Group 1 to present case on “Expansion or Diversification?” in Week 4 (28 October 2013; Monday; 2.00pm – 4.00pm).
1. Study the financial statements of Carlsberg Brewery Malaysia Bhd. (Carlsberg) and evaluate its financial position, in terms of financial ratios analysis, using that of Guinness Anchor Bhd. (GAB) as a benchmark.
2. Do you think Carlsberg is in a position to expand?
3. Does the company have sufficient funds to finance an expansion? If not, what other sources can the company tap into?
4. Conduct a SWOT analysis to look into the strengths, weaknesses, opportunities and threats facing Carlsberg if it undertakes the proposed sparkling grape juice enterprise.
5. What are the difficulties that Carlsberg is likely to face in branding a halal soft drink manufactured by a beer company?
At the end of the case discussion, students should be able to:
1. Differentiate the different kinds of corporate expansion schemes such as acquisitions, mergers, subsidiaries and joint ventures.
2. Recognise a high-performing company.
3. Develop and use a SWOT analysis to analyse the impacts of external and internal factors in implementing a new project by a company.
4. Propose and analyse alternative strategies for business expansion, in consideration of the opportunities and risks involved in each strategy.
5. Explain the social issues pertaining to the industry involved: halal food and beverages, halal certification, the halal counter in Bursa Malaysia, the reasons for high excise duties on beer production, 'sin taxes', and the potential difficulties in branding sparkling grape juice manufactured by a beer company.
6. Propose the ways a company can fund its expansion scheme.
7. Prepare a proposal/feasibility study of a recommended strategy incorporating the above considerations.