Identify the mistakes that Foster's made and to suggest actions that Foster's should have taken to create value. Identify some of the reasons why Foster's thought the combination of beer and wine made sense.
One of the reasons for Foster's acquisitions was that it thought it could realize economies of scope from the sharing of resources/capabilities. They thought that both operational relatedness and activity sharing would easily develop. It is clear that Foster's did not have a real deep understanding of the wine business, as evi