Unit 10 staying competitive

Unit 10

STAYING COMPETITIVE


GETTING READY


Use the following words to fill in the gaps.
takeover

1.

merger

joint venture

A …………………. occurs when two companies stop existing as independent companies, combine to create a new
entity.

2.

acquisition

merger

A ..…………………….., or .. ……………………, on the other hand, is characterized by the purchase of a smaller
company by a much larger one.

3.

In …………………………,
but the original companies continue to exist on their own. The new
takeover a new company is formed
acquisition
company is owned by the original companies.

joint venture


DIFFERENCE BETWEEN MERGERS AND ACQUISITIONS







READING COMPREHENSION
NEW WORDS AND PHRASES

-

Controlling interest:

A shareholder has controlling interest in a business when he or she owns more than 50% of the company’s voting shares, giving
him or her the deciding voice in shareholder meetings and control over company direction.

-

Balance sheet:

 Balance Sheet is the financial statement of a company which includes assets, liabilities, equity capital, total debt, etc. at a point
in time.



1. Why can Anheuser-Busch claim to be the world’s most important
brewer?
Because it makes Budweiser, which is the world’s biggest-selling beer.
2. How did the Belgian beer company Interbrew grow to become the
world’s biggest brewer?
It merged/ acquired (?) with Brazil’s AmBev, Latin America’s largest
brewer.
merged


3. Complete

the table below
ANHEUSER - BUSCH

INTERBREW AMBEV

Brands
Budweiser, Tsingtao
Strengths

Beck’s, Brahma, Stella Artois

Dominance of US market; products sell in 80 markets; strong

World’s largest brewer by volume; global influence;

balance sheet; clear lines of management; a brand with

fast growth

global potential

Weaknesses

Stuck in the US market (which is stagnant); oversea

Growing too far, too fast; not get integrated previous

ventures have lacked conviction; presence outside the US is

acquisitions well

weak; largely built its reputation on Budweiser brand

Geographical influence

Belgium, Brazil, (and the rest of Latin America), the
US, Mexico, China

Netherlands, Canada, the UK, Germany


4. Which firm is in the strongest position to contest domination of the world beer market?

Probably InterbrewAmbev because

-

it is not stuck in a stagnant market;

-

It has spread its influence over a greater number of
markets globally;

-

it doesn’t rely on just one strong brand, but has several
well-known brands.