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Sociedade Central de Cervejas e Bebidas : beer internationalization strategy options in Angola and Brazil

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This case study has been prepared based on a real-life business scenario, where the company “Sociedade Central de Cervejas e Bebidas” (SCC) was chosen in order to serve as a teaching example of the complex and difficult task that companies’ have to expand their operations internationally, as well as, to alert to the opportunities and threats existing in a global business context. SCC is a Portuguese based company specialized in producing and marketing beer and other beverages, acquired in 2008 by the Heineken group, one of the largest beer companies in the world. In 2012 the entire European beer market was contracting considerably as a consequence of the global financial crisis and its negative impact on consumer’s purchasing power. In view of this critical situation, SCC managers believed that the only way the company could counteract to the poor results in Portugal was to focus their future development towards external markets. Thus, Angola and Brazil appeared to be the most meaningful internationalization options for SCC. In the former the company was urged to reevaluate its approach to the market and augment its performance, whilst in the latter SCC was not yet present and therefore needed to develop the appropriate strategy to enter that market. The case study presents some of the information SCC managers disposed at that time to make the most accurate possible decisions regarding the company’s next internationalization steps, with the main goals in mind of sustaining the Portuguese subsidiary’s infrastructures and contribute to Heineken’s global performance.

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