Michael Porters Analysis Of Starbucks Essay -- essays research papers

Michael Porter, a Harvard Professor introduces his ideology of the Five Forces model that shapes the competition in the industry. Each deposit is interrelated and therefore leads into the other to show the elements directly involved in the further success or ultimate success of the firm. Starbucks Coffee Co. throughout its human beings since 1971, with its great management team, innovative style of thinking and strong ordain to succeed in compliance with its mission and muckle statements has and continues to overcome its barriers by recognizing much(prenominal)(prenominal) strategic planning as those included in Porters five forces model. The model includes such components as Barriers to Entry, Supplier and Buyer Power, Threat of Substitutions, and around importantly the Industry Competitors. Starbucks throughout its existence has deal outed each and both one of Porters forces with a positive edge that has greatly contri howevered to the success of the society. Starbucks to ok many risks and fagged capital that it really did not have. To build a corporation establish on intuition and a trip to Italy has undoubtedly paid off in the long run which is evident throughout the year that Starbucks has been in operation. Howard Schultz, chief executive officer and founder of the beau monde, has stuck to his conviction not to sacrifice long-term integrity and values for short-term profit. He knew if he played his cards right and stuck to his guns it would only be a matter of time that Starbucks would become the world largest deep brown industry in the world. He wanted the company to become and international outlet for coffee consumers which not only included men and woman but also addresses the necessitate and wants of those of all ages and nationalities, children, students and any other category of people that have and pursual in Starbucks diverse product line. With constant dedication to the companys vision and mission statement and believing in the val ue of market dowery and name recognition and how critical they are to the success of the company, he was able to get hold of his goal within a few years. During this time of course he has been able to open a total of 1,100 stores and continues to do so until this day. Starbucks Coffee Co. continues to address the issues introduced in Porters Five-Force Model as such new(a) Entrants (Barriers to Entry i... ...mployees). Starbucks also only acquires companies that comply with the ethical beliefs and standards set forth by the company because it is believed that this is the only way a company merger weed survive or be successful in the long-term. When a foreign company does not comply with the standards set forth by them, Starbucks reacts instantaneously. An example of such an instance was in 1995 when they reacted to the neglectful treatment of the workers in Guatemala who were earning less than $3.00 a day, by enforcing a code of minimal working conditions and pay for foreign sub contractors. The companys guidelines call for overseas suppliers to pay wages and benefits that address the basic call for of workers and their families and to only allow child labor when it does not interrupt needed education (58-11). Starbucks can be considered a trendsetter not only in products but also in the area of work ethics by sticky to its mission of the company and applying it whether working domestic or foreign. Starbucks is socially responsible and responsive to not only the issues affecting the company and the employees but also to that of the fellowship through which they are able to exist. Michael Porters Analysis Of Starbucks Essay -- essays research papers Michael Porter, a Harvard Professor introduces his ideology of the Five Forces model that shapes the competition in the industry. Each force is interrelated and therefore leads into the other to show the elements directly involved in the further success or ultimate success of the firm. Starb ucks Coffee Co. throughout its existence since 1971, with its great management team, innovative style of thinking and strong will to succeed in compliance with its mission and vision statements has and continues to overcome its barriers by recognizing such strategic planning as those included in Porters five forces model. The model includes such components as Barriers to Entry, Supplier and Buyer Power, Threat of Substitutions, and most importantly the Industry Competitors. Starbucks throughout its existence has addressed each and every one of Porters forces with a positive edge that has greatly contributed to the success of the company. Starbucks took many risks and spent capital that it really did not have. To build a corporation based on intuition and a trip to Italy has undoubtedly paid off in the long run which is evident throughout the year that Starbucks has been in operation. Howard Schultz, CEO and founder of the company, has stuck to his conviction not to sacrifice long-te rm integrity and values for short-term profit. He knew if he played his cards right and stuck to his guns it would only be a matter of time that Starbucks would become the world largest coffee industry in the world. He wanted the company to become and international outlet for coffee consumers which not only included men and woman but also addresses the needs and wants of those of all ages and nationalities, children, students and any other category of people that have and interest in Starbucks diverse product line. With constant dedication to the companys vision and mission statement and believing in the value of market share and name recognition and how critical they are to the success of the company, he was able to achieve his goal within a few years. During this time of course he has been able to open a total of 1,100 stores and continues to do so until this day. Starbucks Coffee Co. continues to address the issues introduced in Porters Five-Force Model as suchNew Entrants (Barri ers to Entry i... ...mployees). Starbucks also only acquires companies that comply with the ethical beliefs and standards set forth by the company because it is believed that this is the only way a company merger can survive or be successful in the long-term. When a foreign company does not comply with the standards set forth by them, Starbucks reacts instantaneously. An example of such an instance was in 1995 when they reacted to the neglectful treatment of the workers in Guatemala who were earning less than $3.00 a day, by enforcing a code of minimal working conditions and pay for foreign subcontractors. The companys guidelines call for overseas suppliers to pay wages and benefits that address the basic needs of workers and their families and to only allow child labor when it does not interrupt required education (58-11). Starbucks can be considered a trendsetter not only in products but also in the area of work ethics by sticking to its mission of the company and applying it whe ther working domestic or foreign. Starbucks is socially responsible and responsive to not only the issues affecting the company and the employees but also to that of the community through which they are able to exist.

Abraham Lincoln And Slavery Essay -- Slavery Essays

Abraham capital of Nebraska and Slavery     What did Abraham Lincoln do and think regarding slavery during the Civil War? In Abrahams First Inaugural Address he states "I do only if quote from one of those speeches when I declare that I have no purpose, directly or indirectly, to interfere with the institution of slavery in the States where it exists. I believe I have no lawful right to do so, and I have no inclination to do so."" (Pg 53-54) Lincoln did non want the South to be afraid of his Republican Presidency either. That was why he made these statements at his Inauguration about slavery. Lincoln also duologue about leaving the returning of fugitive slave clause alone, and keeping it in the piece of music. He feels he should still abide by the clause because to Lincoln the intention of the lawgiver was the law. This clause was debated whether it was to be enforced by either national or state authority. " If the slave is to be surrendered, it can be of but little consequence to him, or to others, by which authority is done." (Pg 55)      Lincoln during his inauguration also talks of how Congress may prohibit slavery in the territories, and must Congress protect slavery in the territories? Lincoln says the Constitution does not say therefore it will not happen. Lincoln was a follower of the Constitution and did not plan on changing clauses. He abided by the fugitive slave clause and the suppression of the foreign s...

Ulysses S. Grant Essay -- biographies bio biography

Ulysses S. deed overOn April 27, 1822 a boy was born(p) to Jesse Root cede and HannahSimpson sacrifice in the small town of exhibit Pleasant, Ohio. They named theirson Hiram Ulysses generate. In 1823 the family moved to a town nearby calledGeorgetown, Ohio, where Ulysses father owned a tannery and somefarmland. cave in had two brothers and three sisters born in Georgetown. Ulysses attended school in Georgetown until he was 14. He then spent ane year at the honorary society in Maysville, Kentucky, and in 1838, he entered anacademy in nearby Ripely, Ohio. Early in 1839, his father learned that aneighbors son had been dismissed from the U.S. Military Academy. Jesseasked his spokesperson to appoint Ulysses as a replacement. Thecongressman made a mistake in dispenses name. He musical theme that Ulysses washis first name and his nub name that of his mothers maiden name. ButUlysses never corrected the mistake.Grant was an average student at wolfram Point. He spent more or les s of his freetime reading novels and little time studying. He ranked high in math and wasvery life-threatening at horsemanship. Ulysses did not wish well the military life and had nointention of making it his career. Instead he considered teaching mathematicsin a college. Grant graduated from West Point in 1843 and was commissioned asecond lieutenant. He was assigned to the 4th Infantry Regiment stationednear St. Louis. It was there that he met Julia Dent. They fell in fuck and soonbecame engages. The threat of war with Mexico delayed their weddingplans. In 1847, Grant took part in the capture of Mexico City and won apromotion for his science and bravery. He reached the rank of 1st Lieutenant bythe end of the war. Grant returned to St. Louis as soon as he could and onAug. 22, 1848, he was married to Julia Dent. During their marriage, theGrants had four children Frederick, Ulysses S. Jr., Ellen, and Jesse Root Jr.Civil War EraGrant was almost 39 years oldish when the Civil War be gan in 1861. Hehad freed his only slave in 1859 and strongly opposed secession. AfterPresident Abraham Lincoln called for Army volunteers, Grant helped practice a federation that was organize in Galena. Then he went to Springfield, the statecapital, and worked for the Illinois assistant general. Grant asked the federalgovernment for a commission as colonel, besides his requ... ...e ring from exposure. Grant stoutly defended Babcock, who wascleared of the charges. Many other officials were convicted of defrauding thegovernment. In spite of the growing list of scandals, many Republicanleaders wanted to post Grant for a triplet term as president. But Grantrefused to run again. In June 1876, the Republicans nominated GovernorRutherford B. Hayes of Ohio for president. Hayes won the governing body by a boundary line of only one electoral vote. When Grant retired in 1879, he had round $100,000 in savings anddecided to invest it in a banking firm called Grant & Ward. His son was apa rtner in this company. Grant knew nothing about banking, but his sonassured him that Ferdinand Ward was a financial genius. The collapse of thecompany came in 1884 leaving Grant almost penniless. In order to make aliving after this great loss, Grant began writing magazine articles about hiswar experiences. Soon he began to write his memoirs. The memoirs were agreat success and earned Grants family about $500,000. In 1885, Grant moved to burn down McGregor, New York, near Saratoga. Grant died on July 23,1885 from cancer. His wife later died in 1902. Ulysses S. Grant Essay -- biographies bio biography Ulysses S. GrantOn April 27, 1822 a boy was born to Jesse Root Grant and HannahSimpson Grant in the small town of Point Pleasant, Ohio. They named theirson Hiram Ulysses Grant. In 1823 the family moved to a town nearby calledGeorgetown, Ohio, where Ulysses father owned a tannery and somefarmland. Grant had two brothers and three sisters born in Georgetown. Ulysses attend ed school in Georgetown until he was 14. He then spentone year at the academy in Maysville, Kentucky, and in 1838, he entered anacademy in nearby Ripely, Ohio. Early in 1839, his father learned that aneighbors son had been dismissed from the U.S. Military Academy. Jesseasked his congressman to appoint Ulysses as a replacement. Thecongressman made a mistake in Grants name. He thought that Ulysses washis first name and his middle name that of his mothers maiden name. ButUlysses never corrected the mistake.Grant was an average student at West Point. He spent most of his freetime reading novels and little time studying. He ranked high in math and wasvery good at horsemanship. Ulysses did not like the military life and had nointention of making it his career. Instead he considered teaching mathematicsin a college. Grant graduated from West Point in 1843 and was commissioned asecond lieutenant. He was assigned to the 4th Infantry Regiment stationednear St. Louis. It was there that he met Julia Dent. They fell in love and soonbecame engages. The threat of war with Mexico delayed their weddingplans. In 1847, Grant took part in the capture of Mexico City and won apromotion for his skill and bravery. He reached the rank of 1st Lieutenant bythe end of the war. Grant returned to St. Louis as soon as he could and onAug. 22, 1848, he was married to Julia Dent. During their marriage, theGrants had four children Frederick, Ulysses S. Jr., Ellen, and Jesse Root Jr.Civil War EraGrant was almost 39 years old when the Civil War began in 1861. Hehad freed his only slave in 1859 and strongly opposed secession. AfterPresident Abraham Lincoln called for Army volunteers, Grant helped drill acompany that was formed in Galena. Then he went to Springfield, the statecapital, and worked for the Illinois assistant general. Grant asked the federalgovernment for a commission as colonel, but his requ... ...e ring from exposure. Grant stoutly defended Babcock, who wascleared of the charges. Ma ny other officials were convicted of defrauding thegovernment. In spite of the growing list of scandals, many Republicanleaders wanted to nominate Grant for a third term as president. But Grantrefused to run again. In June 1876, the Republicans nominated GovernorRutherford B. Hayes of Ohio for president. Hayes won the presidency by amargin of only one electoral vote. When Grant retired in 1879, he had about $100,000 in savings anddecided to invest it in a banking firm called Grant & Ward. His son was apartner in this company. Grant knew nothing about banking, but his sonassured him that Ferdinand Ward was a financial genius. The collapse of thecompany came in 1884 leaving Grant almost penniless. In order to make aliving after this great loss, Grant began writing magazine articles about hiswar experiences. Soon he began to write his memoirs. The memoirs were agreat success and earned Grants family about $500,000. In 1885, Grant moved to Mount McGregor, New York, near Saratoga. Grant died on July 23,1885 from cancer. His wife later died in 1902.

Free Essay on Nathaniel Hawthornes Scarlet Letter - The Character of Pearl :: Scarlet Letter essays

The Character of pull together in The Scarlet Letter Pearl was known as the devils child when she was young. She would have temper tantrums and do things her mother did non like. Pearl didnt know the full-strength meaning of he letter on her mothers bosom. When the book ended, it did not say what happened to Pearl and how she lived her life from there. I believe that after Dimmesdale died and as Pearl got older, Hester told her what the true meaning of the scarlet letter was. I think Pearl al charges remembered that she was the result of that letter on her mothers bosom. To that, she would live her life truly and honestly. I assume that Pearl grew up to be a beautiful woman. I believe she married a wonderful husband, was rue to him, and both made a good living. I think they lived in a nice al-Qaida and were known by some other people. They both loved their life and lived it the best they could. Pearl and her husband eventually had children. She would have taug ht them to do what is right and many other good things. She would have told her children about the scarlet letter that her mother once had to wear. How she wore it because of what she did wrong, and how she lived her own life because of it. Pearl would have brought her children up the right way and how she thought was good. They would have lived a good lifestyle and done many things together as a family. Pearl and her husband stuck together and were truthful to each other. I think Pearl lived up to her ability and was a hard worker. She lived by Gods rules and did what was right. Because of knowing what her mother did, I believe that she lived an honest life. She told the truth and was true to herself and others around her. She knew right from wrong. I can see that Pearl would have helped people out and would have done many good and godly things for others. In conclusion, I think all the doings and actions of Pearl were honest and true because of how her own mother brought her up and how her mother lived her own life.

Marriage in 18th Century Europe Essays -- European History

Marriage in 18th Century EuropeThe study movement regarding marriage in the eighteenth century was from church to state. Marital laws and customs, once administered and governed by the church, increasingly came to be controlled by legislators who passed many laws restricting the lot and legality of marriages. These restrictions tended to represent the interests of the wealthy and uphold patriarchal tradition. Backlash to these restrictions produced a number of undesirable put ons, including promiscuity, wife-sale, and divorce. Before the eighteenth century, marriage was far less complicated. communicatory consent and consumation constituted legal marriage once the knot was tied by such verbal exchanges it could not be und unrivaled a sound marriage was technically indissoluble. Such vows could be made, moreover, by boys the age of fourteen and girls of twelve (Outhwaite xiii). The laws that began to be passed in the 1700s were decidedly un-religious, designed mostly to protect patriarchy and wealth. Much of the marriage laws passed during this period reflect the prevailing opinion of women as childlike, frivolous, and simpleminded. As Rousseau put it, little girls always dislike learning to read and write, merely they are always ready to learn to sew. Custom made man undisputed lord of the home (Murstein 220) and laws were passed to solidify this position Upon marriage, husband and wife became one- and that one was the man. Her land became his, as did her debts. The structure of eighteenth century society made this necessary, especially for the lower classes a familys income would be totally based on the earning former of the man. Thus, logic dictated that he control all the finances. Even so, some of the l... ...who could not afford several licences, and a big wedding or dowry. wither marriages were very common in the first half of the eighteenth century. These were marriages performed by defrocked and disreputable ministers for cash, often through t he bars of a debtors prison on Fleet street. one(a) such minister was so successful that in the same one-year period that he performed 6000 marriages, only fifty regular contracts were solemnized in the neighboring St. Anness church. Although this practice was banned by the Marriage Act of 1753, it just goes to show that marriage and love cannot be regulated by monetary concerns. Works CitedMurstein, Bernard I. Love, Sex, and Marriage finished the Ages. ???? Outhwaite, R.B. Clandestine Marriage in England 1560-1850. Hambledon Press, NY 1995. Stone, Lawrence. Road to Divorce Oxford University Press, Oxford l990.

Accounts of Attila :: Rome History Attila Essays

Accounts of AttilaWorks Cited MissingIn Priscus 449 account, Attila behaves as a leader who does not merely stir the Roman Emperor, but is in fact superior to the Emperor. Furthermore, he exhibits both Roman and barbarian traits. In addition, Priscus does not use the same vocabulary as utilized in the Anonyomus Account to describe Attila. That is, Attila is not depicted as a brutal barbarian warlord or a savage pagan rather, he is depicted as a leader who is familiar with Roman customs, in possession of luxuries similar to those of capital of Italy, and skilled at political intrigue and manipulation. Priscus account is similar to Prospers account as it seems to be relatively objective and merely explains the events that transpired (outside of Priscus obvious bias, as he was a civil servant and championed the publicity of the Roman systems of law, taxation, and self defense to the Greek Scythian Priscus, 204). Additionally, Jordanes account is similar to the Anonyomus Account because they are both subjective (i.e., Jordanes depicts Attila favorably while he is manifestly held in ill favor by the author of the Anonyomus Account). Moreover, all four sources have one theme in common Attila was perceived to be a legitimate threat to Rome. Attilas treatment of the Roman embassies in the beginning of Priscus account shows that Attila was not afraid to treat the Roman delegation rudely. Indeed, he refused to meet the ambassadors himself and sent his emissaries to do so, although he knew this was not the Roman custom and his ambassadors had received proper treatment on previous occasions in Rome (Priscus, 202). Furthermore, Attila had been known to claim that, his own subjects were generals of Theodosius and that his own generals were of equal worth to the Emperors of Rome ( Priscus, 206). Thus implying that he believed he was superior to the Emperor. In addition, Attila was so bold as to demand Ambassadors with higher ranks (Priscus, 206). At tila exhibited Roman and barbarian traits. Unlike the Emperor, who led a republic, he was a barbarian king who ruled over a Monarchy. In addition, Attila differed from the Emperor since he was a warrior king who carried arms and participated in battle as evidenced by Jordanes description of his participation in the battle on the Catalaunian Plains (Jordanes, 101-104).

Accounts of Attila :: Rome History Attila Essays

Accounts of AttilaWorks Cited MissingIn Priscus 449 bill, Attila behaves as a leader who does not solely rival the Roman Emperor, but is in fact superior to the Emperor. Furthermore, he exhibits both Roman and barbarian traits. In addition, Priscus does not use the same vocabulary as utilized in the Anonyomus Account to describe Attila. That is, Attila is not depicted as a brutal barbarian warlord or a savage hedonist rather, he is depicted as a leader who is familiar with Roman customs, in possession of luxuries similar to those of Rome, and skilled at political intrigue and manipulation. Priscus account is similar to Prospers account as it seems to be relatively objective and merely explains the events that transpired (outside of Priscus obvious bias, as he was a civil handmaid and championed the promotion of the Roman systems of law, taxation, and self defense to the Greek Scythian Priscus, 204). Additionally, Jordanes account is similar to the Anonyomus Account because they are both subjective (i.e., Jordanes depicts Attila favorably while he is apparently held in ill favor by the author of the Anonyomus Account). Moreover, all four sources have one theme in common Attila was perceive to be a legitimate threat to Rome. Attilas treatment of the Roman embassies in the beginning of Priscus account shows that Attila was not afraid to treat the Roman commissioning rudely. Indeed, he refused to meet the ambassadors himself and sent his emissaries to do so, although he knew this was not the Roman custom and his ambassadors had received proper treatment on previous occasions in Rome (Priscus, 202). Furthermore, Attila had been known to claim that, his own subjects were generals of Theodosius and that his own generals were of equal worth to the Emperors of Rome ( Priscus, 206). Thus implying that he believed he was superior to the Emperor. In addition, Attila was so inconsiderate as to demand Ambassadors with higher ranks (Priscus, 206). Attila exhibited Roman and barbarian traits. Unlike the Emperor, who led a republic, he was a barbarian king who ruled over a Monarchy. In addition, Attila differed from the Emperor since he was a warrior king who carried arms and participated in engagement as evidenced by Jordanes description of his participation in the battle on the Catalaunian Plains (Jordanes, 101-104).

The Prodigal Son

Professor M. Smith English 101 The Prodigal Son, a parable told by Jesus Christ on his go to Jerusalem and retold in the Gospel of Luke found in the New Testament of the Holy Bible, has become more then a tale of hope for Catholic families to hold on to but for in all told families to hold on to the faith they gull for their children, the new generation, to do right in the world.In m whatsoever cases there is a rebellious child who wishes and tries to break away from the rest of the family because he or she is feed up with the rules of the house laid down by the refers and believe they keep live a lifestyle of their choosing, recklessly and with no thought of consequences that inevitably follows. Without guidance from our love ones, there is no perseverance and with no perseverance, happiness cannot exist.The meat Jesus Christ was trying to convey is that idol is patient and all forgiving of us but, it is up to us the sinners to realize that we truly need this gentleness in our lives to move ahead in a positive manner that will reward us during our remainder on Earth and in nirvana to come. A parable is a short story with the intent to teach a lesson to its audience (OED). I believe, though the tale is of Christianity descent, religious followers of any practice as well as atheists can relate to this story to themselves at one point in their lives or another.As a loving parent I wish all the wonders of the world for my child and for him to reach great achievements throughout his life that are more important than just being financially secure and materialized. These achievements are too have a better understanding of how to live a more fulfilling life and if religious, have faith in God that Thy will guide you to all that is bliss in the world. I can proudly say that many parents live like I do, for the gratitude of their childs or childrens well being. In this parable, the father exemplifies a true meaning of love for his child.As the story begins, th e father is asked by his youngest son to divide all the estate that will be given to him and his older brother once he passes away. The loving father is left with two choices, ignore his youngest sons selfish request and ostracize him, if willing to, from the home or grant the request and wait suffering for his son to submit, breaking of his poor judgment and perfidy to his father. A numerous amount of parents teach their kids valuable lessons by allowing them to experience hands on rather than just verbally expressing what could ultimately happen.As human beings we learn much through trial and error in efforts that we can grasp the meaning of right from treat and avoid making the same mistakes over once more throughout our lives. Not many days later, the younger son gathered all he had and took a journey into a far country, and there he squandered his property in reckless living (Luke 15 verse 13). The young son proved to be irresponsible and became needy. In efforts to survive he feed pigs for a living but pondered the thought of living at home. How many of my fathers hired servants have more than enough bread, but I fleet here with hunger I will arise and go to my father, and I will say to him, Father, I have sinned against heaven and before you. I am no longer worthy to be called your son. Treat me as one of your hired servants (17-19). The son did not come to this decision because he acknowledged his wrong doing but simply desperation to feed himself. He believed in doing this act he would have to deal with the anger and rejection of his father and older brother.He was overwhelmed with fear when he saw his father running toward him but he noticed that the expression on his fathers face was full of joy. But while he was still a long way off, his father saw him and felt compassion, and ran and embraced him and kissed him. And the son said to him, Father, I have sinned against heaven and before you. I am no longer worthy to be called your son (20-21) an d his manipulative speech dissolved into nothing. It was the fathers love and acceptance that showed his son forgiveness.He called for the servants to cloth and work a feast for the croak of the Prodigal son, a person who leaves home and behaves in such a way, but later makes a repentant return (OED), because for this my son was dead, and is alive again he was lost, and is found (24). Rather than just interpreting this parable as a religious lesson, that God waits for us to return to his love through penance and goodwill, we can use this as a guide to lead us to gain a better understanding and amour with not just our parents but with all of whom weve been in contact with.Its not an easy thing to do but, quite alright to fail and take up to being wrong because forgiveness doesnt begin with God but within us. In some shape or form we have all played the role of the young son, arrogant and lost. Some of us realize, faster than others, that we need forgiveness to overcome. Some of u s havent forgiven yet those that have hurt us in the past, like the older brother who refused to part take in the return of his young sibling. Forgiveness is a powerful calamus that we all possess and that we should all utilize on those who truly seek it.

Annual Report

A N N U A L R E PO RT 2 01 1 2011 was the socio-e victimizeomic class in which Carlsberg Malaysia moved transparently ship. With the successful execution of the late orbicular berthing and bold cutting advancement, we reinforced the ahead(p) position of our ? agship grime, Carlsberg parking area tail, and reinforced our large premium beer say to emerge as a stronger multi- differentiate portfolio company. Through enhancing working(a) ef? ciencies and advancing people empowerment efforts, we made great strides frontward on the in operation(p) front and expected masterfessionalfessional person? table, sustainable proceeds. pathetic boldly orward We strive to become the prefer partner of our customers and the preferred choice of our consumers by offering a dynamic portfolio of beverage cracks yearly Report 2011 1 Whats Inside 2 3 4 12 18 20 22 24 52 58 61 68 Carlsberg Malaysia mathematical group of Companies 2011 Achievements electric chairs acknowledgmen t freshen of trading operations by Managing film director Review of Carlsberg Singapores Operations Management Team Management Team Pro? le mail Portfolio pecuniary Summary theatre directors Pro? le mastergram line of Corporate Governance Statement of Internal Control and Corporate Risk Management 1 Audit Committee Report 76 Responsibility Statement 77 136 137 138 140 141 142 Financial Statements by the Board of theatre directors Carlsberg Malaysias Sales Of? ces Particulars of concourse Properties Analysis of Sh beholdings Material Contracts List of Recurrent Related ships company Transactions Notice of 42nd yearly General Meeting Form of Proxy 151 Corporate Information 2 Carlsberg Brewery Malaysia Berhad (9210-K) Carlsberg Malaysia root* Manufacturing of beer, stout and other malt related beverages Sales and distribution of beer, stout, wines, liquor and other beverage point of intersections ar d adept via the following subsidiariesSingapore Carlsberg Singapore Pte Ltd Shareholding 100% KEY BRANDS Carlsberg Green Label, CARLSBERG BREWERY MALAYSIA BERHAD KEY BRANDS MANUFACTURED (INCLUDING LICENSED PRODUCTS) Carlsberg Green Label, Carlsberg opulent, Carlsberg special(prenominal) Brew, Danish lofty Stout, SKOL, SKOL crack, Connors Stout, Asahi Super Dry, Jolly Shandy, Nutrimalt. Malaysia Carlsberg Marketing Sdn Bhd Shareholding 100% KEY BRANDS Carlsberg Green Label, Carlsberg Gold, Danish over-embellished Stout, Kronenbourg 1664, Kronenbourg Blanc, SKOL, Corona Extra. Presence in Sri Lanka foodstuff via the following associated companyCarlsberg Gold, Carlsberg Special Brew, Danish Royal Stout, SKOL, SKOL Super, Connors Stout, Kronenbourg 1664, Kronenbourg Blanc, Corona Extra, Asahi Super Dry, Jolly Shandy, Nutrimalt. Sri Lanka king of beasts Brewery (Ceylon) PLC Shareholding 24. 6% KEY BRANDS MANUFACTURED, SOLD AND DISTRIBUTED Carlsberg Green Luen Heng F & B Sdn Bhd Shareholding 70% KEY BRANDS Hoegaarden, Stella Artois, Budweiser, Foster s, Erdinger, Leffe, Becks, Savanna, and numerous other wine and spirit smears. Label, Lion Lager, Lion Stout, Carlsberg Special Brew, Lion Strong Beer. * Carlsberg Malaysia or The conclave Annual Report 2011 3 2011 Achievements First ever Carlsberg theme Cash Race Prize for Asia For the very ? rst time for an Asian merchandise, Carlsberg Malaysia won the Carlsberg Groups Cash Race Prize. The prize was a result of the signi? cant improvements delivered by Carlsberg Malaysia following a renewed counsel on capital management in the Asian sphere. Carlsberg Group portion out for Community Engagement Carlsberg Malaysia was named winner of the Carlsberg Groups We are Engaged with Society Award at the CEO assemblage in Kiev, Ukraine in June 2011.Carlsberg Malaysia won this award for impacting hundreds of schools, institutions and communities with its education fundraising platforms. Asia Responsible Entrepreneurship Awards (AREA) 2011 Counted among the top three exemplary companies in Asia, Carlsberg Malaysia received the Asia Responsible Entrepreneurship Awards (AREA) 2011 in the grade of Social Empowerment. Second Gold at the Putra Brand Awards 2011 Carlsberg for the second consecutive year won Gold at the Putra Brand Awards Alcoholic Beverage category.Organised in association with the Malaysias Most Valuable Brands, the Putra Brand Awards is a brand valuation exercise that recognises brands that are near and dear to the hearts of Malaysians. Thirteenth Gold Award at the Readers house certain Brand Awards 2011 The Carlsberg brand was voted the Gold winner at the Readers Digest Trusted Brand Awards for the 13th consecutive year. Recognised as one of the most representative and objective branding resumes in the region, the Readers Digest survey was carried out in eight markets across South East Asia. Carlsberg came up as the preferred brew. 4Carlsberg Brewery Malaysia Berhad (9210-K) Annual Report 2011 5 Chairmans Address The Group off-key in a pro? t a fter tax of RM167. 4 million, a 24. 8% growth in comparison to pro? t after tax of RM134. 1 million in 2010. Dear Shareholders, Carlsberg Malaysia delivered another year of strong growth on the venture of commendable ? nancial and operable act in 2011. In line with our annual report theme Moving Boldly Forward, the entire fundamental law worked diligently to reinforce the conduct position of our jewel in the crown, Carlsberg Green Label, whilst strengthening our extensive premium beer range.Today, having emerged as a multi-brand portfolio company focused on delivering sustainable revenue and lettuce growth, Carlsberg Malaysia is a much stronger contender in the Malt Liquor Market. On behalf of the Board of Directors, it is my pleasure and privilege to present the Annual Report and Audited Financial Statements of Carlsberg Brewery Malaysia Berhad for the ? nancial year ended 31 declination 2011. A Weaker Operating Environment The year 2011 axiom the international economy reg istering a relatively weaker performance as compared to the front year.The slower growth was attributable to unprecedented political turmoil in the Middle East and North Africa, a series of massive natural disasters slightly the globe, and the crises that hit the advanced economies. On the Malaysian front, domestic demand remained resilient in 2011, with private consumption remaining gamy, underpinned by a healthy weary market and ? rm commodity prices. The Governments ? scal and monetary policies remained accommodative and supported growth during the year. Malaysia registered lower crude(a) domestic product growth of 5. 1% in 2011 as compared to GDP growth of 7. 2% registered the year before. Robust Financial cognitive operationAgainst this backdrop, the Carlsberg Malaysia Group go on to grow in line with the market to sequestrate a healthy market partake in in the premium segment. In 2011, Carlsberg Malaysia generated revenue amounting to RM1. 5 billion, an 8. 9% summati on over the preceding years RM1. 4 billion. The Group turned in a pro? t after tax of RM167. 4 million, a 24. 8% growth in comparison to pro? t after tax of RM134. 1 million in 2010. Our strong performance came on the back of the successful roll out of 2011s global Carlsberg brand packaging revamp and innovative consumer promotions under a new global brand tagline, That C every last(predicate)s for a Carlsberg. Carlsberg Brewery Malaysia Berhad (9210-K) Chairmans Address Our subsidiary Carlsberg Singapore Pte Ltd (CSPL) and associate company, Lion Brewery Ceylon PLC, too delivered double up digit growth in revenue and earnings for 2011. The Group to a fault made strong inroads into the premium beer segment by leverage the strengths of subsidiary Luen Heng F & B Sdn Bhd (LHFB) and its impressive super premium beer range. Additionally, price ef? ciencies were optimised with strong operational synergies between our Malaysian and Singaporean businesses. Raising the Bar on Performance During 2011, we took many initiatives to improve performance.On the consumer and customer fronts, our teams worked hard to reinforce and promote the Carlsberg brand via exclusive and engaging brand bewilders. Carlsbergs position as Malaysias leading beer brand was reaf? rmed when it was selected for the coveted Gold Award at the 2011 Putra Awards. We were also accorded the Most Trusted Brand by Readers Digest readers in Malaysia and Asia for the 13th consecutive year, the only brand in the beer category to receive this. To reaf? rm our position at the forefront of product innovation, we focused our efforts on driving our beer brands.We brought new drinking experiences to our consumers and pursued beverage opportunities that reinforced our core competencies and infrastructure. We dwelld to tap LHFBs impressive super premium beer portfolio comprising the No. 1 imported beer, Hoegaarden, as hale as the fast growing Asahi, Erdinger and Budweiser brands. We also went on to invest in the Carlsberg Group-owned premium brands Kronenbourg 1664 and Kronenbourg Blanc, while acquiring the rights to locally manufacture, sell and distribute Asahi Super Dry, the No. 1 beer from Japan.The growth of all these brands did much to bolster our position in the super premium beer segment. We also revitalised the SKOL Brand and re-energised the Danish Royal Stout brand so as to cater for different consumer segments and needs. Shareholder Value Creation In line with our commitment to delivering value to our shareholders and after considering the Groups funding requirements, the Board of Directors is blessed to propose the distribution of 100% of the Groups 2011 pro? ts. The Board of Directors is recommending a ? nal and special dividend of 65. 5 sen per familiar share of RM0. 0 less Malaysian income tax and a special tax exempt dividend of 2. 0 sen per ordinary share of RM0. 50. Together with the interim gross dividend of 5. 0 sen per ordinary share of RM0. 50, the total gross d ividend for the ? nancial year 2011 is 72. 5 sen per ordinary share of RM0. 50 (2010 total gross dividend of 58. 0 sen per ordinary share of RM0. 50). The ? nal and special dividends and tax exempt dividend allow for be tabled for shareholders approval at the coming annual general meeting on 26 April 2012. The Group continues to order ef? ciency improvements and people development efforts.In 2011, we continued to optimise our cost structure and asset base by leveraging some(prenominal) global and local initiatives as well as the strong operational synergies between our Malaysian and Singapore businesses. The establishment of a Continuous Improvement (CI)-LEAN class empowered shop ? oor employees to improve the mien things were done and deliver respectable ef? ciency improvements and cost savings. On the people front, we set out to inculcate a performance purification and leadership culture ground on trust, ownership and diversity. All these efforts led to renewed employee con ? ence in Carlsberg Malaysia as a company. Responsible Corporate Practices Carlsberg Malaysia remains committed to growing pro? tably in a responsible manner. To this end we have integrated responsible corporate practices into our total business operations and value chain to drive pro? table, sustainable growth. I am pleased to announce that Carlsberg Malaysia has developed a new format Corporate Social Responsibility (CSR) Report which provides insights into the tangible outcomes we are delivering in the areas of the Marketplace, Community, Workplace and Environment.Our stand alone CSR Report underscores Carlsberg Malaysias commitment to goodness CSR practices as well as re? ects how deeply ingrained these elements are within our people and businesses. Annual Report 2011 7 Our strong performance came on the back of the successful roll out of 2011s global Carlsberg brand packaging revamp and innovative consumer promotions under a new global brand tagline, That Calls for a Carlsberg. We are committed to elevating the wellbeing of communities under our guiding dominion Sharing with the Community Unconditionally. 2011 apothegm us continuing to roll out our ? agship charity campaign Top Ten which entered its 25th year in 2011. virtuoso of the most established and transparent fund raising platforms for Chinese education, Top Ten successfully raised RM20 million in 2011. All in all, this habitual initiative has raised more(prenominal) than RM369 million for 588 Chinese schools and institutions nationwide to date. In 2011, we also set out to strengthen our ties to Tamil education by introducing the side of meat Essentials and Back to School projects for students from Tamil schools in Peninsular and East Malaysia.For our efforts, Carlsberg Malaysia won an award in the Social Empowerment category of the Asia Responsible Entrepreneurship Awards (AREA) 2011. We were also accorded the Carlsberg Groups We are Engaged with Society Winning Behaviours Award 2010. Going f orward, we remain committed to supporting the Governments Economic Transformation Programme (ETP) and Malaysias ambition of becoming a developed and high income nation by 2020. We will align our objectives to support the ETP and other economic priorities particularly through and through focusing our efforts in the tourism, distributive trade and expatriate domains.We are already indirectly supporting the Governments tourism efforts through our support of major(ip) sports, food and fashion events. As we move boldly but cautiously forward into yet another challenging year, the Board of Carlsberg Malaysia remains committed to delivering pro? table, sustainable growth. Pro? tability will be driven by Malaysias leading beer brand, Carlsberg Green Label, and supported by a strong premium brand portfolio. We have set our sights on becoming the rural areas most vibrant portfolio company in the near future and will undertake raptorial but prudential strategies to get us there quickly.Ope rationally, we will continue to optimise cost ef? ciencies and capacity utilisation in the brewery as well as leverage continuous improvement initiatives to deliver robust operational performance. On the people front, we will continue to invest in this key asset by inculcating a strong performance culture. All these, among other measures, will ensure that Carlsberg Malaysia continues to make strong come along. In Appreciation On behalf of Carlsberg Malaysias Board of Directors, I wish to express my utmost gratitude to our management team and staff for their unyielding loyalty, hard work and commitment to excellence.The successes of 2011 came on the back of their relentless focus and efforts. Our good appreciation goes to all our other stakeholders, including our distributors, suppliers, customers and consumers. convey you for your unwavering support of the Group all these old age. It is with great sadness that I take this opportunity to record the enormous contribution to the G roup over many historic period by our late Deputy Managing Director, Dato Chin Voon Loong who passed away on 16 March 2012.I would also alike to express my sincere appreciation to my colleagues on the Board for their wise counsel and guidance. Last but not least, my deep gratitude to our shareholders for your continued support and steadfast con? dence in Carlsberg Malaysia. We aspect forward to engage new heights of excellence and creating strong shareholder value as we stride con? dently forward into 2012. Thank you. Moving Boldly Forward The economic environment is expected to remain challenging in 2012 and this is expected to affect Malaysia particularly in terms of exports.However, the country is expected to be supported by resilient domestic demand, supported primarily by the continued expansion of private sector activity. Public sector expenditure too is expected to lend strong support to Malaysias overall growth performance. Given this outlook, the Carlsberg Malaysia Grou p welcomes the Malaysian Governments prudent stand to not further increase excise duties for beer and stout in 2012 as Malaysias duties are already the second highest in the world. Dato Lim Say Chong Chairman Shah Alam 4 April 2012 Carlsberg Brewery Malaysia Berhad (9210-K) Ucapan Pengerusi Para pemegang saham yang dihormati, Carlsberg Malaysia telah menyampaikan satu lagi tahun pertumbuhan yang kukuh berlandaskan prestasi kewangan dan operasi yang baik dalam 2011. Selaras dengan tema laporan tahunan kami Melangkah ke Hadapan dengan Penuh Keyakinan (Moving Boldly Forward), seluruh organisasi telah bejerka dengan gigih bagi mengukuhkan kedudukan jenama terulung kami, Carlsberg Green Label, sementara memperkukuhkan rangkaian bir premium meluas kami.Hari ini, setelah muncul sebagai sebuah syarikat portfolio pelbagai jenama yang menumpu pada penyampaian pertumbuhan pendapatan dan perolehan yang mampan, Carlsberg Malaysia kini adalah pencabar yang lebih mantap dalam Pasaran Arak Malt. Ba gi Pihak Lembaga Pengarah, saya berbesar hati dan dengan hormatnya membentangkan Laporan Tahunan dan Penyata Kewangan Beraudit Carlsberg Brewery Malaysia Berhad untuk tahun kewangan berakhir 31 Disember 2011. Prestasi Kewangan yang Teguh Dengan latar belakang ini, Kumpulan Carlsberg Malaysia terus berkembang selaras dengan pasaran untuk meraih agihan pasaran yang agak baik dalam segmen premium.Pada 2011, Carlsberg Malaysia telah mencatat pendapatan berjumlah RM1. 5 bilion, satu peningkatan sebanyak 8. 9% berbanding RM1. 4 bilion pada tahun sebelumnya. Kumpulan telah merekodkan keuntungan selepas cukai berjumlah RM167. 4 juta, satu peningkatan sebanyak 24. 8% berbanding keuntungan selepas cukai sebanyak RM134. 1 juta dalam 2010. Prestasi mantap kami dicapai melalui pelaksanaan yang berjaya pengubahsuaian pembungkusan jenama Carlsberg global pada tahun 2011 serta promosi pengguna yang inovatif di bawah slogan jenama global baru, That Calls for a Carlsberg. Syarikat subsidiari kami Car lsberg Singapore Pte Ltd (CSPL) dan syarikat bersekutu, Lion Brewery Ceylon PLC, juga menyampaikan pertumbuhan angka berganda dalam pendapatan dan perolehan untuk 2011. Kumpulan juga telah mengorak langkah yang mantap ke dalam segmen bir premium dengan memanfaatkan keteguhan subsidiari Luen Heng F & B Sdn Bhd (LHFB) dan rangkaian bir premiumnya yang amat mengagumkan. Tambahan lagi, keberkesanan kos telah dioptimumkan melalui sinergi operasi yang kukuh di antara perniagaan kami di Malaysia dan Singapura. Meningkatkan Tahap PrestasiKami telah mengambil pelbagai inisiatif untuk meningkatkan prestasi dalam tahun 2011. Dari segi pengguna dan pelanggan, pasukan kami telah berusaha dengan gigih untuk memperkukuh dan mempromosikan jenama Carlsberg melalui pengalaman jenama yang eksklusif dan menawan. Kedudukan Carlsberg sebagai peneraju jenama bir di Malaysia telah disahkan semula apabila ia dipilih untuk menerima Anugerah Emas terkemuka di Anugerah Putera 2011. Kami juga telah menerima anu gerah Jenama Paling Dipercayai oleh para pembaca Readers Digest di Malaysia dan Asia untuk 13 tahun berturut-turut, satusatunya jenama dalam kategori bir untuk mendapat penganugerahan ini.Bagi mengesahkan lagi kedudukan kami sebagai peneraju dalam inovasi produk, kami menumpukan usaha kami terhadap pemacuan jenama bir kami. Kami memperkenalkan pengalaman meminum yang baru kepada pengguna kami dan mengejar peluang minuman yang memperkukuhkan kecekapan teras dan infrastruktur kami. Kami juga terus mempergunakan portfolio bir amat premium LHFB yang mengagumkan yang termasuk bir diimport Nombor 1, Hoegaarden, serta jenama-jenama yang pesat tumbuh seperti Asahi, Erdinger dan Budweiser.Kami juga melabur dalam jenama premium yang dimiliki Kumpulan Carlsberg, iaitu Kronenbourg 1664 dan Kronenbourg Blanc, sementara memperoleh hak mengeluarkan secara tempatan, menjual dan mengedar bir Nombor 1 dari Negara Jepun, Asahi Super Dry. Pertumbuhan kesemua jenama ini telah menyumbang dengan ketaranya dalam meningkatkan kedudukan kami dalam segmen bir amat premium. Kami juga telah mengaktifkan semula Jenama SKOL dan menggiatkan lagi jenama Danish Royal Stout bagi memenuhi segmen dan keperluan pengguna yang berlainan.Kumpulan terus mengutamakan usahausaha peningkatan kecekapan dan pembangunan tenaga insan. Pada 2011, kami terus mengoptimumkan struktur kos dan dasar aset kami dengan mengumpil dari kedua-dua inisiatif global dan tempatan serta sinergi operasi yang kukuh di antara perniagaan kami di Malaysia dan Singapura. Penubuhan Program Peningkatan Berterusan (CI)-LEAN (Continuous Improvement (CI)-LEAN Programme) memberi kuasa kepada pekerja di kilang untuk menambahbaikkan cara bekerja dan menyampaikan peningkatan kecekapan serta penjimatan kos yangPersekitaran Operasi yang Lebih Lembap Ekonomi global telah mencatatkan prestasi yang lebih lembap pada tahun 2011 berbanding dengan tahun sebelumnya. Pertumbuhan yang lebih lembap berpunca daripada kekacauan politik di Timur Tengah d an Afrika Utara yang belum pernah berlaku sebelum ini, pelbagai bencana alam besar-besaran di seluruh dunia dan krisis yang melanda beberapa ekonomi maju. Di Malaysia, permintaan domestik kekal bertahan dalam 2011, dengan penggunaan swasta yang tetap teguh, disandari oleh pasaran tenaga kerja yang mantap dan harga komoditi yang kukuh.Polisi ? skal dan kewangan Kerajaan kekal melengkapi dan menyokong pertumbuhan sepanjang tahun. Malaysia mencatat pertumbuhan Keluaran Dalam Negara Kasar (KDNK) yang lebih rendah sebanyak 5. 1% pada 2011 berbanding dengan pertumbuhan KDNK sebanyak 7. 2% yang dicatat pada tahun sebelumnya. Perwujudan Nilai untuk Pemegang Saham Selaras dengan komitmen kami untuk memberi nilai kepada para pemegang saham kami dan selepas mempertimbangkan keperluan pendanaan Kumpulan, Lembaga Pengarah dengan sukacita ingin mencadangkan pengagihan 100% keuntungan 2011 Kumpulan.Lembaga Pengarah mengesyorkan dividen akhir dan khas bernilai 65. 5 sen setiap saham biasa berharga RM0. 50 ditolak cukai pendapatan Malaysia dan dividen pengecualian cukai khas bernilai 2. 0 sen setiap saham biasa berharga RM0. 50. Bersama dengan dividen kasar interim bernilai 5. 0 sen setiap saham biasa berharga RM0. 50, jumlah dividen kasar untuk tahun kewangan 2011 ialah 72. 5 sen setiap saham biasa berharga RM0. 50 (2010 jumlah dividen kasar bernilai 58. 0 sen setiap saham biasa berharga RM0. 50 sesaham).Dividen akhir dan khas dan dividen pengecualian cukai akan dibentangkan untuk kelulusan pemegang saham di mesyuarat agung tahunan akan datang pada 26 April 2012. Annual Report 2011 9 berkesan. Dari segi tenaga insan, kami telah memperkenalkan satu budaya prestasi dan budaya kepimpinan berdasarkan kepercayaan, pemilikan dan kepelbagaian. Kesemua usaha ini telah membawa kepada penambahan keyakinan kakitangan dalam Carlsberg Malaysia sebagai sebuah syarikat. Melangkah ke Hadapan dengan Penuh Keyakinan Persekitaran ekonomi dijangka akan kekal mencabar pada 2012 dan ini dijangka a kan memberi kesan kepada Malaysia terutamanya dari segi eksport.Walau bagaimanapun, negara dijangka akan disokong oleh permintaan domestik yang bertahan, disokong terutamanya oleh aktiviti sektor swasta yang terus berkembang. Perbelanjaan sektor awam dijangka juga akan memberi sokongan kukuh terhadap pertumbuhan prestasi Malaysia secara keseluruhan. Memandangkan tinjauan ini, Kumpulan Carlsberg Malaysia mengalu-alukan langkah hemat Kerajaan Malaysia untuk tidak menaikkan lagi duti eksais bir dan stout pada 2012 memandangkan duti Malaysia kini adalah yang kedua tertinggi di seluruh dunia.Memandang ke hadapan, kami kekal komited untuk menyokong Program Transformasi Ekonomi (Economic Transformation Programme atau ETP) Kerajaan serta cita-cita Malaysia untuk menjadi sebuah negara maju dan berpendapatan tinggi menjelang 2020. Kami akan menjajarkan objektif kami untuk menyokong ETP dan keutamaan ekonomi lain terutamanya dengan menumpukan usaha kami dalam sektor-sektor pelancongan, perdaga ngan pengagihan dan ekspatriat. Kami secara tidak langsung telah menyokong usaha Kerajaan dalam sektor pelancongan melalui sokongan kami dalam acara-acara sukan, makanan dan fesyen utama.Dalam usaha kami untuk mengambil langkah yang yakin tetapi berhati-hati ke dalam satu lagi tahun yang mencabar, Lembaga Carlsberg Malaysia kekal komited untuk menyampaikan pertumbuhan yang menguntungkan dan bertahan. Keberuntungan akan didorong oleh jenama peneraju bir utama Malaysia, Carlsberg Green Label, dan disokong oleh satu portfolio jenama premium yang teguh. Kami berhasrat untuk menjadi syarikat portfolio paling cergas di Malaysia pada masa hadapan terdekat dan akan melaksanakan strategi yang agresif tetapi berhemat untuk mencapai matlamat ini dalam masa yang singkat. Amalan Korporat yang BerprihatinCarlsberg Malaysia kekal komited untuk meningkatkan keuntungan dengan cara yang bertanggungjawab. Untuk mencapai matlamat ini, kami telah menyepadukan amalan korporat yang berprihatin ke dalam ke seluruhan operasi perniagaan dan rangkaian nilai kami untuk mendorong pertumbuhan keuntungan yang bertahan. Saya sukacita untuk memaklumkan bahawa Carlsberg Malaysia telah membangunkan satu format baru untuk Laporan Tanggungjawab Sosial Korporat (Corporate Social Responsibility atau CSR) yang memberi gambaran ke dalam hasil ketara yang kami akan sampaikan dalam bidang Pasaran, Komuniti, Tempat Kerja dan Alam Sekitar.Laporan CSR lengkap kami menekankan komitmen Carlsberg Malaysia terhadap amalan CSR yang baik serta mencerminkan betapa tertanam dengan kukuhnya elemen-elemen ini di kalangan tenaga kerja dan perniagaan kami. Kami komited untuk mempertingkatkan kesejahteraan komuniti di bawah panduan prinsip kami iaitu Berkongsi dengan Komuniti Tanpa Bersyarat. 2011 menyaksikan penganjuran berterusan kempen amal utama kami iaitu Top Ten yang memasuki tahun ke-25 pada tahun 2011. salat satu dari platform kutipan dana paling mantap dan telus untuk pendidikan Cina, Top Ten telah berjaya m engumpul RM20 juta dalam 2011.Pada keseluruhannya, inisiatif popular ini telah mengumpul lebih RM369 juta untuk 588 buah sekolah dan institusi Cina di seluruh negara sehingga kini. Pada 2011, kami juga telah mengukuhkan pertalian kami untuk pendidikan Tamil dengan memperkenalkan projek Keperluan Penting Bahasa Inggeris dan Kembali ke Sekolah untuk pelajar dari sekolah Tamil di Semenanjung Malaysia serta Sabah dan Sarawak. Untuk usaha kami, Carlsberg Malaysia telah meraih anugerah dalam kategori Pemberian Kuasa Sosial di Anugerah Keusahawanan Bertanggungjawab Asia (Asia Responsible Entrepreneurship Award atau AREA) 2011.Kami juga telah menerima Anugerah Kelakuan Kemenangan Kami Terlibat dengan Masyarakat 2010 Kumpulan Carlsberg. Dari segi operasi, kami akan terus mengoptimumkan kecekapan kos dan penggunaan kapasiti di kilang bir serta mengumpil inisiatif peningkatan berterusan bagi menyampaikan prestasi operasi yang teguh. Dari segi tenaga insan, kami akan terus melabur dalam aset pe nting ini dengan memupuk satu budaya prestasi yang kukuh. Kesemua ini, antara langkahlangkah lain, akan memastikan bahawa Carlsberg Malaysia akan terus berkembang dengan mantap.Penghargaan Bagi pihak Lembaga Pengarah Carlsberg Malaysia, saya ingin mengucapkan setinggi-tinggi penghargaan kepada pasukan pengurusan dan kakitangan di atas kesetiaan, kegigihan dan komitmen mereka terhadap kecemerlangan. Kejayaan kami dalam tahun 2011 adalah disebabkan oleh tumpuan dan usaha gigih mereka. Penghargaan tulus ikhlas kami juga adalah untuk semua pemegang kepentingan kami, termasuk pengedar, pembekal, pelanggan dan pengguna kami. Terima kasih di atas sokongan setia anda kepada Kumpulan sepanjang semua tahun-tahun ini.Dengan kesedihan yang amat mendalam, saya ingin mengambil kesempatan ini untuk merakamkan sumbangan yang besar yang telah diberikan kepada Kumpulan selama bertahun-tahun oleh Timbalan Pengarah Urusan kami, Allayarham Dato Chin Voon Loong, yang meninggal dunia pada 16 Mac 2012. Say a juga ingin merakamkan penghargaan ikhlas kepada rakan-rakan saya dalam Lembaga Pengarah atas nasihat dan bimbingan meraka. Akhir sekali, saya amat berterima kasih kepada pemegang saham kami atas sokongan berterusan dan keyakinan teguh mereka terhadap Carlsberg Malaysia.Kami berhasrat untuk mencapai tahap kecemerlangan yang lebih tinggi serta mewujudkan nilai pemegang saham yang lebih kukuh ketika kami melangkah dengan penuh keyakinan untuk menghadapi tahun 2012. Terima kasih. Dato Lim Say Chong Pengerusi Shah Alam 4 April 2012 10 Carlsberg Brewery Malaysia Berhad (9210-K) Annual Report 2011 11 Annual Report 2011 13 Review of Operations by Managing Director We bolstered the leading position of our ? agship brand, Carlsberg Green Label, and strengthened our extensive premium beer range to emerge a stronger multi-brand portfolio company.The Year of Moving Boldly Forward 2011 was a year in which Carlsberg Malaysia moved boldly forward on all fronts. We turned in commendable ? nancial performance and delivered pro? table, sustainable growth. We bolstered the leading position of our ? agship brand, Carlsberg Green Label, and strengthened our extensive premium beer range to emerge a stronger multibrand portfolio company. We continued to make strong strides forward on the operational front, enhancing operational ef? ciencies and advancing people empowerment efforts.On top of all these, we continued to integrate impactful corporate responsibility initiatives throughout the value chain with the aim of growing the Group in a responsible manner. I am pleased to say all these measures reinforced our position and taking us to greater heights in Malaysias Malt Liquor market. promotions under the new global brand tagline That Calls for a Carlsberg that is now aligned in over 140 countries. To drive pro? table, sustainable growth, we set our sights on channels with higher growth potential and supported these efforts with the right brand mix in each channel.These measures, to gether with productivity improvements in the supply chain, as well as intensify sales and marketing cost ef? ciencies, boosted our margins. Luen Heng F & B Sdn Bhd (LHFB) once again experienced strong growth momentum on the back of a double digit growth in beer flocks to register an increase of 45. 5% in pro? t after taxes. Delivering Profitable, Sustainable Growth The year in criticism saw Group pro? t after tax grew by 24. 8% on the back of an 8. 9% increase in revenue in comparison to 2010.This strong performance was attributable to the successful roll out of 2011s global Carlsberg brand packaging revamp and innovative consumer 14 Carlsberg Brewery Malaysia Berhad (9210-K) Review of Operations by Managing Director Aside from the strong performance of our Malaysian operations, our fully owned subsidiary, Carlsberg Singapore Pte Ltd (CSPL) and associate company, Lion Brewery Ceylon PLC, also delivered impressive results with double digit growth in revenue and earnings for 2011. CSPL turned in its third consecutive year of on-target growth delivering an 11. % increase in revenue and 47. 2% rise in pro? t after tax as compared to the preceding years results. This performance was mainly attributable to continued robust volume growth in line with the buoyant beer market in Singapore as well as revenue growth driven by a strengthened premium brand portfolio. Products and Innovation Lever Tap both Key growrs to emerge a Stronger Multi-Brand Portfolio Company Perfecting the Jewel in Our hood To bring about strong portfolio development in 2011, we leveraged our ? rst key driver which called for us to strengthen the Carlsberg Green Label brand.Deciding that it was time to go bolder and bigger and to take greater risks than before, we leveraged on the global revamp of the Carlsberg Green Label brand and undertook our own major makeover in Malaysia. As a result of our efforts, Carlsberg Green Label strengthened its leading position as the most preferred brand amon g all drinkers in Malaysia. One out of every two drinkers voted Carlsberg as their preferred brand based on consumer research undertaken by independent international research agency, Millward Brown. Carlsberg Green Labels position as Malaysias leading beer brand was further reaf? med when it was awarded the coveted Gold recognition at the 2011 Putra Awards as well as the Most Trusted Brand by Readers Digest readers in Malaysia and Asia for the 13th consecutive year. Continuing to Walk Our Talk In 2011, we began to see a de? nite mindset change within the organisation from a focus on short-term volume to a focus on pro? ts, as well as a shift from a focus on one brand to a focus on a diverse portfolio of brands. We successfully leveraged on this outlook change, together with our Stand, Thirst for Great, and the ? ve key strategic levers to raise the bar on performance and deliver as promised in 2011.Capturing New Ground in the Premium Segment We also decided that we had to be bold e nough to say that we needed to ? ank the Carlsberg Green Label brand with the fast growing premium segment. As such, our second key driver saw us continuing to tap into LHFBs impressive super premium beer portfolio which successfully bolstered our position in the premium beer segment. We also went on to invest in the newly launched Carlsberg Group-owned premium brands Kronenbourg 1664 and the Kronenbourg Blanc wheat beer variant, both of which have shown great potential in the super premium segment.In December 2011, we were awarded the rights to locally manufacture, sell and distribute one of Asias fastest growing premium beers Asahi Super Dry. These brands optimise our product mix and complement our existing premium beer portfolio. Consumers and Customers Lever Engage Audiences and Build Brand Equity Actively Engaging with Our Business Partners In 2011, we rolled out the pilot New Generation Distributor Model (NGDM) which aims to ensure the seamless con heartyation of our sales employees and valued business partners so that consumers are served in the best manner possible.Via the NGDM initiative, we aim to transform our traditional distributors to become our trusted strategic partners. Two distributors were selected for the initial programme which showed very encouraging results and we will be replicating these efforts with other distributors. Annual Report 2011 15 To foster closer engagement with our trade partners, we invested in a new nationwide trade programme known as the A Class Experience (ACE) Programme, which comprises a series of educational and practical dressing sessions aimed at assisting F&B operators to raise the bar in meeting the increasingly sophisticated needs of todays customers.We commissioned Taylors Universitys Centre for Continuing Professional Education to design the ACE training modules. Through providing solid training followed up by visits to trade outlets to measure their performance, we continue to build goodwill and a strong af? nity with our trade partners. Building Brand Equity among Consumers Nationwide promotions and big-scale consumer activation initiatives further strengthened the brand equity of Carlsberg Green Label and made good inroads among target consumers.With the Malaysian operations producing the volume for Singapore today, we are utilising our cost base a lot more ef? ciently and are reaping the bene? ts with a much higher employment volume. The Malaysian operations have in essence managed to assimilate the Singapore business with no additional operational costs. Implementing CI-LEAN Effectively We continued to focus on CI-LEAN Programme in 2011 and empowered our people to make tangible improvements on the shop ? oor, all of which helped to optimise cost and production ef? ciencies.The LEAN philosophy revolves around identifying and eliminating nonvalue-adding activities in production, supply chain management and customer interactions. 2011s CI-LEAN achievements included maintaining ou r cost per Hectolitre despite increase in raw material prices a record increase in production volume without signi? cant capital expenditure on machinery and equipment a positive savings of RM6. 0 million from cost optimisation activities a lower dependency on treated water and natural gas from external sources a savings of RM3. million from our 3R (reduce, reuse and recycle) measures as well as ef? ciency improvements from repair back-end operations e curiously in the area of logistics. In 2011, we began to see a de? nite mind-set change within the organisation from a focus on short-term volume to a focus on pro? ts, as well as a shift from a focus on one brand to a focus on a diverse portfolio of brands. Efficiency Lever Drive Strong Operational Synergies and Optimise Cost Efficiencies Tapping the Bene? s of Integration In 2011, we continued to make the most of the good operational synergies between our Malaysian and Singaporean operations to further optimise cost ef? ciencies. Following the full integration of the Singapore operations into the Malaysia operations, we continue to realise signi? cant operational enhancements across all functions. 16 Carlsberg Brewery Malaysia Berhad (9210-K) Review of Operations by Managing Director 2012 will also be another exciting year for our consumers and they can expect a waiter of programmes and campaigns to come their way.A key campaign would involve Carlsberg Green Label being the of? cial beer for the Euro 2012. People Lever Nurture Great People and Build Our Capabilities Initiatives to Nurture Our men 2011s initiatives focused on raising the leadership capability of our people through leadership coaching training workshops, one-on-one coaching sessions and a mentoring system. We also launched the Carlsberg Sales Academy (CSA) to help create more structured training and development opportunities as well as a career map for new Sales hires.As part of the our Companys succession planning strategy, our high-potenti als (HiPos) continued under the Carlsberg Accelerated Leader teaching Programme (ALDP) which will see them moving into international leadership positions within the Group over time. Introducing the Thirst for Great Hour and Moments As part of our efforts to build Great People, Great Brands and Great Performance as well as to strengthen employee pride in being part of the Carlsberg Family, we introduced the Thirst for Great Carlsberg Hour in 2011.This platform, which aims to get all employees to infix in Great Moments that will help inculcate Carlsbergs core values and culture among them, as well as unite and motivate them. Gauging Employee delight The Thirst for Great initiatives and the communication around it had certainly helped boost employees con? dence as re? ected in the latest MyVoice employee attitude survey. 2011s survey garnered a 100% response rate and re? ected a dramatic improvement in employee con? dence (from two years ago) about being part of the Carlsberg Group, the Groups direction, and the effectiveness of our senior management.We achieved an Employee Engagement score of 80%, a quadruplet percentage point improvement from 2009 results. These encouraging results are testament that our efforts to plant our shared values in our work culture are bearing fruit. Structure and Society Lever Give Back to Society Unconditionally do Strong Inroads with Top Ten and English Essentials We continued our strong focus on Carlsberg Malaysias ? agship charity campaign, Top Ten, which entered its 25th year in 2011, and in the same year, approximately RM20 million was successfully raised for the development of Chinese education.For our efforts, Carlsberg Malaysia won an award in the Social Empowerment category of the Asia Responsible Entrepreneurship Awards (AREA) 2011. At the 2011 Carlsberg CEO conference in Kiev, Ukraine, we were also accorded the We are Engaged with Society Winning Behaviours Award 2010. Annual Report 2011 17 August 2011 saw the inau gural launch of Carlsberg Malaysias English Essentials programme for Tamil schools in the states of Penang, Perak, Selangor and Johor. Endorsed by the Tamil School Headmasters Council, the programme provides school children and teachers at Tamil-medium schools the opportunity to improve their acquaintance and pro? iency of the English language. Ensuring Responsible Drinking The Enjoy Responsibly pilot programme was also introduced in 2011 to educate employees and consumers about the need for responsible drinking. Employing four stands Be Safe, Be in Control, Drink Smart and Drink Responsibly the Enjoy Responsibly campaign was introduced at selected events such as our Wheres the Party? and Malaysias Own Oktoberfest 2011 events. The Enjoy Responsibly programme will continue to feature prominently in our corporate culture as well as among our business partners, customers and consumers.Beer will continue to be our key focus in 2012 and we will endeavour to be at the forefront of inn ovation by manner of speaking new drinking experiences to our consumers. Continued investments into the Carlsberg brand and the many new and exciting portfolio opportunities, coupled with strengthened execution capabilities and ef? ciency initiatives, will enable us to continue our pro? table growth trend and create good shareholders value. 2012 will also be another exciting year for our consumers and they can expect a legion of programmes and campaigns to come their way.A key campaign would involve Carlsberg Green Label being the of? cial beer for the Euro 2012 football tournament, where a line-up of exciting activities and promotions are being planned for our customers and consumers. Going forward into 2012, we remain cautiously optimistic about the prospects for the Malaysian Malt Liquor Market (MLM). The MLM has been relatively resilient amidst the economic slowdown these last few years and has maintained a steady level of low single-digit annual growth (in terms of volume), an d we believe there will be little disruption to its progress in 2012.We are also excited about our agreement with Asahi Breweries Ltd (ABL) to locally manufacture, sell and distribute Asahi Super Dry in Malaysia. This development marks an of import milestone in Carlsberg Malaysias journey to become the nations most vibrant beer portfolio company with a winning portfolio that meets all consumer needs. This move will strengthen our growth in the premium beer segment with the freshest product, and our earnings over the medium to long-term. More local production of premium beers will follow in 2012.I wish to convey my utmost gratitude to our consumers, customers and partners for their continued loyalty and steadfast support of Carlsberg Malaysia and its portfolio of brands. My sincere appreciation also goes to the members of the Board for their invaluable insights and wise counsel. In particular, I would like to express my deepest condolences to the family of the late Deputy Managing Director, Dato Chin Voon Loong, who passed away on 16 March 2012. The late Dato Chin will forever be remembered for his invaluable longstanding contribution, support and guidance to the Group.Last but not least, my heartfelt thanks to all hard working employees of the Carlsberg Malaysia Group for their continued loyalty, support and commitment to pursuing a spirit of excellence and delivering pro? table, sustainable growth. Continuing to Go Boldly Forward Carlsberg Malaysias strong portfolio and geographical exposure drove solid growth in 2011 and this will continue to be our focus for the coming years. As we continue to move boldly forward, we will set our sights on attaining pro? table, sustainable growth by tapping on our ? ve strategic levers. Soren Ravn Managing DirectorShah Alam 4 April 2012 18 Carlsberg Brewery Malaysia Berhad (9210-K) Review of Carlsberg Singapores Operations The year 2011 saw Carlsberg Singapore Pte Ltd (CSPL) do great strides forward on the ? nancial and operational fronts to deliver a strong performance. CSPL turned in its third year of consecutive ontarget growth since 2009 and registered double-digit EBIT growth. This robust performance came on the back of continuing volume growth in line with the growth of the beer market in Singapore, while revenue growth was driven by a strengthened premium brand portfolio.Even as CSPL made strong inroads to capture market share in the premium segment, it did so in a pro? table and ef? cient manner with costs growing slower than revenue. The good operational synergies between the Malaysian and Singaporean operations also continue to gift off. Key Levers Drive Overall Performance In line with the Groups overall strategy and direction, CSPL embarked on several key levers to ensure 2011s robust performance. Firstly, to ensure that the iconic ? agship Carlsberg brand remained the No. preferred premium brand, CSPL undertook an integrated re-launch campaign of the Carlsberg brand that involved bran d engagement activities with its core audition of young consumers. Secondly, the premium brand portfolio was strengthened via the accelerated growth of the Kronenbourg 1664 and Kronenbourg 1664 Blanc variants as well as the launch of Sommersby Cider (the No. 1 cider in Denmark) in a new cider category. On top of this, measures were taken to optimise CSPLs existing operational expense platforms. In addition to the to a higher place consumer, product/innovation and ef? iency priorities, CSPL also focused on improving the availability, visibility and conversion of its brands with customers at the point of purchase/consumption. Efforts were made to improve the performance-based culture of the organisation through clearer measures and rewards, as well as enhacing employee engagement via talent management and recruitment activities. To this end, the rallying call of Thirst for Great and the 5 Winning Behaviours culture were leveraged on. Integration Continues to Deliver Dividends CSPL c ontinues to tap the good operational synergies with the Groups Malaysian operations to maximise cost ef? ciencies.With the Malaysian operations producing the volume for Singapore, the Group is reaping several tangible bene? ts. For instance, the cost base is being utilised in a much more ef? cient manner and the Group is bene? tting from much higher production volume. On top of this, the reduced lead time is translating into fresher and better feature products, while the associated logistics costs too have dropped. Further cost ef? ciencies were achieved through collaborative marketing campaigns and sharing of creative production resources. Both markets are adopting common marketing platforms and agencies where it makes sense to do so.Annual Report 2011 19 CSR Efforts Strengthen Stakeholder Relationships CSPL continues to fulfil effective Corporate Social Responsibility activities to build sustainable relationships with its key stakeholders in Singapore. One of its most successful communitycentric programmes over 2011 was the Save Everest campaign which saw participation from key stakeholders such as consumers, media and employees. Five CSPL representatives were part of a team that were selected to save Mt Everest from the damage caused by garbage left fag by mountain climbers and hikers.Ascending some 5,000 metres above ground level to help preserve the ecosystem of this UNESCO homo Heritage Site, the efforts of these ? ve representatives certainly went a long way in educating audiences about the gravity of the situation. It also helped build goodwill and enhanced CSPLs reputation in the marketplace. In Recognition of Excellence In recognition of the good branding work done over the year, CSPL received an award from Campaign Asia for having one of the Top 10 Chinese New Year television commercials (TVCs) in the Asia Paci? c region.The CSPL marketing teams Everest campaign was also nominated for the Top 10 Viewers Choice TVC Awards (International Category) under the Carlsberg brand indistinguishability re-launch. On top of this, CSPL received a Gold Medal at the Beer Fest Asia event. At the Out-Of-Home Planning & Innovation Awards (OOHPIA) event, CSPL and its agencies won an award for the Best Use of Multiple pass off Channel Formats, which involved the clever use of multiple formats to reach different audiences. Within the Carlsberg Group, the CSPL ? nance team was awarded the Groups Asia Finance Excellence Award 2011 for their outstanding work.Moving Boldly Forward into 2012 Going forward, the overall macroeconomic climate for 2012 has been moderated downwards with Singapores GDP projected to grow in the region of 1% to 3% given the less-than-optimistic developments in the US and Eurozone. In view of this, consumers and customers are expected to be more selective in their discretionary make it and investments. CSPL will thus embark on marketing and sales programmes that engage consumers in a more direct and relevant manner while delivering better returns on investment.The focus will be on rolling out fewer but high impact initiatives that enable CSPL to continue to deliver volume and revenue growth that will outpace the marketplace in a pro? table, sustainable manner. Going forward, the Group is con? dent that CSPL will deliver another impressive performance in 2012 as it reinforces the market position of Carlsberg Green Label, strengthens its growing premium portfolio and undertakes initiatives to further bolster operational ef? ciencies and value management. 20 Carlsberg Brewery Malaysia Berhad (9210-K) Management Team York James Spencer gray 38, New Zealander Juliet Yap Swee Hwang time-honored 35, Malaysian Gary Tan Sim Huan gray 42, Malaysian Kenneth Soh Chee Whye Aged 48, Malaysian Marketing Director Business Development Director Sales Director General Manager of Luen Heng F & B Sdn Bhd Annual Report 2011 21 Soren Ravn Aged 38, Dane Kristian Dahl Aged 37, Dane Lew Yoong Fah Aged 44, Malaysian Bart Li m Siang Chin Aged 42, Singaporean Loh Boon Lan Aged 43, Malaysian Managing Director Supply grasp Director honcho Financial Of? cer / Company Secretary General Manager of Carlsberg Singapore Pte Ltd Human Resource Director 22 Carlsberg Brewery Malaysia Berhad (9210-K) Management Team Pro? leSoren Ravn Aged 38, Dane Managing Director Juliet Yap Swee Hwang Aged 35, Malaysian Business Development Director York James Spencer Aged 38, New Zealander Marketing Director Mr. Ravn has been with the Carlsberg Group for over 13 years. prior(prenominal) to his battle as Managing Director of Carlsberg Malaysia in March 2010, Mr. Ravn held various strategic and operational positions including Group Strategy Director in the Carlsberg global headquarters in Copenhagen, Managing Director of Carlsberg Hong Kong & Macau and also the Vice President Supply Chain, HR and Business Development in Carlsberg Greater China.Ms. Yap joined Carlsberg Malaysia in 2007, design the Consumer Insights function be fore assuming the role of Senior Manager-Strategy Development, Innovation & Research in 2008. She was by and by promoted to her current role as Business Development Director in January 2011, where she is responsible in driving the development and implementation of the companys business and portfolio strategies while exploring new business opportunities. Mr. Spencer has held various key positions in branding and marketing, including Fonterra-New Zealand, Asia Paci? Breweries Ltd-Singapore, and his own consultancy ? rm in Vietnam. Prior to link Carlsberg Malaysia in May 2011 as Marketing Director, Mr Spencer served with Scottish and Newcastle Ltd as the Market Development Director for Asia and subsequently as International Marketing Manager based in Paris. Lew Yoong Fah Aged 44, Malaysian Chief Financial Of? cer / Company Secretary Kenneth Soh Chee Whye Aged 48, Malaysian General Manager of Luen Heng F & B Sdn Bhd Bart Lim Siang Chin Aged 42, Singaporean General Manager of Carlsberg Singapore Pte LtdMr. Lew has held senior ? nancial positions prior to his appointment as the Chief Financial Of? cer of Carlsberg Malaysia in January 2010, in companies such as Danone Dumex Malaysia, Philips Electronics Singapore, SSMC (JV Philips) Singapore and Philips Malaysia. In his previous position as Finance Director at Danone Dumex Malaysia, Mr. Lew also served as its Director and Company Secretary with responsibilities across Malaysia, Singapore and Brunei. Mr. Soh began his career in ? nancial consultancy ? ms Deloitte Kassim Chan & Co and KPMG, before joining his family business, Luen Heng Agency (LHA) as a Sales and Marketing Director for 15 years, dealing particularly in foreign beverage brands and import-export matters of the food and beverage industry. sequent to the joint-venture between Carlsberg Malaysia and LHA in November 2008, a new company called Luen Heng F&B Sdn Bhd was formed in which he was appointed as the General Manager. Mr. Lim has accumulated 18 year s of consumer industry experience in a sales and marketing role, with companies such as Proctor & Gamble and Johnson & Johnson as Regional Customer Development Director.He has been the General Manager of Carlsberg Singapore since January 2009 and continues this role subsequent to its acquisition by Carlsberg Malaysia at the end of 2009. Annual Report 2011 23 Gary Tan Sim Huan Aged 42, Malaysian Sales Director Prior to his appointment as Sales Director of Carlsberg Malaysia since August 2009, Mr. Tan spent 14 years in Unilever Malaysia, during which time he served as Customer Development Director as well as a Board Director, leading in areas of sales and brand management. Kristian DahlAged 37, Dane Supply Chain Director Loh Boon Lan Aged 43, Malaysian Human Resource Director Mr. Dahl has been with the Carlsberg Group since 1999 and has worked as Brewmaster & Supply Chain Specialist in a number of markets including Carlsberg Denmark, Carlsberg UK & Group Supply Chain. Prior to his app ointment as Supply Chain Director with Carlsberg Malaysia in March 2012, Mr. Dahl had worked for 5 years as Regional Technical Director in Carlsberg Indochina overseeing the supply chain operations in Vietnam, Cambodia & Laos.Ms. Loh has over 17 years of experience in human resource management, 5 of which have been with Carlsberg Malaysia. She has previously held managerial positions in companies such as ACNielsen and Philips Malaysia and was also a management consultant for Arthur Anderson & Co where she advised clients on HR systems, processes, compensation and bene? t matters. Ms Loh was appointed as Human Resource Director of Carlsberg Malaysia in September 2008. 24 Carlsberg Brewery Malaysia Berhad (9210-K) Brand PortfolioBoldly Fast-forwarding Our Brand Portfolio As we set our sights on becoming the countrys most dynamic brewer with an equally dynamic portfolio of beverage brands, we are offering consumers an exciting portfolio of beers, stouts, ciders, wines, hard liquor an d other beverages that are world class and setting trends in the marketplace, particularly in the premium beer segment. 2011 saw us fast-forwarding Carlsberg Malaysias transformation from a one-? agship brand beer company to a dynamic brewer with a portfolio of international beer brands.As a result, we reinforced the leading position of our crown jewel, Carlsberg, and bolstered our extensive premium beer portfolio. With a more international-oriented and synergistic brand portfolio, we outpaced the market and brewed sustainable growth by being the preferred partner to our customers while the brands within our portfolio strengthened their most preferred position among consumers. Asahi Super Dry, the Japans no. 1 beer brand is brewed in a unique Karakuchi style to give a clean, crisp and refreshing gustation with no bitter after taste.Carlsberg Gold, inspired by an original recipe from the 19th century, double brewed and blended to perfection. Annual Report 2011 25 Danish Royal Stout, a full-bodied stout with 8% alcohol content to bring out the best aroma and taste. Kronenbourg 1664, Frances best-selling super premium beer, is specially brewed with aromatic Strisselspalt hops. This elegant beer has a crisp, citrus ? avour with a ? oral aroma. Kronenbourg 1664 Blanc, the wheat beer variant of Kronenbourg 1664, is cloudy with a fruity and refreshing taste and presented in a contemporary blue ottle. Carlsberg, the most preferred beer brand in Malaysia is now enjoyed by consumers in 140 markets. 26 Carlsberg Brewery Malaysia Berhad (9210-K) Brand Portfolio Erdinger, top class premium wheat beer. With ? ne yeast. Traditionally matured in the bottle like champagne. Carlsberg Special Brew, a dark golden brew stands as a spirit premium beer in the high alcohol category. Corona, Mexicos leading national brand uniquely served with a slice of lime for that refreshing zesty ? avour. Budweiser, the of? ial FIFA World Cup Sponsor and the King of beers. Annual Report 2011 27 Born in the middle age, Grimbergen Blonde is a top-fermented beer brewed under an arrangement with the Father of Grimbergen Abbey set(p) in Belgium. SKOL, ? rst brewed in 1959, is Brazils No. 1 beer and available in more than 80 countries worldwide. Hoegaarden, the fastest growing imported premium beer in Malaysia, a naturally cloudy beer made from wheat for that refreshing sensation. Stella Artois, the No. 1 Belgian beer in the world and distributed in over 80 countries worldwide. 8 Carlsberg Brewery Malaysia Berhad (9210-K) Brand Portfolio Carlsberg Green Label Carlsberg, our crown jewel, is an all malt lager brewed with a rich heritage and superior quality that goes all the way back to the year 1847 in Copenhagen, Denmark. Today, it is available in more than 140 markets globally and is Malaysias most preferred beer brand. Evolving to Exceed Expectations The iconic Carlsberg brand and its evergreen look and feel continues to be loved by many in Malaysia while its taste is enjoyed by millions around the world.Leveraging on its trusted heritage and rich brand equity, Carlsberg undertook a global brand revamp in 2011 whereby it rede? ned standards and evolved to become a bolder, more modern and more engaging brand. In April 2011, Carlsberg unveiled its new ocular identity featuring the new Carlsberg crownwork that is simpler in design yet has distinctive features to appeal to younger consumers. The new packaging complements its refreshing taste and premium stead as well as the new tagline, That calls for a Carlsberg which is now used across all 140 markets in the Carlsberg world.Whilst the brand has been given a bold new look, the beer maintains its same great taste. A through-the-line marketing campaign was carried out to make the brand re-launch a success and to deliver on commercial objectives. Prior to the That Calls for a Carlsberg For the past 13 consecutive years, Carlsberg has won the Readers Digest Most Trusted Brand Award bearing testament to the believability of its quality and the values it represents. In 2011, Carlsberg reinforced its brand position by winning its second consecutive Gold Award at the Putra Brand Awards.These prestigious awards aptly re? ect consumer and industry leader endorsements of Carlsberg as the most preferred beer brand and one that is set apart from the crowd. Leveraging on product innovation, engaging consumer promotions and through-the-line marketing, Carlsberg remains the clear market leader as indicated by the Millward Brown Beer Tracker results for both 2010 and 2011. revamp, more than 1,000 distributors, customers and retailers were invited to a grand trade launch to be briefed on the new packaging and brand direction of Carlsberg.A good many employees and their families too visited the brewery and took part in a wall-painting exercise featuring a replica of the famous Carlsberg Elephant Gate at Copenhagen, Denmark in remembrance of the founder of Carlsberg, J. C. Jacobsen and his beer mak ing heritage. Taking a Bold Step, Doing the Right Thing Carlsbergs new global identity calls for the brand to be a vibrant, bold, young, inspirational and contemporary brand that is anchored on its rich heritage as well as the same premium quality and great taste.The journey of the re-launch kicked-off with research and development of the new packaging, then went on to involve conceptualisation of the brands direction, and ended with effective inmarket execution. These activities were part of a step-by-step strategy to hype up brand awareness and drive brand equity and growth. At the media launch held at the Shah Alam brewery, hundreds of employees and members of the media witnessed the unveiling of the new Carlsberg Crown as well as the new packaging for the bottle and can.In conjunction with the re-launch, approximately 200 employees from sales, marketing and supporting functions were deployed to execute a merchandize makeover blitz at more than 2,000 refreshment outlets over a tw o-week period. Outlet owners garnered positive response with regard to the new signage, sales merchandise, point-ofsales materials and vehicles, all of which made a bold arguing and a lasting impression. Top of Mind Preferred Brand Brand Loyalty 4% point 4% point 10% point 2010 2011 2010 2011 2010 2011 semen Millward Brown Beer Tracker 2010/11A series of eight thematic ads which communicate the brand essence of Stepping up were launched in conjunction with the new tagline of That calls for a Carlsberg. 30 Carlsberg Brewery Malaysia Berhad (9210-K) Brand Portfolio mad through social media platforms such as Facebook and blogs, the WTP events increased the Carlsberg fan-base from 4,000 fans to 17,000 fans in 2011. Wheres the Party? Builds an Affinity with Younger Consumers As part of our efforts to elevate the Carlsberg brand experience and its reach among younger consumers, an engagement platform named Wheres the Party? (WTP) was created. Leveraging on social media to reinforce th e new brand positioning, two WTP events were held in June and December 2011 respectively. Held at undisclosed locations prior to the day of party, both WTPs generated excitement and received overwhelming reviews among the 18 and 25 years old consumer group. These parties were the pinnacle of the Carlsberg consumer and media re-launch experience with both becoming the most talked about events for the year. Involving a high

Case Study: Swatch and the Global Watch Industry Essay

IntroductionThe S enamour aggroup had many early on successes due to shift strategies and a boost from acquisitions. On the surface, the Swatch free radical was the worlds leading manufacturer of watches in the late 1990s. They had 14 percent of the world market donation and it appe ard that gross sales and net profits were on the rise however, under the covers, it was a much different story. Swatch was facing a myriad of issues that needed to be resolved in order for success to prevail. Management issues were plaguing Swatch multiple key figures stepped down from the board in the mid 1990s citing the CEOs inability to listen to his staff. In appurtenance to the management issues, Swatch was also facing fierce competition in many market spaces, including the largest consumer base space, the United States.In addition to lack of market penetration in the United States, Swatch had too many crops, which equally distracted buyers and sellers. Lastly, manufacturing constitute conti nued to soar in Switzerland, the Swatch Groups home base. Other competitors were quickly cutting their costs by moving manufacturing abroad. The Swatch Group was at a crossroad the strategy that had worked so well in the early 1990s was no longer viable the question now was what to do active it?Management Issues and Potential ResolutionsAlthough Swatch faced many issues, internal bitterness can be the quickest death of a company. Hayek needs to ensure the people chosen to replace the board members who stepped down are able to handle his leadership style. Equally as important as selecting a high-performing executive team, Hayek needs to realize that traditional organizational principles of useable hierarchies will inevitably lead to rifts in management. This is a kindly issue that Hayek needs to spoken language. If ex-board members continue to bad mouth Swatch it could shoot an impact on sales. To address this issue, Hayek needs to improve his leadership style and management model to actively involve his staff. As an employee, even an executive employee, being flat out told what you bugger off to do all the time is often the ingredient for an unhealthy work environment, especially when trying to implement change. However, whenemployees are involved in making a decision it is often easier to put into action the decision that was made. in that respect is sometimes a higher acceptance of the decision when it comes from the ground up and there is a higher probability that the decision will be executed efficiently. The outcome of such a change will inevitably be positive. When Hayek has more indeed one person getting together trying to solve a problem, he will have an increased chance at a ruin solution then if he were trying to solve it himself. The employees bring a lot to the meeting room with them. For instance, they may have inside information about why production is faltering. By creating a high-performing executive team that works as a cohesive uni t versus he has to be the big chieftain alone, and can never share opinions unit, the Swatch Group should begin to see an improvement in the softer issues, such as employee satisfaction, higher executive employee retention, and a more undetermined communication model.Competitive and Product Mix Issues and Potential ResolutionsThe Swatch group as a whole had an unparalleled ability to provide consumers with a wide consort of products in all market segments. They could provide hi-tech watches that functioned as ski passes, fashion watches such as the Swatch, or an exquisite diamond studded unparalleled metal watch Swatch provided products at all extremes. However, certain product lines were more successful then others. The Swatch watch in particular was struggling to gain market share in the United States and elsewhere for several reasons including fickle consumer behavior and a product line that was daunting to consumers and resellers.The Swatch product was quickly loosing its c ompetitive distinctness against other players such as Fossil, Guess, Timex and Seiko. Resellers were dropping like flies and consumers felt like Swatch had saturated the market with too many products. Worse of all, consumer perception was that Swatch was a fad. Swift decisions need to be made to reverse this before the brand becomes part of a MTV or VH1 I love the 90s television receiver show. Luckily, most of the decisions to be made regarding product mix have very little impact heartyly and ethically.Omega (part of the Swatch Group portfolio of brands), was facing a equivalent demise in the early 1990s and successfully repositioned itself and became a major profit driver for the group. It achieved this by carefully selecting its marketing programs and drastically trimming its product line from 2,500 to 130. This strategy needs to be applied to Swatch, which focuses on the basic and middle-priced market. This is supported by the fact that the number of resellers dropped from 3, 000 in the early 1990s to 1,200 in 1998. Swatch needs to apply a SWOT analysis and determine which product lines are successful in this market space and drop the remaining products. In addition, the Swatch Group needs to look at their consumer base and determine if it would be profitable to launch a new product line that captures past consumers who have now progressed to the next stage of their lives and are desiring a more expensive and sophisticated watch.A marketing campaign needs to be chosen that helps tie new consumers in the basic and middle price market focusing on the smaller number of brands and a discriminate campaign should be created that focuses on keeping their existing customer base. These campaigns should be replicated to other countries to ensure the Swatch brand remains visible. Neither of these resolutions will be easy to implement however, if done successfully Swatch will decrease their production costs because there are fewer product lines and increase their sales based on marketing campaigns to two separate groups new customers and existing customers.Manufacturing Issues and Potential ResolutionsDriven by high demand, offshore manufacturing centers are appearing throughout the world. Many of the Swatch Groups competitors have switched their manufacturing to centers overseas and decreased their fixed costs, which resulted in an increase in profit.The Swatch Group had always remained committed to its home base, partly because their home base possessed centuries of expertise in watch making and partly because a timepiece cannot be stamped with Swiss Made unless at least 50% of Swiss manufactured products by re quantify are present in thetimepiece. Although the mix of factors raising the possibility of outsourcing varies from company to company, there are a few themes that the Swatch Group needs to explore regarding the pressures to outsource. The Swatch Group needs to recognize that general concerns regarding cost and quality are the mai n drivers for outsourcing. In addition, outsourcing can turn a fixed cost into a shifting cost, which will significantly help a company with varying volumes.Although most businesses can benefit hugely through outsourcing or manufacturing in another country, the Swatch Group needs to determine if it will be successful and profitable for them. Outsourcing a portion of their value chain is not a quick-fix response to production costs or performance lags. Additionally, the choices for outsourcing locations are many, they are not all equal, differing in several critical areas. Selecting the right option requires balancing factors such as pagan affinity, geopolitical risk, cost, and resource availability.To help narrow their focus in their analysis, initially, the Swatch Group should look to India for their outsource location. India has a large talent pool of skilled, experienced watch workers. These workers have hands-on experience supporting Titan industries. Titan is continuing to gr ow as a company and the pace of resource expansion is dramatically improving in keeping up with current as well as future technologies. Additionally, the Swatch Group should center their outsourcing attention to the assembly portion of the value added chain. This will ensure that 50% of the manufactured parts are still completed in Switzerland.The design, marketing, and most of manufacturing of the watches still remain where the expertise is located. The assembly of a watch is an extremely repeatable and easily controllable task, which will increase the success for outsourcing. Outsourcing assembly to India will have many positive effects for the Swatch Group. follow reduction remains the primary objective of outsourcing the Swatch Group will have the ability to provide a good at a lower cost and should be able to make the assembly cost more predictable and controlled.Ethically and socially, outsourcing has a caused many individuals andincrease in job insecurity. Lower crunch stan dards in other countries are forcing many companies to outsource much of their manufacturing. This is especially unsettling for individuals who lack the skills to make themselves difficult to replace, such as in manufacturing. If the Swatch Group decides to outsource assembly, there will be no easy way to redeploy the assembly workers. They can setup a redeployment pool for those resources and try to redeploy them elsewhere in the company. However, if this is not possible, a business decision will have to be made to lay those workers off. The utmost sensitivity will be required as it is possible that generations of families have worked for the Swatch Group. The Swatch Group will need to carefully balance the outsourcing cost reduction possibilities with the social ramifications that may exist.ConclusionThere are many issues facing the Swatch Group and there is no right way to solve any of the issues. Each issue comes laden with ethical and social consequences that will also impact t he company. The Swatch Group will need to take steps to ensure that international integration does not cause domestic social disintegration. Regardless of how the issues are resolve, the greatest challenge is going to be finding the right balance between markets and societies.ReferencesSwatch and the Global Watch Industry