They cannot be static MUST be reassessed and reformed on a continuous basis

They cannot be static must be reassessed and reformed

This preview shows page 2 - 4 out of 7 pages.

- They cannot be static – MUST be reassessed and reformed on a continuous basis. - What is the difference between a Generic Strategy and a Grand Strategy? Generic/Competitive Strategies : the specific strategies that companies formulate to complement their distinctive competencies and achieve their long-term goals. Michael Porter identified 3 main generic strategies: Cost leadership - sell products/ services to a broad target market - strive to be more cost effective than competitors (NB!) Differentiation - creating a difference in the brands products/services – creating something unique. 2 | P a g e Distell Transaction 2 The Distell Group, Africa's leading spirits, wines and ready-to-drinks business has acquired top-performing producer of Scotch whiskies, Burn Stewart Distillers Limited, for just over R2,2 billion from the Scottish based CL World Brands Limited and Angostura Limited, owners of Hine Cognac and Angostura Bitters respectively amongst other global brands. The strategic purchase of the fully integrated producer of both blended and single malt whiskies will allow Distell to capitalise on the continuing global growth in whisky consumption and give it access to scarce blended and single malt stocks from prime whisky producing regions in Scotland, while also enhancing its global footprint. The deal follows an equal partner venture established in 2007 between Distell and Burn Stewart in which the two parties co-owned and marketed three Scotch Whiskies – Bunnahabhain, Black Bottle and Scottish Leader, in sub-Saharan Africa. The agreement between Distell, CL World Brands Limited and Angostura Limited involves the purchase of 100% of the equity in Burn Stewart whose portfolio includes three single malt whisky distilleries; a blending and maturation facility; a bottling hall; and a dry and finished goods storage site, as well as its in-house marketing and distribution functions. All Scotch whisky stocks currently in maturation also form part of the transaction. The diagram indicates Distell’s rationale for the transaction with Burn Stewarts Distillers. This transaction formed a strategic fit due to the capabilities of the firm and the international competitive environment since Distell have the products and Burn Stewarts have the international market.
Image of page 2

Subscribe to view the full document.

- choose a strategy that will be difficult for competition to copy – SUSTAINABILITY - allows the company to charge more for their products - Examples – prestige, image, technology, innovation, features, services, reliability Focus - choice of a narrow competitive scope within the industry – niche. (Land Rover, Porsche) - can choose a focus of cost leadership or differentiation. Grand / Alternative/Business/Master Strategies: these strategies provide basic direction for strategic actions and build onto the generic strategies .
Image of page 3
Image of page 4
  • Fall '19
  • Distell

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes