Case Study on SUN Brewing (A)

SUN Brewing (A)

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.

1. 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?
2. How was the growth financed?
3. What were SUN Brewing’s financing needs in March 1999? How much was the company worth?
4. What risks were associated with investing in a Russian beer company in 1999?

 

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

1)        Stay the course (go it alone)

2)        Bring in a strategic (joint venture) partner

3)        Bringing in a financial partner

4)        Sell off completely

Requirements

1. Read the Case first, and then answer all questions (1–5) with third person tone. This assignment should be a paper format, which needs total 3 pages ?about 900 words?. This paper will be uploaded to TURNITIN.COM. Please do this assignment carefully. My professor is strict.

2. 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. The analysis should also contain a summary of related current developments obtained through searches on the Internet.

The Internet sources you use must from The Wall Street Journal, Fortune, Forbes, Business Week, Barrons, Financial Times or The Economist. I need you to give me all of the links of outside sources if you use. I will prefer four sources (one of the sources should be the text book).

Please be careful for the Citation because teacher said it is very important.

3. I am a Chinese, use the common and simple English words and sentences to write this paper.

4. Textbook name: Emerging financial markets (Custom Book) published by McGraw-Hill/Irwin