Free Coopers Brewery Case Study Example

Type of paper: Case Study

Topic: Company, Beer, Lion, Leadership, Organization, Structure, Wine, Australia

Pages: 3

Words: 825

Published: 2020/11/21

Management

Primary Problems
The primary problem of Coopers Brewery was the takeover bid by one of the significant figures in the beer industry of Australia, Lion Nathan. The fight for the bid was costly to the Company because it amounted to $8 million in the adviser fees. This amount was a significant proportion of the Company’s annual profits. As such, maintaining its independence and becoming a stronger Organization was the problem at hand. The costs of the bid were extreme and affected various segments and departments of the Company. In 2005, having formed an agreement for pre-bid with eleven shareholders, holding approximately two percent of all the shares, Lion Nathan made a formal offer of takeover to the shareholders of Coopers at $260 per share. The following day after the bid, the Supreme Courts’ rule suggested that there had been an alteration of control at the Lion Nathan and the shareholders of Coopers had a right of voting to remove the Lion Nathan from the Constitution. Lion Nathan appealed that decision to full Supreme Court bench.
Following the decision of the Supreme Court, a group of the shareholders moved to have extraordinary general meetings to remove the rights of Lion Nathan as well as other breweries to hold shares in Coopers from the Constitution. This issue was primary because the Company had to address it since it was a short-term issue. Failure to address the problem would have led to consequences to the Company.
The secondary issue for the Company was the issue of competitors. The Company was facing stiff competition from other institutions as well. One of the competitors was Fosters. This company was an international wine and beer group based in Australia. It started by brewing beer in Melbourne. Throughout the years and a continual series of acquisitions and mergers, it emerged as a dominant and strong Victorian brewery. In addition, it became a key international diversified conglomerate with a strong interest in brewing. Lastly, it ended up as Fosters Brewing Group. The Fosters Lager was beer that was known worldwide. Moreover, it was one of the leading brands of beer in Australia. Fosters acquired various manufacturers of wine in the United States and Australia forming the Beringer Blass as a wine division.
Fosters had a strong marketing segment that was successful in the development and maintenance of brands in both the wine and beer industries. It focused on mid to upper markets in its range of product. Fosters acquired the leading winemaker in Australia, Southcorp in 2005. As such, this brewing company was successful in restructuring its organizational and marketing base to accommodate the challenges that were facing the beer and wine industries. Additionally, the premium world glut in the world was making it challenging for the company earn sufficient returns in its wine and beer operations.

Lion Nathan

This Company was a beverage company based in New Zealand with the Japanese owning 46 percent of it. Lion Nathan came because of the consolidation of the brewing industry in New Zealand. After the collapse of the Bond Corporation, the company bought most of its brewery businesses. Lion Nathan distributed various alcoholic beverages, including ready-to-drink, spirits, and wines. Nevertheless, its mainstream beer production in Australia dominated its operations.

Alternative Solutions

The alternative solutions for both the primary and secondary issues that faced Coopers include changing the organization’s leadership structure, promoting diversification in the operations of the organization and employing technological advancements in its marketing structure. First, changing the organizational leadership structure would provide for a variation in the opinion and methods of dealing with the changes. Different leaders have different leadership methods or approaches of handling the operations of their organization. As such, these varied leadership approaches, such as the team-based structure would be essential in the collection of ideas would help annihilate the primary problems of the organization. However, altering the leadership structure of the Company would be similar to altering the customs or traditions of that company. As such, this would be a limiting factor in dealing with the problem. Moreover, it would take time to change the leadership structure of an organization. For this reason, this solution would not be the best for dealing with the primary issues since it suitable for long-term issues.
Promoting diversification of the operations of the organization would be essential to the collection of various ideas of handling the problem. Diversification would include including the human resources department and integrating all other departments in the organization in finding the solutions to the problem. This solution would be elemental but not the perfect solution for the problems facing the company. The last and most effective solution for these issues would be employing technological advancements in its marketing structure. This solution would be effective because it would enable the company gains competitive advantage over its competitors through technological research. This research would enable the company to identify the trends in the market and the varying consumer preferences for its wine and beer products.

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WePapers. (2020, November, 21) Free Coopers Brewery Case Study Example. Retrieved March 19, 2024, from https://www.wepapers.com/samples/free-coopers-brewery-case-study-example/
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"Free Coopers Brewery Case Study Example." WePapers, Nov 21, 2020. Accessed March 19, 2024. https://www.wepapers.com/samples/free-coopers-brewery-case-study-example/
WePapers. 2020. "Free Coopers Brewery Case Study Example." Free Essay Examples - WePapers.com. Retrieved March 19, 2024. (https://www.wepapers.com/samples/free-coopers-brewery-case-study-example/).
"Free Coopers Brewery Case Study Example," Free Essay Examples - WePapers.com, 21-Nov-2020. [Online]. Available: https://www.wepapers.com/samples/free-coopers-brewery-case-study-example/. [Accessed: 19-Mar-2024].
Free Coopers Brewery Case Study Example. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/free-coopers-brewery-case-study-example/. Published Nov 21, 2020. Accessed March 19, 2024.
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