Friday, November 13, 2009

Fullers case study

Task 4:

Fullers is a large brewery, ehich earns more capital than local breweries, and buying small breweries would benefit the stakeholders or wouldn’t hardly affect them. The impact on the stakeholders will vary due to the popularity of the beer. If the brewery Fullers bought had well demanded beer, then it is highly likely that Fullers will earn a lot of money from it. However if the brewer was not demanded then an acquisition would either not harm the stakeholders or affect them and the company. Gales was a highly demanded beer by the locals, all the pubs and markets, therefore Fullers buying Gales brewery was a good decision and has increased profits made by the company and more capital for the stakeholders. Because Fullers has gained a lot more profit due to this acquisition, the stakeholders will also receive a larger amount of money. However, in the long run the stakeholders could be affected because Fuller has closed down Gales brewery and moved productions to Chiswick. This could change the taste in the beer and decrease the demand for the beer, or the price of beer might increase due to transportation costs or other factors.

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