Transforming Carlsberg into a Cosmopolitan Firm
Case Study:
Transforming Carlsberg into a Cosmopolitan Firm
Building Strategy Process Capabilities
Table of Contents TOC \o "1-3" \h \z \u 1.Introduction PAGEREF _Toc389678389 \h 32.What are the challenges Carlsberg faces in its attempt to align strategy process on a group level? PAGEREF _Toc389678390 \h 42.1.Integration as Main Challenge PAGEREF _Toc389678391 \h 42.2.Formulating a Mutual Strategy PAGEREF _Toc389678392 \h 42.3.Seeking the perfect Balance between Global and Local PAGEREF _Toc389678393 \h 62.4.Defining the Right Degree of Centralisation and Standardization PAGEREF _Toc389678394 \h 62.5.Finding an Efficient Decision Making Process PAGEREF _Toc389678395 \h 72.6.Implication PAGEREF _Toc389678396 \h 73.Critically assess the changes that have been made to the strategy process of Carlsberg. Discuss the rationale for the changes and their effectiveness. PAGEREF _Toc389678397 \h 83.1.Implication PAGEREF _Toc389678398 \h 124.What role should the regional headquarters play in the strategy process? PAGEREF _Toc389678399 \h 134.1.Implication PAGEREF _Toc389678400 \h 155.What are the limits of formal strategy processes, looking at Carlsberg in Russia? PAGEREF _Toc389678401 \h 165.1.Culture PAGEREF _Toc389678402 \h 165.2.Personnel PAGEREF _Toc389678403 \h 165.3.Tedious bureaucracy and Corruption PAGEREF _Toc389678404 \h 175.4.Growth PAGEREF _Toc389678405 \h 175.5.Implications PAGEREF _Toc389678406 \h 186.Conclusion PAGEREF _Toc389678407 \h 18
Table of Figures TOC \h \z \c "Figure" Figure 1 – Business Model (Carlsberg, n.d.) PAGEREF _Toc389678479 \h 10Figure 2 – Strategy Wheel (Carlsberg, n.d.) PAGEREF _Toc389678480 \h 12
IntroductionCarlsberg’s history began in 1847, when J.C. Jacobsen founded the Danish brewery (Carlsberg, n.d.). Starting in Copenhagen, where the first establishment was built the firm realized its triumphal procession. In 1868 Carlsberg made its first experiences in exporting their beer. Hundred years later the organization
Transforming Carlsberg into a Cosmopolitan Firm
Building Strategy Process Capabilities
Table of Contents TOC \o "1-3" \h \z \u 1.Introduction PAGEREF _Toc389678389 \h 32.What are the challenges Carlsberg faces in its attempt to align strategy process on a group level? PAGEREF _Toc389678390 \h 42.1.Integration as Main Challenge PAGEREF _Toc389678391 \h 42.2.Formulating a Mutual Strategy PAGEREF _Toc389678392 \h 42.3.Seeking the perfect Balance between Global and Local PAGEREF _Toc389678393 \h 62.4.Defining the Right Degree of Centralisation and Standardization PAGEREF _Toc389678394 \h 62.5.Finding an Efficient Decision Making Process PAGEREF _Toc389678395 \h 72.6.Implication PAGEREF _Toc389678396 \h 73.Critically assess the changes that have been made to the strategy process of Carlsberg. Discuss the rationale for the changes and their effectiveness. PAGEREF _Toc389678397 \h 83.1.Implication PAGEREF _Toc389678398 \h 124.What role should the regional headquarters play in the strategy process? PAGEREF _Toc389678399 \h 134.1.Implication PAGEREF _Toc389678400 \h 155.What are the limits of formal strategy processes, looking at Carlsberg in Russia? PAGEREF _Toc389678401 \h 165.1.Culture PAGEREF _Toc389678402 \h 165.2.Personnel PAGEREF _Toc389678403 \h 165.3.Tedious bureaucracy and Corruption PAGEREF _Toc389678404 \h 175.4.Growth PAGEREF _Toc389678405 \h 175.5.Implications PAGEREF _Toc389678406 \h 186.Conclusion PAGEREF _Toc389678407 \h 18
Table of Figures TOC \h \z \c "Figure" Figure 1 – Business Model (Carlsberg, n.d.) PAGEREF _Toc389678479 \h 10Figure 2 – Strategy Wheel (Carlsberg, n.d.) PAGEREF _Toc389678480 \h 12
IntroductionCarlsberg’s history began in 1847, when J.C. Jacobsen founded the Danish brewery (Carlsberg, n.d.). Starting in Copenhagen, where the first establishment was built the firm realized its triumphal procession. In 1868 Carlsberg made its first experiences in exporting their beer. Hundred years later the organization
References: Birkinshaw, J., Hood, N., Jonsson, S. (1998). Building firm-specific advantages in multinational corporations: The role of subsidiary initiative. Strategic Management Journal, 19 (3), 221-241. BBC News Europe (2011). Russia classifies beer as alcoholic. Retrieved June 4, 2014 from http://www.bbc.co.uk/news/world-europe-14232970Loginov, M. (2013). New Russian laws: no chance of a drink or a smoke. Retrieved June 4, 2014 from http://opendemocracy.net/od-russia/mikhail-loginov/new-russian-laws-no-chance-of-drink-or-smokeCarlsberg (n.d.) Heritage. Retrieved May 30, 2014 from http://www.carlsberggroup.com/Company/heritage/Pages/default.aspxCarlsberg (n.d.) Company Strategy. Retrieved May 30, 2014 from http://www.carlsberggroup.com/Company/Strategy/Pages/ourbusinessmodel.aspxHoenen, A.K., Venzin, M. (2013). Transforming Carlsberg into a Cosmopolitan Firm. Building Strategy Process Capabilities. Case Center, SDA. Bocconi.