Budweiser and Tsingtao
Table of Content
Subquestion 1: how does the management board affect the international performance of the company?
Comparison Tsingtao – Budweiser
How will the decisions taken by the management board affect the resources and capabilities?
Comparison Tsingtao – Budweiser
How does the use of resources and capabilities have an impact on the firm’s international performance?
Comparison between Tsingtao and Budweiser
Discussion and conclusions
Tsingtao vs. Budweiser
Beer is one of the most used beverages in the world after water and tea. The beer industry is there for one of the biggest industries with many competitors. In this paper we will elaborate on the difference between Tsingtao, a Chinese beer company, and Budweiser, an American beer company. The focus will be on their different approach on international performances with regard to their management board decisions and resources and capabilities. These differences are also influenced by the background of the firm but also by the different environments. There for our research question is; How are the international performance differences between Tsingtao and Budweiser caused? First of all we will elaborate about our conceptual frame work and explain this by making use of a literature review. Then we will look in to the companies’ background to have a better understanding of the management board decisions. Thirdly, the Pest analysis will be performed to give in indication of the different environment that the companies have to deal with, which have an influence on the relationship between the management board decisions and their international performance. After the introduction part of the companies and our conceptual model, we will then perform the research by given answers to our sub questions beginning with how does the management board affect the international performance of the company? Then how will the decisions taken by the management board affect the resources and capabilities? and at last How does the use of resources and capabilities have an impact on the firm’s international performance? will be given answer to. The sub questions will be answered first by given a literature overview and then by given the relevant information about Tsingtao and Budweiser. At the end of the paper the research question will be answered by discussing the previously mentioned sub questions and ending with the conclusion. To make our research complete will also included the limitations of our performed research.
In this paper, the performance differences between Tsingtao and Budweiser will be discussed. It is interesting to see how two beer breweries, having access to more and more similar resources in this increasingly globalizing world, are following different internationalization strategies which ultimately lead to differences in international performance. Performance differences can be analyzed from a range of perspectives, such as the market-based view, the resource based view, a strategic point of view, etc. We will focus on the internal environment of the two companies, i.e. we will use a resource-based approach to discuss the performance differences between Tsingtao and Budweiser. The resource-based approach puts an emphasis on the uniqueness of every company and views the exploitation of the firm’s resources and capabilities as a key to...
References: Essentials of global marketing, Hollensen, S., First Edition, 2008. Pearson Education Limited, UK.
Strategy: Analysis & practice
Boiardi, P. and Sleuwaegen, L., 2010. The international expansion path of Bekaert, AB Inbev and
Covin, J. G., Green, K. M., & Slevin, D. P., 2006. Strategic process effects on the entrepreneurial
orientation-sales growth relationship
Diamantopoulos, A., Souchon, A., Durden, G., Azinn, C., Holzmuller, H., 2003. Towards an
understanding of cross-national similarities and differences in export information utilization.
Doorn, S. van, Volberda H., 2009. Entrepreneurial orientation and firm performance: An upper
Guest, Paul M., 2009. Board structure and executive pay: evidence from the UK. Cambridge
Journal of Economics, 34 (6), 1075-1096
Hambrick D.C., 2007. Upper echelons theory: an update. Academy of Management Review
2007, 32 (2), 334-343
Hsu, Hsueh-En, 2010. The Relationship between Board Characteristics and Financial Performance: An
Empirical Study of United States Initial Public Offerings
Jayachandran, S., Hewett, K., Kaufman, P., 2004. Customer Response Capability in a
Sense-and-Respond Era: The Role of Customer Knowledge Process
Johanson J. and Vahlne J.E., 1977, The Internationalisation Process of the Firm – A Model of
Knowledge Development and Increasing Foreign Market Commitment, Journal of
International Business Studies, 8 (1), 23-32
Lovallo D, Powell T, Caringal C., 2006
Performance ', Academy of Management Review, 31 (1), 175-196
Kumar V., and Subramanian V., 1997, A Contingency Framework for the Mode of Entry Decision,
Kunc M.H., Morecroft J.D.W., 2010. Managerial decision making and firm performance
under a resource-based paradigm
Lumpkin, G.T., and Dess G.G., 2001. Linking two dimensions of entrepreneurial orientation
to firm performance: the moderating role of environment and industry life cycle
Mahoney J.T., 1995. The management of resources and the resource of management. Journal
of Business Research, 33, 91-10
Melin L., 1992, Internationalisation as a strategic Process, Strategic Management Journal, 13, 99-
Ndofor HA, Sirmon DG and Xiaoming HE, 2009. Resources, actions and performance:
investigating a mediated model
Shi D, 2008, Tsingtao beer: breakthrough in the American market, China Academic Journal.
Slevin, D.P., and Covin, J.G., 1997
significance of context. Journal of management, 27 (2), 189- 210.
Yanfang M., 2010, Tsingtao beer: be a upright public company, http://bschool.hexun.com/2010-05-
Zeng S., Xie X.M., Tam C.M., Wan T.W., 2009
Please join StudyMode to read the full document