Molson Coors Fortune Company - Research Paper Example

Molson Coors Fortune Company Molson Coors Fortune Company Fortune 500 is a compilation of the most influential companies in the U.S.A. This is an exercise done by the Fortune Magazine using the recent figures for revenue in both private and public companies. Molson Coors, as our case study, has overturned the ranks to become one of the best brewing companies ever since its establishment in 1872 (Plunkett & Plunkett, 2009). What the owners tag as the perfect ingredient has realized the flow of profits ever since. Owned by a German born immigrant, Adolf Coors, the starting investment capital of $2000 in 1872 has seen this company stay in the ranks of Fortune publicity. The road was long for Adolf, from a 15 year old orphan to working in a local brew station; this gave him his maiden thoughts. Water from the Rocky Mountains, as they say about it, has given Coors and collaborates a decent rise in the corporate world (Enz, 2010). Thus the only way they market their beer, a strategy that has won them a fortune. With no money and no job, Coors has continued to dominate the business corridors until 2005 when he joined ideas with Molson to stick their company as the fifth largest brewing plant in the world. As it dates today, Coors has an outstanding figure of $13.5 billion in assets and $6.2 billion in revenue. Hence Coors Brewing Company is an example of an immigrant’s success story. The virtues of timing, persistence, and smart investment have all worked for the poor Coors and his company. This is the reason why he is in the Fortune 500 U.S.A Companies. Molson Coors spreads its administration characteristics from the management makeup, operations, marketing, and financial structure (Plunkett & Plunkett, 2009). The company’s management structure starts from the President, who is the CEO of: Europe and Asia (Peter Swinburn) -Next in line is the President and the CEO of Molson Canada (Kevin Boyce) -followed by the Global Chief Financial Officer (Stewart Glendinning) -Global Chief People’s officer (Ralph Hargrow) -Chief Commercial Officer (Mark Hunter) -Global Chief Legal Officer/ corporate secretary (Samuel Walker) -Global Chief Synergies Officer (Cathy Noonan) -Global Chief Strategy and Commercial Officer (David Perkins) -and finally the Global Chief Technical Officer (Gregory Wade). As it is typical with many companies, Coors business process has seen it adopt a model of organization, which they call Coors Enterprise Process Structure (Enz, 2010). This has become the formal method and system of duty and reporting the relationship that ought to control, coordinate and motivate its employees globally. This model of organizational structure in Molson Coors Brewing Company is the measure employed so as the units of its operations and management may cooperate and goals of the entire organization. The Molson Coors Brewing Company has employed diverse means through its production system. The production of beer normally involves the steeping of a starch like cereal grains in water and then ferment them with yeast. This is not a different thing from what Molson and Coors employ in their production system. The company has employed barrel aging in the production of its beer. This has seen its beers get aged in barrels in order to achieve a variety that is the finest product (Lamb, 2012). The barrels ferment beer for the best taste as for this has helped the company to sell its products in a wide range of profits. The company’s earnings and estimate summary are a true picture of how its growth is parallel with its sales. The estimated amount of production brought in a revenue equivalent of $4.2 billion and the annual earning went as high as $3.95 as per share. This is an exceptional rise, given the quarterly earnings on January 15 was at $0.68 billion as per share. The company expects an increase in the subsequent quarterlies and the foreshadowed improvement in shares and output in order to bolster its profits (Annual Review of Antitrust Law Developments 2008, 2009). Molson Coors marketing strategies have also contributed a lot to its growth and stabilization. Since early 90s, the company has involved itself in diverse marketing techniques such as sponsoring auto racing and Motorsports events (Lamb, 2012). One of the early methods which has helped its sells is the ‘I am Online’ campaign. This was centered on it, I am Canadian Advertising campaign. The main concern here was music and hockey and carried much emphasis on Canadian content. The company ensured that its site would not be corporate one but rather it aimed at encouraging direct communication with the users of its product, an advertisement vent that hooded Canadians and Americans to consume Molson Coors brew. After the merger, the new ‘It Starts Here’ slogan became the current marketing strategy. There was an advertising T.V campaign spearheaded by a Canadian actor Jason Jones (Plunkett & Plunkett, 2009). The success of Molson in the marketing sector and the popularity of its brand drew recognition, as it bagged the best employing firm in Canada in 2011 and the larger Toronto community. This did not stop there since back in 2010, it was recognized by ‘I Love Rewards’, as the best in the 50 most engaged companies in Canada. All these accolades served to market its products to greater heights as the company become a major economic mover, as its product was a domestic commodity to many (Lamb, 2012). To cap it all, all these marketing initiatives got an honorary recognition from a Marketing Magazine, which by the end of 2011; the Canadian paper awarded the company the best marketing strategies of the years to the Molson Coors brewing company. These models have become the best product lines that have made the product of this company more popular and worth to be in Fortune 500 companies in the U.S.A. The success of the company does not lack a formidable financial capability and strategic status. The company has a wide range of assets, which have formed the backbone of its continual growth. The company’s total assets in U.S dollars since 2009 are: 12,021.10 in 2009/2010, 12,423 in 2010/2011, 16,212 in 2011/2012, and 15,580 in 2012/2013 respectively (DePamphilis, 2009). This forms a strong investment base that the Molson Coors have continued to source from hence widening its investment muscles. On the side of liabilities, the significant stabilization of the company has seen its challenges be at a level that it can handle. Since 2009, the total liabilities for Molson Coors have been manageable. In 2009/2010, it was $4,941.50, in 2010/2011 it reduced to $4898. 80, in the 2011/2012 it went further down to $4775. 90 only to see it rise to $ 8245.30 in 2012/2013, and $6941. 20 in 2013/2014 financial year (DePamphilis, 2009). The stable operation has seen its cost saving highlights, which are the profit margins Deliver more than $70 million in 2013. This is purely on cost savings and it had not incorporated the Miller Coors $102 million it registered as profits in that financial year (Enz, 2010). As part of the 42% benefit that Molson Coors benefits from the Miller Coors, $43 million addition cost savings in 2013 came as the profit increment. Molson Coors Brewing Company financial implications have set it in a first-rate stance. The corporate segment it runs in Canada, United States, and Molson Coors International (MCI), gives it a hedge and diverse portfolio in today’s corporate world (DePamphilis, 2009). This then is a positive impact as more and more avenues of investment have come up in return. As a proof of growth, the company, as a beverage industry sector, it scooped the highest 2013/2014 Dow Jones Sustainability World Index award. This is the most sought for, global benchmark price of sustainability. The interpretation of this is that the financial implication is on the positive side of the Molson Coors Brewing Company. The biggest challenge of Molson Coors Brewing Company is to strive to deliver according to their vision. They have always aimed to challenge the expectations to deliver extra-ordinary brands. Accruing this would mean that the delight of its consumers, which is the biggest priority, is optimistically accomplished (Enz, 2010). In November 2012, there was a sharp declining consumer demand and high cost of living standards in the U.S.A and parts of Europe. This was a problem for the company. In order to arrest this skewed portfolio inclining towards mainstream, as Swinburn described it, the CEO gave a remedy of creating enough exposure to premium rather than premiumizing the portfolio (Enz, 2010). This expanded a range of its brands during the supplier negotiations. The future of the Molson Coors Brewing Company looks promising as seeking growth in emerging markets is their priority. They plan to have partnerships and acquisitions just as they did to expose their products to Russia, China, and Vietnam in 2010/2011 (DePamphilis, 2009). This trend would ensure that the company maintains brand loyalty in the competitive corporate environment if they repeatedly adopt an increased interest to have a consolidated industry as they have foretold. References Annual Review of Antitrust Law Developments 2008. (2009). Amer Bar Assn. DePamphilis, D., (2009). Mergers, Acquisitions, and Other Restructuring Activities : an Integrated Approach to Process, Tools, Cases, and Solutions.Toronto: Nelson Education. Enz, C. A. (2010). Hospitality strategic management: concepts and cases. Hoboken, N.J., John Wiley & Sons. Lamb, C. W. (2012). Marketing. Toronto: Nelson Education. Plunkett, Jack W., & Plunkett, Jack W. (2009). Plunketts Food Industry Almanac 2009: The Only Comprehensive Guide to Food Companies and Trends. Plunkett Research Ltd. Read More