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STRATEGIC MANAGEMENT

cc1.  CHAPTER 4: MANAGING FIRM RESOURCES

a. List and explain the four characteristic of resources that provide sustainable competitive advantage (1.6 points – each characteristic 0.4 point)

b. Through mergers and acquisitions Molson Coors has increased its size, and achieved better “Economies of Scale”. 

 i.  What are economies of scale (0.5 point)

 ii.  List and explain at list three reasons why economies of scale are an important strategic resource. To do this, apply three of the characteristics you listed in question 1a. (2.1 points – each reason 0.7 point)

2.  CHAPTER 5 – SELECTING BUSINESS LEVELS STRATEGIES

MolsonCoors offers two broad types of beers. 

· Traditional beers like Molson Canadian, Coors Light and Carling

· Craft and imported beers like Blue Moon and Leinenkugel

Each one of these divisions has a different business-level strategy

a. What is the business-level strategy of the “traditional beers” division? List and explainat least 3 integrated tactics to succeed using this business level strategy. (2.4 points. Each reason 0.8 point)

b. What is the business-level strategy of the “Craft and imported beers” division? List and explain 3 potential pitfalls of this business-level strategy. (2.4 points. Each reason 0.8 point)

c. Combining different business level strategies creates many challenges with integrating different cultures, values, and activities. Why would a company like MillerCoors decide to combine 2 different business-level strategies? List and explain at least 2 reasons. (2 points – each reason 1 point) 

3. CHAPTER 6: SUPPORTING THE BUSINESS-LEVEL STRATEGY:  COMPETITIVE AND COOPERATIVE MOVES

These questions are related to the article “Coors, Miller Team Up To Battle Bud”. 

If you are confused about what the article is presenting, read the Q&As listed in “Q&A on the Miller-Coors Merger”.

The article “Coors, Miller Team Up To Battle Bud” presents an example of cooperation: MolsonCoors and SABMiller creating a joint venture for production, manufacturing, distribution, and marketing in the US. 

Interestingly this particular case of cooperation is meant to give the two “smaller” companies (Molson and SAB) the chance to compete against the largest brewer in the US: Anheuser-Busch InBev — itself the result of a merger. 

a. Define a joint venture (1 point). 

b. List two differences between a “joint venture” and a “strategic alliance”. (2 points)

c. Using the concept of “Coopetition”, explain the joint venture that created MillerCoors For this, define coopetition (1 point), and explain two reasons why this two companies (SABMiller and MolsonCoors) might have decided to coopete in the US Market, rather than compete separately (2 points). 

4.  CHAPTER 8: SELECTING CORPORATE-LEVEL STRATEGIES

MolsonCoors’ acquisitions are an example of a Concentration strategy using horizontal integration, through mergers and acquisitions. 

a. Whatis horizontal integration? (1 point)

b. Why can horizontal integration be attractive? Give at least 2 reasons. (2 points)

c. Most mergers and acquisitions (M&As) do not create wealth for shareholders. List two (2) reasons why M&As tend to fail. (2 points)

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