SALE OF THE CROWN OF BEER
A study based on the strategy tripod of Mike Peng
José G.Vargas-Hernandez, M,B,A., Ph.D.
Noé Rene Luna Plascencia
University Center for Economic and Managerial Sciences
University of Guadalajara
Tel: +523337703340 ext. 25685 reno_nlp@hotmail.com, jvargas2006@gmail.com,jgvh0811@yahoo.com
Abstract
The main objective of this study is to analyze through tripod strategy Peng, the basics of why the acquisition and sale of Grupo Modelo (which it is the largest brewer in Mexico with the highest market share) through analysis of the annual reports of the company. The analysis will be supported under three main theories: theory of industry, theory of resources and capabilities and ultimately theory of institutions. The …show more content…
Diversification can be divided into two types: Product diversification and geographic diversification. Diversification by product is understood that the firm enters to different industries and by geographic diversification the firm enters to other countries (Peng 2010).
The diversification of products can be divided into:
A. Diversification of related products is made when diversification of products of both brands to combine resources and thus have lower costs plus the combination of technology, and market related capabilities.
B. Diversification of unrelated products. These product diversifications are not related to the main production company (Peng, 2010). These products can identify markets which are expanding and have not been exploited.
There is evidence supported by several studies that indicate the positive relationship between the diversification of products (Peng, 2010). This positive relationship leads to think about how valuable the companies that have diversified products on the market …show more content…
One is the value of diversification which increases yields and permanence of a company in the market, compared to companies that do not (Peng 2010). The value is also created by the acquisitions to acquire a resource with market value.
Another important point in the resource analysis is the rarity must have in the market or it must have something particular in the market so it can carry out the acquisition or diversification (Peng, 2010). Imitation: This is a very important point as from it depends on company profits. According to Peng (2010) integration is the increased capacity for imitation difficult because few companies can be integrated after the acquisition.
Having an acquisition of an organization, it must take a central command that is making a corporate culture. The analysis continues observing businesses by institutional questions. Peng (2010) distinguishes two types of formal institutions that are focused on emerging economies to provide protectionism of local businesses. This type of protectionism is the cause that makes transnational corporations to exert pressure on governments to decrease protectionism and to enter the
A study based on the strategy tripod of Mike Peng
José G.Vargas-Hernandez, M,B,A., Ph.D.
Noé Rene Luna Plascencia
University Center for Economic and Managerial Sciences
University of Guadalajara
Tel: +523337703340 ext. 25685 reno_nlp@hotmail.com, jvargas2006@gmail.com,jgvh0811@yahoo.com
Abstract
The main objective of this study is to analyze through tripod strategy Peng, the basics of why the acquisition and sale of Grupo Modelo (which it is the largest brewer in Mexico with the highest market share) through analysis of the annual reports of the company. The analysis will be supported under three main theories: theory of industry, theory of resources and capabilities and ultimately theory of institutions. The …show more content…
Diversification can be divided into two types: Product diversification and geographic diversification. Diversification by product is understood that the firm enters to different industries and by geographic diversification the firm enters to other countries (Peng 2010).
The diversification of products can be divided into:
A. Diversification of related products is made when diversification of products of both brands to combine resources and thus have lower costs plus the combination of technology, and market related capabilities.
B. Diversification of unrelated products. These product diversifications are not related to the main production company (Peng, 2010). These products can identify markets which are expanding and have not been exploited.
There is evidence supported by several studies that indicate the positive relationship between the diversification of products (Peng, 2010). This positive relationship leads to think about how valuable the companies that have diversified products on the market …show more content…
One is the value of diversification which increases yields and permanence of a company in the market, compared to companies that do not (Peng 2010). The value is also created by the acquisitions to acquire a resource with market value.
Another important point in the resource analysis is the rarity must have in the market or it must have something particular in the market so it can carry out the acquisition or diversification (Peng, 2010). Imitation: This is a very important point as from it depends on company profits. According to Peng (2010) integration is the increased capacity for imitation difficult because few companies can be integrated after the acquisition.
Having an acquisition of an organization, it must take a central command that is making a corporate culture. The analysis continues observing businesses by institutional questions. Peng (2010) distinguishes two types of formal institutions that are focused on emerging economies to provide protectionism of local businesses. This type of protectionism is the cause that makes transnational corporations to exert pressure on governments to decrease protectionism and to enter the