MASTER CLASS FROM 'THE CFO 2018' EXAMINING BOARD: THE AB INBEV CASE STUDY
The purpose of this article is to
For 'The CFO Case Study Competition', the applicable knowledge base is integrated and multi-disciplinary – drawing mainly from, but not limited to: International Business, Strategic Management, Risk Management, Cost and Management Accounting, Financial Accounting and Reporting, Financial Management, Operations Management, Project Management, Industrial Relations and Human Resources Management. In the case of The CFO Junior, the applicable knowledge base is also integrated and multi-disciplinary – but drawing mainly from 4 key subjects in the High School curriculum: Accounting, Business Studies, Economics
As the mission of the competition is to bring real-life business challenges into the classroom, we have painstakingly designed each issue to ensure any report that fails to apply the relevant knowledge (or theory) will not do as well. If a requisite knowledge area has not yet been covered at your University or High school, teams will be expected to do some internet research (Google) on it! Please avoid reproducing the theory; rather apply it in your analysis, to identify (and help the Board to solve) the main
problem (s). This is extremely important, as our goal is to assess the extent to which the classroom knowledge you have gained can be meaningfully applied to solve some of the most challenging and intricate real-world global business scenarios you will most likely face upon your graduation!
THE AB INBEV GROUP PLC CASE STUDY
The AB InBev case, Researched, Designed and Developed (R&DD) by The CharterQuest Institute South Africa, is based on a real-world leading multinational business within the global beverage and brewery industry ('alcohol'). It simulates the strategic decisions its Group CFO and Board faced (or potentially faces). Just like the 2016 MCOM PLC and the 2017 AMANGO PLC case studies, the AB InBev group is faced with a complex interplay of strategic threats, weaknesses
In particular, AB InBev, the world’s no. 1 brewery company, is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with secondary listings on the Mexico Stock Exchange (MEXBOL: ABI). It closed 2015 with a major takeover offer - for literally, the entire share capital of its fiercest rival and world no. 2 brewer, South Africa’s SABMiller, then, the largest company listed on the Johannesburg Stock Exchange (JSE) - for a cash amount of US$105.5 billion, to form a new entity and global
brewery giant, ‘Newco.’ As earnings began to stagnate in the West, AB InBev determined that its future growth was to come from Africa –the world’s second largest continent (market), with a youthful and growing population, far too keen to indulge in beer, wines
1. AFRICA DIRECT ENTRY VIA NIGERIA
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