MG2005 more

Question 1

what is the business of the case study

Answer 1

it is a business in the beverage manufacturing and distribution industry. It adds value primarily through

• brand management
• innovation
• market reach

Question 2

brand management

Answer 2

by developing and maintaing a strong recognixable brand like budweiser and stella arotis the company creates value through brand loyalty and premium pricing.

Question 3

innovation

Answer 3

this ensures the company stays relevant in the market. introducing new beer flavours, varieties and packaging options not only to attract more customers but to

• retain old customers which will drive revenue and market share.

Question 4

market reach

Answer 4

with operations over 50 countries and a strong distribution network the company reaches a wide audience of consumer loyalty.

this allows the company to
- capitalize opportunities in emerging markets
- adapt to changing consumer preferences in different regions

Question 5

what is the real option theory

Answer 5

it views investment decisions as options that offer flexibility to adapt and adjust in response to changing market conditions and uncertainties

Question 6

what modes for the real option theory

Answer 6

joint ventures and wholly owned subsidies. They provide more control and strategic flexibility. They are modes which allow for future adjustments and value creation in response to the changing markets

Question 7

list all the modes

Answer 7

exporting/importing
franchising/licensing
alliances
joint venture
wholly owned subsidies

Question 8

the case study what modes would you recommend

Answer 8

joint ventures and strategic alliances:
Partnering with local breweries or distributers in different regions, allowing for shared resources, knowledge exchange and access to local market expertise.

Question 9

joint - ventures

Answer 9

has a higher level of commitment as firms must invest in creating a new entitiy and sharing resources and risks.

It involves the formation of a new entity by two or more independent firm , with shared ownership and control

Question 10

when is exporting and importing useful

Answer 10

suitable firms who are seeking to test international market to minimise risk

or firms with limited resources for establishing local operations

Question 11

franchising

Answer 11

franchising- involves granting rights to use a company’s trademarks, brand and business models in exchange or a fee or loyalty.

Question 12

when in licensing and franchising useful

Answer 12

useful for firms that lack the resources or expertise to expand internationally on their own

Question 13

licensing

Answer 13

licensing is the granting of rights to use intellectual property, such as patents, or copyrights in return for compensation

Question 14

alliances

Answer 14

is the collaboration between 2 or more firms to pursue mutual goals, such as entering new markets, sharing resources or developing new products

Question 15

alliances suitable for

Answer 15

businesses who want to enter a market quicker and want access to complementary resources and capabilities

Question 16

wholly owned subsidiaries

Answer 16

involve establishing a new entity or acquiring an existing one in a foreign market, with full ownership and control by the patent companyW

Question 17

When are wholly owned subsidiaries used

Answer 17

preferred by large multinational companies seeking full control over their operations and strategic decisions in foreign markets