Case: SUN Brewing (A)
Minimum of 4 Internet sources
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.
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?
Why beer? The Khemkas don’t drink beer, don’t know how to make beer, don’t really know the beer market anywhere in the world. And why beer in Russia? Don’t Russians drink vodka…?
So how did they do it?
How was the growth financed?
What do we know about the private placements?
The next time the Khemka family raised equity was through a rights issue in September of 1994. What exactly is a rights issue? Is this a common way of issuing equity?
How about GDRs? Is this really high finance or a fairly standard way of raising capital? Why did Sun Brewing issue GDRs?
What about the IPO? Does December 1995 sound like a good time to take SUN Brewing public?
Why did they do it, then?
How did the private placement investors do as a result?
Except for the 60% loan, all the sources of outside capital the Khemkas tapped into were equity. Why didn’t they use more debt? Could they? Should they?
What was the problem with the situation in 1999?
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?
Suppose you are Shiv Khemka… you need $38 million immediately to keep the company afloat, plus $76 more if you want to keep it running for the next few years. 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
12-point Times New Roman font
Title page with topic and name of student
Since all our papers are written from scratch, the papers we submit are plagiarism free and we strictly adhere to lecturer’s instructions. Our writers are highly qualified from all over the world and include graduates and professors from most of the largest and known universities in the world. Once you have assigned us your assignment, we select the most qualified and reliable writer to handle your assignment.
Unlike other writing companies, we encourage clients to draw back their money at any stage of the writing process if they experience any uncertainties with the quality of generated content. However, you will hardly have to make this decision because of our business approach that suits your needs.
We have an advanced plagiarism-detection system that flags any work that fails to meet the required academic expectations. Our company thrives in honesty, and as such, you will be guaranteed to achieve a paper that meets your expectations.
At homeworkpaper.org we have online agents that you can chat with to have your assignment taken care of with the little remaining time. Also, we have professional academic writers who will work on your assignment providing you with a high-quality paper at the same time. We can take care of your urgent assignments in less than 5 hours.
We uphold confidentiality and privacy through our interactions with clients, an aspect that has enhanced our relationship with prospective customers seeking for assignment help. We do not disclose your information with third-parties; neither do we share your work with any other person apart from you.
We do not resell previously-done tasks delivered to other clients. When we deliver orders to our clients, we safeguard their privacy and confidentiality by ensuring the third party does not access the work. By writing the papers from scratch, we have managed to maintain a certain level of originality, which defines our business model. Our qualified editors proofread all submitted work to eliminate mistakes that can interfere with the credibility of the assignment.