INTRODUTION
• Agrana is a food company based in Austria that produces sugar, starch, fruit preparation, juice concentrate and ethanol fuel. Owners are Raiffeisen, Germany's Südzucker and 25 % are free float. Agrana is mainly supplying to international food industry, with some minor end customer business. A known brand is Wiener Zucker. Agrana runs around 50 facilities with major production bases in Hungary, Austria, Poland, Romania, Ukraine, France, USA, and Mexico . When a company is managed correctly and happens to be in the right place at the right time, success is achieved as was the case for Agrana. With only five factories in Austria in 1988, the company successfully grew under a well working strategy to spread operations to 55 factories throughout Europe in 2007. While they opened strong with the production of sugar and starch, Agrana’s largest success came from fruit preparation, a section of the company that grew very rapidly when they diversified into this segment in 2003.

Magyar Cukor (Hungary).000 tons of sugar beet and 180. revenues: € 806 million.700.There are three parts of Agrana group • • • • • • • • • • • • • • • • • • • Agrana Sugar 10 production facilities in Central Europe. and Agrana Romania (Romania). includes companies like: Agrana Fruit. processed 4. processed 190. includes companies like: AGFD Tandarei (Romania). Agrana Juice. revenues: € 684 million. number of employees: 4. revenues: € 499 million.711.000 tonnes of raw sugar. Agrana Fruit 37 production facilities worldwide.000 tons of starch potatoes and 820.336.000 tons of fruits.[ citation needed] Agrana Starch 5 production facilities in Central Europe. Slovenské Cukrovary (Slovakia)Studen-Agrana ( Bosnia and Herzegovina).[citation needed] Dirafrost Belgium . number of employees: 880. number of employees: 2.000 tonnes of corn. processed 940. includes companies like: Moravskolezské Cukrovary (Czech Republic). Agrana Bioethanol (Austria). Hungrana (Hungary).

QUESTION 1 .

how would you characterize competition in this industry? • Regional integration • Global integration .• From an industry-based view.

• • • • • Disadvantage: The relatively small scale The impact of Vienna territory Advantage: Timing of CEE countries arrival as potential investment sites. .

• Construction of an ethanol facility in . • Rely on their giant client to go further. • High-grade products at a competitive price. • Acquisition of five firms. • Expanded its foreign direct investment(FDI) throughout CEE.• Strategies: • Grow their economies of scale to fend-off the larger rivals from other European countries. • A new division on fruit and fruitprocessing.

QUESTION 2 .

Extensive restructuring ◆ .QUESTION 2 From a resource-based view. what is behind AGRANA’s impressive growth? ◆ High-grade produce at competitive price.

AGRANA acquired in June 2006 a 50% stake in a subsidiary of a leading Chinese apple juice concentrate producer in Xianyang. AGRANA . ◆ In cooperation with his joint venture partner Yantai North Andre Juice C. ◆ In order to continue the dynamic expansion.Acquisitions AGRANA’s expansion strategy is: Acquisition As China has the largest apple growing regions in the world and produces one third of the total global apple harvest.. The plant is located in the province of Shanxi... AGRANA intensified its cooperations with local juice producers in 2006. Ltd.

Hungary. while also establishing a presence in Romania. Ukraine.Acquisitions ◆ With the acquisition of Denmark’s Vall Saft Group (fruit juice concentrates) in April 2003. and Poland. . and Russia. ◆ The acquisition of an interest (33%) in Austria’s Steirerobst (fruit preparations and fruit juice concentrates) in June 2003. AGRANA gained a presence in Denmark and Poland. gave AGRANA an increased presence in Austria.

07 Consolidates its presence in South Africa and starts production of fruit preparations in Johannesburg .22 Invested €27.03.02.06.6m in fasting-growing Russian market 2011.Sustainable use of synergies with existing bioethanol plant Starts production of fruit preparations in Egypt 2011.09 Builds a wheat starch plant at its Pischelsdorf facility investment volume €56m.07 2011.AGRANA’s big event in 2011 TIME(2011) EVENT 2011.11.

. • The key to AGRANA’s global presence and impressive growth is not only its many acquisitions but its ability to quickly integrate those acquired into the group to realize synergistic effects.• Investment and acquisitions that add value.

QUESTION 3 .

however. opportunities and challenges brought by the integration of EU markets in both Western Europe and CEE • The CCE increased the total population of EU by about 31%.From an institution-based view. . only brought an increase of around 10% in the aggregate GDP and the per capita income in CEE countries only reached 5% of the average in the EU (as in 2000).

steel. furniture and glass. opportunities and challenges brought by the integration of EU markets in both Western Europe and CEE • Effects on trading As there was a long-term relationship between CEE countries and EU members in history. culture. and the integration would not create major impacts. as both the natural resources and labor are relatively cheap in the CEE countries. they had been already key trading partners even before the integration. The imports of low-cost goods by EU members from the CEE countries would increase. like iron.From an institution-based view. . The CEE countries had been already de facto EU members. language and trading. especially basic industrial and labor intensive products.

From an institution-based view. The FDI would increase after the integration. since the political risks would be reduced once the CEE countries become members of the EU and brought into the eurozone. . Most FDI inflows were related to mergers and acquisitions conducted by EU companies. opportunities and challenges brought by the integration of EU markets in both Western Europe and CEE • Effects on Foreign Direct Investment EU members were the main source of foreign direct investment (FDI) into the CEE countries.

could benefit from the integration in several ways: The opening of CEE is a key catalyst for companies to start any international expansion at all.From an institution-based view. like Agrana in Austria. either because of better margins or because the expansion into the region allowed companies to move into more profitable business segments. . which tend to be small or mid caps in a global context. have often managed to be among the market leaders in CEEsomething they would typically not have achieved in Western Europe. CEE operations tend to be more profitably than the domestic or Western European business. Companies. but also more rapidly-growing. CEE was also crucial in allowing the companies to achieve scale effects that would have been unattainable in the domestic market alone. opportunities and challenges brought by the integration of EU markets in both Western Europe and CEE • Effects on companies of existing EU members Companies in relatively small EU members. The CEE expansion not only brought access to new and much bigger. markets than the domestic ones.

QUESTION 4 .

if AGRANA continues expansion into East Asia country.• • Question: From an international perspective. Local company challenge 3. Culture difference 2. such as East Asia? Answer: From an international perspective. its will face challenge as follows: 1. local Government Regulation • • • • • • . Management 4. what challenge do you foresee AGRANA facing as it continues its expansion into other regions.

so culture is first challenge for AGRANA to promote business in East Asia . Culture difference • AGRANA promote its business from Central and Eastern Europe country. it has similar culture with Vienna. • But East Asia Country have total difference culture with Europe country.• 1.

Local company challenge a/ Huiyuan Juice Group (China) b/ CJ Group (Korea) ……… .2.

.• 3. Management • How to build a management team to fit AGRANA business in East Asia.

. local Government Regulation Local Government law and regulation to limit related purchase.4.

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