Teresa da Silva Lopes

Entrepreneurship and the Development of Global Brands

Over the course of the twentieth century, entrepreneurs developed a number of successful global brands in consumer-goods industries. However, few independent brands survived the merger waves of the 1980s. To address the question of why so few independent brands survived, this paper examines successful brands in industries that rely principally on advertising for competitive success. Successful consumer-goods brands in several industries and countries are compared in order to highlight innovative strategies pursued by brand managers. The analyzed brands are mainly owned by Europeans, although a few examples of American and Japanese brands are covered as well.

Brands and the Evolution of Multinationals in Alcoholic Beverages

This article discusses the role of brands in the evolution of large international firms in the world alcoholic beverages industry since the 1960s. The vast literature on the growth of firms and their international expansion has emphasised technology rather than marketing. This is strongly present in the work of Chandler, in the concept of ‘ownership advantage’ associated with Dunning and other theorists of the multinational enterprise, and in the internalisation literature on the international growth of firms. Other researchers, however, have put greater emphasis on brands. They feature prominently in the management literature, though business historians such as Wilkins and, more recently, Koehn have drawn attention to the importance of brands in the growth of modern business. This article builds on these insights in the context of the growth of multinationals in alcoholic beverages. Alcoholic beverages provide an interesting case of an industry in which firms have both survived a long time, as the longevity of their products and brands testifies, and have grown internationally very large, appearing among the world’s largest industrial multinationals (MNEs). This is also an industry where brands can be expected to play a greater role than science and technology in firm strategies. This article considers the growth of large firms in alcoholic beverages and their cross-border expansion. The focus is on the period since the 1960s. It argues that brands and also marketing knowledge (that is, the capability of firms to manage brands and distribution networks) provide fundamental elements of the growth strategies of firms in foreign markets and of their evolution as a whole. It draws on concepts from Penrose and Johanson and Vahlne. The latter’s stages model of the internationalisation of the firm, despite not directly addressing entry into foreign markets through globalisation of brands, considers brands as important features in that process of internationalisation. Employing a new database on the evolution of the world’s largest alcoholic beverages MNEs between 1960 and 2000, the article analyses the growth of industry concentration as brands gained increased strategic relevance and firms accumulated marketing knowledgeBrands have played a critical role in the evolution of multinationals in alcoholic beverages. As this article shows, brands often determined the nature and scope of mergers and acquisitions in this industry and so help explain the successive merger waves that have transformed it since the 1960s. The firms that became truly global were primarily those that developed a portfolio of successful brands recognised in many countries. By acquiring and repositioning such brands, firms were able to respond to changes in consumption, competition and regulation, to move from familiar to geographically and culturally distant markets, and thereby to achieve continuous growth and long-term survival. Standard accounts of growth and internationalisation tend to give primacy to investments in science and technology. By looking at brands, this article shows how other kinds of knowledge - in this case the marketing knowledge inherent in brand management - are fundamental in explaining the evolution of firms in industries like alcoholic beverages where technology is not a major input.

Brand Protection and the Globalization of British Business

In expanding on earlier analyses of the evolution of multinational business that have drawn from concepts of competition and innovation, this study examines the strategies used by British multinationals, between 1870 and 1929, to protect the global reputation of their brands, which were crucial to their survival and success. Even after the passage of new trademark legislation in 1876, enforcement of trademarks remained expensive, and often firms preferred to negotiate, rather than to prosecute violations. Many trademark imitators were based in the newly industrializing countries of the time—the United States, Germany, and Japan—and were part of the British export supply chains as licensees, franchisees, or wholesalers. British firms responded to infringements by lobbying governments, appointing local agents to provide intelligence, and collaborating with other firms.

Guinness 1886–1939: From Incorporation to the Second World War. By S. R. Dennison and Oliver MacDonagh. Cork, Ireland: Cork University Press, 1998. xiv + 282 pp. Appendices, index, and tables. Cloth,

For most of the period 1886-1939, Guinness was the largest and most successful brewery in the world. It was easily the leading international enterprise in what is now the Irish Republic, dominant in the home market, a key player in the British, and increasingly significant in the pre-war overseas trade. Its remarkable growth in the late nineteenth and early twentieth centuries owed much to its differences from other large breweries. Unlike them it concentrated on a single product - - stout --, and had no capital locked away in tied houses. It also gained from the lengthy, shrewd family management of the first Lord Iveagh and from investing early in scientific inquiry, barley and hop research, and the employment of scientists as its managerial caste.The First World War produced a more hostile climate for the company, for many reasons but chiefly by changes in excise duty, as well as difficulties of maintaining sales as the post-war depression approached. The step that Iveagh had long resisted - -advertising - - had at last to be adopted. Characteristically Guinness leapt to the front immediately in this field too.This is the story of the companys rise to high prosperity and subsequent struggle to hold its ground in an increasingly inimical environment. It is also the story of a company unique in its recruitment, welfare, and industrial relations systems, which insulated Guinness to a remarkable degree against the vicissitudes of Dublin life in the stormy years between the heyday of Home Rule and Hitlers precipitation of world conflict in 1939

70.00. ISBN 1859181759

Since the banking crisis of 2008 the global economy is perceived as riskier than before. Firms that cannot manage risks have withdrawn from countries in which they previously invested. These problems are not new. For centuries firms have invested in risky foreign environments, and many of them have succeeded. This paper reviews the risk management strategies of foreign investors. Using archival evidence and secondary sources it distinguishes the different types of risks that investors face and the different strategies by which risks can be managed. It investigates which strategies are used to manage which types of risk.

Foreign direct investment in high-risk environments: an historical perspective

This study looks at the formation of multinationals and relates that process to the emergence of institutions favorable to economic growth. It compares the development of such institutions from 1960 in four European countries: the United Kingdom, France, the Netherlands, and Portugal. The focus of the study is a global industry—alcoholic beverages—in which brands, marketing knowledge, and distribution channels have been critical. In order to understand why some nations succeed in developing multinationals and others do not, different views of the determinants of national wealth, such as trade, institutions and organizations, and corporate governance, are examined. Whereas three of the countries developed leading multinationals in alcoholic beverages, Portugal did not succeed in doing so. The study concludes that, in marketingbased industries, both the type of product and the institutional environment influence the ability of firms to become leading multinationals.

Competing with Multinationals: Strategies of the Portuguese Alcohol Industry

According to John Dunning’s eclectic paradigm, firms need to have ownership, location, and internalization advantages in order to cross borders and engage in foreign direct investment. By drawing on historical evidence on the evolution of a group of leading marketing‐based multinationals in consumer goods, this paper claims that, despite its richness, the eclectic paradigm, and in particular the concept of “ownership advantages,” needs to be revised and extended to take into account different levels of institutional analysis. For the eclectic paradigm to give a rounded view of the internationalizing firm, it needs to acknowledge the critical importance of firm‐specific ownership advantages, such as the role of the entrepreneur.

The Entrepreneur, Ownership Advantages and the Eclectic Paradigm

As oportunidades empreendedoras existem, independentemente, das percepcoes dos empreendedores, esperando apenas para serem descobertas? Ou, estas oportunidades sao criadas pelas acoes dos empreendedores? Duas teorias, internamente, consistentes com as oportunidades empreendedoras sao: teoria da criacao e teoria da descoberta- as quais serao descritas. Enquanto, sera sempre possivel, descrever a formacao de uma oportunidade particular, como exemplo, de um processo da descoberta ou da criacao de oportunidade, estas duas teorias tem implicacoes importantes para a eficacia de uma variedade ampla de acoes empreendedoras em contextos diferentes. As implicacoes destas teorias para sete destas acoes serao descritas, acompanhadas de uma discussao sobre algumas das implicacoes teoricas mais amplas destas duas teorias para os campos do empreendimento e do gerenciamento estrategico.

Entrepreneurship, Brands and the Development of Global Business

This article looks at the evolution of the British chocolate industry from the 1860s to the 1960s, a period during which it was dominated by Quaker businesses: Cadbury, Rowntree, and their predecessor, Fry. It provides evidence of early forms of fair trade by these Quaker businesses, showing that, before the fair trade movement took off in the 1970s, they contributed to social change and to improvement in living standards and long-term sustainable economic growth in developing countries. This article argues that when the mechanisms for enforcing food standards were weak and certification bodies did not exist, the Religious Society of Friends acted as an indirect independent endorser, reinforcing the imagery and reputation of the Quaker-owned brands and associating them both with purity and quality and with honest and fair trading.

Building Brand Reputation through Third-Party Endorsement: Fair Trade in British Chocolate

Abstract This article looks at the impact of foreign direct investment (FDI) on host-country firms’ capabilities, industry competitiveness and long-term economic development. Focussing on the case of Portugal over a period of 300 years, it develops a framework of the types of knowledge spillovers, based on the behaviour of, and interactions between, foreign investors and local players. This study argues that the impact of FDI in Portugal has evolved in stages, from closed to interactive approaches, increasing the learning by local players. These ultimately lead to the long-term upgrade of firms’ capabilities, industry competitiveness and host-country economic development.