Corona Beer Case Study Globalization

Under the contract announced in St. Louis and Mexico City yesterday, Anheuser-Busch's Budweiser and Bud Lite brands will continue to be brewed in the United States and exported to Mexico for distribution by Grupo Modelo, as has been the case since 1989.

Both companies will continue to brew their own brands at home for export abroad; new distribution arrangements are not part of the deal. Four of Grupo Modelo's brands will continue to be distributed in the United States by two private companies, Barton Beers of Chicago and the Gambrinus Importing Company of San Antonio.

For Grupo Modelo, a strong incentive for the deal was the free-trade agreement, Valentin Diez, a Grupo Model senior vice president, said in a telephone interview from Mexico City.

"We knew that because of Nafta," he said, "it would be very convenient for any company to have a good and strategic alliance with the No. 1 brewer in the world."

Modelo's Corona is the top-selling beer in Mexico and accounts for some 55 percent of the country's total beer exports. The company has had success in the United States since the mid-80's with Corona, a light-tasting beer -- often served with a wedge of fresh lime -- that has become popular with many young adults.

Last year, Grupo Modelo sold 15 million cases of Corona, Modelo Especial, Negra Modelo, Pacifico and Corona Light in the United States, where the overall beer market exceeds 191 million cases.

Anheuser-Busch sold about one million cases of Budweiser and Bud Lite in Mexico last year. Mexico's beer market exceeds 16 million cases, and has been growing by 6.5 percent a year over the last five years.

The chairman of Anheuser-Busch International Inc., Jack H. Purnell, said Anheuser-Busch had been hurt by Mexico's existing 20 percent tariff on imported beer, which could make a six-pack of Budweiser in cans as much as 70 percent more expensive than a six-pack of Corona in bottles in a typical Mexican supermarket. Under the free-trade treaty, however, that tariff will be phased out over eight years.

Mr. Purnell said that even if the free trade agreement was signed, Budweiser would still cost more than Corona in Mexico, although the price differential would be narrowed. But he said the real thrust of the contract was to capitalize on international sales and overseas markets that are growing faster than the United States market.

"Nafta would be the icing on the cake, but the cake itself is very appetizing," Mr. Purnell said.

Anheuser-Busch recently entered a joint venture with the Kirin Brewery Company in Japan that gives each company the right to market the other's products at home. Also recently, the Miller Brewing Company, a unit of the Philip Morris Companies, bought a 7.9 percent stake in a large Mexican brewer, Fomento Economico Mexicano S.A., as well as a 20 percent stake in Molson Breweries of Canada.

Anheuser-Busch will get three seats on Modelo's board, while a Modelo representative will be appointed to Anheuser-Busch's board. Mr. Purnell said Anheuser-Busch had an option to increase its equity holdings in Grupo Modelo to 50 percent. Grupo Modelo is privately held by a group of Mexican familes. Officials from both companies said that management of the Mexican company would remain in Mexican hands.

Continue reading the main story

Case Studies

(Cases are available at European Case Clearing House)

THE ‘INVISIBLE HAND’, DE BEERS, AND EMERGING MARKETS
Case Reference:311-092-1
TN Reference:311-092-9
Spanish Translation:E311-092-9
Key words : Diamonds; Mining; Jewellery; Monopoly; Ethics; India; Business strategy; LVMH; Heritage; Vertical integration; Legal issues; Emerging markets; ”Conflict” or ”blood” diamonds; Social responsibility

L’OREAL AND THE BODY SHOP: ACQUISITION SYNERGIES
Case Reference:311-143-1
TN Reference: 311-143-8
Key words: Acquisition; Post-merger integration; Strategic fit; Organizational fit; Cultural fit; Anita Roddick; Ethics; Franchisees

ESCADA: MADE OF STEEL?
Case Reference:311-038-1
TN Reference: 311-038-9
Key words: Bruno Salzer; Megha Mittal; Luxury fashion industry; Mergers and acquisition;Post-merger integration; Strategicfit; India; Insolvency; Bankruptcy;Leadership; Urgency; Turnaround; Restructuring; Re-design; Change process

ESTEE LAUDER COMPANIES: ADAPTING CSR TO THE COSMETICS INDUSTRY
Case Reference:711-026-1
TN Reference: 711-026-9
Key words: Estee Lauder; Cosmetics industry; Beauty industry; Corporate social responsibility (CSR); CSR activities; Economic value of CSR; Social responsibilities; Social investment; Environmental responsibilities; Environmental stewardship; Corporate responsibilities; Ecological trends; Ecological issues; Consumer mindset

COACH: TO BE OR NOT TO BE LUXURY
Case Reference:811-039-1
TN Reference: 811-039-8
Key words: Entrepreneurship; Dream-team; Strategy; Association; Democratization;
Luxury;Lew Frankfort; Reed Krakoff; Leather goods; Lifestyle brand; American luxury brand

HIDESIGN: KID ON THE LUXE BLOCK
Case Reference:310-033-1
TN Reference: 310-033-8
Key words: Dilip Kapur; Leather; Luxury; Fashion; LVMH (Moet Hennessy-Louis Vuitton); Louis Vuitton; Kunal Sachdev; India; Mastige; Premium brand; Coach; Acquisition; Leather; Pondicherry

LVMH: MANAGING THE MULTI-BRAND CONGLOMERATE
Case Reference:304-274-1
TN Reference:305-274-8
Key words : Managing the global conglomerate,
decentralized organization, M&A, synergy, organic growth,
competition, multi-branded strategy, star brands, brand management,
portfolio management, international management, global operations,
leadership, Bernard Arnault, luxury goods, France.

TECHNICAL NOTE (A): OVERVIEW OF THE GLOBAL LUXURY INDUSTRY
Technical Note Reference:306-511-6
Key words: Luxury; Brands; Competition; Italy; France;
Moet Hennessy-Louis Vuitton (LVMH); Richemont;
Pinault-Printemps-Redoute (PPR); Gucci; Chanel; Burberry; Swatch;
Hermes; L’Oreal.

TECHNICAL NOTE (B): LUXURY INDUSTRY IN EMERGING MARKETS (INDIA AND CHINA)
Technical Note Reference:306-512-6
Key words: Luxury; Brands; Market size; Middle-class; Retail; India; China; Russia.

TECHINCAL NOTE (C): ISSUES OF LUXURY INDUSTRY IN EMERGING MARKETS
Technical Note Reference:306-513-6
Key words: Luxury; Brands; Old and new luxury; Luxury to mass luxury; Counterfeit; Grey market.

DEUTSCHE TELEKOM AG: FROM A STATE OWNED MONOPOLIST TO A GLOBAL LEADER
Case Reference:310-032-1
TN Reference:310-032-8
Key words:Managing a global corporation; Deregulation; State-owned enterprises; Public workers; Change management; Leadership; Ron Sommer; Kai-Uwe Ricke; Rene Obermann; Mobile phone; Internet; Fixed line; German reunification; Internationalization; HR (human resources) Management

AF-KLM & ALITALIA: PREPARING NATIONAL CHAMPIONS OF THE FUTURE
Case Reference:310-010-1
TN Reference:310-010-8
Key words:Aviation; Airlines; Alliances; Merger; Co-operation; National champions; Cross-border deals; Synergies; Frequent flier; Airbus; Boeing; Deregulation, Merger; M&A (mergers and acquisitions); Globalization; Role of the state; Competitiveness; France; Netherlands; Italy

CORONA BEER: FROM A LOCAL MEXICAN BRAND TO A GLOBAL PLAYER
Case Reference:308-110-1
TN Reference:308-110-9
Key words:Beer industry; Strategy; Distribution
channel; Marketing; Corona Extra; Autonomous business units; Corporate
control; Family business; Heineken; FEMSA; Groupo Modelo.

ADITYA BIRLA GROUP: REDESIGNING TO BECOME A FORTUNE 500 COMPANY
Case Reference:306-517-1
Japanese Translation:J306-517-1
TN Reference:306-506-8
Key words:persified; Conglomerate; Family business;
Liberalisation; Internationalisation; Consolidation; Transformation;
Redesign; Change; Restructuring; Culture; Management style;
Multinational corporation (MNC); Pilani; India.

LAFARGE (B): LOOKING TO THE FUTURE
Case Reference:306-518-1
Key words:CEO succession; Portfolio
restructuring; Organisational restructuring; Change;
Internationalisation; Industry consolidation; Strategy; Growth;
Emerging country; Albert Frere; Building materials; Cement industry;
Holcim; China; India.

LAFARGE:
EVOLUTION OF A FRENCH CEMENT COMPANY TO A GLOBAL LEADER (**Award Winner
at the Carnegie Bosch International Institute Conference, Pittsburgh,
USA, 2003**)

Case Reference:304-019-1
TN Reference:305-019-8
TN Software Reference:305-019-89
LAFARGE VIDEO:INTERVIEW OF BERTRAND COLLOMB, CHAIRMAN OF LAFARGE
Video Reference:304-019-3
Key words : Internationalization; Managing global
corporations; Strategy; Transnational; Change; Restructuring; Culture;
Co-ordination ; Human Resource ; Building materials and the cement
industry; France.

NATIONAL BASKETBALL ASSOCIATION: THE AMERICAN PAST TIME
Case Reference:310-028-1
TN Reference:310-028-8
Key words:Sport league; Organizational structure; Globalization of sport; Competition; Exportation of American business practice; International franchise networks; Co-ordination; Expansion strategy; Integration; Resource sharing; Competitive strategy; Restructuring; Sports economics; Culture; Administrative heritage

CARREFOUR
CHEVERE! (**Second Best Case written by an author from outside the
United States at the North American Case Research Association (NACRA),
Sedona, Arizona, USA, 2004**)

Case Reference:304-275-1
TN Reference:305-275-8
Key words: Managing Global Corporations, Transnational
Strategy, International Marketing, Cultural Influence, Mass
Consumption, Private Labels, Local Responsiveness, Growth, Adaptation,
Promotional Campaigns, Retail Industry, Food, France, Latin America,
Colombia.

CARREFOUR KOREA: NOT READY FOR KIMCHI
Case Reference:306-506-1
TN Reference:306-506-8
Key words : Upscale retail industry; Specifications;
Localisation; Middle-class; Discount retail stores; Point-card system;
Local adaptation; Failure; Korea; Growth; Entry; Mass consumption;
Pre-occupation of sites.

THALES GROUP: INNOVATING R&D
Case Reference:306-514-1
TN Reference:306-514-8
Key words : Core activities; Core competencies; Dual
technologies; Multi-domestic; Global learning; Network; Integrated
solutions; Joint venture (JV); Tertiarisation; Strategy; Transnational;
Meta-national; Role of state; Ethics; Piracy.

RESTRUCTURING OF CANAL PLUS:BEGINNING OF A NEW ERA
Case Reference:305-446-1
TN Reference:305-446-8
Key words: Restructuring; Turnaround; Strategy
process; Co-ordination; Alignment; Strategic HR (human resources);

AF-KLM: RULING THE SKIES
Case Reference:308-109-1
TN Reference:308-109-9
Key words:Aviation; Airlines; Alliances; Merger; Co-operation; National champions; Cross-border deals; Synergies; Frequent flier; Airbus; Boeing; Deregulation.

MITTAL-ARCELOR: THE BID
Case Reference:308-110-1
TN Reference: 308-110-9
Key words: Industry consolidation; Emerging MNC
(multinational corporation); Growth; Globalisation; M&A (mergers
and acquisitions); Hostile bid; National champions; Corporate
governance; Culture; Family business; Steel; Synergy; Integration;
Family business; Role of State.

MITTAL STEEL: MANAGING CONSOLIDATION
Case Reference:308-111-1
TN Reference:308-111-9
Key words:Globalisation; Industry consolidation;
Steel; Growth; Emerging markets; Mergers and acquisitions; Corporate
governance; Management style; Culture; Family business; Arcelor; Indian
entrepreneur; Integration; Turnaround; Emerging MNCs (Multinational
corporations).

ICICI BANK: PATH TO GLOBALIZATION
Case Reference:306-507-1
TN Reference:306-506-8
Key words:New entrant; Late mover; Competition; Core
competency; Competitive advantage; International expansion; Leadership;
Organisation structure; Competitive strategy; Emerging country;
Technology; Innovation; India; NRI (non-resident Indian); Rural.

AIRBUS AND BOEING IN CHINA:RISK OF TECHNOLOGY TRANSFER
Case Reference:306-515-1
TN Reference:306-515-8
Key words : Strategy; Competition; Demand and supply;
Transfer; Risk; Technology; Hub-to-hub; Point-to-point; Guanxi;
Bargaining; Role of the State; Planes; Key success factors;
Negotiation; China.

IS GOOGLE LOSING ITS SOUL IN CHINA?
Case Reference:706-051-1
TN Reference:706-051-8
Key words : Search engine; Internet; Censorship;
Freedom of information; Entry strategy; Ethical dilemma; Multinational
company (MNC); China; Role of State; Protectionism; State intervention;
Firewall; Service providers.

VOLKSWAGEN IN CHINA: RUNNING THE OLYMPIC MARATHON
Case Reference:306-516-1
TN Reference:306-516-8
Key words : Strategy, Competition, Internationalization process, Taxi-strategy, MNC, Entry, China.

VODAFONE:OUT OF MANY ONE
Case Reference:304-625-1
TN Reference:305-625-8
Key words: Managing a global corporation,
globalization, growth strategy, acquisition, integration, core
competency, competitive strategy, synergies, global co-ordination,
leadership, Arun Sarin, value-added service, mobile phone market,
mobile phone operator, average revenue per user (ARPU),
telecommunication industry.

TECHNICAL NOTE ON THE TELECOMMUNICATION INDUSTRY
Technical Note Reference:304-625-6
Key words: Value-added service, mobile phone market, mobile phone operator, average revenue per user (ARPU), telecommunication industry.

SAINT GOBAIN: THE EXPANSION OPTIONS IN INDIAAND/OR CHINA
Case Reference:204-192-1
TN Reference:305-192-8
Key words: India, China, Glass Industry, Emerging Country, Strategy, Growth, Expansion.

SANOFI SYNTHELABO-AVENTIS (A): THE FRENCH CONNECTION OF MEGA MERGERS
Case Reference:304-273-1
TN Reference:305-273-8
Key words : Managing Global Corporations, Industry
analysis, M&A, Megamergers, Takeovers, Hostile bid, Defense
Strategy, White knight, Global strategy, Synergy, Product pipe-line
analysis, Post-merger integration, Globalization, Internationalization,
Pharmaceuticals industry, National Champions, European Union, France.

EVOLUTION OF ALSTOM: ROLE OF THE FRENCH STATE
Case Reference:204-021-1
TN Reference:204-021-8
Key words : Competitive advantage of nations; Role of state; French business environment, French engineering company; Alstom; France

RENAULT: THE CHALLENGE OF RESTRUCTURING
Case Reference:404-013-1
TN Reference:404-013-8
Key words: Internationalization, Managing Global
Corporations, Redesigning Organizations, Restructuring, Strategy,
Change, Culture, 35 hours work, Strategic Human Resource Management,
Leadership, Automobile industry, France.

MASUKI LIMITED: CHALLENGE OF REDESIGN OF A JAPANESE JV IN INDIA
Case Reference:404-007-1
Key words: Restructuring; Redesign; Liberalization;
Privatization; Indian automobile industry; Change; Cross-culture
integration of Indian and Japanese management practices; Co-ordination;
Integration; Differentiation; Strategic Human resources; India

TECHNICAL NOTE ON JAPANESE MANAGEMENT PRACTICES
Techincal Note Reference: 404-007-6
Key words: Restructuring; Redesign; Liberalization;
Privatization; Indian automobile industry; Change; Cross-culture
integration of Indian and Japanese management practices; Co-ordination;
Integration; Differentiation; Strategic Human resources; India

ORGANIZATIONAL REDESIGN AT BPCL: THE CHALLENGE OF PRIVATIZATION
Case Reference:404-006-1
Key words: Restructuring; Redesign; Privatization;
Liberalization; Industry transformation; Indian oil industry; Strategy;
Change; Culture; Co-ordination; Integration; Differentiation; Strategic
Human Resources; India

Cases In progress

Hermes + Teaching Note
Backsberg + Teaching Note
FabIndia + Teaching Note
Genesis Colors + Teaching Note
Vilbrequin + Teaching Note 

0 thoughts on “Corona Beer Case Study Globalization”

    -->

Leave a Comment

Your email address will not be published. Required fields are marked *