The Beer Cases (B): Groupo Modelo
(9 pages of text)
The beer industry comprises elements of sub-national, national and global competition. To expand, the industry players use various strategic approaches as illustrated by five major beer companies: Anheuser-Busch InBev (9B11M124
), Groupo Modelo, Tsingtao Brewery (9B11M126
), San Miguel (9B09M074
) and Thai Bev (9B13M065
). Observations about the beer industry — a fairly easy product and industry to understand — can be extrapolated to other industries. Lessons can be drawn regarding the influence of industry pressures on the four key components of an international expansion strategy: product choice for expansion, market choice for geographic expansion, timing of entry and mode of entry.
The Beer Cases can be used in a course on strategy, global strategy, or international business. Generally, the cases are best taught near the end of a course as they represent a consolidation of learning. The presentations involve a full analysis of the strategies of these companies, and require an integration of strategies across companies, as well as an understanding of the influence of industry structure, growth, and evolution on company strategy. Further, given that the methodology for the analysis of the cases is a presentation format, the cases can provide some variation on the traditional in-class discussion of cases. The cases work best in MBA and EMBA settings, but can also be used in senior undergraduate classes. The time needed for the presentation and discussion of the core issues is 2.5-3 hours. It is most useful to cover the cases in one continuous session, rather than break up the presentations across two 80-minute sessions held on different days. Continuity of presentation preserves the recentness of the facts and observations so that the necessary integration of beer company strategies can occur. Although the cases are best taught together, it is possible to teach each case as a standalone case, following the assignment questions for each individual case. The San Miguel Corporation case (Ivey Publishing # 9B09M074) has a separate teaching note (# 8B09M74), which facilitates its use as a standalone case.
Accommodation & Food Services
International / Global, Large, 2011
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