A Case Guide of the Global Beer Industry

1905 Words Dec 21st, 2011 8 Pages
Case Study Assignment 3

|What are the dominant business and economic characteristics of the global beer industry? |
|The global beer industry is dominated by large corporations who have merged with rivals to increase their global and domestic market share. |
|For example in 2004 Interbrew and AmBev merged to form the worlds largest brewing company in terms of volume ( ).Since then Miller |
|Brewing has merged with Coors Brewing company and SAB to form one of the worlds largest breweries. |
|What do you see as the key success factors for firms in the global beer industry? |
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Sales of Coco-Cola have created a strong customer based that FEMSA can market their beer too. |
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|What is your assessment of Grupo Modelo 's financial performance and financial condition from exhibit 6 in the case? Is the company in good |
|financial shape? Why or why not? Please use the financial ratios in "A Guide to Case Analysis" and in table 4.1 of the text to develop |
|calculations in support of your assessment of the company 's financial performance. |
|After seeing a reduction in gross profit in 2008 Grupo Modelo recovered and increased their gross profit 10.6% in 2009. However, Grupo |
|Modelo 's volume of beer sales has remained mostly stagnant for the past three years. It 's domestic market has seen a slight increase, but |
|their exports dropped 4.8% in 2009. Heineken 's merger with FEMSA has further reduced Modelo 's exports to the U.S. Market. From 2008 to |
|2009 liabilities went down and assets increased, this has strengthened Modelo 's financial condition though investors were disappointed by |
|the 3.7% reduction in return on equity. While no dividends were payed in
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