Case Analyses (Pestle Method)

User Generated


Business Finance

Yale University


1. Problem: Carlsberg, a leading global player in the brewing industry, faced significant challenges in Russia due to political risk, economic instability, and increased regulatory pressures. The situation was exacerbated by the Russian invasion of Ukraine in 2022, leading to ethical dilemmas and potential reputational damage for Carlsberg due to its substantial market presence and investments in Russia. Should Carlsbergs continue its production line in Russia, or should the company sell it? Who should sell, and how should the loss be covered?

2. Define the METHOD. (Pestle Method) explain what method you are going to use to solve the problem. A method could be interest arbitrage to pick the best investment, or hedging techniques to find the least-cost hedge, or some other theory or technique. The method is NOT the solution to the case.

3. Do the ANALYSIS. In this section, use most of your 1000 words to solve the problem. This should be reasonably easy, since you have already defined the problem carefully and told me what method you are going to use to solve it.

4. Draw some CONCLUSIONS. This may be a final paragraph in which you emphasize your solution to the problem and why it is best.

No more than 1000 words

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Explanation & Answer

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Pestle Method of Case Analysis
Student’s name:


Pestle Method of Case Analysis
Problem statement

Carlsberg’s market share in the Russian market has significantly dropped and mounting
uncertainties about its future in Russia have affected the operations of its subsidiary Baltika.
Similar to other Western companies operating in Russia, Carlsberg's future in the Russian market
has remained unclear owing to the growing political tensions arising from the Russian invasion of
Ukraine. Although the company has several options to remedy the risks and losses from the
situation, in October 2023 the company terminated the license agreements with Baltika Breweries
as they plan to exit the Russian market in protest of the government directive to take over
management (Carlsberg Group, 2024). Moreover, the company has indicated that it is likely to
take legal action against the Russian government to protect its assets. Considering that the
company may face hurdles in selling its assets in Russia owing to the government's forceful
takeover of its management, I think the company should resolve to seek a hedging option in the
form of a futures contract with a local company to protect the loss of its assets.
Pestle Method
Considering the complexity of the Carlsberg’s Russia exit strategy a Pestle method analysis
would guide the best decision for the company to make. The company is facing the political,
economic, sociological, technological, environmental, and legal challenges arising from the
Russian invasion of Ukraine causing a hostile business environment for We...

Goes above and beyond expectations!


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