BUS_421-OL-ASSIGNMENT__3-JIMMY_MORGAN - Jimmy Morgan,...

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Jimmy Morgan, Business Policy, BUS -421-OL (Dec 2010 thru Feb 2011) Case Study Assignment 3 “ 1. What are the dominant business and economic characteristics of the global beer industry? The global beer industry is a very large business all over the world with many brewers that contribute a great deal to society. It helps in the building of economic structures as well as generating a large part of a country’s revenue. The global beer industry does this by creating value in transforming raw materials into products that consumers want to buy. The global beer industry makes significant payments to their suppliers, employees, and to the governments of many countries keeping the economy there strong. Additionally, the global beer industry is extremely competitive. Most of the time, companies with private labels usually dominate the market with most of the larger ones producing too many different labels that for the most part do not fair so good in the market. Of course then there is the need for new market discovery, saturation of existing markets, and the always-existent foreign exchange rate issue. However, the industry does create jobs not only for those who work and operate in a factory environment but also the agricultural arena where wheat, barely, and other ingredients are made and grown. Look at the top 10 brewers in the world below: According to Reuters (2010): a. SABMiller becomes world's biggest brewer-researcher 2007 2007 2006 Brewing Company Country Volume Share Volume SABMiller (SAB.L) Britain 231.7 13.1 209.7 InBev. INTB BR Belgium 225.6 12.8 215.2 Heineken (HEIN.AS) Netherlands 164.0 9.3 130.5 Anheuser-Busch (BUD.N) U.S. 150.7 8.5 146.8 Carlsberg (CARLb.CO) Denmark 120.0 6.8 77.8 Molson Coors (TAP.N) Canada/US 58.4 3.3 49.5 Modelo (GMODELOC.MX) Mexico 50.9 2.9 49.3 Tsingtao (600600.SS) China 50.4 2.9 45.4 Beijing Yanjing 000729.SZ China 41.1 2.3 35.7 FEMSA (FMSAUBD.MX) Mexico 39.5 2.2 37.7 2. What do you see as the key success factors for firms in the global beer industry? I believe the key success factors for firms in the global beer industry are to continue to understand the industry characteristics and market segmentation. They also need to be mindful of the operating conditions, how the industry develops and will develop in the future, historical performance of the industry as well as industry trends, growth rates, and even more important the key players that are also in the industry. They also could try to identify new markets in order to establish their firms in those markets. The last thing is to keep pushing globalization as InBev is doing below with Budweiser. According to Miller, J. (2010) of the Wall Street Journal: BRUSSELS—Anheuser-Busch InBev NV's third-quarter beer sales in Brazil, China and Russia more than offset declines in Western markets, suggesting that the brewer's focus on emerging economies is bearing fruit faster than expected.
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This note was uploaded on 03/03/2011 for the course BUS 421-OL taught by Professor Lonneyness during the Fall '11 term at Thomas Edison State.

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BUS_421-OL-ASSIGNMENT__3-JIMMY_MORGAN - Jimmy Morgan,...

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