, Question 1
The case describes several changes that the company underwent since it was
founded in 1895.
1.1 Identify the type of strategic change in Anheuser-Busch when the company
was unable to avoid a hostile takeover by InBev in 2008, which gave rise to AB
InBev, then the world’s largest brewer. Substantiate your answer. (2 marks, of
which 1 mark will be awarded to the correct identification of the type of strategic
change and 1 mark to the correct substantiation) (2)
The type of strategic change that Anheuser-Busch (AB) underwent when it was unable
to avoid a hostile takeover by InBev in 2008 is an "external environmental change."
This change was prompted by external factors beyond the control of AB, such as
InBev's hostile takeover attempt and the changing competitive landscape in the
brewing industry. AB InBev emerged as the world's largest brewer after the merger.
An acquisition is a significant strategic change because it involves a fundamental shift
in ownership, control, and strategic direction of the organization (Lambert, Stock, &
Ellram, 1998). In this case, InBev's hostile takeover of Anheuser-Busch brought about
a substantial change in the company's structure, leadership, and operational
approach. The acquisition altered the competitive landscape of the brewing industry,
consolidating two major players into a single entity. This strategic change had
implications not only for Anheuser-Busch's internal operations but also for its market
position, brand portfolio, and global reach.
1.2 Apply an analytical model to planned change to the case during its rapid
expansion into emerging markets worldwide, founded on the principle that
change needs to be context specific and that the approach to change the
organisation chooses should be based on a thorough analysis of (i) the context
within which change is taking place; and (ii) a series of decisions around the
way in which the change is to be managed. (14 marks; of which 8 marks will be
awarded for the core segments of the model and 6 marks will be awarded for the
key decisions around the way in which the change process will be managed)
(14)
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