Module 5 Discussion Essay

Submitted By akelly811m
Words: 853
Pages: 4

Choose an international corporation from the country that you have chosen for your final project and explain why the company is of interest to you. Identify which other countries the corporation is located in and what its entry strategy was. Does the corporation only export and import, or did it establish manufacturing in these countries?

In responding to your peers, discuss why a particular company’s strategy of expansion or choice of country location surprised you.

Ireland is my country of study, so what more fitting company to research than Guinness. The history of Guinness is rather long, so I have highlighted some of the largest events in bold. In 1725 Arthur Guinness was born in Celbrige, County Kildare, Ireland. In 1752 the Arch Bishop of Cashel who is Arthur Guinness’ god father, passes and leaves Arthur 147usd in his will. Three years later he sets up business as a brewer about 11 miles from Dublin. By 1759 Arthur Guinness signed a 9000 year lease on an unused brewery at Saint James’s gate Dublin. This lease cost him $147 USD with an annual rent of $66 USD. Guinness’ lease included water rights which became important for transporting product. By the year 1769 Guinness was exported for the first time to England. In 1790 the first major brewery expansion takes place. Two of the present day vat houses are built during this expansion. In 1799 Arthur Guinness decides to narrow his concentration down to a porter beer. By 1801 the West India Porter is brewed, this is a precursor to todays Guinness Foreign Extra Stout. In the year 1803 Arthur Guinness passes away leaving the company to his son, Arthur Guinness the second. In1 811 the first shipment of Guinness stout made to Lisbon. From this point forward, many steps are taken towards expansion. Exports increase and production expands. By 1820 shipments of Guinness are made to Guernsey, Barbados, Trinidad, and Sierra Leone. By 1833 the Guinness brewery survives the post-war recession and becomes the biggest brewery in Ireland and the one of the largest employer of coopers. In 1834 the Glass Tax is repealed and Guinness can now be bottled in glass rather than stoneware. In 1840 the first shipment is sent to New York. In the 1950’s Sir Benjamin Lee Guinness, son of Arthur Guinness II takes over the brewery on the death of his father. In 1858 the first exports of Guinness beer to New Zealand take place. By 1860 first exports of Guinness beer to Southeast Asia take place. In 1862 the trademark beer label is introduced. The harp is registered as a trademark in 1876. By the year 1879 10% of beer sales are overseas. In 1866 Guinness becomes the first major brewery to be incorporated as a public company on the London Stock Exchange. It is presently the largest brewery in the world. By the early 1900’s Guinness sales reach upwards of 100,000.00 - 35,000 to North America, 35,000 to Australia, with South Africa the 3rd biggest market. Exports represented 5% of all Guinness stout, beer, or draught sold. By 1914 output is up to almost 3 million barrels and 50% of all Guinness sold in the USA is now bottled locally. In 1936 the first Guinness brewery outside Ireland is built at Park Royal, London. In 1939 Guinness Nigeria is set up to import and market stout, beer, or draught in Nigeria. By1950 brewing begins in…