The Grupo Modelo Place in the World Market Essay Example for Free

The Grupo Modelo Place in the World Market Essay In previous years, beer’s core segmentation was age group 21-27, this demographic bottomed out in the late 1990’s to early 2000’s, but projections are showing that this core demographic will be the top demographic again by 2010 according to beerprofit. com. Studies have shown the 40% of the adult market are expected to be regular beer consumers by 2011. This paper will discuss Medelo’s international expansion through strategic partnerships, next steps into a foreign market for Modelo, challenges from InBev, Modelo’s direct competitor, and whether Modelo should diversify its business. (HTB, 2008) Modelo’s International expansion with Strategic Partnerships Grupo Modelo is the biggest brewer in Mexico and is based in Mexico City. Model has built several breweries in states throughout Mexico for logistics, warehousing and transportation strategies. Grupo Model best known product is Corona, while it best selling brand is Corona Light. Within Mexico, their biggest selling brand is Modelo Especial which is a premium pale lager thats more comparable in quality to Dos XX than its lightweight Corona. Most beers sold in Mexico are standard light bodied lager brews that are similar to U. S. and Canadian lagers. Especial are sometimes viewed as a premium brands, while Pacifico has a certain cachet on the Pacific coast, and Corona and Sol are both super light bodied brands with painted labels and that appeal to a fun in the sun kind of marketing mentality. In 1985, Grupo Modelo started exploring other markets, first Canada and Japan, and later on Australia and New Zealand. In 1989, the organization moved into Europe when an office in Brussels was opened, later Russia, Africa and Latin America, the Modelo brands are present in 159 countries. In 1997, Anheuser-Busch and Grupo Modelo agreed to purchase 37% of the brewer to gain some revenue and capital opportunities for Modelo. Under the agreement, Anheuser-Busch has invested $605 million, bringing its total investment in Mexicos largest beer company to more than $1 billion. The agreement also allowed for Anheuser-Busch to acquire another 17% at a later date. In 2003, Anheuser-Busch acquired a 17. 7 percent direct and indirect interest in Grupo Modelo and its subsidiary, Diblo, S. A. for $477 million. This gave Anheuser-Busch financial control over the Modelo. By 1996, the acquisition was complete. Our taking a larger stake in Modelo is advantageous for both companies, said Anheuser-Busch Chairman of the Board and President August A. Busch III. Grupo Modelo is a well-managed company with a great heritage. Mexico is a key market in our overall approach to globalizing our company. There is great potential in the Mexican beer market. Our association with Modelo will help grow that market and enhance our already strong relationship with the Mexican-American community. (Chalmers, 2009) Grupo Modelo’s Next Foreign Market and Strategy In 2005, Grupo Modelo and Anheuser-Busch agreed to import Modelos beers into China, the worlds largest beer market, the Mexico City-based Grupo Modelo, who is half-owned by Anheuser-Busch and exclusive importer of Anheuser-Buschs brands in Mexico, including Budweiser and Bud Light. Grupo Modelo holds 62. 8 percent of the total beer market share in Mexico as of Dec. 31, 2005. The agreement with Anheuser-Busch for China covered Corona Extra as well as other Grupo Modelo brands to be distributed in the future. Apart of the strategy was to expand Corona Extra. Corona Extra is the No. 1 Mexican beer sold in the world and the most popular imported beer in the U. S. , regardless of origin. This new partnership ideally complements the international strategy that Modelo has successfully implemented for several decades, said Carlos Fernandez, chairman and CEO of Grupo Modelo, in a statement. Grupo Modelo exports seven brands with a presence in more than 150 countries. (Chalmers, 2006) The Challenges from InBev InBev, the largest beer company in the world produces over 200 beer brands produced and sold throughout the world. Its flagship brands are Budweiser, Stella Artois, Brahma, Becks and Leffe. InBev has operations in over 30 countries and sales in over 130 countries. In 2006 it had a market capitalization of â‚ ¬30. 6 billion and net profit of â‚ ¬3. 2 billion on sales of â‚ ¬13. 3 billion. InBev was created in 2004 from the merger of the Belgian company Interbrew and the Brazilian company AmBev. Before the merger with Ambev, Interbrew was the third largest brewing company in the world by volume, Anheuser-Busch was the largest, followed by SABMiller in second place. Heineken International was in fourth place and AmBev was the worlds fifth largest brewer. On June 12, 2008, InBev announced that it has made a US$46 billion offer for the brewing firm Anheuser-Busch. This merger joined two of the worlds four largest brewing companies (based on revenue) and created a company that brews three of the top beers in the world Bud Light, Budweiser and Skol. InBev also stated that the merger would not result in any U. S. brewery closures and they would also attempt to keep on management and board members from both companies. On Sunday, July 13, 2008, Anheuser-Busch announced that they had agreed to an acquisition by InBev valued at about US$52 billion in cash, or $70 per share. As a condition, InBev will be renamed AB-InBev and Anheuser-Busch would retain two seats on the board of directors. This created a problem for Modelo because Anheiser-Busch has acquired a 51% stake in 2003. Even though the deal was crafted so that Modelo could buy back its majority interest. After the announcement of the AB InBev merger, Modelo sued it US Constellation partner who is partnered with InBev so the InBev could assume a hostile takeover of the company. That arbitration is ongoing. (Kesmodel, 2009) Should Grupo Modelo Diversify its Business? While Modelo still ranks as the 4th largest brewer behind AB-Inbev, SABMiller, Heiniken International, it is the only brewer controls 65%+ in its home country. The other bottlers have found fortune in diversifying into foods, Modelo may be best served with an expansion into other products to boost its name and brand. SABMiller is the outsource bottler Coca Cola Africa. Pepsi has expanded into other brands by acquiring Gatorade, Frito-Lay, and Quaker Oats. Its side brands now account for 55% of of its revenue. Modelo could be better served acquiring established food brands or international food processing plants. AB-InBev has diversified, SABMiller has diversified. Heineken has diversified by isolating its beer brands to different markets Europe, Asia, Americas, Caribbean, and South America. With the top selling single beer product in the world, the company can build some momentum based on that product. Conclusion Grupo Model is poised to take a substantial place in the world market. It is known the throughout the bottle world for its robust and efficient processes. It has been able to expand into foreign markets while keeping its signature product as the number one selling product in the world. It has been able to merge with the largest beer company in the world and still keep it operational control over its products and withstand competitive challenges from direct competitors seeking to penetrate its principal markets. With the establishment of the number one brand beer, Modelo seems poised to leverage its brand into different markets and diversifications.

Change in Roman Fever by Edith Wharton Essay -- Coincedence Edith Whar

Change in Roman Fever by Edith Wharton Chance (or coincidence) has an ambiguous role in the outcome of different situations; it can work in or against one’s favour. As in real life, chance in literature has considerable influence on the circumstances of the characters and where those circumstances lead. In two particular literary works, Roman Fever and A Small, Good Thing, chance happenings have grave results on the lives of the characters concerned. In Roman Fever, old friends meet by chance and reveal disturbing secrets about the past; while in A Small, Good Thing a boy is injured on his birthday placing his parents in a desperate situation. Although chance generally seems to go unnoticed—a spontaneous purchase of candles, followed by a power failure—the impact it makes is often not so subtle. Edith Wharton, author of Roman Fever, depicts two upper class women friends; one, Mrs. Slade, fiercely jealous of the other and the other, Mrs. Ansley, pitiful of her childhood friend. The depiction is real in that it epitomizes the American upper class wife—responsibilities include making the husband happy and entertaining his guests; a typical day may consists of shopping, lunch and the exchange of rumours with the other wives of other rich husbands; in essence, they waste away the time until the rich husband arrives home from work or until he makes a request. Mrs. Slade, in reflection, felt â€Å"a certain conjugal pride† about being such a wife (Wharton, 84). The most prominent aspect of such individuals presented by Wharton is the limit in which they will endeavour to undermine even a supposed friend to achieve an end, generally the richest husband. And, of course, with such rules of play, one needs all the ... ...mall, Good Thing, while its effects were tragic; it also had a few positive implications. However, the same aspect of chance holds true in both cases: though its effects rarely go unnoticed, its role in events almost always do. If it were at all anticipatory Alida would have pondered the possibility of Grace responding to the letter and Ann would have dropped her son at school that day. Indeed, if chance were predictable it would loose its very nature; its swaying force would be futile and life would go on otherwise unruffled. Works Cited Carver, Raymond. â€Å"A Small, Good Thing.† A Pocket Anthology: Third Ed. R.S. Gwynn. New York: Longman, 2002. 304-326. â€Å"Chance.† The American Heritage Dictionary of the English Language: Fourth Ed. Houghton Mifflin Company, 2000. www.atomica.com. Wharton, Edith. â€Å"Roman Fever.† A Pocket Anthology: Third Ed. 81-93.

Judith Sargent Murray Essay - 1719 Words

During the pre-revolutionary period, more and more men worked outside the home in workshops, factories or offices. Many women stayed at home and performed domestic labor. The emerging values of nineteenth-century America, which involves the eighteenth-century, increasingly placed great emphasis upon a mans ability to earn enough wages or salary to make his wifes labor unnecessary, but this devaluation of womens labor left women searching for a new understanding of themselves. Judith Sargent Murray, who was among Americas earliest writers of female equality, education, and economic independence, strongly advocated equal opportunities for women. She wrote many essays in order to empower young women in the new republic to stand up against†¦show more content†¦And they can be equals if they believe they are. The basis of this essay is that knowledge is the solution to possessing value. In On the Equality of the Sexes, she believes women to be slandered in society, and they are only known to be inferior to men simply because men have an unjust difference in education. She declares that an educated woman would only increase her domestic skills and rational thoughts. In Observations on Female Abilities, she amasses an enormous amount of concrete detail to prove the general points she made earlier. Murray was clearly optimistic about the prospects of American women in 1798, imagining that a new era of gender equality was dawning in this younger world. Yet again, as in her other essays on womens issues, Murray argues that women are rational beings, capable of exhibiting the traits associated with Republican citizenship. Once again she maintains that educated women make the most virtuous mothers and wives. At the same time, she continues to insist that women can be brave, strong, and heroic as well as modest, religious, and chaste. In her essays, Murray proves how to reach equality by identifying the importance of education among women. To Murray, women have an intellect and the needle and the kitchen does not provide enough stimulation to occupy a womans intelligence. Womens apparentShow MoreRelatedAnne Bradstreet And Judith Sargent Murray1653 Words   |  7 Pagesof the household and of the children. However, writers such as Anne Bradstreet and Judith Sargent Murray wanted to emphasize the importance of education for women. The two texts by these authors that will be discussed are the poem, â€Å"The Prologue† by Anne Bradstreet and the essay, â€Å"Desultory Thoughts upon the Utility of Encouraging a Degree of Self-Contemplacency, especially in Female Bosoms,† By Judith Sargent Murray. A theme seen prominently throughout both texts is fairer treatment of women throughRead MoreJudith Sargent Murray s On The Equality Of The Sexes848 Words   |  4 PagesJudith Sargent Murray’s On the Equ ality of the Sexes reveals the struggles women had in the 17th-18th centuries when it came to equal education opportunities. Women were expected to become people of domestication while men had many opportunities to expand their minds and be ambitious, and be leaders. Women were expected to focus on taking care of their family, not to have minds of their own. They wanted change. Her audience: Since Murray wrote for magazines, her audience was the readers of thoseRead MoreJudith Sargent Murray s On The Equality Of The Sexes 1408 Words   |  6 PagesAnalytical Essay: Judith Sargent Murray’s ‘On the Equality of the Sexes’ Judith Sargent Murray was a revolutionary woman- born into a socially prominent and wealthy family during the start of the American Revolution, Murray was recognized for her intellect at a young age and given an education along with her brother. Later in life, she had her written works widely published and read during a time when women’s voices were seen as fundamentally inferior to those of men. In one of her most influentialRead MoreAnalysis Of Judith Sargent Murray s On The Equality Of The Sexes1373 Words   |  6 Pagessigns of being rational thinkers, and therefore, were not even afforded the opportunity to prove themselves. In the late eighteenth century, Judith Sargent Murray argued that women had, in fact, proven themselves to perform creatively and intellectually with the opportunities that were given to them—opportunities that were often overlooked. Most notably, Murray argues that women partake in almost destructive social behavior as an outlet for creativi ty—an idea which is played on in the nineteenth centuryRead MoreThe Critical Evaluation Essay1084 Words   |  5 Pagesunderstanding of the topic? Did you change your perspective after completing the essay? Even though I knew women struggled for equality for years, it gave me a better understanding hearing it from a woman’s point of view. It really struck home to hear Murray relate her thoughts back to the bible since so many people try to use it as a way to prove why men are superior to women. 3. What difficulties did you encounter during the writing or editing phases of the assignment? Some of the difficultiesRead MoreThe Influence Of Past American Women Writers2466 Words   |  10 PagesThe Influence of Past American Women Writers Amy Tan, Julia Ward Howe, and Judith Sargent Murray are some of the noble women whom have helped shape the lives of their fellow gender with the talents of their writing. Much of their writing became increasingly influential years after it was written. Their literature allows today’s modern readers to reflect on the humanity and the treatment of women, understand history’s past, and use it as an example to continue spreading the vision of the equalityRead MoreEssay about Equality Is the Center of Society703 Words   |  3 PagesIn addition to Mrs. Adams other women were also advocating equality for women. Judith Sargent Murray published On the Equality of the Sexes and stated the very reasonable case for equal education and capabilities of women compared to men. She also points out that if women were allowed to be more intellectual they would be better companions for their husbands, allowing both sexes to be happier in their marriages (Murray). African Americans were another group who were obviously not treated equallyRead MoreThe United States During The American Revolution Essay1303 Words   |  6 Pageswomen’s role in life should be. That individual was none other than Judith Sargent Murray. One of the most argumentative feminist writer and advocate of her time, Judith was truly an anomaly within an anomaly. Born into wealth and prestige in Gloucester, Massachusetts, Judith was surrounded by success and financial security through her uncles, father and brothers. Unfortunately, it is because of this economic status that Judith was immediately introduced to the realities and the limitations presentedRead MoreBiography of Martha Dandridge Custis Washington: The First First Lady845 Words   |  4 PagesMartha Washington: A Life. Marthawashington.us, 2013. Web. 17 Nov 2013. http://marthawashington.us/exhibits/show/martha-washington--a-life/. *Murray, Judith Sargent. Bonnie Hurd Smith, ed.From Gloucester to Philadelphia in 1790: Observations, Anecdotes, and Thoughts from the 18th-Century Letters of Judith Sargent Murray. Cambridge, Mass.: Judith Sargent Murray Society and Curious Traveller Press, 1998. Sklar, Kathryn Kish. Washington, Martha Custis. World Book Student. World Book, 2013. Web. 14 NovRead MoreHow Do the Ideas Espoused by Mary Wollstonecraft and Other Feminist Writers of Her Time Relate to Women Today?1302 Words   |  6 Pageswere marriage, children and domestic life. Judith Sargent Murray termed a lack of education â€Å"mis-education† nearly a decade before Mary Wollstonecraft published her A Vindication of the Rights of Woman. Judith Sargent Murray drafted an essay titled, â€Å"On the Equality of the Sexes.† In her treatise, she argues that education, not nature, renders men and women unequal (â€Å"History of feminism†). In Murrays â€Å"The Story of Margaretta†, Murray shares views common to Wollstonecraft, specifically