United Strategies

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  • Topic: Beer, United Breweries Group, Vijay Mallya
  • Pages : 18 (5464 words )
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  • Published : May 25, 2013
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University of Wollongong
Faculty of Engineering
Strategic Management for Engineers and Technologists
Subject Code: ENGG954
Assignment – 1, Option – 1
STRATEGIC STUDY UNITED BREWERIES Ltd.

BY
LIST OF GROUP MEMBERS
1. GAUTHAM SUKUMARAN ()
2. JOGI RAJU MANDAPAKA (35)
3. PRASAD KORARTAGERE SIDDAGANGAIAH ()

TABLE OF CONTENTS

I. Introduction………………………………………………………………. … 03

II. List of SBUs Under United Breweries …………………………………….. 04

III. The Industry map
IV.

V. Strategic Capability ……………………………………….........…………… 07

VI. Performance of The Industry & United Breweries………………………….. 10

VII. Analysis of Threats and Opportunities ……………………………………... 18

VIII. Principle Players & Competition …………………………………………… 22

IX. Importance of Logistics in the Industry ……………………………………. 23

X. Environmental Constraints on the Industry ……………................................

XI. Changes in the Industry ……………………………………………………..

XII. Conclusion ………………………………………………………………….

XIII. References ……………………………………………………………………

Introduction :
United Breweries Group or UB Group, based in Bangalore, is a conglomerate of different companies with a major focus on the brewery (beer) and alcoholic beverages industry. The company markets most of its beer under the Kingfisher brand and has also launched Kingfisher Airlines, an airline service in India, with international flights operating recently. United Breweries is India's largest producer of beer with a market share of around 48% by volume. The UB Group was founded by a Scotsman, Thomas Leishman in 1857. The Group took its initial lessons in manufacturing beer from South Indian based British breweries. It made an impact by manufacturing beer for the British Troops, which was transported in huge barrels or “Hogheads”. Kingfisher, which is the groups major brand and also its mascot made a very modest entry in the sixties. At the age of 22, Vittal Mallya was elected as the company's first Indian director in 1947. After a year, he replaced R G N Price as the chairman of the company. UB Group's headquarters in Bangalore, India. After Vittal Mallya's death in 1983, his son Vijay Mallya assumed the mantle of the group. Vijay Mallya inducted professional management and consolidating the Group into individual operating divisions. Whereby giving the individual divisions freedom and authority to grow and change according to the environment. Vijaya Mallya is considered as India’s Richard Branson of the Virgin Group.

The company’s expansion mainly depends up on acquisitions and mergers. First was the addition of McDowell as one of the Group subsidiaries, a move which helped United Breweries to extend its portfolio to wines and spirits business. Strategically, the Group moved into agro-based industries and medicines when Mallya acquired Kissan Products and formed a long-term relationship with Hoechst AG of Germany to create the Indian pharmaceutical company now known as Aventis Pharma, the Indian subsidiary of the global pharma major Sanofi-Aventis. (http://www.kingfisherworld.com/corporate/corporate-index.htm) In this report we shall point out the main reasons why United Breweries is the 3rd largest Beverage Alcohol Organization in the world and India’s largest by far. The Impact of Vijay Mallya on the organization and the growth of the Beverage – Alcohol Industry in India. And we will be concentrating on UB’s Beverage – Alcohol division.

The group is very similar to the Virgin Group as it has diversified into many different industries or SBUs. Each having an individual identity to itself. Its most recent additions are the IPL Cricket Tournament and with a collaboration with TATA Motors in the F1 Circuit. The structure of the Organization resembles the multidivisional structure where each SBU is flexible and independent and still can be controlled by the head office. (This information was...
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