...The way to fruitful long haul contributing is the conservation of capital. Warren Buffett, ostensibly the world's most excellent mogul, has one standard when contributing - never lose cash. This doesn't mean you ought to offer your venture property the minute they enter losing region, yet you ought to remain definitely mindful of your portfolio and the losses you're ready to persevere in an exertion to expand your riches. While it is difficult to stay away from danger completely when putting resources into the business sectors, these five strategies can help protect your portfolio. One of the foundations of Modern Portfolio Theory (MPT) is diversification. In a business downturn, MPT pupils accept a generally expanded portfolio will beat a thought one. Speculators make deeper and all the more extensively broadened portfolios by owning countless in more than one asset class, along these lines decreasing unsystematic danger. This is the hazard that accompanies putting resources into a specific organization instead of deliberate danger, which is the danger connected with putting resources into the businesses by and large. As per some money related specialists, stock portfolios that incorporate 12, 18 or even 30 stocks can take out most, if not all, unsystematic danger. Shockingly, methodical danger is constantly present and can't be differentiated away. On the other hand, by including non-associating asset classes, for example, securities, items, monetary standards...
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...d) How much will Eastbridge receive (in US$) if the share price of Cambridge is £7.50 and the spot rate is US$1.60 in one month time? e) What will happen if in one month time, share price of Cambridge drop to £5.00 and Eastbridge decided to hold on to the shares and sell at a later date when the share price is more favourable? Assume that the spot rate in one month time is US$1.68. Question 2 What types of risk are present in a portfolio? Which type of risk remains after the portfolio has been diversified? Question 3 How, according to portfolio theory is the risk of the portfolio measured exactly? Question 4 Discuss about the integration of market worldwide and its impact on international portfolio diversification. Question 5 Giri Lyer is a European analyst and strategist for Tristar Funds, a New York-based mutual fund company. Giri is currently evaluating the recent performance of shares in Pacific Wietz, a publicly traded specialty chemical company in Germany listed on the...
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...that Dyer has been targeting. Dyer wants to grow his business enough to reach his strategic goal of building a sports complex for his business to occupy. Dyer needs to double his business in order to support this goal. In using S.W.O.T. analysis to evaluate NOCO’s current situation it is clear that NOCO has a number of things working for it already; customer retention is very high, awareness of NOCO in its’ current market is close to 100 percent and Dyer has access to enough trainer resources to continue his company’s growth. Some of the obstacles NOCO faces in working toward expansion are loss of customer base to high school sports programs after they reach 14 years old, a narrow selection of programs for current customers, lack of diversification and limited awareness of the company’s programs and philosophy in adjacent towns. Dyer could employ many operational strategies help reach his ultimate goal of a new sports complex. There are several opportunities available for NOCO to take advantage of with minimal threat or competition to worry about. Dyer has noticed that as the kids in his programs begin high school and start to participate in school sports, they tend to lose interest in the soccer programs he offers. Dyer might try product development by offering camps and training programs for the older students outside of their school and school sport schedules. Summer camps geared toward a general sport theme as opposed to just soccer might appeal to the older kids that are...
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...Expansion & Diversification Presented by Case Background Carlsberg Incorporated in 1969. Came to Malaysia after two years incorporated through brewing Carlsberg Green Label beer for Malaysian Market. Carlsberg Brewery Malaysia Bhd (Carlsberg) market leading company that hold 50% shares of beer and stout market. Owned by the Carlsberg Group of Denmark. Cont... Carlsberg Malaysia Sdn. Bhd. one of the subsidiary that wholly owned become main marketed locally product. Carlsberg enter into many investment and acquisition through all the years. Competitor in the same industry Guinness Anchor Bhd. Case Background ABC Consulting Sdn Bhd Consist of David as one of the consultant and Robert Stanley as a Head of the company. Specialised in business turnaround. Mr. Stanley suggested that the company to focus more on cash-rich company that want to expand, diversify or venture. David grab the opportunity by looking beer and stout company and found that Carlsberg Company as a target. Cont... By looking through Carlsberg position, David feels that expanding is not worth it and cannot able to sustained their profit. He prepared himself with information before approaching Calrsberg company regarding the diversification activities. Also take and opportunity by selling his idea of manucfacturing sparkle grape juice (halal product) once the Carlsberg company tend to choose to diverse by taking Guinness as an example. ABANG MUHAMAD ZAIM BIN ABANG ALI (AC085005) AMIRUL...
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...Carlsberg Morgan Stanley Global Consumer Conference 2013 Jørn P. Jensen, Deputy CEO and CFO Content Group overview & history Our brands Financial performance Western Europe Eastern Europe Asia Appendix The Carlsberg Group in head-lines No. 4 largest international brewer 500 beer brands No. 1 in Eastern Europe No. 2 in Western Europe 120,000,000 hl. of beer sold in 2012 +16% EBIT growth (CAGR) from 2005 to 2012 +18% EPS growth (CAGR) from 2005 to 2012 3 The transformation of Carlsberg ● ● ● ● ● ● ● ● Value management Brand portfolio activation and scoping Step change innovations Business process standardization Next level group efficiency Back-end centralization and integration Winning people Corporate Social Responsibility ● S&N acquisition & integration ● Accelerate efficiencies and execute synergies ● Drive revenue growth ● Structure ● Operations ● Acquisition of 100% of Carlsberg Breweries ● Excellence programs ● Establishment of Carlsberg Breweries 2000 2005 2010 2015 … 4 Three regions Western Europe Eastern Europe Asia Group 2012 % of total beer volume 42 37 21 46 39 15 2012 % of EBIT The Carlsberg Group strategy wheel WINNING BEHAVIOURS We want to win Together we are stronger We are each empowered to make a difference Our consumers and customers are a the heart of every decision we make ...
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...Name: Saintha Maistry Due Date 9th March 2016 ID: 7612260142083 Masters of business administration- Trimester 1- Jan – April 2016: Assignment 1: Strategic and Change Management 1. Does Semc have a strategy? Justify your answer. Yes, Semco has in place a strategy, though unconventional, it is clearly displayed in the radical processes undertaken to change the working conditions of employees. A company’s strategic plan lays out its future direction and performance targets (Thompson, Strickland, Peteraf & Gamble, 2014). The CEO provided a broad vision for employee’s of finding a gratifying way of spending one’s life doing something that is useful. We can perceive the vision through the unconventional changes made by the leadership in the organization where the primary focus is on human capital, wellbeing and their competencies (Joost & Fourie, 2009). Strategies created involve the development of employee participation, profit sharing and open information systems at the company. The needs and welfare of the employees are of paramount importance and this detail is integrated into the employee manual. For instance, it is mandatory for employees to take their 30 day leave. The effects resulted in sales growing and the company experiencing an increase in profits. A well developed business strategy is designed according to the elements of differentiation, thrust, target results and domain sought (Yavitz &Newman...
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...Identify and discuss the trends in the global beer markets. There are many trends in the global beer markets that effect how companies do business. One trend is that each country has different local taste and specific recipes to achieve their beer. China now has the largest beer market, surpassing the United States in 2003. The United States has six times a higher consumption of beer than China. The top three breweries of beer controlled almost 80 percent of the U.S. market. Vertical integration and economies of scales were the main drives to operating margins. “The fact that Anheuser-Bush could capture 75 percent of the industry’s total operating profits emphasized the volume effect in the industry” (Thompson, Strickland, & Gamble, 2010, p. C-251). Mexico was one of the world’s largest beer markets. Even though brewing has historically been a local industry, the last couple of decades have been increasing consolidation within the industry. The consolidation began to include breweries in the growth markets of Eastern Europe, Asia, and Latin America. The top 10 breweries account for 59% of the market in 2008. Beer consumption varies across the world. “In mature Western European markets volumes are broadly stable or declining modestly” (“Trends,”2008, p.14). In less mature markets in Asia and Eastern Europe are growing, and some at a rapid rate. Volume drivers have primarily been driven by growing disposable income, improvements in the quality of beer, marketing...
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...Case Study – Corona Beer (Modelo) Foreign Market Entry and Diversification BUS599 – Strategic Management Identify and discuss the trends in the global beer markets. Beer markets have been primarily a local industry, with only a few of the companies having international presence. “Beer was first brewed in the 14th century in Europe and developed different in every country in order to address local tastes and specific recipes” (Thompson, Strickland, & Gamble, 2010). There was an increase in industry consolidation, a development that took off in North America and Western Europe. “The consolidation began to include brewing companies in the growth markets of Eastern Europe, Asia and Latin America” (carlsberggroup.com). “The United States had the largest beer market in the world until China surpassed in 2003” (Thompson et al, 2010). In the past ten years, global consolidation has accelerated. Due to lack of transportation networks made exportation impossible and brewing remained a local industry. Other countries like Italy and France, they preferred wine over beer for consumption and then you had Germany and Ireland, who both have a few national beer brands. The trend of consolidation by national leaders started expanding in the 1990’s; “Interbrew acquired several breweries in 20 countries and expanded its sales to 110 counters, leaving local managers to control the local brands” (Thompson et al, 2010). The top 10 brewers accounted for 34% of the...
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...Foreign Market Entry and Diversification Georgia Jefferson Strayer University Abstract This paper will discuss and identify the trends in global beer markets. It will discuss how Modelo’s International expansion was made possible by building strategic partnerships with experienced distributors in local markets. The paper will focus on how Modelo should enter in the foreign market and what is the best strategy. Modelo will face many challenges from his competitors and make the decision whether the company should diversify the business to promote growth. Identify and discuss the trends in the global beer markets. The global beer markets have four main trends and they are consolidation, international expansions, mergers and acquisitions. Consolidation with the beer industry broadens the area of sales and exposes brewers to more opportunities for growth of its company. Expansion of any company can be a positive attribute to overall success for the most obvious reason, revenue. The trend of breweries expansion might be credited to the very expensive initial startup cost of a brewery. In this area of the beer industry having more than one area of cash flow assists with the maintaining the fluctuating price of resources. (Thompson, Strickland III, & Gamble, 2009) International expansion can be a major attribute to a company’s success through seeking proficient production efficiencies. Some beer companies will produce their beer within its country than export...
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...FAST MOVING CONSUMER GOODS (FMCG) Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector in the economy. The FMCG market is set to double from USD 14.7 billion in 2008-09 to USD 30 billion in 2012. FMCG sector will witness more than 60 per cent growth in rural and semi-urban India by 2010. Indian consumer goods market is expected to reach $400 billion by 2010.Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed...
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...Foreign market Entry and Diversification Dr. Sarita Wesley BUS 599- Strategic Management November 12, 2011 Global beer market trends Over the past decade, the global beer market has undergone a lot of change. Developments and improvements in the quality and appeal of beer brands have resulted in a strong organic growth in the beer category. Brewers have responded to the declining beer consumption trends in developed markets. The decline of beer consumption in developed markets is due to high unemployment rates, high fuel prices, and reduced consumer spending. Industry consolidation has continued and the four largest brewers-Anheuser-Busch InBev, SABMiller, Heineken, and Carlsberg- produce almost half of all industry volume and generate up to 70 percent of industry profits. The beer consumption in countries like Africa, Asia, and South American continue to rise. This is primarily driven by the growth in population and incomes. Improvements in beer quality and appearance have also lead to the rise of beer consumption. Consumers have begun to shift from informal and unregulated forms of alcohol to attractively branded and safer commercial beers. Modelo’s international expansion Grupo Modelo’s international expansion began with the United States. As Modelo continued to produce beer domestically, they entered into distribution contracts with companies that possessed local knowledge of the beer market and gave them the freedom to market the product appropriately, yet maintain...
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...“Corona Beer (Modelo)” Foreign Market Entry and Diversification Richard J. Bradley Professor Brian Grizzell Strategic Management – BUS599 Strayer University February 9, 2012 Abstract This analysis outlines Corona Beer (Modelo) and its current strategy and position amongst the competition in the beer industry. The key question addressed is the ability of Corona Beer (Modelo) maintaining status as an industry leader among beer producers and distributers. The trends within the global beer market are also examined as it impacts Corona Beer (Modelo). A competitor analysis will be discussed and how Corona Beer (Modelo) will need to perform and react in the ever changing international markets. There will also be strategic challenges identified and how the company will handle them while facing various options and recommendations to address such challenges. In addition this analysis will outline and dissect trends affecting global beer markets. My analysis will examine how the international expansion of Modelo was initiated by strategic partnerships with various seasoned beer distributors. The analysis will also focus on Modelo and an effective strategy to enter foreign markets for success. The discussion will cover the varying challenges Modelo may encounter from the competition. By 2010, beer sales dropped some 1.5% in the United States America and slightly higher in western Europe with 2.3% (The Economist, 2011). The amount of beer consumed in blossoming...
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...increasing not only in the United States but also globally. There are several trends within the global beer market which accounts for the potentials seen throughout the industry. One of the main trends of the global beer industry is the growth rate. The growth rate globally over the past five years is reported at 3.5%. “The largest contributors to this growth have been China (now the world's largest beer market), Africa and Eastern Europe” (SABMiller Investors, 2011). Another trend seen in the industry is consolidation. At the beginning of the twenty first century there were ten major brewers accounting for one third of the beer sales. Today there are four top brewers which include “Anheuser-Busch InBev, SABMiller, Heineken and Carlsberg – accounting for almost 50% of beer sales volumes and up to 75% of the global profit pool” (SABMiller Investors, 2011). This is due to the increase in consolidation. Another trend in the beer industry is premiumisation. This term refers to the sales of premium beer brands. “As economies improve, the trend towards premium will resume as consumers become more willing to pay for authentic, more image-oriented brands that reflect their socio-economic and lifestyle aspirations” (SABMiller Investors, 2011). Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets. This is a case analysis of Corona Beer (Modelo). Cerveceria Modelo opened its first brewery...
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...Project International Marketing Submitted by: M2 Group 2 173 Varun Raj 047 Devdutt Bhatt 165 Swati Rakesh Choudhary 114 Poulomi Chatterjee 042 Barkha Dubey 170 Twinkle Wadhwa 028 Anupam Narayan Sharma Celebrating over 150 Years of Brewing Excellence! UBL has an association with brewing dating back over nine decades, starting with 5 breweries in South India in 1915. The popularity of their beers soon spread and within a short time, bullock carts carrying huge 'hogsheads' of Kingfisher became a familiar sight in Madras, the Nilgiris and Bangalore, the headquarters of United Breweries Ltd. Almost immediately, the brew from UB became a favourite, especially with the British troops. So began the history of Beer in India... From bullock cart-loaded barrels or 'hogheads' of frothing ale, the beer business has gone on to become the undisputed 'king' in the Indian beer market. UBL today boasts an impressive spread of own and contract manufacturing facilities throughout the country. Here, innovative, creative and aggressive marketing is complemented by a strong distribution network. A management focused on building brand equity on one hand and exploiting it to the hilt on the other. Kingfisher, the flagship brand of United Breweries and the best-selling Indian Lager worldwide, is now available in over 55 countries and is exported from the UK to 19 Continental European Markets and Canada and from...
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...PG0-008 MAY 16, 2011 TEACHING NOTE Grolsch: Growing Globally Case Synopsis Grolsch reassesses its international strategy in light of the company’s recent acquisition by SABMiller, the world’s second largest brewer. Grolsch was the 21st largest global beer brand, sold 51.5% of its volume in international markets, and exported to 70 countries. However, its poor profitability in international markets, four countries alone accounting for two-thirds of foreign sales, and churn of markets and distribution partners raised concerns about the company’s international strategy and execution. Grolsch’s 60 years of history in foreign markets provides a rich backdrop to introduce a range of international strategy topics including: performance assessment, rationale for expansion, market selection, and choice of entry mode. Suggested Assignment Questions 1. Why did Grolsch globalize, and how well has it performed internationally? 2. What are the key elements and limitations of its emphasis on adaptation, in particular? 3. What lessons does Grolsch’s history afford about where to compete? What, specifically, do you think about the MABA process? 4. What lessons does Grolsch’s history suggest about how to compete in the markets targeted— particularly about modes of entry? 5. What other changes would you suggest to Grolsch's historical strategy? 6. Will the merger with SABMiller add value—or will it be a win-lose deal? Teaching Objectives ...
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