Business in Global Context

Running Head: GLOBAL BUSINESS 1
Business in Global Context

GLOBAL BUSINESS 2
Table of Contents
Introduction.................................................................................................................................................2
Country and Industry Analysis.....................................................................................................................3
Company Description..................................................................................................................................3
Good and Service Offerings.........................................................................................................................3
2x2 Matrixes of International Strategies.....................................................................................................4
Market Entry Mode.....................................................................................................................................5
Appropriateness of Country choice.............................................................................................................6
Political/Legal Factors..............................................................................................................................6
Economic Factors.....................................................................................................................................6
Social Factors...........................................................................................................................................6
Technological Factors..............................................................................................................................6
Pros and Cons of Entering into New Zealand...............................................................................................7
Concentrated/Decentralized.......................................................................................................................7
HR approach................................................................................................................................................8
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

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Introduction
In today’s competitive business environment, companies are looking for spreading its business
operations and activities in larger and global context. The major reason behind this is that
domestic market is unable to meet the demands and expectations of globalized people.
Companies have emerged to ensure that it flourishes in globalization age. It helps the
organizations to enhance their brand image across the world (Doz, 2017). To get succeed in
competitive era, a multinational corporation is anticipated to comply with different laws and
regulations, customer preferences and business practices. This report is focused on conducting a
country research of New Zealand in relation to Boag’s Brewery.
Boag’s Brewery is an Australia based brewery organization that was established in the year 1883
by James Boag. The company is planning to make investment in New Zealander market for
which it requires analyzing the external and competitive environment of country. This report
describes about the country and industry of Boag’s Brewery. It includes the description about
2x2 matrixes of international strategies which may be most effective for chosen company.
Furthermore, it recommends the market entry strategies which it should use while entering into
New Zealand. Appropriateness of country is identified by using PEST analysis. Manufacturing
strategy is recognized and an HR approach is suggested that can be used by Boag’s Brewery to
get workforce in country.
Country and Industry Analysis
Boag’s Brewery is operating its business in Australian beer industry. The facts and figures
indicate that company is experiencing significant growth that is beneficial for the development of
chosen company. In Australian beer industry, the current revenue amounts to US$11,621 million
in the year 2018. The industry is estimated to enhance yearly by 4.9% in the duration of 2018-
2021. As compared to global level, most of the revenues are produced in the United States i.e.
US$76,916 million in the year 2018. In this nation, the average per capita consumption off beer
stands at 71.6 litre in 2018 (Euromonitor International, 2018). There are various players in this
industry which pose competition on Boag’s Brewery like Cascade Brewery, Kirin Company,
Coca-Cola Amtil etc. In this country, the industry shows the market trend that customers are

GLOBAL BUSINESS 4
shifting from traditional beer to the craft beer and higher priced premium beers. By analyzing the
industry, it can be stated that every Australian schooner of beer offered on pubs and other
premises contributes $6.24 to Australian GDP. In this way, each Australian-brewed beer
contributes $3.92 to the GDP of Australia. The tax rates are very high in the country. Excise on
beer is more than twice the average of OECD nations (Kuehn & Parker, 2018).
Company Description
Boag’s Brewery is an Australia based brewery firm that was established in the year 1883 by
James Boag and his family. It was founded in Launceston, Tasmania, Australia. Now, the
company is owned and operated by Lion, as Trans-Tasman subsidiary firm of Japanese beverage,
Kirin. Most of the beers of Boag are manufactured in Launceston. After this acquisition, Lion
has started to make changes so that it can enhance its brewing network. The top management of
company stated that all the brands of Boag will be brewed in Launceston but many national
brands will shift to interstate (The Tasmanian Beer Trail, 2015).
Good and Service Offerings
Boag’s Brewery is engaged in offering a wide range of beers to its targeted customers. In the era
of 1990s, it had introduced two new product lines of beer i.e. Premium Lager of James Boag in
the year 1994 and Strongarm Bitter of Boag in the year 1997. Later in 2002, Boag’s Premium
Light was introduced on national level and it had won the award of New Beer of the Year at
Australian Liquor Industry Awards. Additionally, the company offers various brands of beer like
Boag’s Draught, Boag’s Pure, Wizard Smith Ale, Draught Light, Boag’s Honey Porter etc. (The
Tasmanian Beer Trail, 2015).
2x2 Matrixes of International Strategies
While Boag Brewery will be entering into New Zealand market, it will develop some strategies
by utilizing 2x2 matrixes. This type of matrixes includes 4 options which help the organizations
to make their important decisions (Stoian, Rialp & Dimitratos, 2017). Here, Ansoff matrix is
taken into consideration as 2x2 matrixes. This matrix defines two different dimensions i.e.
product and market. Ansoff strategies of Boag Brewery are stated below: