Answer To: Assessment Type: Case Study – XXXXXXXXXX% word report – Individual Assessment Purpose: This...
Abhishek answered on Dec 07 2021
STRATEGIC MANAGEMENT
Table of Contents
Executive Summary 3
Introduction 4
Macro Environment Analysis 4
Political 4
Economic 4
Social 4
Technological 5
Environmental 5
Legal 5
Industry Analysis 5
Life Cycle Stage of Carlsberg 5
Porter's Five-Force Analysis 6
Company Analysis 6
VRIO Framework 6
Competitor Analysis 7
Strategy Analysis 7
Conclusion and Recommendation 7
References 8
Executive Summary
This case study addresses the emerging market of Carlsberg A/S that deals with the beer business. Regarding the case study, it becomes very significant to analyse the macro-environmental factors to identify the growth of the emerging market of the organisation in the context of China. The threat of substitute product and the bargaining power of customers are the core factors that have appeared as the main competitor for the Carlsberg A/S group. It is concluded that the Carlsberg A/S group has approached to expand its beer business in China and other Asian countries. It is recommended that the Carlsberg A/S group require focusing on the threat of substitute product.
Introduction
This case study addresses the emerging market of Carlsberg A/S that deals with the beer business. However, the core business of this company is associated with the marketing and selling of beer in Eastern Europe, Western Europe and Asia. JC Jacobsen was the founder of this company who established it in the year, 1847 in Copenhagen. However, the first foreign brewery was set up in the year, 1968 in Malawi. The business of this organisation is associated with the brewery industry. Regarding the case study, the organisation has succeeded to gain its emerging market in Russia and other parts of East and West Europe. Despite this, the organisation has failed to establish its strategy in the South Eastern part of China. The core principle behind this present case study analysis is to identify the possibilities and potentiality of Carlsberg A/S to set up its emerging market in China.
Macro Environment Analysis
Regarding the case study, it becomes very significant to analyse the macro-environmental factors to identify the growth of the emerging market of the organisation in the context of China. In this context, Pestle analysis has been approached here to analyses the macro-environmental facts of the company.
Political
China is the most powerful and politically stable country. The communist party is the ruling party of the country, which is capable of influencing world politics and economy. The stable environment and cheap labour availability are recognised as a crucial factor for foreign investment. In this case, Carlsberg A/S may have possibilities to set up its beer market in china as china facilitates its investor with improved infrastructure (Prakash et al. 2020). Apart from this, China is recognised as the permanent member of BRICKS, the secretive council of the UN, G20 and WTO. It also indicates that China can emerge as a better market for Carlsberg A/S to expand its brewery business. However, the transition of the government can affect the emerging market of the Carlsberg A/S.
Economic
The economic factor of China is also suitable for the Carlsberg A/S to expand its business in China as it placed second place in the world economy in terms of nominal GDP. Apart from this, China is also placed as the largest economy in the context of purchase power. However, the changing economy of Hong Kong emerged as an excellent opportunity for the Carlsberg A/S to establish their market. Per capita income is growing along with the improved economy in china. Carlsberg A/S group has marked this and targeted the economy of urban cities such as Hong Kong (Spurkeland, 2018). The Chinese government has approached a strategic approach in the sector of promotional infrastructure that attracts the Carlsberg A/S group to expand its business here. On the other hand, the GDP rate is controlled and that helps the organisation to gain their business profitability as it indicates the increasing purchasing power in the beer market. However, the rate of inflation and the cost of material and transportation may affect the price rate of the Carlsberg A/S.
Social
China emerges as a huge market as it is recognised as the world's most populated country. However, it has found that China has succeeded to establish it as a developed country that enhances the attitude of its society. The Chinese population lean towards western culture and prefer to have a beer in their daily life (Song, Sun and Jin, 2017). However, the drinking habits of the population are variable and differ from different regions. It has found that consumers are leaning towers of...