Strategic Management
C&C Group plc headquartered in Dublin, Ireland and with manufacturing plants in Clonmel, is a leading manufacturer, marketer and distributor of cider, such as the leading Irish cider brand Bulmers and the premium international cider brand Magners.
The company also distributes niche spirits and liqueurs brands across a number of international markets, such as Tullamore Dew, globally the #2 Irish whiskey brand, and Frangelico.
The brands are distributed by two companies: Hollywood &Donnelly and Quinns Reihill McKeown.
RoW-Rest of
World
RoI-Rep. of
Ireland
Operating Profit by Division 2007/8 Operating Profit by Region 2007/8
[pic] [pic] Geographic Operating Profit by Region 2008/9[1]
[pic]
Recent events
Over the last year the rapid economic deterioration and the resulting impact on consumer confidence have been very challenging for the group. In addition, the poor summer weather of 2008 militated against recruiting cider drinkers, and a substantial strengthening of the Euro against Sterling reduced the group’s cost competitiveness in its UK market.
Business in the key markets of the UK and Ireland has therefore been difficult with each experiencing downward pressure on pricing and volumes, as well as the impact of the accelerated trend from the On-trade market to the Off-trade market. For C&C these trends were exacerbated by a loss of share in both Ireland and the UK.
The company has announced the resignation of the CEO Philip Pratt per October 9th 2008 and has installed a sub committee of the Board, lead by Philip Lynch, to conduct an in depth review of its marketing and commercial strategies.
I Macro Environment- PEST Analysis
I. A Political and governmental policies and regulations
The Republic of Ireland, where C & C is based, has experienced instability and weakness following the financial crisis. Ireland was the first to act unilaterally by guaranteeing
Bibliography: • Burns, A.C., Bush, R.F. (2005) Marketing Research 4th ed. Pearson Prentice-Hall: New Jersey • C&C Group plc (2008) 2008 Annual Reports and Accounts [Internet] Dublin, Ireland Available from • C&C Group plc (2009) C&C Trading Statement Year Ended 28 February 2009- 3 March 2009 [Internet] Dublin, Ireland Available from http://www.candcgroupplc.ie/dynamic/img/C&C_Trading_Statement_Release_3_March_2009.pdf [Accessed on 1st March 2009] • Central Statistics Office Ireland (2009) IMF Data Page for Ireland [Internet] Dublin, Ireland Available From • David, F. (2008) Strategic Management: Concepts and Cases 12th ed. Pearson Education • Haberberg, A., Rieple, A • Hill, C.W.L. (2007) International Business: Competing in the Global Marketplace 6th ed. McGraw-Hill Irwin: New York • Mullins, L.J ----------------------- • [1] Source: C&C Group Plc (2009) C&C Trading Statement Year Ended 28 February 2009- 3 March 2009 [Internet] Dublin, Ireland Available from http://www.candcgroupplc.ie/dynamic/img/C&C_Trading_Statement_Release_3_March_2009.pdf • [2] Central Statistics Office Ireland (2009) IMF Data Page for Ireland [Internet] Dublin, Ireland Available From