Transforming Carlsberg into a cosmopolitan firm: the post-merger cultural integration challenge (B case)

This is part of a case series. The Carlsberg B case (the second in a series of three cases on Carlsberg’s transformation journey) covers the years following Carlsberg’s 2008 acquisition of Baltika. The Danish brewer implemented major changes in its strategic vision, mission and communication systems in order to support the socio-cultural, cross-border integration of the enlarged company network. At the same time, Carlsberg’s strategic masterpiece of acquiring S&N’s stake in Baltika became a strategic headache due to regulatory changes and intensifying competition in Russia. The 'B' case can be taught independently of the 'A' case, which focuses on the industry’s consolidation dynamics and Carlsberg’s M&A strategy, as well as the 'C' case on building strategy process capabilities. The starting point for this case is Carlsberg’s 2011 full-year report, which surprised outsiders, as Carlsberg had decided to increase its stakes in Russia despite the challenging industry environment and Carlsberg’s declining market share. The case describes how Anne-Marie Skov (then Head of Group Communications) and Tayfun Uner (then Head of Group Strategy) embraced the challenge of post-merger cultural integration after the 2008 acquisition. A large internal project was initiated to push the socio-cultural post-merger integration forward, which led to the development and introduction of a new 'value system' (the Winning Behaviours), a new vision/mission and corporate identity (The Stand). The case ends by raising several questions: Would the situation would be different today if Carlsberg had engaged in more radical integration earlier? What level of integration is necessary to achieve the desired results for the business?