UAE's Agthia Group's Growth through Acquisitions

UAE's Agthia Group's Growth through Acquisitions
Case Code: BSTR555
Case Length: 16 Pages
Period: 1978-2018
Pub Date: 2019
Teaching Note: Available
Price: Rs.300
Organization: Agthia Group PJSC
Industry: Food and Beverages (F & B) industry
Countries: United Arab Emirates, Egypt
Themes: Growth Strategy, M&A, Organizational Design
UAE's Agthia Group's Growth through Acquisitions
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

This caselet "UAE's Agthia Group's Growth through Acquisitions" emphasizes the inorganic growth strategy of the Agthia Group PJSC (Agthia) by way of acquisitions and Joint Ventures (JVs). The caselet describes the company's story since its inception in 1978. Agthia's struggles to prosper under Government ownership and the operational problems it faced due to a vague organizational structure are described. The caselet also takes a look at the acquisitions and JVs undertaken by the company, to turn its operations around and grow. It discusses the company's restructuring exercise in 2015 and the strategies used. The opportunities existing in the United Arab Emirates' (UAE) Food & Beverage (F & B) sector are highlighted. The caselet also goes into the challenges the company might face due to external factors in the UAE's F & B markets. It concludes with a glimpse into Agthia's future prospects.

Issues

The case is structured to achieve the following teaching objectives:

  • Explore the concepts of Mergers & Acquisitions Greenfield expansions, Joint Ventures, and Franchise Agreements
  • Analyze the restructuring strategies undertaken by a company

Contents

Keywords

Agthia; Acquisition; Joint Venture; Greenfield Expansion; Food & Beverage; Restructuring; International Expansion; Strategic Partnership; Concentration; Product Expansion; Government Intervention; Value Added Tax; International Brands; Growth Strategy; Organizational Structure

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