ASSIGNMENT 1

Name: Rija Ashfaq

Subject: Mergers & Acquisitions
Roll no: 20192-24971
Program: MBA – Evening

ANSWER 1:
THE DRIVING FORCES OF THE AUSTRALIAN BREWING INDUSTRY:
1. The rise of mid-strength drinks;
Cooper Mild Ale have won growing share in the market, so the amount of alcohol which Australians
consume per beer can be fallen.
2. People prefer premium drinks;
Second driving force of the Australian Brewing industry is Australian Beer drinkers who prefer to have 2
to 3 favourite brands with having more expensive drinks. But later, new trend was set in which they
preferred quality over quantity.
3. Demographic changes and an ageing population;
Australian people preferred to drink in mixed groups, in more family-friendly, venues where they do not
like to drink heavily.
4. Fewer traders, more professionals;
Another driving force is that the people prefer to drink are more professional then trader as professionals
spend more time to socialise for work with their colleagues but they also prefer light drinking as they
don’t want to be drunk in front of their colleagues.
5. Tougher drink driving laws and advertising;
IBIS World notes has made it way easy by enforcing the law of drink driving which is not encouraged
which brought the per capita alcohol consumption down.

ANSWER 2:
Keeping in mind about other competitors, Coopers Business strategy is to focus upon the premium beer
market. Its three core competencies are specialist brewing, cereal, extraction and low temperature
evaporations.

ANSWER 3:
Cooper’s strategic capabilities are that they focus on competence, knowledge and skills inside the
organization and applied it to their strategy and achieve success in it.
ANSWER 4:
YES, it make sense because Lion Nathan and Cooper’s acquisition will help in major extension to Cooper
and growth in portfolio in other states.

Coopers’ Strategic Capability

Before analyzing Coopers strategic
capabilities we will firstly need to
understand the definition and
basis to achieving strategic
capability in any organization, and
this is quite simply, the capacity of
a
business to survive, prosper and
deliver future value using
resources, and skills to create a
long-term
competitive advantage for the
organization. Coopers was
successful in this, when they
moved their
location in 2001 and also in 2006
when there was a very visible
export beer sales growth with the
two new product releases -
Coopers Premium Light and
Coopers Premium Lager.
They aimed their focus on
competence, knowledge, and skills
inside of the organization and
applied
it to their strategy to achieve
success in the competitive
environment by keeping it a family
business.
Part of this focus also applied
to the fact that they considered
it best if family members first
got
experience outside of Coopers
brewery before joining the family
business. The fact that they were
able to keep it as a family business
for so long was a key element of
their capabilities framework and
identification of the foundations on
which their distinctive and
difficult–to–replicate advantages
was
built, maintained and enhanced.
Later Coopers expanded their
international sales but, soon
realised those were not
profitable,
decided to focus only on
expanding inside of Australian
states, which seemed to be
producing more
size-able profit percentages thus
understanding the importance of
strategic capability from another
perspective. Coopers soon realised
there was a concentration on
economies of scale and national
branding, and that the taste of
most of the mainstream beer
brands became quite similar, with
only
small differences like branding,
origin and image, which stressed
the fact that consumer loyalty
played one of the most important
roles. What Coopers then saw as
an opportunity for introducing to
the market was its very
different “cloudy” beers. Thus
the brewery discovered the
capability of