Global Beverage Essay

269 WordsAug 16, 20152 Pages
There is potentially a huge amount that needs to be done and it needs to be recognized that turning such a situation around will take time, as deeply embedded cultural attitudes on both sides, need to be challenged and changed. Cultural differences are inevitable in a Dutch-Chinese joint venture, but could be a source of creativity and innovation, not stagnation and strife. A rushed due diligence process meant that issues that should have been raised before Global Beverage purchased its stake in Dhangtu Beer, are going to have to be addressed post acquisition of the 45.8% stake. Key to the turnaround will be establishing and committing to shared and aligned goals and objectives. If this constitutes the what, the how will focus on open, trusting behaviour, so that interactions are conducted honesty and with integrity. Structural issues regarding the make-up of the board need addressing so that roles are clear, and information and knowledge is shared openly and without restraint. The audit committee needs revisiting and an effective remuneration committee should be established. The idea of issuing stock options to directors could also be reviewed. It would appear that one of the few strengths of the current situation is that, broadly speaking, the involvement of the right people, those that can influence outcomes, is assured. At the moment, these represent different, and potentially competing, constituencies: Jiao’ao Group, Global Beverage, One National Bank, Pilsnyu Group and Public Investors. Work needs to be done so that the board operates as a true senior management integrated team, without inter-company boundaries and not a collection of separate

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