Unit 10 staying competitive

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 acquisition merger joint venture

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

entity

2. A ……… , or ………, on the other hand, is characterized by the purchase of a smaller

company by a much larger one

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

company is owned by the original companies

merger

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

Strengths

Weaknesses

Geographical influence

Budweiser, Tsingtao Beck’s, Brahma, Stella Artois

Dominance of US market; products sell in 80 markets; strong balance sheet; clear lines of management; a brand with global potential

World’s largest brewer by volume; global influence; fast growth

Stuck in the US market (which is stagnant); oversea ventures have lacked conviction; presence outside the US is weak; largely built its reputation on Budweiser brand

Growing too far, too fast; not get integrated previous acquisitions well

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

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