Multinational Companies' Headquarters and Its Growing Strategies

Ing. Belinda Santos Nava, MSc

Master's thesis

Abstract:

Abstract Dears, This section is non applicable, my studies were fully done in English language. Thank you! Belinda Santos Nava

Abstract:

Merges & acquisitions play an important role in the growth strategies of multinational companies. Research has shown that companies use the M&A strategies for expand its bases in existing markets or to add products and services under its pipe-line. The third largest acquisition in the history was completed in 2016 when AB Inbev acquired SAB Miller, its main competitor in the beer industry. This study aims to give a practical recommendation regarding growth strategies in Africa through SAB Miller acquisition. Building on existing work on M&A’s, it asks: If the merge is successful, then would the company be more profitable? In this context, profitability ratios are used to analyse the success of the merge as well as the goals established by AB Inbev before closing the deal with SAB Miller. These goals were to increase the footprint in the African market; to help build up a robust economy and to improve the company’s performance. Based on the empirical study plus observation technique, a synthesis of its historical achievements, Porter’s Five Forces Analysis and Macro and Micro environmental factors in the African Market were described. These data was used for stablish the SWOT analysis and the Forecast of the Consumers growth by 2022. The results indicates that Africa is potentially the World’s most attractive region for long-term volume and profit growth, it is recommended that AB InBev gain foot-print with a low-price and diversification strategies and in the long-term stablish its premium global brands with higher net profit. In order to diminish the threats, investments in technology plus legal and political research needs to be done. Moreover, to keep the company attractive to investors a special attention on improving its liquidity and reduce their debts are fundamental.

Keywords

Merge &, acquisitions, Penetration in the African Market, Premium beer, sales growth, strategies, profit growth

Language used: English

Date on which the thesis was submitted / produced: 30. 4. 2019

Thesis defence

• Date of defence: 19. 6. 2019
• Supervisor: DBA Oldřich Dutý, MSc
• Reader: Mgr. Ing. Miroslav Jurásek, Ph.D.

University of Finance and Administration

Master programme / field:
Economics and Management / Business Management and Corporate Finance