Lao Brewery Co., Ltd-LBC
(presentation step 3)
Presented by:
INTHAVONG Saynakhone
NGO HUY Thang
DETCHANTHACHACK Khamthavisay
Agenda
Company recap
Two ways to form an alliance
Partners selection criteria
Evaluation sheet for a potential partner (Lao side)
Four manœuvres for three
How demanding is the environment?
Specified area for cooperation
Advantages/disadvantages of the alliance
Conclusion
Company recap
Carlsberg Breweries
of Denmark
50%
Carlsberg Asia
TCC
50%
LBC
Two ways to form an alliance
(Page 132)
Targeted resources
Formal search
Active and deliberate
quest for a partner
Chance encounter
External support
Emergence of a
privileged relationship
Test for congruence & search for an agreement
First alliance draft
* Case of LBC is highlighted in the red path
Four manœuvres for three moves
(Page 117)
Partner selection criteria
(page 133)
Carlsberg
Asia
Lao side
Financial assets
N
Y
Complementarities of capabilities
Y
Y
Unique competencies
Y
Y
Industry attractiveness
Y
Y
Cost of alternatives
Y
N
Market knowledge/access
Y
N
Intangible assets
N
Y
Managerial capabilities
N
Y
Capabilities to provide quality products/services
N
N
Willingness to share expertise
Y
Y
Previous alliance experience
Y
Y
Special skills that you can learn from your partner
N
Y
Technical capabilities
N
Y
Evaluation sheet for a potential partner
(Lao side)
Compatibility (between partners)
–
–
–
–
–
–
–
–
–
Socio-political environments
Objectives
HRM policies
Dividend policies
Reinvestment policies
Marketing practices
Financial and accounting practices
Culture and management styles
Attitudes towards profit and growth
(Modified from page 137)
Assessment Weighting
(1-10)
(0 - 1)
AXW
6
8
8
8
9
9
8
7
9
.12
.05
.03
.08
.05
.04
.05
.08
.07
.72
.40
.24
.64
.45
.36
.40
.56
.63
10
7
9
.10
.15
.18
1.00
1.05
1.62
Commitment
– Motivation
– Trust
– Financial commitment
SCORE
1.00
8.07
How demanding is the environment
(Page 125)
Environmental Criteria
Business uncertainty
Low (1)
High (5)
Innovation pace
Calm (1)
Fast (5)
Funds required
Limited (1)
High (5)
Business frontiers
Rigid (1)
Moving (5)
Governmental policies
Liberal (1)
Interventionnist(5)
Market situation
Open (1)
Constraining(5)
Special area for cooperation
(Page 141)
Centralization
Bound
Distribution
Unrestricted
Modes for
Organizing tasks
Time frame
cooperation
Stages of Value
Chain covered
Focus on one stage
Entire activity
*LBC cooperation area follows in red arrow
Duplication
Advantages/disadvantages of the
alliance
Advantages
– HRM: Improved staff
working system
– Technical development:
joint and exchange R&D
– High technology utilization
– Increase production
capacity and higher
standard
– Sharing knowledge
– Increase product portfolio
– Strong in financial asset
– LBC becomes stronger
Disadvantages
– Top management conflict:
long process decision
making lead to be slow
down an operation
– Culture misunderstanding
– Share benefit
Conclusion
LBC lies in the case of equity joint venture.
Comparing between two partners profiles, they
are exogamous.
Functional and operational activities are managed
by Lao side, only strategic level is managed
together.
LBC cooperation are based on centralization,
focuses on one stage (strategic level).
Selection before agreeing to join together were
made formally and carefully.
Sources:
Mr. Sounthone PHOMMACHACK (deputy managing director of LBC), information
obtained through emails and direct telephone calls.
www. Beer-lao.com
Any questions?