Subsidiary brands as a resource and the redistribution of decision-making authority following acquisitions

Abstract

This chapter 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 chapter 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.

Citation

Dieng, S., Dörrenbächer, C. and Gammelgaard, J. (2009), "Subsidiary brands as a resource and the redistribution of decision-making authority following acquisitions", Cooper, C.L. and Finkelstein, S. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 8), Emerald Group Publishing Limited, Leeds, pp. 141-160. https://doi.org/10.1108/S1479-361X(2009)0000008010