Carlsberg International Strategy And Prospective Partners Commerce Essay

Carlsberg International Strategy And Prospective Partners Commerce Essay Beer is one of the worlds most consumed alcoholic drinks. Nelson (2005) stated that it is the most popular drink after water and tea. There are lots of brewing companies though emphasis will be made on Carlsberg in this instance. The Carlsberg Group is the worlds fourth largest brewery group. The Group is distinguished by a high degree of variety of brands, markets and cultures. Its activities are centred on markets where the Group has the strength and the right products to secure a leading position. Due to the variation of the markets, the contribution to growth, earnings and development within the Group differs, both at present and in the longer-term projections (Carlsberg, 2012). In countries where Carlsberg has no breweries, the Group sells its products through exports and licensing agreements. It aims to establish and develop strong market positions for their international premium brands through dynamic partnerships with licensing, export and duty-free partners around the world. The Carlsberg beer portfolio includes more than 500 brands. They differ significantly in volume, price, target audience and geographic penetration. (Carlsberg, 2012). Carlsberg International Strategy and Prospective Partners The company operates using an international strategy which implies that it takes the beer first produced for its domestic market and sells them internationally with only low local customization. This highlights that the beer it sells meets a worldwide need and at such do not face substantial competitors which implies that it is not confronted with pressures to cut down its cost structure. It tends to centralize the beer development functions such as research and development in its home country and establish manufacturing and marketing functions in each country it operates. Carlsberg chose an international strategy for the following reasons: To increase sales and profit growth by entering new markets and also selling in existing markets (Hill, 2009). This is achieved because it exports its products to destinations like South America where it has no breweries and in some cases through licensing agreements like it did with Charrington and Tetley in Britain by giving them right to brew and bottle Carlsberg beer and in return get a royalty fee. It also formed joint ventures with Scottish Newcastle and a brewery in Honk Kong which it now fully owns. The Group also formed mergers with Danish rival, Ruborg and Orkla of Norway which it later owned fully. From the case study, it is very obvious that they go into these markets at a slow but cautious pace by using the services of the partners and this is to avoid information costs and risk and some other uncertainties such as trade barriers associated with foreign involvement. It also gets to learn about the foreign market in cases where it formed joint ventures and mergers and la ter take full control of the company. Another reason is to protect Carlsbergs home market share because operating in foreign countries takes away business from its competitors by offering customers other choices and it lets the competitors know that they would face the same response if they attack the home market (Rugman Collinson, 2009). Furthermore, it is a tactics that Carlsberg could use to diversify themselves against the risk and uncertainties of the domestic business cycle (Rugman Collinson, 2009). This implies that by operating in other countries it can often reduce the negative consequences of economic swing such as recession in its home country. Despite Carlsberg seemingly predatory instinct for 100% control and ownership, prospective partners engage with Carlsberg because of the following reasons: They will benefit from its intangible properties (Hill, 2009), like in the case of licensing where the licensee has the right to Carlsbergs intellectual properties such as patents, processes and trademarks. This also applies to joint ventures as the partner gets to know about its processes as well. They would be able to offer their clients a wider range of products and services (Mcpheat, 2010). For example in licensing where Carlsberg gives them rights to its intellectual properties, the partners tend to take advantage of more market opportunities (newly identified demand) as they will not only sell their own products but also that of Carlsberg, which means that their customers have variety of products to choose from. They might also have an opportunity to get endorsed into Carlsbergs advertisements (Mcpheat, 2010). That is Carlsberg might support their products in its advertisement in cases where it forms a merger or joint venture with partners. They share fixed costs and financial risks with Carlsberg which implies that they can succeed in dealing with failure to meet a certain standard or lack of resources (such as land, labour or capital). An example of an instance where this occurs is in joint ventures. Cooperating with Carlsberg creates room for pooling ideas and generates more creative solutions to problems (National Association of Conservation Districts, 1994). This is applicable when partners form joint ventures and mergers with Carlsberg. Thus, customers will be happier as their problems would be solved at a faster thereby improving customer service experience (Mcpheat, 2010). Potential acquisitions targets and strategic responses to acquisition bids According to the case study, Carlsberg has a global share by volume of 7.5% making it the fourth largest brewing corporation after AB Inbev and its market capitalization was over 80 billion Danish Kroner (Dkk). Its sales in 2009 were 59.4 billion (Dkk) on which it achieved 15.8% operating profit margin. This makes it a potential future acquisition target for other brewing groups such as AB Inbev for the following reasons: The larger brewing group would want to increase their companys portion of sales within the market in order to increase pricing power (Campbell et al., 2003). If a company doesnt have much pricing power then an increase in their prices would lessen the demand for their products (Investopedia US, 2012). Carlsberg has knowledge and marketing expertise about the local markets in which it owns breweries and so other brewing groups would want to acquire it as entry mode to these markets. Besides it would be a quicker way for them to make their presence known in these markets. Carlsberg is a valuable brand and as such is a target for other bigger groups as they would want gain its intellectual property such as patents, trademarks, production processes, databases that are difficult to re-create, and research development laboratories with a history of successful product development (Bragg, 2012). Its being the fourth largest brewing corporation in the world makes it is a major competitor in the brewing industry and in order to reduce competition a brewing group such as AB Inbev may want to purchase it. Furthermore, it is difficult to get costumers to change brands because customers are fiercely loyal to local brands and the only way of tapping into these markets is by purchasing the brewery (Rugman Collinson, 2009). For example in countries where Carlsberg markets its products that the larger groups havent entered yet, they could tap into these markets by purchasing the brewery since the customers are familiar to Carlsbergs products. The larger brewing group will want to gain preferential access to Carlsbergs sales and distribution channels. By acquiring it, they can use it to distribute its own products. Some of examples of sales channels they would benefit from are telemarketing or a well-trained-in house sales staff (Bragg, 2012). However, there are some barriers that a brewing group such as AB Inbev might face if they sought to acquire Carlsberg this could be: Clash of culture between both groups in terms of high management turnover which may possibly be as a result of Carlsbergs employees not liking the acquiring groups way of doing things and may decide to leave the company. This can materially harm the performance of the brewery because management talent and expertise will be lost and as such Carlsberg might reject an attempt to be bought (Hill, 2009). Integrating with other companies is difficult as a result of differences in management philosophy and company culture. This tends to slow down the integration of operations. National culture differences could even worsen these problems (Hill, 2009). For example language barriers between Carlsberg (owned by a Danish speaking company) and AB Inbev (a Dutch speaking company) may make Carlsberg decide to reject a bid. Also, Carlsberg is a big company as well and might reject an attempt to be bought because it doesnt want to lose its identity. They could go as far as responding to any acquisition bids by purchasing other breweries as a form of defence. Due to its having good market shares purchasing other breweries will make its shares bigger that it cannot be bought within the brewery industry without anti-trust (this refers to specific laws protecting trade and commerce from unfair business practices (Merriam-Webster, 2012)) thereby making it difficult for companies like AB Inbev to acquire it (Bragg, 2012). Global brand portfolio management and consolidation A global strategy that sustains 500 brands cannot possibly be right because this strategy focuses on increasing profitability and profit growth by reaping the costs reductions that come from economies of scale and learning effects in other to have a low-cost strategy on a global scale. This implies that this type of strategy suits where there are strong pressures for cost reductions and demand for local responsiveness are low. Carlsberg has 500 brands and they customize their product a bit to meet local conditions and this customization involves shorter production runs and the duplication of functions, which tends to raise costs. They wont reap the benefits of economies of scale as there wont be reduction in the unit cost achieved by producing different product in large quantities. Also, they wont be able to save costs that come from learning by doing in terms of producing the same brand over and over again i.e. their labour productivity may not increase over time as it is not easy f or individuals to learn most efficient of performing tasks when a large volume of different products is involved. Hence, production cost will increase due to a decline in labour productivity and management efficiency, which might decrease the firms profitability (Hill, 2009). Carlsberg should rationalise its facilities and focus on far fewer brands because it would be much easier to control and manage fewer brands and also implementing a global strategy would be easier compared to when it has 500 brands. By doing this they would be able to benefit from a bit from economies of scale and learning effects. Furthermore, the cost of advertising so many brands is relatively expensive. The customization of the brands would even make it more expensive if they have different advertisements for different brands in different countries. So they might want to consider focusing on fewer brands because the fewer the brands the lesser the price of advertising. Individual Reflection and Self-Analysis Expectations: I had always wanted to learn more about the world of business and management and as such my expectations for this module prior to beginning was to gain knowledge about business and management in an international context as the key to a successful business is how well the business is managed. This expectation has been met because I have gained the preliminary knowledge on how firms or organisations carry out their operations internationally for example the strategies on how firms enter a foreign market. It has also given me an introductory knowledge on how to identify a good business opportunity, have good plan of action to run and also manage a firm successfully. Challenges: I had some challenges during the module and this was because I studied Electrical/Electronic Engineering in my first degree and knew almost nothing about business. Having to do case studies wasnt something I had done in my previous degree and so I struggled with how to critically analyse and answer the questions that usually follow suit. I wouldnt say I have completely overcome this challenge as there are still some cases where Im still not able to comprehend a case but I know reading ahead of the lectures and paying attention during lectures has helped me to a certain extent. Preparation for Masters: I feel prepared to begin a Masters level programme and this module helped me prepare for it. This is because, I have learnt the basics of international business and management and also how to do extensive researches and structure a report, and my referencing skills have improved as well.

Case Study of Indian Ocean Tsunami

Case Study of the Indian Ocean Tsunami On December 26, 2004, the Indian Ocean earthquake, or the Sumatra-Andaman earthquake, caused a tsunami that killed 230,000 people and was recorded as the deadliest tsunami in known history. The earthquake was recorded as between 9. 1 and 9. 3 on the Richter scale, the second largest earthquake ever recorded. It was also recorded as the longest one, triggering earthquakes as far away as Alaska. Following the disaster, a worldwide effort raised billions of dollars in tsunami relief. ConsequencesThe initial toll by the U. S. Geological Survey was 283,100 dead. However, actual figures counted 229,886. About one-third of the dead are children because they were least able to fight the waters. Additionally, nearly 9,000 foreign tourists were dead or missing. The disaster affected Indonesia, Sri Lanka, India, Thailand, the Maldives, Somalia, Myanmar, Malaysia, Seychelles and others in South East Asian. In some areas, drinking water supplies and farm fie lds are contaminated for the long term by the ocean's salt waters.The United Nations stated that the relief effort will be the costliest in history and reconstruction may take up to ten years. One of the biggest fears was the spread of diseases, which prompted non-governmental organizations and relief agencies to increase humanitarian aid. Furthermore, the economic impact is devastating on both the national and local levels. Costal fishing communities are some of the poorest in the region, and fishing exports account for substantial earnings of the countries. Nearly two-thirds of the fishing fleet and infrastructure were destroyed.The earthquake and ensuing tsunami changed the seabed in the Malacca Straits, and new navigational charts would have to be created. Additionally, tourism is greatly impacted as foreigners canceled their trips to South East Asian. The disaster also has a great environmental impact as it inflicted severe damage on ecosystems such as mangroves, coral reefs, f orests, coastal wetlands, vegetation, sand dunes and rock formations, animal and plant biodiversity and groundwater. The spread of wastes and industrial chemicals further polluted waters and threaten ecosystems.The invading seawater also contaminated freshwater, destroying the critical environment habitable for coral reefs. Citizen Response The public was generous in donating to tsunami aid. For instance, in the United Kingdom, the public donated nearly US$600,000,000. Compared to the government, the donation was quite substantial, averaging around $10 per person, including the homeless and children. Government Response Governments and humanitarian organizations responded by providing sanitation facilities and fresh drinking water to prevent a wave of diseases from increasing the death toll.The quick response mitigated and contained diseases such as cholera, diphtheria, dysentery, and typhoid that could have inflicted even more damage. Also, there was a substantial movement to bury bodies to prevent the spread of disease. Globally, countries provided over US$3 billion in aid. The government of Australia pledged nearly US$820 million and the United States pledged $950 million. In the US, a joint effort by former Presidents George H. W. Bush and Bill Clinton led the effort to provide private aid to tsunami victims.The Boxing Day Tsunami of 2004 must go down in human history as one of our greatest ever disasters. A magnitude 9. 0 earthquake, the most powerful to hit anywhere in the last 40 years, created tidal waves in the Indian Ocean that killed at least 225,000 people in 11 countries. Sri Lanka was hit quite hard, with over 32,000 dead and approx. 5 percent of the population there left homeless. In Indonesia more than 150,000 were killed and over 12,000 lost their lives in India, most in the Andaman and Nicobar Islands. In Thailand there were more than 5,000 deaths many of whom were foreign tourists.The devastation to services, property and buildings from the effects of the Tsunami was so immense that international appeals were launched for aid to the victims, of unprecedented proportions. The disaster spawned immediate and renewed scientific interest in Tsunamis from researchers all over the world. How Tsunamis are formed, where they may strike, their likelihood of occurrence of any significance, their characteristics and ways in which their potentially devastating effects may perhaps be mitigated, are questions that many researchers are seeking answers to.Whilst Tsunamis are not an entirely new phenomena, and a significant amount of scientific literature can be found that addresses many of these questions (Bryant, 2001), it is clear that much still needs to be done to gain a better understanding of Tsunami wave-structure interaction effects on buildings and building elements n a key issue with respect to structure integrity and survival against the effects of a Tsunami. Indian Ocean Tsunami (26th December 2004) The Indian Ocean tsunami (sometimes called the Boxing Day tsunami in the UK) was caused by a 9. 1 magnitude earthquake.The earthquake occurred under the Indian Ocean NW of the Indonesian island of Sumatra. The earthquake was at a depth of 30km and caused a huge rupture that triggered waves of up to 30m in height. The giant tsunami affected many countries around the Indian Ocean. The hardest hit was Indonesia, where up to 170,000 people were killed (exact figures are unknown because many bodies were never recovered). In total about 230,000 people are believed to have lost their lives, with a further 125,000 injured and over 1. 5 million displaced (again these figure vary because not all bodies were recovered or injured recorded).The tsunami killed locals and tourists alike, many tourists were killed because they were on beaches or in hotels near the beach. Many local who work in the tourism or fishing industry were also effected. In many fishing villages fatalities were actually higher amongst women, becaus e many men were at sea fishing (if you are out of sea, past where the sea bed shallows, tsunami actually appear as big ripples and will not destroy the boats). The Indian Ocean tsunami triggered one of the biggest humanitarian efforts of all time. Below is a summary of some of the different responses at different scales.

A Freedom Trail in Boston

Boston is the largest city of the Common wealth of Massachusetts and belongs to one of the oldest cities of United State of America.   It was founded by Puritan colonialist from England in 1630.Boston was a short way across Boston Harbor at Charlestown from immediate area which was settled by Euro-Americans that made it grow. Its deep habor and advantageous geographic position helped it to be the busiest port of Massachusetts Bay Colony.Boston played a fundamental role in the American Revolution. Several events and battles such as Boston Massacre, the Boston Tea Party, The Battle of the Lexington and Concord, the Battle of Bunker Hill and the Siege of Boston all occurred near or in the city. Boston is sometimes referred to be Cradle of Liberty. It has historic sites remains which have been of tourist attraction. It has preserved colonial and revolutionary past from the harboring of the U.S.S. Constitution to many famous sites along the freedom Trail (Seasholes, 2003).It is this Fre edom Trail caught my attention during our visit to Boston. Freedom Trail is a reddish path that runs through downtown of Boston and Massachusetts leading to sixteen important historic sites. It is a four kilometer walk that starts from the Boston Common to the Bunker Hill Moment in Charlestown. Originally, the Freedom Trail was conceived by local journalist William Schofield who promoted the idea of linking local landmarks with a pedestrian since 1951.For any visitors like us to Boston, they must include a walk into history along the Freedom Trail. However, one can begin the walk in the middle or the end and wend way through the streets of Boston. This Trail took us sixteen historical sites in about three hours and we covered about a half century of the America’s most significant past.To visit these historical sites, one may opt to have a self guide or assistance of tour guides who are available through the Boston Common Visitors Centers at 148 Tremont Street or the Bostix Bo oth located at Faneuil Hall. Also one can decide to take a ride by paying one of the trolley tours, which are unofficial guided tours and have disembark at selected stops but we decided to take a tour guide. The best point to start for Freedom Trail excursion is the Boston Common which is the America’s oldest public park where we definitely started.This park rests on forty four acres of open land. Initially it was used as common pasture for grazing cattle that was owned by the townspeople of Boston. Later it became a ‘trayning’ field for militia which was used as British Army camp. Also it was use to hand pirates, witches or publicly pillory criminals besides serving for public oratory and discourse. Currently, the place is used for concert and provides calm respite from the bustle of city life (http://www.aviewoncities.com/boston/bostonattractions.htm n.d).From Boston Common the next historical site we visited was the State House. It was built on 1798 and is wid ely considered to be one of the most magnificent and well suited buildings in the county. It was constructed shortly after the revolution by Charles Bullfinch as a new center of the state governance.Presently, the building serves as the seat of the government of the Commonwealth of Massachusetts. From state house our next stop was at Park Street Church. It was founded in 1809. Its 217 ft steeple was the first landmark travelers saw when approaching to the Boston. It has gained a lot of significance due for its involvement in political, social and humanitarian issues. For instance, in 1829 Wiliam Lloyd Garrison delivered a speech from the church pulpit condemning slavery and he was the first to do so in public.Just after this the next Freedom Trail stop was Old Granary Burying Ground. Originally it was called South Burying Ground due to its location in the southern area of Boston settlement and latter was renamed Middle Bury Ground as Boston grew towards south. Its present name is de rived from a grain storage building which stood at same site with Park Street Church.Some of Boston’s famous revolutionaries were buried here including John Hancock, Samuel Adams, and Robert Treat Paine all three who signed Declaration of Independence and also Paul Revere and victims of Boston Massacre.   Following the red line of the Freedom Trail it led us to King’s Chapel and Burying Ground. The Royal Governor built King’s Chapel on the this town burying ground   in 1688 , as no one would sell him land to build a non-Puritan church for king’s men   who were British law enforcers (Ibid).

Business Pl Tesla Motors Marketing Plan - 6405 Words

MKT 615 – MARKETING PLAN Tesla Motors Marketing Plan GROUP 4 Mathalikunnel, Sebastian Sunny Medipally, Krishna Chaitanya Medishetti, Naresh Kumar Ogunrayi, Olufunke Pan, Yiran Patel, Kiran Patel, Malaykumar Shashikant EXECUTIVE SUMMARY Background Tesla motors was founded in 2003 by a group of engineers in Silicon Valley who wanted to prove that electric cars could be better than gasoline powered cars. With instant torque, incredible power and zero emissions, Tesla motors is creating new generation of cars that would be increasingly affordable, helping the company to work towards its mission: to accelerate the world’s transition to sustainable transport. Tesla’s headquarters is located in Palo Alto, California and has over 2000 employees. It has 31 stores and service locations spread across the globe with more stores expected to open in the future. Tesla engineers first designed a powertrain for a sports car built around an AC induction motor, patented in 1988 by Nikola Tesla, the inventor who inspired the company’s name. The result was the launch of the Roadster, a solely electric operated sports car accelerating from 0 to 60mph in 3.7 seconds and achieving a range of 245 miles/charge of its Lithium ion battery. Tesla hereafter expanded its technological advantage to the luxury sedan market with the launch of Model S, a sustainable luxury sedan with zero emission. (www.teslamotors.com/about). Goals â€Å"To accelerate the advent of sustainable transport by bringing