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Essay / Research Paper Abstract
This 8-page paper discusses Foster's Brewing Company and what it should do about its wine division. Bibliography lists 2 sources.
Page Count:
8 pages (~225 words per page)
File: AS43_MTcasefost.rtf
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Unformatted sample text from the term paper:
a national one. Following are questions pertaining to the case study entitled "Transformation at Fosters." Fosters itself is the result of many acquisitions, mergers and joint ventures, which is why
its somewhat interesting that the companys acquisition of Southcorp was put under so much scrutiny and attracted its negative share of press. What is your assessment of Ted Kunkels
tenure as CEO of Fosters? What was Fosters corporate strategy under Kunkel? Kunkels background was that of a brewer; hed worked his way
through the ranks of CUB (one of Fosters predecessor firms), and spent three decades working his way from the barrel to the executive suite. As a result, Kunkel tended to
be the leader who had grandiose visions (not all of them were practical). Fosters corporate strategy under Kunkel was that of expansion, expansion and more expansion. It was Kunkel who
wanted to see Fosters become a global behemoth, rather than focusing on the Australian market, in which it was quite popular. The problem with leaders who have grandiose schemes is
they dont understand what it might take to achieve those visions. Kunkel has also been known as a "master imagespinner," by pairing
Fosters beers with the allure of Australia (Bleakley and Kramer, 1999). Kunkel, during his tenure, did end up getting rid of Fosters non-core assets (such as a meat-holding airlines and
a stake in Northwest Airlines Corp) (Bleakley and Kramer, 1999). After cutting back on the corporate portfolio to just beer, Kunkel was dedicated to expanding once again (Bleakley and Kramer,
1999). But one thing Kunkel was not was a bottom-line guy, and this is partly what got the company into trouble. What was the logic behind diversification into wine?
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