Analysis of Business Strategy of Carlsberg Assignment

Running head: ANALYSIS OF BUSINESS STRATEGY OF CARLSBERG
ANALYSIS OF BUSINESS STRATEGY OF CARLSBERG
Name of the Student
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ANALYSIS OF BUSINESS STRATEGY OF CARLSBERG
Executive Summary
The report is based on the detailed analysis of the business strategy that is implemented by
Carlsberg in the different areas of its operations. Carlsberg is a brewing company which has
its base in Eastern Europe, Western Europe and Asia. The corporate strategy implemented by
Carlsberg has been analysed in the report. The international acquisitions and mergers that
have been performed by the company has been discussed in detail. The structure of the
organization is also discussed in detail in the report analysis. The discussion has provided a
detailed picture of the operating style of Carlsberg in the industry.

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ANALYSIS OF BUSINESS STRATEGY OF CARLSBERG
Table of Contents
Introduction....................................................................................................................3
Business Strategy of Carlsberg......................................................................................4
Corporate Strategy of Carlsberg.....................................................................................6
Acquisitions made by Carlsberg....................................................................................7
Organizational structure of Carlsberg............................................................................8
Conclusion......................................................................................................................9
References....................................................................................................................10

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ANALYSIS OF BUSINESS STRATEGY OF CARLSBERG
Introduction
The strategies that are formulated by business organizations are based on the ways by
which they plan to continue their operations in the international market. The multinational
organizations need to devise successful strategies so that they are able to operate in a
profitable manner in the international market. Global organizations thereby need to formulate
different strategies for the different needs in international markets. The organization that is
taken into consideration for this analysis is Carlsberg which is a global brewing organization
and is located in Eastern Europe, Asia and Western Europe (Brewster 2017). The company
was established in the year 1847 and employs greater than 40,000 people in the various
locations. The organization was taken over by the Carlsberg foundation after the death of the
founder in the year 1887. The flagship brand of the company is Carlsberg Beer which is
provided to customers all over the world. The other major products that are brewed by
Carlsberg are, Tuborg, Kronenbourg and Somerby Cider (Carlsberg Group. 2018). The
organization operates in various areas of Eastern Europe under the name of Baltic Beverages
Holding. Carlsberg had entered this area with the collaboration of Baltic Beverages. The
Aldaris Brewery was taken over by Carlsberg to enter the marker of Eastern and Western
Europe in 2008. St. Killain Import Co. is responsible for the distribution related activities of
Carlsberg in the United States. The products of Carlsberg are exported to countries like Hong
Kong and China (Carlsberg Group. 2018).
The analysis will be mainly based on the various strategies that have been
implemented by Carlsberg in the various areas of its operations. The different areas which
will be analysed in the report are the business strategy and the corporate strategy of Carlsberg
and the international acquisitions that are made by the company.

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ANALYSIS OF BUSINESS STRATEGY OF CARLSBERG
Business Strategy of Carlsberg
Carlsberg has always aimed at providing the best quality of beer to the customers by
pursuing the perfection that is needed for the production of better quality items. The
celebrations of any kind are not complete without the products that are manufactured by the
company in the market. The company also aims at creating a better future for the customers
and the other stakeholders. Carlsberg has delivered sustainable growth to shareholders and
the employees and they have also been provided with high value (Rugman and Verbeke
2017). The new strategy that has been devised by the company is mainly focussed towards
four important priorities which are, deriving the growth in various segments and areas,
strengthening position of Carlsberg within the industry, trying to derive growth in areas and
segments where long-term opportunities have been detected and the creating a winning type
culture in the organization (Purce 2014).
The consumption of beer in the various areas of the world have increased in the past
few years. The organization has thereby gained fourth position in the industry in the entire
world among its competitors in the industry. The products of the company are exported to
other countries where Carlsberg does not operate its breweries. The product portfolio of the
organization contains 500 major brands (Galpin 2018).
Carlsberg has applied the strategy of producing the beer in the domestic market and
then supplying the same to the various countries. The levels of customization that are done to
the products that are supplied to other countries are low. The company has concentrated its
activities in the areas where the sales are high and it has high opportunities of growth as well.
The organization exports its products to those countries where it has not been able to set up
breweries. The production based process of the company is mainly centred in the home
country of the company (Gazzola and Colombo 2014). The international business based
strategy pf Carlsberg has been selected due to the following reasons,

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ANALYSIS OF BUSINESS STRATEGY OF CARLSBERG
 The company aims at increasing the profit and the sales with the help of
expansion into the new market areas. The increase of sales in the existing
markets are also a major strategy of Carlsberg. The objective of increasing
sales in different areas is achieved by exporting the products of the company
to various areas (Hitt et al. 2017).
 The other major reason behind implementation of the international strategy is
the protection of the market share which the company holds in the home
country. The organization understands that is easier to retain the shares in the
domestic markets rather than trying hard to acquire the international market
(Hitt, Li and Xu 2016).
 The company also aims at diversifying the functions so that the uncertainties
are reduced and the risks related to the domestic market of the operations can
be decreased as well.
The second level and the middle level of the business strategy of the organization is
based on diversification goals of Carlsberg in the international and the domestic market as
well. The organization has maintained the strategy of brewing products in the domestic areas
of operations. The strategy of Carlsberg has been successful for the efficient operations of the
company in various international areas, especially in Europe (Tallman and Pedersen 2015).
The international business strategy that has been formulated by Carlsberg has not
been successful in the operations of the company in China. The political and the social issues
that have been faced by the company in this area has been a major reason behind the failure
of this strategy. The organization has thereby failed to maintain similar strategy and
profitability in different areas of its international operations. The organization has targeted
the market of Western China for the purpose of providing the products that are manufactured
by them. The operations of Carlsberg in Russia has also been quite successful as the

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organization has to face high levels of competition in the industry (Luthans and Doh 2018).
The company has thereby faced many political threats in the Russian market which has
caused the huge reduction of sales of the company in this area.
Corporate Strategy of Carlsberg
Carlsberg has developed a new and innovative corporate strategy which can be
helpful for the growth of its revenues in the coming years. The strategy of Carlsberg has been
named as SAIL’22 and the has been declared by the company in the year 2016. The success
of the organization has been measured by the sustainability of the growth in an organic
manner. The growth of the company is mainly based on the suppliers and their capabilities to
provide the best materials that are required for brewing high quality beer (Öberg 2014). The
strategy has been implemented in the organization in the year 2016 in all the Asian operations
of Carlsberg. The local operations based priorities of the company have been decided in a
strategic way by the senior leadership team of Carlsberg. The position related to the care,
value and the growth of the company is a part of the corporate strategy of the company. The
seven major priorities of the organization include,
 The growth of Carlsberg in mainstream areas with brands like, Carlsberg
Green Label and Carlsberg Smooth Drought.
 The “Win in Store” concept has also been implemented by the company for
the purpose of improving the process of store execution (Deng and Yang
2015).
 Another concept that is a part of the strategy is “Fund the Journey” which has
been implemented for efficiencies related to delivery in the areas, such as,
supply chain efficiency, value management and operating expenses.

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ANALYSIS OF BUSINESS STRATEGY OF CARLSBERG
 The other priority which is based on premium brands of the company is
related getting huge success in the marketing based processes of these brands.
The premium brands of the company thereby include, Asahi Super Dry,
Connor’s Stout Porter, Kronenbourg 1664 Blanc.
 The plans of the company related to building new revenue streams is also a
part of the corporate strategy.
 Achievement of the organic growth of the company.
 Delivery of high and stable dividend for stakeholders (Sarala et al. 2016).
The priorities of the organization have been developed and executed in operations of
Carlsberg in Malaysia and Singapore. The strategy can prove to be successful for the
operations of the company in various areas like, China and Russia. The SAIL strategy can be
implemented in a successful manner in all the global locations and operations of Carlsberg
(Junni et al. 2015).
Acquisitions made by Carlsberg
Carlsberg Group has divided its operations in three major market areas which are,
Asia, Northern and Western Europe and Eastern Europe. The entry of the company in Russia
was based on the help that was provided by Baltic Beverages Group and further Carlsberg
went on to acquire the entire organization. Carlsberg has created a suitable position in the
areas like, Ukraine, Baltic countries and Russia. The major shares of Baltic Breweries are
held by the Carlsberg Group. The company has however faced major issues in the areas like
Uzbekistan due to the factors like unreported revenues and the illegal processes of production
(Ning et al. 2014). The organization had to thereby withdraw its operations from this country
and employees were also sent on leave without pay. The Aldaris Brewery was acquired by
Carlsberg in the areas of Western and the Northern Europe. The subsidiary of the

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organization in Poland has been named as Carlsberg Polska. Carlsberg also gained 100%
shares of the organization named Okocim Brewery in Poland. The company has further
gained the shares of the Falon Brewery in the area of Falkenberg. The brands that are
operated by the company in Norway are. Arendals, Dahls, Ringnes, Frydelund, Tou and
Nordlands. The products of the company are provided to the customers in the US by the
organization named St. Killian Import Co. The operations of Carlsberg had started in Europe
with the exportation of beer to China (Elango, Dhandapani and Giachetti 2018). Two
breweries were owned by Carlsberg in the areas like, Huizhou and Shanghai. The beer
manufactured in these areas are supplied to the regions like, China and Hong Kong. The
company also became a major stakeholder in Lhasa Brewery in 2004. The headquarters of the
company is India is named as Carlsberg India Pvt. Ltd. The organization had entered the
booming Indian market by the process of foreign direct investment (Carlsberg Group. 2018).
The products manufactured by Carlsberg are available in many states of India. Carlsberg has
faced major issues in the areas like China and Russia where the strategies formulated by the
company had failed. The revenues of Carlsberg need to be improved in this area so that the
organization is able to maintain its position in the industry in an effective manner.
Organizational structure of Carlsberg
Carlsberg Brewery provides wide variety of products to the customers all over the
world. The products of the company range from light strength to mid strength beer products.
The company has always employed a multi-market strategy to operate successfully in all the
areas. The strategy related to the products of Carlsberg are related to the sponsoring activities
and the other promotional activities as well. The quality of Carlsberg Green Label has been
promoted to the various market areas effectively. Carlsberg A/S foundation manages and
operates all the areas of the company. The departments of the Carlsberg Foundation are
responsible for collecting the funds (Carlsberg Group. 2018). The operations of the company

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in the various market areas are thereby managed by Carlsberg foundation in an effective
manner.
Conclusion
The report is concluded by stating that Carlsberg Group has developed the effective
strategies that are based on the corporate levels and the business levels. These strategies are
based on the improvement of the operations of Carlsberg in the regional and the domestic
markets. The company has however not been successful in some of the major areas of its
operations which had caused a loss of revenues in these areas. The highly growing markets of
China and Russia has been the most problematic for Carlsberg and its profitability. The
strategies that had been initially implemented by Carlsberg therefore need to be changed for
the future growth of the company.

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ANALYSIS OF BUSINESS STRATEGY OF CARLSBERG
References
Brewster, C., 2017. The integration of human resource management and corporate strategy.
In Policy and practice in European human resource management (pp. 22-35). Routledge.
Carlsberg Group. (2018). Carlsberg Group. [online] Available at: https://carlsberggroup.com/
[Accessed 17 May 2018].
Deng, P. and Yang, M., 2015. Cross-border mergers and acquisitions by emerging market
firms: A comparative investigation. International Business Review, 24(1), pp.157-172.
Elango, B., Dhandapani, K. and Giachetti, C., 2018. Impact of institutional reforms and
industry structural factors on market returns of emerging market rivals during acquisitions by
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Galpin, T.J., 2018. Making Corporate Strategy Work-Focused Corporate Parenting as a Core
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Gazzola, P. and Colombo, G., 2014. CSR integration into the corporate strategy. Cross-
Cultural Management Journal, 16(2), pp.331-338.
Hitt, M.A., Jackson, S.E., Carmona, S., Bierman, L., Shalley, C.E. and Wright, D.M., 2017.
The Future of Strategy Implementation. In The Oxford Handbook of Strategy
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Hitt, M.A., Li, D. and Xu, K., 2016. International strategy: From local to global and
beyond. Journal of World Business, 51(1), pp.58-73.
Junni, P., Sarala, R.M., Tarba, S.Y. and Weber, Y., 2015. The role of strategic agility in
acquisitions. British Journal of Management, 26(4), pp.596-616.

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ANALYSIS OF BUSINESS STRATEGY OF CARLSBERG
Luthans, F. and Doh, J.P., 2018. International management: Culture, strategy, and behavior.
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