mixture of fixed interest borrowing and equity financing that can minimize the overall cost of capital (the weighted average of its interest rate and dividend payments). By minimizing the cost of capital used to finance a given size and risk of operations, financial managers can maximize the value of the company and therefore maximize shareholder wealth. 25 26 MULTINATIONAL COST OF CAPITAL AND CAPITAL STRUCTURE BACKGROUND ON COST OF CAPITAL Apart from working capital, a firm’s capital consists of equity (retained earnings and funds obtained by issuing shares) and debt (borrowed funds). With these funds a firm invests in a portfolio of projects, each project potentially offering different risks and different returns. The interest rate that the firm applies or charges to these projects (the cost of using the firm’s capital) will therefore vary according to the project’s particular risk. Profitable investment in this context is where the firm invests in projects that achieve returns greater than that required by their risk. A project...
Words: 19422 - Pages: 78
...THE STRATEGY LENSES 21 The four lenses are introduced more fully immediately after this chapter and will provide the framework for separate commentaries on each of the three parts of this book. This section introduces them briefly as follows: ● Strategy as design. This takes the view that strategy development can be ‘designed’ in the abstract, as an architect might design a building using pens, rulers and paper. The architect designs, and then hands over the plans for the builders actually to build. This design lens on strategy encourages a large investment in planning and analysis before making final decisions. It tends to exclude improvisation in strategy development and underplay the unpredictable, conservative or political aspects of human organisations. Taking a design lens to a strategic problem means being systematic, analytical and logical. Strategy as experience. The experience lens recognises that the future strategy of an organisation is often heavily influenced by its experience and that of its managers. Here strategies are seen as driven not so much by clear-cut analysis as by the taken-for-granted assumptions and ways of doing things embedded in people’s personal experience and the organisational culture. Strategy is likely to build on and continue what has gone on before. Insofar as different views and expectations within the organisation exist, they will be resolved not through rational optimisation, as in the design lens, but through messy compromises and...
Words: 5515 - Pages: 23
...The United Nations’ Role in International Tax Policy A Research and Policy Brief for the Use of the NGO Committee on Financing for Development Hamrawit Abebe, Ryan Dugan, Michael McShane, Julie Mellin, Tara Patel, and Linda Patentas Graduate Program in International Affairs, Milano School of International Affairs, Management, and Urban Policy, The New School March 7, 2012 TABLE OF CONTENTS EXECUTIVE SUMMARY BACKGROUND AND PERSPECTIVES BACKGROUND AND ANALYSIS THE OECD, G77, G20, AND EU ON UPGRADING THE UN TAX COMMITTEE KEY INSTITUTIONAL PLAYERS ARGUMENTS FOR AND AGAINST A UN TAX BODY 3 4 8 12 17 REFLECTIONS AND RECOMMENDATIONS RELATIONSHIP BETWEEN OECD AND UN TAX COMMITTEE GLOBAL TAX POLICIES POLICY RECOMMENDATIONS 20 28 38 APPENDIX GLOSSARY AND ACRONYMS REFERENCES 44 48 52 2 Executive Summary The report provides an analytical view on the role of the United Nations in tax policy, highlighting the interventions made by and challenges to key players in attempts to streamline global tax cooperation. The first section of the paper provides a background on the importance of tax related issues, emphasizing its importance within the Monterrey Consensus. Debates are introduced between two key institutional players regarding global tax cooperation, the OECD’s Committee on Fiscal Affairs and the UN Tax Committee. Views from key players the OECD, Group of 77, Group of 20, and European Union are addressed in the areas of international tax cooperation...
Words: 20133 - Pages: 81
...beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity and cost cuts, especially the efficacy of '10,10,10' goal in a family-run business • To identify various challenges...
Words: 71150 - Pages: 285
