Foster beer

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1. INTRODUCTION EXTERNAL ENVIRONMENTS ANALYSIS1.1. Foster beer Foster's Group is an Australian beer group with interests in brewing and soft drinks.Foster's Group Limited is based in Melbourne, Victoria. It was founded in Melbourne in 1888 by two American brothers, William and Ralph Foster of New York. Foster 

group is the largest selling Australian beer in the world. Foster brewing have morethan 20 plants in 9 countries in the world. Foster group was the World’3rd mostwidely distributed brand with their available in more than 150 countries.

Foster's is part of one of the world's largest brewing groups SABMiller plc. Foster’s is primarily focused on brewing activities with the majority of its sales revenue generated byCarlton United Brewers, its Australian and Pacific beer business, with the remainder generated by International Beer.

Carlton United Brewers (CUB) is the largest brewer in Australia with a portfolio of brands produced by or licensed to CUB that includes the leaders in the traditional regular, premium

domestic and premium international segments. CUB is also the largest cider producer inAustralia.

International Beer business generates earnings from the sales, licensing and distribution of itsAustralian beer brands in markets outside Australia and the Pacific and from a distribution

 joint venture serving the Middle East.

Foster's employs approximately 2000 people, primarily in Australia and our products are soldin more than 45 countries worldwide. Our commitment to lead innovation, invest in our 

 brands and maintain the highest quality standards remains steadfast.

1.2. External environment Analysis: pest & 5forces.1,2.1. PEST ANALYSIS:

The Market environment is characterized by various factors which affects the growths anddevelopment of the company either positively or negatively. This factors includes; Political,Economical, Social and Technological factors.

1.2.1.1 POLITICAL

Foster's Group as a signatory to the united nation global compact is committed to aligning its

operations and strategies with the 10 universally accepted principles of the UN globalcompact in the area of human rights, labour, the environment and anti-corruption. As theworld's principal global corporate citizenship initiatives, the Global Compact is interested inexhibiting and building the social legitimacy of business and markets.

1.2.1.2 ECONOMY

The current global recession did not exclude the beer companies. This resulted in Fluctuationof the exchange rate and accounted for a decline of Fosters Group global wine EBITS byabout $70 million. There was also a slow down amongst consumers' in the United State and achange of distributor stocks which led to a wine net loss of revenue in the Americas of about

8.9%. Foster's Group Ltd also changed to direct sales, marketing and distribution of its major wine portfolio in key Nordic Markets of Norway, Sweden and Finland.

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1.2.1.3 SOCIAL

Foster's Group with its partners Diageo Australia and Nine Network in an Australian firstCricket Australian Launched their new national community service broadcast campaign called'Know When to Declare' advising sport fans to take responsibility of their action. The main

aim of this programme was to help address the issue of misuse of alcohol, most especiallyamongst young people.

1.2.1.4 TECHNOLOGY

Foster's Group has adopted a simpler organisation, new behaviour and an improved system of doing business. They are set to introduce a major programme to build their informationcapability and technology in the business. This programme would involve over 40 individual

 projects planned to build the foundation in other to sustain the business transformation andopenly enhance efficiency.

1.2.2. 5forces

2 Firm level analysis:2.1 introduce Tiger beer 2.2 analysis: (4Ps, resources and capacity in chapter 5, competitiveadvantages of 2 company in chapter 7, 4 generic strategies…)

3. strategy option (4 generic strategy) why do 2 company choose thosestrategies.