Assessment on "Corona Beer"

Assessment 4 pages (1241 words) Sources: 4

[EXCERPT] . . . .

Corona Beer

Corona has become one of the world's largest brewers through cultivation of special relationships with its distributors, and through building its brand based on simply but highly effective marketing campaigns. The company now faces a highly challenging environment characterized by intense competition, global consolidation and the decline of many of the world's top markets. The company is at a crossroads, having seemingly done all it can do under the strategy of the past twenty years.

The global beer market has been subject in recent years to a number of key trends. Consumption has shifted, with traditionally strong markets in North America and Western Europe declining in consumption and many weaker markets, in Asia and South America, seeing increased consumption. Vintners and distillers are entering into more direct competition with the beer industry, at least at the mainstream level (Modern Brewery Age, 2006). This maturing of the market has lead to another significant trend in the global brewing industry, which is consolidation. Global brewers are seeking, in the face of declining volumes, to improve their profits by way of building greater economies of scale. Since the case was written, Anheuser-Busch and InBev have linked up to create the world's largest brewing company and have seen cost reductions and profit improvements since that merger (Dalton, 2009).

There are significant implications for these trends for Modelo. The Mexican company has expanded thus far on the basis of geographic expansion and a single core product. This method of expansion does not fit with the broader trends in the industry, but it has made Modelo one of the wor

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ld's largest brewing companies. This fact makes Modelo a good takeover target -- it has a great brand, but is not a true global brewer. Indeed, AB InBev has been rumored to be eyeing Modelo for a takeover bid in 2010 (Jones, 2010).

Modelo does have economies of scale in production, but in the beer business the majority of the product is water, something that does not need to be shipped. As a result, Corona is subject to sky-high shipping costs that are ultimately needless. In the face of declining consumption, Modelo needs to develop a more cost-effective way of doing business in order to maintain profits. This may involve local production, or other tactics that can reduce shipping, if not production, costs, allowing the company to develop something of a cost advantage of many of its competitors in the global premium brand sweepstakes.

Modelo has, however, had success with its current expansion strategy. The company has expanded primarily on the basis of distribution and marketing partnerships with local firms, while retaining the brewing operations in Mexico. Modelo entered the U.S. market by partnering with an appropriate local importer and has largely sought to replicate this model around the world. In the U.S., Modelo gained special advantage by partnering with two distributors, each with half of the country, effectively playing them off against one another in healthy competition.

The next foreign market that Modelo should enter is Malaysia. Corona has almost no market presence in Malaysia, in part due to high alcohol taxes (Hee, 2008), Muslim culture, possible trademark issues (Toyota has a Corolla-esque car called Corona in that market) and limited distribution options. However, distribution is relatively easy since the target market -- expats, tourists and Chinese Malaysians -- tend to be confined to large cities. These also tend to be among the wealthiest Malaysians as well, and more likely to lack the price sensitivity that would otherwise cause Corona to struggle.

To enter the Malaysian market, Modelo will need a local distribution partner. They have few options. The national brewers are Guinness and Carlsberg, of which the latter more directly competes in Corona's… READ MORE

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Quoted Instructions for "Corona Beer" Assignment:

“

Requirement: Conduct a case analysis for Case #13 Corona Beer (Modelo).

and prepare a 4-5 page report to complete the following:

o Identify and discuss the trends in the global beer markets.

o Discuss how Modelo*****s international expansion was made possible through strategic partnerships with experienced distributors in local markets.

o Identify and discuss the next foreign market that Modelo should enter and with what strategy.

o Discuss the challenges that Modelo faces from its competitor InBev, and how it might respond strategically to the industry giant.

o Discuss whether or not Modelo should diversity its business. If so, what business should it enter and why?

Reminder: Use APA format and referencing, including title and reference page as well as in-text citations. Check you spelling and grammar. Submit the assignment in the appropriate drop box.

The assignment will be graded using the rubric on the next two pages.

assignment #3 Grade Rubric

Outcomes Assessed

Formulate a plan to implement a firm*****s strategy and manage the change from current operations.

Grading Rubric for Assignment # 3 ***** Foreign Market Entry and Diversification

Criteria

0

Unacceptable

20

Developing

30

Competent

40

Exemplary

1.Discuss the trends in the global beer market

Does not attempt assignment, nor discusses the global beer industry trends and it impact on strategy.

The global beer market trends were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.

The global beer market trends were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.

The global beer market trends were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.

2. Discuss how Modelo*****s international expansion was made possible through strategic partnerships.

Does not attempt assignment, nor discusses international expansion and it impact on strategy.

The international expansion elements were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.

The international expansion elements were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.

The international expansion trends were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.

3. Discuss the next foreign market Modelo should enter and with what strategy.

Does not attempt assignment, nor discusses entry into the next foreign market and it impact on strategy.

The next foreign market entry elements were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.

The next foreign market entry elements were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.

The next foreign market entry elements were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.

4. Discuss the challenges related to InBev and how Model may respond strategically to the industry giant.

Does not attempt assignment, nor discusses the challenges related to InBev and it impact on strategy.

The challenges related to InBev were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.

The challenges related to InBev were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.

The challenges related to InBev were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.

5. Discuss if Modelo should diversify and into what business.

Does not attempt assignment, nor discusses the product diversification and it impact on strategy.

The diversification elements were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.

The diversification elements were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.

The diversification elements were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.

6. Clarity

Did not complete the assignment or explanations are unclear and not organized.

(Major issues)

Explanations generally unclear and not well organized.

(Many issues)

Explanations generally clear and/or organized. (Minor issues)

Explanations very clear and well organized.

(Added helpful details.)

7. Writing ***** Grammar, sentence structure, paragraph structure, spelling, punctuation, APA usage.

Did not complete the assignment or 8 or more different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. (Major issues)

6 - 7 different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. (Many issues)

4 - 5 different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. (Minor issues)

0 - 3 different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage.

*****

How to Reference "Corona Beer" Assessment in a Bibliography

“Corona Beer.” A1-TermPaper.com, 2010, https://www.a1-termpaper.com/topics/essay/corona-beer-become/9150297. Accessed 4 Oct 2024.

Corona Beer (2010). Retrieved from https://www.a1-termpaper.com/topics/essay/corona-beer-become/9150297

A1-TermPaper.com. (2010). Corona Beer. [online] Available at: https://www.a1-termpaper.com/topics/essay/corona-beer-become/9150297 [Accessed 4 Oct, 2024].

”Corona Beer” 2010. A1-TermPaper.com. https://www.a1-termpaper.com/topics/essay/corona-beer-become/9150297.

”Corona Beer” A1-TermPaper.com, Last modified 2024. https://www.a1-termpaper.com/topics/essay/corona-beer-become/9150297.

[1] ”Corona Beer”, A1-TermPaper.com, 2010. [Online]. Available: https://www.a1-termpaper.com/topics/essay/corona-beer-become/9150297. [Accessed: 4-Oct-2024].

1. Corona Beer [Internet]. A1-TermPaper.com. 2010 [cited 4 October 2024]. Available from: https://www.a1-termpaper.com/topics/essay/corona-beer-become/9150297

1. Corona Beer. A1-TermPaper.com. https://www.a1-termpaper.com/topics/essay/corona-beer-become/9150297. Published 2010. Accessed October 4, 2024.

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