Resources Read/review the following resources for this activity: Chapter 9 and earlier chapters Case: SUN Brewing (A) Lecture Minimum of 3 Internet sources Introduction The case exemplifies...

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Resources

Read/review the following resources for this activity:




  • Chapter 9 and earlier chapters

  • Case: SUN Brewing (A)

  • Lecture

  • Minimum of 3 Internet sources



Introduction

The case exemplifies entrepreneurial risks in emerging markets and shows how family business groups can step in to perform the function of an internal capital market, especially when external capital markets may be inefficient. In particular, it highlights the prospects of the Khemka family in the Russian beer market.




Activity Instructions

The following are the minimum areas to be addressed in your paper:




  • What made the Khemka family decide to enter the beer market in Russia in 1992. How did they find themselves in the situation they were in at the time of the case? What could they have done differently?

  • How was the growth financed?

  • What were SUN Brewing’s financing needs in March 1999? How much was the company worth?

  • What risks were associated with investing in a Russian beer company in 1999?

  • What were the pros and cons of the different alternatives (listed below) available to the Khemka family in 1999?

    • Stay the course (go it alone)

    • Bring in a strategic (joint venture) partner

    • Bringing in a financial partner

    • Sell off completely






When analyzing a case study, all the used references (including the Internet) should appear within the text [e.g. (John Doe, 2008)] and on the references page. You are expected to apply all applicable course concepts, as well as those specific to the chapter from which the case or paper topic is drawn. The analysis should also contain a summary of related current developments obtained through searches on the Internet.



Writing Requirements (APA format)



  • 10 pages (approx. 300 words per page), not including title page or references page

  • 1-inch margins

  • Double spaced

  • 12-point Times New Roman font

  • Title page with topic and name of student

  • References page (minimum of 3 Internet sources)

Answered Same DayDec 26, 2021

Answer To: Resources Read/review the following resources for this activity: Chapter 9 and earlier chapters...

David answered on Dec 26 2021
127 Votes
RUNNING HEAD: SUN BREWING

1 | P a g e
Sun Brewing
Name :
RUNNING HEAD: SUN BREWING

2 | P a g e
Shiv Khaki is the promoter of the Russia-based Sun Group, one of whose companies is Sun
Interbred, a beer firm that brews three times as much as India does every year. After leaving
India when he was eleven, Mr. Khaki returned recently as he wanted his three daughters to s
tudy
in India. Born in Delhi, he has been recognized as one of tomorrow‟s leaders by the World
Economic Forum and his beer firm currently has net sales of about $600 million, twelve years
after it was started UN Brewing is the another largest beer corporation in Russia, which was
started in 1992 by Shiv Khemka, his father, Nand, and his brother, Uday, as an empire-building
extension of the Indian family's global commercial collection.
The case designates the company's unusual roots and rocky development through a problematic
and unbalanced occupational environment He has lived in the US, Mexico, Brazil and France,
and now spends two weeks every month in Moscow and the other two in Delhi. „His group of
businesses also has a secluded equity and straight speculation firm. Most lately, he was asked to
join Russian leader Vladimir Putin‟s investment optional council.
The family is in discussion of the qualities of two main replacements: (a) to transport in a major
worldwide beer business as a strategic spouse, or (b) to break on as regulatory landlords,
injecting millions of greenbacks into the corporation from other shares of the domestic business
group, and climate the storm until improved terms can be likely from any external capital
provider.
He went to Russia in 1990. His father wanted to visit Russia so he has to accompany his father.
When he reached, he shaped a commercial team to diagram out opportunities in various
segments. What we originally hit upon was lubricant and vapor but he was not sure about the
idea as he thought that his idea was too politically sensitive at that point of time. Russia had just
appeared as a marketplace economy, and a collection of new financial improvers remained in
place.
RUNNING HEAD: SUN BREWING

3 | P a g e

After that he recognized cement, milk and dairy foodstuffs, brown chocolate and cocktail as
areas where business occasions untrained. They zeroed in on beer, since they desired to gain
somewhat that was underneath the locater a bit. They started their first brewery acquisition in
1992 and they were successful to build more from there. Now they run 13 breweries in Russia
which actually calculates total market share of 20 per cent in the Russian market. Now if we see
that they are the 12 largest beer company in the entire world and that actually happened through
the best idea and the best motivation. They also quoted that they have almost invested more than
$1 billion entirely till date. He had the thought that the professional chance for beer was
acknowledged and controlled upon in a petite period of time. His family was in India actually
was involved with the excavating business during 1950‟s, and after the business it became the
largest importer of mining tackle and capital organization. He also had to leave India at the age
of 11. He has done his schooling In England and also did a part of his studies in US and then
one fine day his dad called him that they had to leave for Russia and this was the way he landed
up in Russia. It was the destiny or stroke of luck or whatever r that he says that landed him to
Russia.
They occurred to enter Russia at a significant time when collectivism had been surrendered and
the market budget was fast creating. He was awestruck by the determination and pledge of this
new breed of young Russian improvers then. In 20 years, they did not even think that, that Russia
will be a first world state or country. SUN Group has its recompenses. It began doing
commercial in Russia 41 years ago. Its thoughtful and long-term attitude to speculation in Russia
has transported both profits and respect in a country often seen as too changeable for thoughtful
speculation.
SUN Interbred is Russia's major beer brewer, and SUN Capital Associates, a $155 million equity
fund investing directly in numerous segments of the Russian reduced, is also doing well He
wanted his daughters to study in India so for this reason he has to come back to India. The
brewing industry in Russia was developed as part of the centrally planned Soviet company.
Interbrew, the Belgian group which this month is expected to become the world's largest brewer,
took full control of Russia's second biggest beer group for €530m (£356m) in shares. He took the
beer industry as he thought that it is quite appealing . He himself thinks or rather he have seen
thatmost of the richest families he has met in South America had made their...
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