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Tsingtao Brewery Co. Ltd. (A)
Tsingtao Brewery Co, Ltd, the best-known Chinese beer producer in the world, had been surpassed in market share by Yanjing Beer in the mid-1990s due to its inefficient operations. From 1994 to 2002, Tsingtao Brewery acquired over 47 small and medium-sized companies and regained its dominant position in the beer industry. However, this resulted in many problems including increased levels of bureaucracy, lack of integration of corporate cultures of the acquired companies, lack of brand focus, low profitability and other problems resulting from the rapid expansion. In July 2001, the General Manager Peng Zuoyi suddenly died of a heart attack. Jin Zhiguo, his successor, believes he should change the company business strategy from 'growing large to become powerful' to 'growing powerful to become large', which focuses on post-acquisition integration. -
Tsingtao Brewery Co. Ltd. (B)
Tsingtao Brewery Co. Ltd. had several problems due to its aggressive expansion from 1994 to 2002. This case reviews a number of initiatives which were implemented in order to address these problems. The initiatives include: downsizing, process re-engineering using ERP, redesigning of the incentive system, organizational restructuring, forming a strategic partnership with Anheuser Busch, integrating the culture and values of the company, and building a learning organization. This is a supplement to Tsingtao Brewery Co., Ltd. (A), product 9B05M063.