MNG3702 Assignment 1 Semester 2

1.1 Identify the type of strategic change in Anheuser-Busch when the company was unable to avoid a hostile takeover by InBev in 2008, which gave rise to AB InBev, then the world’s largest brewer. Substantiate your answer. (2 marks, of which 1 mark will be awarded to the correct identification of the type of strategic change and 1 mark to the correct substantiation). (2) The type of strategic change in Anheuser-Busch during the hostile takeover by InBev in 2008 can be identified as an "Acquisition" or "Mergers and Acquisitions" (M&A) strategic change. Substantiation: • Anheuser-Busch underwent a significant change in its ownership structure when it was acquired by InBev, resulting in the creation of AB InBev, the world's largest brewer. How a South African company turned constraints into global strengths On 28 September 2016, the shareholders of South African born international brewer, SABMiller, approved the company’s acquisition by Anheuser-Busch InBev for $104 billion (R1.5 trillion). Question 1 The case describes several changes that the company underwent since it was founded in 1895. 1.1 Identify the type of strategic change in Anheuser-Busch when the company was unable to avoid a hostile takeover by InBev in 2008, which gave rise to AB InBev, then the world’s largest brewer. Substantiate your answer. (2 marks, of which 1 mark will be awarded to the correct identification of the type of strategic change and 1 mark to the correct substantiation). (2) The type of strategic change in Anheuser-Busch during the hostile takeover by InBev in 2008 can be identified as an "Acquisition" or "Mergers and Acquisitions" (M&A) strategic change. Substantiation: • Anheuser-Busch underwent a significant change in its ownership structure when it was acquired by InBev, resulting in the creation of AB InBev, the world's largest brewer. • A hostile takeover refers to the acquisition of a company against the wishes of its management and board of directors. InBev's acquisition of Anheuser-Busch was hostile because it was not supported by the target company's management. • This type of strategic change involves the integration of two companies, resulting in a change in ownership, control, and strategic direction. • The hostile takeover by InBev led to a significant shift in the company's strategic direction and global market position. 1.2 Apply an analytical model to planned change to the case during its rapid expansion into emerging markets worldwide, founded on the principle that change needs to be context specific and that the approach to change the organisation chooses should be based on a thorough analysis of (i) the context within which change is taking place; and (ii) a series of decisions around the way in which the change is to be managed. (14 marks; of which 8 marks will be awarded for the core segments of the model and 6 marks will be awarded for the key decisions around the way in which the change process will be managed) To analyze the planned change during Anheuser-Busch's rapid expansion into emerging markets, we can apply the "Contextual Analysis" model. This model emphasizes the importance of considering the specific context in which change is taking place and making decisions about how to manage the change effectively. Contextual Analysis Model: 1. Context Analysis: Analyze the external and internal factors that influence the change process. This includes understanding the market conditions, regulatory environment, cultural differences, and competitive landscape in the emerging markets. 2. Change Objectives: Define clear objectives for the change initiative, considering the specific opportunities and challenges presented by the emerging markets. This involves setting goals related to market share, rev