Beer Industry
Budweiser and Tsingtao
12/17/2010
MIBO
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Group 3.4
Table of Content
Introduction 3
Literature review 4 Conceptual framework 4
Background 5 Tsingtao 5 AB InBev 6
Pest Analysis 7 Budweiser 7 Political Factors 7 Economic Factors. 8 Sociocultural Factors. 8 Technological Factors. 8 Tsingtao 8 Political Factors 8 Economic Factors 9 Sociocultural Factors 9 Technological Factors 9
Research 9 Subquestion 1: how does the management board affect the international performance of the company? 9 Comparison Tsingtao – Budweiser 11 How will the decisions taken by the management board affect the resources and capabilities? 13 Comparison
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Pest Analysis
Management board decisions
International performance
Resources and capabilities
The two main independent variables that have to be included in the conceptual model are the management board and the resources and capabilities of the company. It has been discussed in the literature that two of the four factors that influence the performance of businesses in their internationalization process are the management level and the control of resource capacity (Zeng, Tam, Wan, 2009). A distinction between resources and capabilities must be made: resources are the productive assets of the firm, while the capabilities are what the firm can do. It is the management board that decides upon the acquisition, development, usage and control of resources and the development of capabilities. Managers will select a set of resources from those available to the firm that they believe are responsible for achieving their vision of the business, which will result in the desired sustained competitive advantage of the company (Kunc, Morecroft, 2010). Furthermore, the board will have to decide on other matters as well, which can alter the international performance of the company, whether it be positive or negative.
Background
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