Final Group version - INDEX FOR COLLECTIVE PART...

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I NDEX FOR COLLECTIVE PART I NTRODUCTION ................................................................................................................. 1 M OTIVATIONS , M EANS AND M ENTALITIES ....................................................................... 2 Motivations .............................................................................................................. 2 Means ....................................................................................................................... 2 Mentality .................................................................................................................. 2 B UILDING LAYERS OF COMPETENCES ............................................................................... 3 Global efficiency ...................................................................................................... 3 Flexibility ................................................................................................................. 3 Worldwide learning and innovation ......................................................................... 4 D EVELOPING A T RANSNATIONAL O RGANIZATION : M ANAGING I NTEGRATION , R ESPONSIVENESS AND F LEXIBILITY ................................................................................. 4 C REATING W ORLDWIDE I NNOVATION AND L EARNING ..................................................... 7 Innovation models ................................................................................................... 7 Reverse innovation .................................................................................................. 7 M ANAGING ACROSS BOUNDARIES .................................................................................... 8 T HE GLOBAL ROLE ........................................................................................................... 9 C ONCLUSION .................................................................................................................. 10 R EFERENCES ................................................................................................................... 11 0
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Introduction Based on an annual beer production of 139.2 million hectoliters, Heineken is the world’s third largest beer producer. It brews and sells more than 170 international premiums, regional, local and specialty beers. Heineken is not only a market leader in every European country; it also sells its products throughout North and South America, Africa and Asia. Carlsberg is a Danish brewing company founded in 1847 with headquarters located in Copenhagen. After merging with the Norwegian conglomerate Orkla ASA in 2001, Carlsberg became the fifth largest brewery company in the world. It manages a product portfolio including international beers such as Carlsberg Large and local brands such as Carlsberg Chill in China. This essay will critically evaluate the comparative transnational effectiveness of Heineken and Carlsberg in terms of the following aspect: motivations, means and mentalities, efficiency, structure and flexibility, learning and innovation, managing cross boundaries as well as evolving global role. 1
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Motivations, Means and Mentalities Motivations Enlarging market share is a fundamental motivation for both Heineken and Carlsberg to expand overseas. The beer consumption in home markets, Netherlands and Denmark, are stagnating; Motivated by cost reduction and resource seeking, both companies are expanding to emerging markets. As for emerging motivations, both companies are seeking the opportunities to realize scale economies and to shorten their product life cycles by establishing international operations. Competitive positioning of the products can be another emerging motivation. Heineken successfully developed a brand portfolio to penetrate into global markets. However, the product portfolio of Carlsberg does not only include beer but also other drinks such as soda, which can realize economy of scope. Means Both Heineken and Carlsberg came into global markets by means of export and acquisition because of the desire to capitalize on synergy effects gained through upgrades of plant technology and management, cost efficiencies through layoffs and rationalization, and control over value chains and distribution channels. Mentality Heineken followed international mentality influenced by its risk adverse strategy in the earlier stage, in which the role of its overseas operations was to support the domestic company. For instance, it initially extended its operations to European and American countries due to low psychic distance within which the products could be less differentiated. In contrast, Carlsberg adopted multinational mentality as it realized
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  • Spring '16
  • BrianHilton
  • ........., Developed country, Carlsberg Group, Heineken

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