UNIVERSITY OF WEST LONDON Beyond Brewing : A Strategic Analysis of Lion Brewery (Ceylon) PLC Internal Analysis and Strategic Business Recommendations Hiruni Gunaratne- 21318420 5/14/2016 Lecturer- Mr . Marcelline Croos Contents 1.0 Introduction ............................................................................................................................... 4 1.1 About Lion Brewery ............................................................................................................... 4 2.0 Internal Analysis of Lion Brewery .............................................................................................. 5 2.1 Resources and Capabilities Analysis of Lion Brewery............................................................ 5 Physical Resources and Capabilities ........................................................................................ 5 Financial Resources and Capabilities ....................................................................................... 5 Human Resources and Capabilities ......................................................................................... 6 Technological Resources and Capabilities ............................................................................... 6 Organizational Resources and Capabilities ............................................................................. 6 Relationship Resources and Capabilities ................................................................................. 7 2.1.1 Analysis of Strategic Capabilities and Competitive Advantage ...................................... 8 2.2 Value Chain of Lion Brewery ................................................................................................. 9 2.2.1 Inbound Logistics ............................................................................................................ 9 2.2.2 Operations ...................................................................................................................... 9 2.2.3 Outbound Logistics ......................................................................................................... 9 2.2.4 Marketing and Sales ..................................................................................................... 10 2.2.5 Service and Support...................................................................................................... 10 2.3 Financial Analysis of Lion Brewery ...................................................................................... 12 2.4 Strengths and Weaknesses of Lion Brewery ....................................................................... 13 3.0 New Strategies......................................................................................................................... 14 3.1 SWOT Matrix ....................................................................................................................... 14 3.2 TOWS Matrix ....................................................................................................................... 15 3.3 Strategic Directions for Lion Brewery.................................................................................. 17 3.3.1 Ansoff Matrix Analysis for Lion Brewery Strategies ..................................................... 18 3.4 Strategy Evaluation with SFA Analysis................................................................................. 19 4.0 Proposed Five Year Strategic Plan for Lion Brewery ............................................................... 21 5.0 Conclusion ............................................................................................................................... 22 Appendix........................................................................................................................................ 23 Bibliography................................................................................................................................... 29 2 Table of Figures Figure 1 Resource and Capabilities Grid.......................................................................................... 5 Figure 2 Strategic Capabilities and Competitive Advantage ........................................................... 8 Figure 3 Strategic Capabilities and Competitive Advantage Analysis for Lion Brewery.................. 8 Figure 4 Porters Generic Value Chain.............................................................................................. 9 Figure 5 Strengths and Weaknesses of Lion Brewery - Internal Analysis of the Company ........... 13 Figure 6 Definition of Ansoff Matrix .............................................................................................. 17 Figure 7 Ansoff Matrix for Lion Brewery PLC ................................................................................ 18 3 1.0 Introduction This report will be an analysis on the strategic capabilities of Lion Brewery. The strengths and Weaknesses will be indentified and also the financial position of the company. New strategies will be discussed combining the previous assignment findings on External Analysis on the Liquor Industry in Sri Lanka. These new strategies are being suggested for a five year period ( 2016 - 2021). 1.1 About Lion Brewery Lion Brewery (Ceylon) PLC (Lion Brewery), with an illustrious history dating back to 1860, is a leadi g e tit i “ i La ka s adult e e age a ket. It was inaugurated as a joint business enterprise of Ceylon Brewery and Carlsberg Their legendary product, Lion Beer, is brewed and ottled at Lio B e e s state of the a t fa ilit i Biyagama, Sri Lanka. As a well-respected corporate entity, Lion Brewery has adopted world class technologies and business practices as they continuously innovate and strive to deliver a high quality product portfolio to the Sri Lankan beverage market. (Lion Beer - ABOUT LION, 2013) 4 2.0 Internal Analysis of Lion Brewery 2.1 Resources and Capabilities Analysis of Lion Brewery Resources and Capabilities Tangible Physical Financial Intangible Human Technology Organizational Relationship Figure 1 Resource and Capabilities Grid Physical Resources and Capabilities During the past year, Lion Brewery successfully completed the expansion of their plant in Biyagama. The entire brewing facility received an upgrade which now enables it to carry out the entire manufacturing process, from brewing to bottling and packaging. The canning lines too have been upgraded, thereby increasing the overall brand value of Lion Brewery products in the local market. (Lion_Brewery_(Ceylon)_PLC, 2015) Financial Resources and Capabilities Lion Brewery (Ceylon) PLC has been awarded a rating of AA- by Fitch Ratings Lanka, the local arm of the globally recognized credit rating agency (Fitch Ratings LK - Lion Brewery (Ceylon) PLC, 2015). The Lion Brewery annual report states that the company is ranked at number 12 among the AA- rated companies in Sri Lanka. (Lion_Brewery_(Ceylon)_PLC, 2015) Further, Lion Brewery generated total revenue of LKR 32.35 billion during the financial year 2014/15, a staggering 25% increase from the previous year. This achievement, coupled with a Pre-Tax Profit of LKR 2.28 billion, has provided the company with the required financial strength to maintain its position in the market. (Lion_Brewery_(Ceylon)_PLC, 2015) 5 Human Resources and Capabilities A key strength of Lion Brewery lies in its pool of relatively small, but extremely talented staff. Nonetheless, the HR practices adopted by the company are on par with other local corporate. Special emphasis is given to training and development of their human capital at the dedicated Carlsberg Leadership Building Center as well as obtaining the services of globally recognized management schools. This team of individuals is ably guided by the Strategic Leadership Team, The Operational Excellence Team and The Enterprise Optimization Team. These cross-functional teams focus on bringing innovation to daily activities whilst achieving resource optimization with a view to strategic growth. (Lion_Brewery_(Ceylon)_PLC, 2015) Technological Resources and Capabilities Today, technology has become a key driver of organizational strategies. It is with this vision that Lion Brewery upgraded their bottling and canning lines, decommissioning the equipment which powered the organization since 1998. (Lion_Brewery_(Ceylon)_PLC, 2015) This move was complemented by the fact that Lion Brewery successfully implemented the SAP ERP across the organization. The new ERP solution integrated all functional areas of the organization under one Information Technology umbrella, thereby streamlining the entire a age e t a d ope atio al p o ess. Fu the , this i teg ated IT s ste se es as a si gle sou e of t uth as it ai tai s the ost up-to-date information on all areas of the organization. This has enabled the senior management to gain a wider insight into facts and figures and carry out various analyses which will help formulate more appropriate and sustainable strategic initiatives. (IBM_SAP, 2015) Organizational Resources and Capabilities Lion Brewery boasts of several award winning brands as part of their product portfolio. Lion beer resides amongst the 10 most valuable brands in Sri Lanka. Lion Stout has achieved its place amongst the Top 20 stouts in the world by Esquire Magazine. Lion Stout was awarded the Gold Medal as Asia s Best “tout at the Wo ld Bee A a ds (World Beer Awards - Lion Stout, 2015) and also won the bronze award at the New York International Beer Competition (Lion_Brewery_(Ceylon)_PLC, 2015). Lion Brewery also won the Silver award for the Lion Lager World Cupl Limited Edition Pack (which was launched to represent the Sri Lankan Cricket Team at the 2015 Cricket World Cup) at the Beverage World, Bev Star awards (Beverage World - Beer, 2015). With the acquisition of Millers Brewery Limited (successors to McCallum Breweries, another Sri Lankan brewery with a rich heritage spanning decades), Lion Brewery was able to further strengthen their product portfolio. The brands which were purchased from Millers Brewery Limited include Three Coins, Irish Dark and Sando Stout. The entire brand portfolio of Millers Brewery, most of which have a history in Sri Lanka dating back several decades, were valued at LKR 4 billion at the time of acquisition. Undoubtedly, Lion Brewery can ride the waves of success 6 created by these brands over the years, thereby aiming to achieve greater heights in the near future (Lion_Brewery_(Ceylon)_PLC, 2015). Relationship Resources and Capabilities Another key strength of Lion Brewery lies in the healthy relationships maintained both with foreign principles and agents. Being a licensed partner for global brands such as Carlsberg, Corona, Diageo and Moet Hennessy as well as the large network of agents with which the company works is a clear indicator of this mutual understanding. This, together with the supply chain capabilities made possible by the SAP ERP ensure a mutually beneficial partnership with agents. (Lion_Brewery_(Ceylon)_PLC, 2015) 7 2.1.1 Analysis of Strategic Capabilities and Competitive Advantage According to Johnson, Scholes and Whittington the resources and capabilities of a company can be categorized into threshold and unique (core) resources and capabilities. Figure 2 Strategic Capabilities and Competitive Advantage (Johnson, Scholes, & Whittington, 2008) Figure 3 Strategic Capabilities and Competitive Advantage Analysis for Lion Brewery 8 2.2 Value Chain of Lion Brewery Figure 4 Porters Generic Value Chain The Value Chain analysis was first introduced by Porter (1985). Organisations were viewed as s ste s hi h e e o posed of se e al su -systems , ea h ha i g thei i di idual i puts, processes and outputs. This conversion of inputs to outputs requires several activities. Porter (1985) classified these into 2 main categories – primary (core) activities and secondary (support) activities. (Porter, 2008) Primary Activities 2.2.1 Inbound Logistics The primary ingredients in manufacturing beer are rice and beer hops. Rice is purchased from an outside entity (Ran Sahal Pvt Ltd) which exclusively provides rice for Lion Brewery. Lion Brewery, in turn, invests money in Ran Sahal as and when required. At the same time, Lion Brewery needs to be alert about the fact that paddy harvesting is a seasonal activity and that environmental conditions such as droughts or floods could impact the output of the harvest. Hence Lion Brewery needs to be mindful of their inbound logistics arrangements. (Lion_Brewery_(Ceylon)_PLC, 2015) 2.2.2 Operations Lion Brewery has their state-of-the art production facility in Biyagama, which was recently upgraded with a new bottling and canning line. Further, the brewery operations of Millers Brewery ( which was acquire recently ) is being planned to be brought to Biyagama, thereby achieving synergies and greater economies of scale. (Lion_Brewery_(Ceylon)_PLC, 2015) 2.2.3 Outbound Logistics Since Lion primarily supplies to agents, timely delivery of goods as well as the collection of empty bottles should be done effectively in proper manner. It is with this vision in mind that 9 Lion Brewery is considering moving the production of Millers Brewery products to the Biyagama plant, thereby optimizing transportation time and costs. (Lion_Brewery_(Ceylon)_PLC, 2015) 2.2.4 Marketing and Sales Whilst Lion continues to maintain its undisputed position among Sri Lankan brands, Sri Lanka also has very stringent regulations with regard to alcohol. Whilst some of them are obsolete in toda s o po ate o te t, the o ti ue to e appli a le. Fu the , the la dictates that alcoholic beverages cannot be marketed to end users, hence Lion Brewery markets itself to agents by means of bulk discounts and financial assistance. However, Lion Brewery, through a subsidiary CBL Retailers, operates a popular chain of restaura ts u de the a d Ma ha hi h p o ides e d o su e s ith a u i ue, alue-foro e Pu e pe ie e. (Carson Cumberbatch PLC - Beverage, 2016) 2.2.5 Service and Support As stated earlier, Lion Brewery does not market their products to end-consumers. Hence, their immediate customers would be agents. As stated above, Lion Brewery supports agents when in need thereby maintaining a strong relationship within the agent network. However, a key aspect in their support is the high quality of products that Lion Brewery is famous for. (Lion_Brewery_(Ceylon)_PLC, 2015) 10 Support Activities Firm Infrastructure From the perspective of infrastructure, Lion Brewery can boast of its state-of-the-art brewing, bottling/canning and packaging facility in Biyagama which ensures the company releases high quality products to the local market. This infrastructure is further strengthened by the Information Technology services which provide inputs to the entire manufacturing process. (Lion_Brewery_(Ceylon)_PLC, 2015) Human Resource Management Lio B e e s hu a apital o sists of a elati el s all, et e t e el tale ted g oup of i di iduals ho p o ide thei a i u to a ds a hie i g the o pa s st ategies. A ke point to note in this regard is the emphasis placed on training and development of individuals. From the se io a age e t do a ds, t ai i g is o side ed a i teg al pa t of a i di idual s development within the organization, which whilst being a personal benefit, is an investment for the company as well. A highly motivated workforce provided with the opportunity for personal development ensures a high level of motivation within the organization which directly translates to operational efficiencies and cost optimization. (Lion_Brewery_(Ceylon)_PLC, 2015) Technology Development Lio B e e , as pa t of the o pa s st i e fo a hie i g g eate heights, de ided o epla i g their existing legacy IT systems with a fully integrated Enterprise Resource Planning (ERP) system. It is with this vision, that the SAP ERP was successfully implemented in 2013, integrating the entire production process. The ERP covers Financial Management, management of raw materials, production planning, quality management, management of warehousing facilities, sales and distribution activities as well as maintenance activities of the plant, thereby ensuring IT acts as an enabler for the entire production process, whilst providing useful analyses and reports which would help the senior management in taking better business decisions and form an input to the strategic decision making. (IBM_SAP, 2015) Procurement Whilst the manufacturing of beer requires commonly found raw materials, Lion Brewery ensures that systematic procurement processes, enabled by the SAP ERP, are adopted to ensure delays to the production process are minimized. The earlier procurement process which was based on spreadsheets is now entirely handled by the SAP ERP which has helped Lion Brewery reduce the entire procurement cycle by 20%. (IBM_SAP, 2015) 11 2.3 Financial Analysis of Lion Brewery The liquidity or the financial health of Lion Brewery has shown a significant downfall in the year of 2015. The working capital ratio(current ratio) is 81% where as it was 113% in the previous year. When analyzing the acid test (quick ratio) in the year 2014 it was 0.9 which was nearly 1 but in the year of 2015 it was 0.5 which is again a drastic fall for the company's liquidity. The efficiency of Lion Brewery has been analyzed in the report with respect to the Asset Turnover ratio. In general it has shown a steep increment from 2014 to 2015 (from 107 % to 122%) which is a very good indicator. Therefore the company has been performing better than the previous year. The analysis of Net Profit Margin of the company over five year (2011-2015) shows a decline where 2015 has been the lowest. Even though the net revenue has been higher during the five years period, the profits Lion Brewery made been up and down which resulted the above profit margin. When considering the Return on Equity for the past five years ( 2011- 2015) in 2012 company has been performing at its highest but on the other years it has been wavering above 16%. The gearing ratio of Lion Brewery has been increasing over the past three years ( 2013-2015) where it crosses the 50% in 2015 which seems not that healthy for the company. This could mean bankruptcy and loan default if it does not drop in the coming year. The growth of the company in the market of Sri Lanka has been a sharp increment according to the statistics. It has been raising from Rs 16000 mn to 48000 mn during the past five years period. Note : Financial data is obtained from the Annual Report of Lion Brewery 2015. Please refer the Appendix - Part 1 for calculations and charts. 12 2.4 Strengths and Weaknesses of Lion Brewery These strengths and weaknesses are identified from the above analysis done on Resource and Capabilities analysis, Value Chain analysis and Financial analysis in the sections 2.1, 2.2 and 2.3. Figure 5 Strengths and Weaknesses of Lion Brewery - Internal Analysis of the Company 13 3.0 New Strategies 3.1 SWOT Matrix Table 1 SWOT Matrix for Lion Brewery PLC The SWOT matrix is constructed from the strengths and weaknesses derived from the above analysis and opportunities and threats are extracted from the previous assignment report on "External Environment and Industry Analysis on Sri Lankan Liquor Industry". 14 3.2 TOWS Matrix Opportunities 1. Beer is consumed more than hard liquor 2. Less consuming of beer among the female community 3. Rapid growth of Tourism Industry 4. Abundance of major raw materials such as water, rice and coconut 5. The technological growth of the country Strengths 1. Expansion of the production facility and new technology for bottling and canning 2. Award winning portfolio of brands and products 3. Operating pub and restaurant chain "Machan" through a subsidiary "CBL Retailers" 4. Fully integrated Enterprise Resource Planning (ERP) SAP implemented in 2013 which covers all the processes of the business Weaknesses 1. Main raw material has a seasonal production 2. The offices located out of the main city 3. No retails sales. Operates through agents only. 4. Financial health is decreasing over the past few years 5. Not being able to advertise the products S2 O3 - Target international market for tourism and promote the brands more in hotels and other tourist locations. Partnerships with tourist hotels to sell Lion products and concession rates to the tourist hotels. W3 O1 - Start retails sales and cut - off agents where possible to directly access the market. S1 O2 - Introduce female friendly drinks with less alcohol percentage and different flavors S3 O1- Introduce beer cocktails at "Machan" restaurants W1 O5 - Demand forecasting and planning along with technology and have the rice in warehouses for the production during the off season for rice. W1 O4 - Have deals with the suppliers for fixed price contracts during the off season. S4 O5 - Revamp the company activities computer based to get the maximum out of IT networks and databases. Threats 1. High Illicit alcohol market in Sri Lanka 2. Sri Lanka being country S1 T2 - Expand the production into new areas such as energy drinks and other frizzy drinks with the new technology and 15 W5 T1 - conduct campaigns to show the health concerns of illicit liquor. with majority as Buddhists which do not encourage the use of alcohol 3. Tough legal frame work on consumption and sale of liquor 4. High tax corporate income tax on liquor dealing facilities already available. S1 T4 - New products such as non alcoholic beer to reduce the tax income as well to capture the nonalcoholic market. 16 W4 T4 - Selling off the licenses in the areas of low profit/revenue. 3.3 Strategic Directions for Lion Brewery Figure 6 Definition of Ansoff Matrix (Johnson, Scholes, & Whittington, 2008) 17 3.3.1 Ansoff Matrix Analysis for Lion Brewery Strategies Figure 7 Ansoff Matrix for Lion Brewery PLC 18 3.4 Strategy Evaluation with SFA Analysis Two strategies from the TOWS matrix has been selected for the SFA analysis which converses about Suitability, Feasibility and Acceptability. 3.4.1 S3 O1 - Introduce beer cocktails at "Machan" restaurants Cocktail is a stimulating liquor, composed of spirits of any kind, sugar, water and bitters. (What is a Cocktail, 2015). Cocktails are a widely loved product in pubs and restaurant sector. Irrespective of the gender, consumers tend to drink cocktails. Cocktails are mild and tastes better in comparison to the liquor itself. Suitability - Since Lion Brewery already has its pub and restaurant chain operating for the middle class of Sri Lanka, Lion could easily bring in the idea of "Beer Cocktails" for a more sophisticated experience without additional costs. Since beer is preffered more than the hard liquor even the female community of the consumer base would have a tendency to consume more given the fact that cocktails are smoother and classy. On the other hand there are a large variety of cocktails out there in the market and also new cocktails can be invented. Acceptability - Introducing Beer Cocktails in the 'Machan pubs' will not cost additional or even need extra license since already beer sale and consume licenses have been obtained. Since the pub infrastructure and the client base is already existing this would open new markets and expand the business arena. Since the cocktails are made on demand at the moment, there is absolutely no risk of expanding the product portfolio. Feasibility - Given the fact that making cocktails need a bit of expertise, Lion Brewery has to engage training and new bar tendering recruitments, this would make the average pub experience to a whole new level. As discussed in the acceptability the strategy would not need extra costs other than the cocktail making expertise. 19 3.4.2 S1 T4 - New products such as non alcoholic beer to reduce the tax income as well to capture the nonalcoholic market. Non- alcoholic liquor beverages are the beverages that contain the same taste and aroma as the original liquor but zero alcohol in it. Suitability - Lion Brewery being the market leader in beer industry in Sri Lanka, it misses a large amount of Sri Lankan non alcoholic beverage market. By introducing "Non Alcoholic Beer" is a great way to capture the other half of the non- drinkers market. Also Sri Lanka being country with majority as Buddhists which do not encourage the use of alcohol this is a great opportunity to tackle the environmental threat to the companies well being. Acceptability - Expected performance outcome will be definitely a positive since there are a large amount of non-alcoholics in Sri Lankan society who cannot bond with the partying and drinking crowd because of the non-alcoholism. Therefore definitely the market would open for non-alcoholic beer since it provides a great opportunity to for people to blend in with the alcohol consumers at social events whilst not having to consume alcohol.. Feasibility - Given the fact Lion already has the production facilities, processes, other resources and capabilities expanding the product portfolio makes way to more revenue. 20 4.0 Proposed Five Year Strategic Plan for Lion Brewery The strategies are being proposed over definite periods of years. To get a better understanding of goals, each strategy should be divided into little chunks of achievable goals and should be given specific time frames according to the resource availability of the company. Eg : Introduce 'Beer Cocktails' at 'Machan' Restaurants Asses what are the cocktails which will be first introduced. ( Market Research) Asses the current human potential of cocktail mixing abilities of the staff. Plan for new recruitments Plan what are the initial pubs which will have the cocktails introduced ( Market Research on Revenue and drinking patterns) Planning of the launch of cocktail products and advertising or promotions Feasibility study and budget allocation for the new project Assessment of success for the pilot Pubs selected Plans for continuation, widening the business or withdrawing. Note : Find the Gantt Chart for the proposed 5 year strategic plan for Lion Brewery in Appendix - Part 2 21 5.0 Conclusion As per the analysis carried out above, it is evident that Lion Brewery is has made its mark in the Sri Lankan corporate sector as well as the alcoholic beverages industry. Lion Brewery has also fearlessly taken several strategic decisions over the past few years such as the acquisition of Millers Brewery, implementation of the SAP ERP and the total upgrade of the bottling, canning and packaging facilities. Whilst these decisions have undoubtedly further strengthened the company, the initial investments involved have had a somewhat negative impact on the financial ratios. With regard to strategic direction, Lion Brewery can make good use of their investments in technology and infrastructure to increase their product offerings such as beer cocktails and nonalcoholic beer. Also other recommended strategies can be applied over the period of five years suggested. This would appeal to an increased number of consumers, whilst requiring minimal further investments. Such moves would not only increase the scope of their target market, but also assist in faster recovery of the current investments, after which the company can enjoy the increased profits. 22 Appendix Part 1 -Financial Analysis Current Ratio Year Current Assets (Rs '000s) Current Liabilities (Rs '000s) Current Ratio 2014 12,149,341 10,728,518 113.2434228 2015 7,311,829 8,937,728 81.80858715 Current Ratio 120 100 80 60 Current Ratio 40 20 0 2014 2015 Quick Ratio ( Acid Test) Current Assets exc inventory (Rs '000s) Year Current Liabilities exc long term debts(Rs '000s) Quick Ratio 2014 9,454,320 10,433,544 0.90614656 2015 4,513,765 8,605,764 0.524504855 23 Quick Ratio 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Quick Ratio 2014 2015 Asset Turnover Ratio Year Total Revenue (Rs '000s) Total Assets (Rs '000s) Asset Turnover Ratio 2014 25,804,319 24,064,784 107.2285502 2015 32,350,375 26,339,436 122.8210619 Asset Turnover Ratio 125 120 115 110 Asset Turnover Ratio 105 100 95 2014 2015 24 Net Profit Margin Year Net Profit (Rs '000s) Revenue (Rs '000s) Net Profit Margin 2011 788,537 11,250,330 7.00901218 2012 1,220,260 17,649,146 6.913988926 2013 1,045,905 22,191,670 4.71305224 2014 1,343,254 25,804,319 5.205539429 2015 1,330,320 32,350,375 4.112224356 Net Profit Margin 8 7 6 5 4 Net Profit Margin 3 2 1 0 2011 2012 2013 2014 2015 Return on Equity Year Return on Equity 2011 2012 2013 2014 2015 18.03 23.42 17.70 19.38 16.78 25 Return on Equity 25.00 20.00 15.00 Return on Equity 10.00 5.00 0.00 2011 2012 2013 2014 2015 Gearing Ratio Year Gearing Ratio 2013 2014 2015 47.28 47.24 58.70 Gearing Ratio 70 60 50 40 Gearing Ratio 30 20 10 0 2013 2014 2015 26 Market Capitalization Year Market Capitalization (Rs '000) 2011 2012 2013 2014 2015 16,000,000 15,960,000 26,640,000 31,280,000 48,000,000 Market Capitalization (Rs '000) 60,000,000 50,000,000 40,000,000 30,000,000 Market Capitalization (Rs '000) 20,000,000 10,000,000 0 2011 2012 2013 2014 2015 27 Part 2 - 5 year Plan Gantt Chart Gantt Chart for Lion Brewery 2016- 2021 1/16/20155/30/2016 10/12/2017 2/24/20197/8/202011/20/2021 Marketing Campaign for Tourist Hotels and other locations ( Brand Awareness) Introduce female friendly drinks with less alcohol percentage and different flavors Introduce beer cocktails at "Machan" restaurants Revamp the company activities computer based to get the maximum out of IT… Start retails sales and cut - off agents where possible to directly access the market. Demand forecasting and planning along with technology and have the rice in… Have deals with the suppliers for fixed price contracts during the off season. Expand the production into new areas such as energy drinks and other frizzy drinks … New products such as non alcoholic beer to reduce the tax income as well to capture… Selling off the licenses in the areas of low profit/revenue. Conduct campaigns to show the health concerns of illicit liquor. 28 Bibliography Beverage World - Beer. (2015, July 20). Retrieved from Beverage World: http://www.beverageworld.com/articles/full/17508/stars-in-our-eyes-part-2 Carson Cumberbatch PLC - Beverage. (2016). Retrieved from Carson Cumberbatch PLC : http://www.carsoncumberbatch.com/beverages/beverages.php Fitch Ratings LK - Lion Brewery (Ceylon) PLC. (2015). Retrieved from Fitch Ratings LK: http://www.fitchratings.lk/doc_view.php?doc=23_0&org=144 IBM_SAP. (2015). Lion Brewery (Ceylon) PLC taps into new regional markets with IBM and SAP. Johnson, G., Scholes, K., & Whittington, R. W. (2008). EXPLORING CORPORATE STRATEGY. Prentice Hall . Lion Beer - ABOUT LION. (2013). Retrieved from Lion Beer: http://lionbeer.com/about-us.html Lion_Brewery_(Ceylon)_PLC. (2015). Lion Brewery (Ceylon) PLC Annual Report 2014/15. Colombo: Lion Brewery (Ceylon) PLC. Porter, M. E. (2008). Competitive Advantage. In M. E. Porter, Competitive Advantage. What is a Cocktail. (2015, February). Retrieved from About Food: http://cocktails.about.com/od/history/a/cocktail_dfntn.htm World Beer Awards - Lion Stout. (2015). Retrieved from World Beer Awards: http://www.worldbeerawards.com/lion-stout.23516.html 29