International Business & Management Essay Example | Topics and Well Written Essays - 2000 words

International Business & Management - Essay Example The company expanded to different countries through amalgamation, licensing, and acquisition. Carlsberg merges with prospective brewing companies and later on acquires whole ownership to the business entity (Blocker, et al 2003:140). The script entails the various predatory yet convincing strategies that Carlsberg Company employs in acquisition of new companies. Further, there are outlines on the on the future growth prospective, despite the fact that, the company still lags behind at a fourth rank. Lastly, there is a critic statement discouraging the ownership of more than 500 brands across different countries in the world. 1. Carlsberg strategic moves and predatory tactics in partnership, ownership, and control Carlsberg group entered the brewing industry late when other giant companies were in operations. The owners understood that such a company was vulnerable to stiff competition and failure in the market if they did not engage in proper strategies. The company realized that it could not concentrate in the local market whereas intending to yield profits and grow competitively (Mital, 2008:184). The presence of existing competitors threatened the infant company thus Carlsberg group merged the father-son two different businesses in order to counter extremities of competition. Carlsberg diversified investment to Denmark, U.S.S.R and the Asian countries over a period of almost eight decades. These tactics enabled the company grow profitably through economies of scale and prominent returns on investments (Estrin, 2004:271). The company analyzes the various trends in the markets and decides on the various tactics to endure, thus enhancing venture opportunities. The company analyzes the various environmental constraints in different regions, thus endures on formulae, which enable easier entry into the markets (Lopes, 2007:10). The company enters most of the markets through direct exportation and distribution in the different markets that depict chances of success . Carlsberg owns global brands, for example, the Carlsberg, Elephant, and Pilsner brands distinguish the company’s image above the other beer companies (Ahlstrom and Bruton, 2010:189). Therefore, the company wins consumer loyalty on venturing into the foreign markets due to brand recognition. The strategy adopts consumers in the new markets despite possible competition and at the long run; Carlsberg realizes growth in the market share. Another aspect is that Carlsberg adapts to a criteria model that enables the realization of tastes and preferences of consumers in the new markets, and this leads to brand customization to meet them satisfactorily (Halley, 2005:122). The strategies revolve around the objectives of profitability, competitive edge, and consumer value and satisfaction hence, the company strives to achieve them adequately. The strategies threaten indigenous beer companies who often seek options for cooperation in the market operations (Grunig and Morschett, 2012:24 0). Carlsberg group strategically engages in joint ventures to diversify investments and levels of profitability, hence always welcoming to coming seeking to form mergers. The company tactically targets to acquire the over fifty percent of the share holding capacity in every merger over the rival partner or affiliates. This criterion secures managerial prowess, and increased profit sharing rates over the partners who find it hard to survive, thus leaving Carlsberg to the sole ownership of the company after compensation.