Case Notes/Answers
SOUTH AFRICAN BREWERIES IN TANZANIA by Joel
Podolny Michael Quigley
Discussion Questions:
General Questions
1. What is the market environment for beer companies in South Africa?
2. What assets/capabilities has South African Breweries developed to be successful in this
market?
3. What challenges does SAB face upon entering the Tanzania market?
4. What are the concerns of the general manager about East African Breweries’ the entry
into Tanzania?
Analytical Questions
5. What unique capabilities does SAB possess that are transferable into international
markets?
6. What factors should the company take into account in evaluating the opportunities and
risks of expansion into international markets?
7. What factors led to SAB’s decision to enter the Tanzanian market? Was this a good
decision for the company at that time (in 1994)?
8. What does SAB do well that led to its successful turnaround of the operations in
Tanzania?
9. What skills will SAB need to compete successfully with Guinness in Tanzania? What
implications does this have on SAB’s ability to compete with global brewers in its other
international markets?
, TEACHING NOTE: IB-22TN
DATE: 11/00 (REV’D.06/07)
TEACHING NOTE:
SOUTH AFRICAN BREWERIES IN TANZANIA
CASE SYNOPSIS
In January 1994, Danie Niemandt, General Manager for South African Breweries operations in
Tanzania, must determine what his company, Tanzania Breweries, should do in response to the
entry of a new competitor in its market. The new competitor, East Africa Breweries, is backed
by Guinness, one of the world’s largest beer brewers, and Guinness has committed itself to
investing the resources necessary to build a leading presence in the Tanzanian market. This new
challenge faced by South African Breweries in Tanzania mirrors that faced by the company in
several of its international markets.
POSITION IN COURSE
The case is intended for use in a course on international business and strategy. The case
highlights how a company applies the skills and knowledge developed in its domestic market to
form an effective international strategy, the challenge of operating in an emerging market, and
the competitive shifts facing a company in an emerging market as the market opportunity attracts
outside competitors.
ASSIGNMENT QUESTIONS
General Questions
1. What is the market environment for beer companies in South Africa?
2. What assets/capabilities has South African Breweries developed to be successful in this
market?
3. What challenges does SAB face upon entering the Tanzania market?
4. What are the concerns of the general manager about East African Breweries’ the entry into
Tanzania?
Analytical Questions
5. What unique capabilities does SAB possess that are transferable into international markets?
6. What factors should the company take into account in evaluating the opportunities and risks
of expansion into international markets?
SOUTH AFRICAN BREWERIES IN TANZANIA by Joel
Podolny Michael Quigley
Discussion Questions:
General Questions
1. What is the market environment for beer companies in South Africa?
2. What assets/capabilities has South African Breweries developed to be successful in this
market?
3. What challenges does SAB face upon entering the Tanzania market?
4. What are the concerns of the general manager about East African Breweries’ the entry
into Tanzania?
Analytical Questions
5. What unique capabilities does SAB possess that are transferable into international
markets?
6. What factors should the company take into account in evaluating the opportunities and
risks of expansion into international markets?
7. What factors led to SAB’s decision to enter the Tanzanian market? Was this a good
decision for the company at that time (in 1994)?
8. What does SAB do well that led to its successful turnaround of the operations in
Tanzania?
9. What skills will SAB need to compete successfully with Guinness in Tanzania? What
implications does this have on SAB’s ability to compete with global brewers in its other
international markets?
, TEACHING NOTE: IB-22TN
DATE: 11/00 (REV’D.06/07)
TEACHING NOTE:
SOUTH AFRICAN BREWERIES IN TANZANIA
CASE SYNOPSIS
In January 1994, Danie Niemandt, General Manager for South African Breweries operations in
Tanzania, must determine what his company, Tanzania Breweries, should do in response to the
entry of a new competitor in its market. The new competitor, East Africa Breweries, is backed
by Guinness, one of the world’s largest beer brewers, and Guinness has committed itself to
investing the resources necessary to build a leading presence in the Tanzanian market. This new
challenge faced by South African Breweries in Tanzania mirrors that faced by the company in
several of its international markets.
POSITION IN COURSE
The case is intended for use in a course on international business and strategy. The case
highlights how a company applies the skills and knowledge developed in its domestic market to
form an effective international strategy, the challenge of operating in an emerging market, and
the competitive shifts facing a company in an emerging market as the market opportunity attracts
outside competitors.
ASSIGNMENT QUESTIONS
General Questions
1. What is the market environment for beer companies in South Africa?
2. What assets/capabilities has South African Breweries developed to be successful in this
market?
3. What challenges does SAB face upon entering the Tanzania market?
4. What are the concerns of the general manager about East African Breweries’ the entry into
Tanzania?
Analytical Questions
5. What unique capabilities does SAB possess that are transferable into international markets?
6. What factors should the company take into account in evaluating the opportunities and risks
of expansion into international markets?
