Foster's Group is an Australia-based global alcoholic beverages company which produces a wide range of beer and wine. Case (A), set in February 2008, opens up with damning media reports, questioning the ability of Foster's CEO Trevor O'Hoy to deliver satisfying financial performance. The case then traces the evolution of Foster's Group, originally a beer company, and outlines its strategy of internationalisation (in North America, the U.K. and Asia) and corporate strategy based on diversifying acquisitions in wine. The case's focus is on the last two decades of Foster's growth under the leadership of two CEOs — Ted Kunkel and Trevor O'Hoy. Case (A) describes the difficulties Trevor O'Hoy experienced in integrating the acquisitions of Beringer (U.S.) and Southcorp (Australia) and pushing a "One Foster's" multi-beverage strategy.Cases (B) and (C), set in June and July of 2008, provide follow-up information. Trevor O'Hoy resigns, and Foster's Board of Directors urgently needs to sort out the company's future strategy and succession.The case allows the students to examine central issues in corporate and international strategy, namely internationalisation of a leading domestic company and issues of international acquisitions; corporate strategy, with a focus on diversifying acquisitions, post-merger integration and synergies; and corporate governance issues and the role of the Board in strategy.
