How a South African company turned constraints into global strengths
On 28 September 2016, the shareholders of South African born international brewer, SABMiller, approved the company’s acquisition by Anheuser-Busch InBev for $104 billion (R1.5 trillion). The deal paved the way for the creation ...
SAB home page. Available online https://www.sab.co.za/.../sab-creates-sustainable-future...
[Accessed 20 January 2023
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).
, Source:
SAB home page. Available online https://www.sab.co.za/.../sab-creates-sustainable-future...
[Accessed 20 January 2023
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 occurred in Anheuser-Busch when the company was unable to
avoid a hostile takeover by InBev in 2008 is a reactive strategic change.
A reactive strategic change refers to a situation where an organization is forced to make
significant changes in response to external pressures or threats. In this case, Anheuser-Busch
faced a hostile takeover bid from InBev, which posed a significant threat to the company's
independence and control. As a result, Anheuser-Busch had to react and make strategic
changes to protect its interests and shareholders.
The hostile takeover by InBev led to the creation of AB InBev, which became the world's largest
brewer. This strategic change involved a shift in ownership and control of Anheuser-Busch, as
well as changes in the company's management, operations, and strategic direction. The merger
with InBev allowed Anheuser-Busch to strengthen its position in the global beer market and
gain access to new markets and resources.
In summary, the strategic change in Anheuser-Busch when it was unable to avoid a hostile
takeover by InBev in 2008 was a reactive strategic change, driven by external pressures and the
need to protect the company's interests in the face of a hostile takeover bid.
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 manage
1. Analyze the context: Understand the specific characteristics of the emerging markets you are
expanding into. Consider factors such as cultural differences, economic conditions, legal and
regulatory frameworks, and competitive landscape. This analysis will help you identify potential
challenges and opportunities.
2. Identify the need for change: Determine why change is necessary for the organization's
expansion into emerging markets. This could be driven by factors such as market demand,
competitive pressures, or the need to adapt to local market conditions. Clearly articulate the
reasons for change to gain buy-in from stakeholders.
3. Set clear objectives: Define the desired outcomes of the change initiative. These objectives
should be specific, measurable, achievable, relevant, and time-bound (SMART). For example,
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