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Feedback for solutions for brewing company problems - Essay Example

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Molson Coors has had numerous problems in its operations that have greatly influenced its decline in revenues and shares despite its efforts in improving its businesses. Market barriers and other economic factors have had great influence in this great brewing company. For the…
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Molson Coors Brewing Company Molson Coors has had numerous problems in its operations that have greatly influenced its decline in revenues and shares despite its efforts in improving its businesses. Market barriers and other economic factors have had great influence in this great brewing company. For the better markets of the company, the company needs to concentrate on its local markets and further give attention to its important markets to sustain its good image. Other problems faced by Molson Coors are the price of raw materials, inability to maintain raw materials, reliance on few popular brands and social discrepancies.
Molson Coors have therefore decided to pull its international businesses out Asian markets so that they can focus on the local markets. The importation of beer in China holds only 1% share of the market share compared to the domestic and Coors only ranks second despite the China’s low domestic prizes. It is therefore important when the company withdraws its operations from china because there are no chances of succeeding in that market. Coors should first alert their customers in china market and sell their stake to Sihai Beer Company because of the company’s inability to sustain its assets and the need to cover losses as much as possible. Coors should sell its beers at a lower price as a way of getting rid of its excess reserves (Russel Web).
The Company should focus on improving its big Canada share and the US market shares in order to improve their sales. This is only possible when the UK and China markets are closed due to their low markets that in turn lead to a higher cost of operation in both UK and China. The partnering between Coors and the SABMiller will also increase the market share to almost 30% in local market.
The issue of new marketing material has got a large impact on the success of the firm especially within the local market. The sales have slightly increased after almost a year due to the increased marketing. The small board that was created to facilitate aggressive marketing in North America has not boosted the market share as expected but only increased the operating assets due to its overstatement as the income statement do not include the US (Russel Web).
The decline of the consumption of Molson’s products in its major markets is such a big blow to the company and puts the company into a very challenging situation. With the voting rights of Coors remains at 50% hence making it difficult to account for the company’s benefit in the consolidation process. The product for both the companies is similar and competing thus making one brand to sell at the expense of the other. The company should only work on its cost and efficiency being that volume growth is not realistic in the US market. Fortunately, Molson has gotten the best partner in SABMiller who have a very good record in cost efficiency. It is important value both the companies separately to evaluate their improvements.
Works Cited
Russel, Calum. Molson Coors: Unexploited Opportunity or Infinite Stagnation? February 28, 2012: Web. 13. Apr. 2013. Read More
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