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PG0-008 MAY 16, 2011 TEACHING NOTE Grolsch: Growing Globally Case Synopsis Grolsch reassesses its international strategy in light of the company’s recent acquisition by SABMiller, the world’s second largest brewer. Grolsch was the 21st largest global beer brand, sold 51.5% of its volume in international markets, and exported to 70 countries. However, its poor profitability in international markets, four countries alone accounting for two-thirds of foreign sales, and churn of markets and distribution partners raised concerns about the company’s international strategy and execution. Grolsch’s 60 years of history in foreign markets provides a rich backdrop to introduce a range of international strategy topics including: performance assessment, rationale for expansion, market selection, and choice of entry mode. Suggested Assignment Questions 1. Why did Grolsch globalize, and how well has it performed internationally? 2. What are the key elements and limitations of its emphasis on adaptation, in particular? 3. What lessons does Grolsch’s history afford about where to compete? What, specifically, do you think about the MABA process? 4. What lessons does Grolsch’s history suggest about how to compete in the markets targeted— particularly about modes of entry? 5. What other changes would you suggest to Grolsch's historical strategy? 6. Will the merger with SABMiller add value—or will it be a win-lose deal? Teaching Objectives This case is intended as an introductory lesson to illustrate how a company develops and executes its global strategy. It affords instructors the opportunity to raise the following questions and introduce students to relevant frameworks: 1. Why expand across borders? (ADDING Value scorecard) 2. Where should the company target its efforts? (CAGE Framework)
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