...Q1-1.What situation was Khemka family involve during the case? SUN Brewing was founded in 1992 by Shiv Khemka with Nand, his father, and his brother, Uday. The situation is set in March 1999, when the company was facing a major crisis. In 1998, the family had been planning to raise a $200-$400 million through equity and debt offering for the company on the NYSE (New York Stock Exchange), in aim to finance major investments because of the increasing competition from international beer companies in the Russian market. In August 1998, there was a massive devaluation of the rouble that led to a 90% decrease in the stock price of SUN Brewing listed on the Luxembourg stock exchange. The proposed NYSE listings have then been cancelled and there is a $40 million bridge loan outstanding that now needs to be repaid. Q1-2.What other options could they choose originally? Bring another strategic partner (and idea originally dismissed because the family didn’t want their power over the company threatened) Reinvest from the family pool (that option was highly overlook because the family already budgeted the project and they prefer to ensure a backstop reserve of capital for preservation and discipline, also for the family reputation. Quit the business (seriously consider if the best options for them is to move on to new opportunities in other industries. Q2.Why there are different financing ways in each period? There are many different stages of financing and operating...
Words: 1038 - Pages: 5
...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...
Words: 7406 - Pages: 30
...ukessays.com http://www.ukessays.com/essays/business-strategy/business-external-analysis.php Business external analysis Need help? ☎ 0115 966 7955 Identify SABMiller's Strategic position: In order to Identify the company's position; it is important to carry out its Business external analysis; it is also essential to identify its core competences and capabilities as well as stakeholder expectations in order to successfully identify the company's strategic position. SABMiller's External Analysis: In order to 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...
Words: 1632 - Pages: 7
...New Belgium Brewing (A) SWOT Analysis New Belgium Brewing is a relatively young brewery in Colorado. With our SWOT analysis, we intend to highlight the internal and external environments of the firm using analyses of the internal strengths and weaknesses that New Belgium possesses, while also highlighting the external opportunities and threats. We will also avoid the criticisms that the SWOT analysis faces, by giving the analysis serious consideration of the issues, and by diving deeper than a, “sterile academic exercise of classifying data and information”, as noted in the text (pg. 122). Strengths New Belgium Brewing has numerous aspects or traits that they do well as a company. Their most effective advertising comes from, “customers’ word of mouth” (text pg. 471). This is due to the fact that New Belgium Brewing does an exceptional job of building relationships with customers, then allowing customers to provide word of mouth advertising for the company. New Belgium has established, “environmental and ethical business practices (text pg. 472), along with community service programs (Tour De Fat, donations to pig farmers, and Best Damn Bike Tour) and donations. Through their business practices, programs, and an emphasis on the environment, New Belgium Brewing has allowed their reputation to be one of their strengths, and created a “very loyal following (text pg. 477). Customer and public relations, are certainly a strength for New Belgium Brewing, and certainly can be...
Words: 2979 - Pages: 12
...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 global market in 1998 and by 2008 it had grown by 25%. According to Carlsberg...
Words: 1406 - Pages: 6
...MarketLine Industry Profile Alcoholic Drinks in China February 2012 Reference Code: 0099-2201 Publication Date: February 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED China - Alcoholic Drinks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2201 - 2011 Page | 1 EXECUTIVE SUMMARY Market value The Chinese alcoholic drinks market grew by 9.8% in 2011 to reach a value of $96.5 billion. Market value forecast In 2016, the Chinese alcoholic drinks market is forecast to have a value of $145.6 billion, an increase of 50.9% since 2011. Market volume The Chinese alcoholic drinks market grew by 5.7% in 2011 to reach a volume of 53.2 billion liters. Market volume forecast In 2016, the Chinese alcoholic drinks market is forecast to have a volume of 67.6 billion liters, an increase of 27.1% since 2011. Category segmentation Beer, cider & FABs is the largest segment of the alcoholic drinks market in China, accounting for 65.1% of the market's total value. Geography segmentation China accounts for 38.7% of the Asia-Pacific alcoholic drinks market value. Market share SAB Miller is the leading player in the Chinese alcoholic drinks market, generating a 17% share of the market's value. Market rivalry Growth within the alcoholic drinks market has been robust and steady within the last few years, which tends to reduce the rivalry to some extent and attract...
Words: 7894 - Pages: 32
...New Belgium Brewery 1) What environmental issues does the New Belgium Brewing Company work to address? How has NBB take strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability? New Belgium Brewing Company strives to take an environment friendly approach to their manufacturing process and facility, focussing on reducing their carbon footprint and energy usage. They were the first-ever American brewery to fully incorporate a wind turbine as a power source versus the burning of coal. Other approaches included the addition of a steam condenser to recycle hot water for use around other areas of the plant and sun tubes which utilize natural sunlight to light the plant. Furthermore, their used hops and barley are saved for the use of feeding area livestock instead of being wasted. Employees are also encouraged to be individually conservative by riding their gifted “cruiser bikes” to and from work. It is our belief that the founder, Jeff Lebesch’s own personal values and love of the outdoors contributed to the company’s strong stance on sustainability. A long side that is the fact that adopting such sustainability measures will help to increase their bottom line. 2) Do you agree that New Belgium’s focus on social responsibility provides a key competitive advantage for the company? Why or why not? We believe that New Belgium’s emphasis on social responsibility provides a key competitive...
Words: 1716 - Pages: 7
...Marketing Strategic Name: Ching Jui Liao Due date: 10/16/2012 New Belgium Brewing (A): Social Responsibility as a Competitive advantage Brief Strengths 1. Strong brand name 2. Definite company core values and beliefs 3. NBB offers a variety of permanent and seasonal ales and pilsners. 4. Strong and stable sales force. 5. Employees enjoy their job because the company treats them very well 6. NBB’s social responsibilities give the company a competitive advantage because consumers want to believe in and feel good about the products they purchase. 7. NBB efforts to live up to its own high standards have paid off with numerous awards and a very loyal following. 8. NBB has made significant achievements in sustainability, particularly compared to other companies in the industry. Weaknesses 1. They growth very quickly and leads to many social problems, but not focus on the business of beer. 2. Limited distribution. 3. Intelligent green consumers are likely to investigate a company’s green claims , and they will undoubtedly find areas that need improving. 4. Doesn’t use tradition marketing to management and push their product. 5. Although NBB’s all electric power comes from renewable sources, the plant is still heated in part by using natural gas. Opportunities 1. New Belgium has remained focused on its core values of customer intimacy, sustainability, whimsy, and...
Words: 1144 - Pages: 5
...Diversification: Corona Beer (Modelo) Case Analysis Shirley Saucer Strategic Management BUS 599 Strayer University Professor Petty Introduction Corona Beer is the flagship for the Modelo Company brand. With ninety years of relevance in the alcohol beverage industry, undoubtedly Modelo has set certain standards and criteria, which many have taken notice. The Modelo Company has easily earned its stake within this industry, persevering through strife’s such as the prohibition era. In operation since March of 1922, Modelo has solidified what it means to be a top contender in the imported beer market. In fact they are one of the only brewing companies that are still family owned and operated. Within this paper we will discuss the trends in the global beer market, Modelo's international expansion, as well as challenges that they face from competitors such as the InBev Company and whether or not they should diversify their business strategy which has made them so successful. Beer has been brewed since around the 14th century when it got its beginnings in Europe. Beer comes in many flavors and shades and is varied depending on regional brewing methods. A lot has changed since the humble beginnings of beer brewing as a craft. With that being said a lot...
Words: 1553 - Pages: 7
...ACCEPTABILITY OF SUNFLOWER PETAL TEA AMONG SELECTED FACULTY AND STAFF IN CENTRAL LUZON STATE UNIVERSITY MICAH ANGELICA P. AGONOY JENNYLYNNE L. LUBRIN An undergraduate research submitted to the Faculty of the Department of Hospitality Management, College of Home Science and Industry, Central Luzon State University, Science City of Muñoz, Nueva Ecija, Philippines. In partial fulfillment of the requirements for the degree of the requirements for the subject Methods of Research (HRM335) BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT March 2012 BIOGRAPHICAL SKETCH The author was born the zodiac sign of Virgo on September 17, 1992 in Tondod, San Jose City, Nueva Ecija to Mr. Wilfredo S. Agonoy and Mrs. Norma P. Agonoy. She is the 2nd among the 3 sibling. She finished her primary education in 2005 at Cherubim Learning Center and her secondary education at Bettbien High School 2009. Her mother advice her to engage in nursing but she didn’t put attention because of fears in life. Her passion in cooking led her taking up Bachelor of Science Hotel and Restaurant Management at Central Luzon State University, Science City of Munoz, Nueva Ecija. Her dream is to study in Treston College for a culinary arts and looking forward in becoming a chef in the next few years. MICAH ANGELICA P. AGONOY iii iii BIOGRAPHICAL SKETCH The author was born the zodiac sign of Scorpio on October 27, 1991 in Cabanatuan City, Nueva Ecija to Mr. Felimon D. Lubrin and Mrs...
Words: 6365 - Pages: 26
...http://www.termpaperwarehouse.com/essay-on/Sunflower-Petal-As-Tea/131073 Sunflower Petal as Tea ACCEPTABILITY OF SUNFLOWER PETAL TEA AMONG SELECTED FACULTY AND STAFF IN CENTRAL LUZON STATE UNIVERSITY MICAH ANGELICA P. AGONOY JENNYLYNNE L. LUBRIN An undergraduate research submitted to the Faculty of the Department of Hospitality Management, College of Home Science and Industry, Central Luzon State University, Science City of Muñoz, Nueva Ecija, Philippines. In partial fulfillment of the requirements for the degree of the requirements for the subject Methods of Research (HRM335) BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT March 2012 BIOGRAPHICAL SKETCH The author was born the zodiac sign of Virgo on September 17, 1992 in Tondod, San Jose City, Nueva Ecija to Mr. Wilfredo S. Agonoy and Mrs. Norma P. Agonoy. She is the 2nd among the 3 sibling. She finished her primary education in 2005 at Cherubim Learning Center and her secondary education at Bettbien High School 2009. Her mother advice her to engage in nursing but she didn’t put attention because of fears in life. Her passion in cooking led her taking up Bachelor of Science Hotel and Restaurant Management at Central Luzon State University, Science City of Munoz, Nueva Ecija. Her dream is to study in Treston College for a culinary arts and looking forward in becoming a chef in the next few years. MICAH ANGELICA P. AGONOY iii iii BIOGRAPHICAL SKETCH The author was born the zodiac sign of Scorpio on October...
Words: 6380 - Pages: 26
...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...
Words: 1526 - Pages: 7
...New Belgium Brewery | A new approach | | | GM591 Course Project GM591 Course Project TABLE OF CONTENTS I. INTRODUCTION II. PROBLEM STATEMENT III. LITERATURE REVIEW IV. ANALYSIS V. SOLUTIONS VI. REFLECTION VII. REFERENCES I. The New Belgium Brewing Company in Fort Collins, Colorado was founded by Jeff Lebesch in 1989. The highly motivated entrepreneur started with a different yet simple concept; brew a better beer than anyone else. So Jeff went into the basement of his home and started working on several different brews, but specifically worked to perfect his two signature beers and the first mass produced products; Abbey and Fat Tire. It took just two years for the company to grow large enough that the basement was no longer sufficient and New Belgium moved into its first commercial brewing space and has continued to grow from there. The brewery has grown to the size that produced and sold over 580,000 barrels of beer in 2009 and expects to sell over 700,000 barrels in 2010 (JUICEBOX, 2010). The revenue generated by New Belgium has helped to make the brewery the 8th largest in the United States (JG Press, Inc, 2003). New Belgium beer is brewed exclusively at the Fort Collins location and is now available in 26 states from coast to coast (JUICEBOX, 2010). The company has grown from a dream in a man’s basement to currently utilizing over 200 employee owners and boasts sales of over 32 million dollars in 2009 (JUICEBOX, 2010). NBB...
Words: 4595 - Pages: 19
...1. What are the dominant business and economic characteristics of the global beer industry? * Market Size and Growth Rate * The size of the global beer industry approximated $385.5 in 2005 and $376.7 in 2004. This is a growth rate of 2.3% during the year 2005. * This is a mature industry with slowing growth, but it will continue to grow at a small rate. * Number of Rivals * During its early development and rapid growth stage, there were many rivals and the industry was very fragmented. * The lack of a transportation network made exportation impossible for centuries and brewing was a local, then a national domain. * Mergers and acquisitions are beginning to increase in frequency and the industry is experiencing a period of consolidation. * A determining factor of beer is that it has different national tastes based on different countries. Specialty beer-makers can find niche markets to sustain themselves without economies of scale. * Scope of Competitive Rivalry * The largest producers compete on global levels with strategic alliances set up to distribute the beer in other countries. * Most companies started out on a local or regional level, and then changed the company’s focus to incorporate a multinational or global perspective. * While many companies have exported products, most companies still use the production capabilities in their native country. * Having a presence in foreign country...
Words: 4322 - Pages: 18
...PERFORMANCE The purpose of my research is to evaluate the effectiveness of rewards on performance of Starbucks Corporation; it contains the evaluation of two main sides of motivation strategy: Extrinsic rewards and intrinsic satisfaction. Motivation is one of the main causes for industry in the process of making their production. In order to find the ways that Starbucks used to motivate their staff, research has to be done during investigation. I have collected several types of data, which are Primary data and secondary data. Normally, I will get the articles from the hunt library and Internet. In the process of analyzing the information, some essential methods will be used, such as Motivation Strategy analysis, Equity Strategy analysis and Goal-setting Strategy analysis. The issue is to investigate and to analyze the rewards and performance structure of Starbucks Corporation. Starbucks Corporation, one of the most famous retail coffee shops chain in the world, specialize in grinding, roasting, and selling special coffee beans and a variety of coffee or tea drinks. Starbuck publicize they are the “third place” between home and company, where you can get together with families and friends, or just take pleasure in a quiet moment alone with fresh coffee, book and music. Starbucks always meet its customer’s requirements; they achieve a good motivation staff which will be beneficial on its internal and external customers. Its internal customers includes its shareholders, managers...
Words: 1303 - Pages: 6
