Conduct an industry environment analysis. Is Carlsberg A/S in an attractive indu

Question

Conduct an industry environment analysis. Is Carlsberg A/S in an attractive industry?

Identify the reasons for Carlsberg A/S’ mergers and acquisitions (M&As)? What type of the M&A strategy does Carlsberg A/S use?

Conduct an industry environment analysis. Is Carlsberg A/S in an attractive industry?

Identify the reasons for Carlsberg A/S’ mergers and acquisitions (M&As)? What type of the M&A strategy does Carlsberg A/S use?

Describe Carlsberg A/S’ international corporate-level strategy.

Integrating the results of the analysis, do you think Carlsberg A/S’ decision to go into the emerging markets is a good decision? Summarize your findings and propose recommendations that could improve Carlsberg A/S’ market performance in the industry.

Explanation / Answer

Conduct an industry environment analysis. Is Carlsberg A/S in an attractive industry?

Carlsberg A/S is a beer brewing company and thus can be considered a part of the liquor industry.

Historically Liquor industry has proved to be a recession proof and hence the industry as a whole is assured of growth.

Next the product is such that there are no socially acceptable substitute for the same and hence the repeat usage and hence the revenues are bound to be dripping in.

Also the industry players are closely knit and have a great lobby in each country thereby protecting the interests of the industry as a whole. This is even facilitated by the governments as they bring a lot of tax revenues to the latter.

Also there exists huge entry barriers in this industry immunizing the industry from the threats of new firms.

Identify the reasons for Carlsberg A/S’ mergers and acquisitions (M&As)? What type of the M&A strategy does Carlsberg A/S use?

Carlsberg A/S acquired Huizhou brewery in China in 1995 to move to become a local player rather than an exporter to china. Next it acquired Aldaris Brewery in 2008 to increase its’ footprint in Lativa, Okocim Brewery in 2004 to expand in Poland so on and so forth.

Carlsberg A/S has displayed a penchant to successfully amalgamate its’ acquired company to create a higher value. A part of this is because of the due diligence they perform to finalize the firm that will make sense to be acquired based on the country growth opportunities, competition there, margins, similarities in culture etc. Also after an acquisition Carlsberg A/S management never forced themselves on the new firm. In fact they have treated the new firm’s employees and their processes with respect and thus have always created value through acquisition.

Describe Carlsberg A/S’ international corporate-level strategy.

Carlsberg A/S’ strategy is assortment of diverse brands (to cater to all segments) and presence in multiple countries.

Broadly they follow 5 corporate priorities.

Consumers and customers

Products and innovations

Structure and Society

People

Efficiency

Integrating the results of the analysis, do you think Carlsberg A/S’ decision to go into the emerging markets is a good decision? Summarize your findings and propose recommendations that could improve Carlsberg A/S’ market performance in the industry.

Carlsberg A/S’ decision to the developing markets is correct as the next phase of growth would come from these counties. The developed markets are already saturated as compared to developing countries.

Developing countries have shown increase in purchasing power and increase in discretionary expenses. Also the population base is huge. And the current penetration of beer/liquor consumption is miniscule. Hence it makes a great sense to enter these markets to tap the growth of next 2 decades

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.