Available and Optimal Financing Sources

The available Mexican financial sources both public and private that assist in promoting global investment for Extra Corona include shares held by a Railway Company known as Busch entertainment, Scrips and a merger called Thomson financial. The railway company takes the position of optimal financing source for Grupo Modelo. Stock exchange market of Mexico has a very important contribution whereby it necessitates the functioning of Group modelo’s public sources of financing for this organization.

This is because it is where Mexicans access Grupo Modelo’s shares, adding to the company’s economic value. This organization has been trading its shares in its home country’s stock market since the year nineteen ninety four where it as been using the symbol GMODELOC. The location of this railway company within Mexico makes it easy for it to observe proceedings of Grupo Modelo marketwise boosting it in areas where it experiences financial limitations which serves as its appropriateness as a financial source for Grupo Modelo. (Conway, 1995)

Available and Optimal Financing Sources (Bilateral or Multilateral) Outside Mexico to Promote Global Investment for Corona Extra There are financial sources for Grupo Modelo based outside Mexico including Anheuser-Busch which is the main source of funds for this organization. Grupo Modelo has a number of countries in which it quotes its shares including Spain where it is quoted as XGMD. These financial sources greatly influence operations undertaken by Grupo Modelo particularly towards achievement of increased sales for Corona Extra.

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Other financial sources for Grupo Module are the markets it has for Corona Extra whose sales are very attractive within as well as outside Mexico. Anheuser-Busch which is the optimal financing source for this organization has made a substantial contribution to Corona Extra production and wide distribution since its financial support is used in transporting this product to the markets outside Mexico. Financial support provided by Anheuser-Busch is also used in supporting advertisements conducted in new markets where Corona Extra has not gained popularity.

One of the achievements that show this financial source appropriateness is the situation where new markets like New Zealand have been currently reached and Corona Extra is already being presented on tap through a beverage company known as Carlton. (Conway, 1995) Two Foreign Markets for Corona Extra and the Possibility of Extending This Product’s Life Cycle in the Selected Markets Corona Extra has a wide range of foreign markets including Europe and Asia where the highest sales of this product have been recorded in comparison to other foreign markets.

Specific areas within Europe where Corona Extra is being marketed in high rates include France, and Greece. Studies have shown that consumption of Corona Extra is rapidly increasing in these two countries within Europe. This has been made possible by the promotional activity that is so intense especially during the current economic crisis which is aimed at maintaining Corona Extra’s high level of sales. The situation in Asia is closely related with the one being experienced in Europe since market for Corona Extra is showing a positive trend.

By the year nineteen ninety nine, Corona Extra’s sales in this particular region had risen by twenty five percent and has been continually rising since that time showing that its level of sales must be quite high. The total amount of sales recorded from Corona Extra’s foreign markets by nineteen ninety eight was fifty four thousand one hundred and seventy million hectoliters. The lifecycle of Corona Extra within these two markets is portraying a positive trend whereby high levels of sales are being experienced and a similar situation is expected in future. (Cheney, 2007) Conclusion

Grupo Modelo represents an appropriate choice of a non-North American organization whose product namely Corona Extra, has reached its maturity levels within the organization’s product offerings. This organization which is located in Mexico deals with beer production that is distributed both locally as well as to markets outside Mexico. More so, it has a number of financial sources which range from local (public and Private) to foreign (multilateral or bilateral). Corona Extra has greatly contributed to Grupo Modelo’s popularity due to the high level of sales it has accumulated for the organization.

Mexico has not been spared by economic crisis being experienced worldwide but according to an observation made by the organization’s administration, it is noted that sale of Corona Extra has registered success as its market is continually enlarging. This situation where the sale of Corona Extra has been able to stand the crisis is credited to Grupo Modelo’s CEO who has shown a high level of vigilance in his control of Corona Extra’s production as well as its performance in the market. (Cheney, 2007)

REFERENCES Cheney G. (2007): The debate over corporate social responsibility, Oxford: Oxford University Press pp 45-49 Conway A. (1995): Grupo Modelo, S. A. de C. V. : Strong Competitive Advantages are Already Discounted in Shares, New York: Salomon Brothers pp 9-13 Doole I. (2007): International Marketing Strategy: Analysis, Development and Implementation, UK: Cengage Learning EMEA pp 96-105 Marron S. (2008): Outlook for the Latin American Equity Markets, California: University of California pp 69-74

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