Subsidiary Brands as a Resource and the Redistribution of Decision Making Authority following Acquisitions

Sebastian Dieng, Christoph Dörrenbächer, Jens Gammelgaard

    Research output: Working paperResearch

    10 Downloads (Pure)

    Abstract

    This paper analyses the moves global brewery companies undertake towards the distribution of decision making authority in their multinational organization and the likelihood of newly acquired subsidiaries to influence these moves. In this consumer goods industry, brands are suggested to be the primary subsidiary specific resource to influence these distribution processes. Empirically this paper explores three European acquisitions of the Dutch brewery corporation Heineken in Switzerland, Slovakia, and France. We explore whether differing brand value (regional/international, standard/premium) has had an impact on the subsidiaries‟ ability to maintain a certain degree of decision making authority after the take-over. The results of our case studies show, however, that the ownership of valuable brands may not be considered as a critical resource for subsidiaries here.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherDepartment of International Economics and Management, Copenhagen Business School
    Number of pages29
    Publication statusPublished - 2008
    SeriesWorking Paper / Department of International Economics and Management, Copenhagen Business School
    Number2-2008

    Keywords

    • Subsidiary resources
    • Decision making authority
    • Decentralization
    • Headquarters-subsidiary relationships
    • Brewery industry
    • Brands
    • Heineken

    Cite this

    Dieng, S., Dörrenbächer, C., & Gammelgaard, J. (2008). Subsidiary Brands as a Resource and the Redistribution of Decision Making Authority following Acquisitions. Frederiksberg: Department of International Economics and Management, Copenhagen Business School. Working Paper / Department of International Economics and Management, Copenhagen Business School, No. 2-2008
    Dieng, Sebastian ; Dörrenbächer, Christoph ; Gammelgaard, Jens. / Subsidiary Brands as a Resource and the Redistribution of Decision Making Authority following Acquisitions. Frederiksberg : Department of International Economics and Management, Copenhagen Business School, 2008. (Working Paper / Department of International Economics and Management, Copenhagen Business School; No. 2-2008).
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    abstract = "This paper analyses the moves global brewery companies undertake towards the distribution of decision making authority in their multinational organization and the likelihood of newly acquired subsidiaries to influence these moves. In this consumer goods industry, brands are suggested to be the primary subsidiary specific resource to influence these distribution processes. Empirically this paper explores three European acquisitions of the Dutch brewery corporation Heineken in Switzerland, Slovakia, and France. We explore whether differing brand value (regional/international, standard/premium) has had an impact on the subsidiaries‟ ability to maintain a certain degree of decision making authority after the take-over. The results of our case studies show, however, that the ownership of valuable brands may not be considered as a critical resource for subsidiaries here.",
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    Dieng, S, Dörrenbächer, C & Gammelgaard, J 2008 'Subsidiary Brands as a Resource and the Redistribution of Decision Making Authority following Acquisitions' Department of International Economics and Management, Copenhagen Business School, Frederiksberg.

    Subsidiary Brands as a Resource and the Redistribution of Decision Making Authority following Acquisitions. / Dieng, Sebastian; Dörrenbächer, Christoph; Gammelgaard, Jens.

    Frederiksberg : Department of International Economics and Management, Copenhagen Business School, 2008.

    Research output: Working paperResearch

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    AB - This paper analyses the moves global brewery companies undertake towards the distribution of decision making authority in their multinational organization and the likelihood of newly acquired subsidiaries to influence these moves. In this consumer goods industry, brands are suggested to be the primary subsidiary specific resource to influence these distribution processes. Empirically this paper explores three European acquisitions of the Dutch brewery corporation Heineken in Switzerland, Slovakia, and France. We explore whether differing brand value (regional/international, standard/premium) has had an impact on the subsidiaries‟ ability to maintain a certain degree of decision making authority after the take-over. The results of our case studies show, however, that the ownership of valuable brands may not be considered as a critical resource for subsidiaries here.

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    Dieng S, Dörrenbächer C, Gammelgaard J. Subsidiary Brands as a Resource and the Redistribution of Decision Making Authority following Acquisitions. Frederiksberg: Department of International Economics and Management, Copenhagen Business School. 2008.