PowerPoint Presentation Unit 10 STAYING COMPETITIVE GETTING READY Use the following words to fill in the gaps takeover acquisition merger joint venture A occurs when two companies stop existing as ind.
Unit 10 STAYING COMPETITIVE GETTING READY Use the following words to fill in the gaps takeover merger joint venture A ………………… occurs when two companies stop existing as independent companies, combine to create a new entity acquisition merger A …………………… , or ……………………, on the other hand, is characterized by the purchase of a smaller company by a much larger one 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 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 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 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 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