...Management 303 SWOT Analysis of Anheuser Busch Section 1 Organizational history In 1843 Eberhard Anheuser immigrated to the United States from Germany, after settling in St. Louis he became part owner of Bavarian Brewery in 1852. In 1860 Anheuser bought out other investors and changed the name of the brewery to E. Anheuser & Co. In 1861 Adolphus Busch married Eberhard’s daughter Lilly. In 1869, Adolphus bought in and gained half-ownership in the brewery. In 1879 the name of the brewery became Anheuser-Busch Brewing Association. In 1880, Adolphus Busch became president of the brewery following the death of his father in law. In 2008 Anheuser-Busch merged with INBEV to become Anheuser-Busch INBEV. After this merger, this company has become the world’s largest brewer and one of the top five consumer goods companies (ABWEBSITE). Section II: Strengths and Weaknesses Strength 1: Advertisement One key to the success of AB-InBev over the years is their creative use of advertising. Year after year this company continues to be one of the top purchasers of commercial airtime during the Super bowl. Spending an average of 30 million dollars per Super bowl (STLTODAY). The use of slogans and themes for advertising campaigns over the years has helped to build a loyal following and universal brand recognition. Another strategic move was made by AB in 1955. At this time August Busch Jr. made the move to associate his product with the game of baseball. Over the years...
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...Analysis of the Anheuser-Busch Company Report by Valanium Analysts: Chris Rigopulos, John Schneider, Jayne Tan Investment Recommendation: MARKET PERFORM December 5, 2001 BUD – NYSE (11/30/01) 52 week range Revenue (2001E) Market Capitalization Share Outstanding $43.10 $36.75 – $49.00 $14.9B $38.2 B 884.3M EPS Forecast (FYE 12/30) EPS Ratios Trailing P/E Forward P/E Leading PEG M/B Price/Sales 1999A 2000A 2001E 2002E $1.49 $1.71 $1.89 $2.09 Dividend Yield 1.67% Avg. Daily Trading Volume (3mo) 2.13M Book Value per Share (mrq) Return of Equity (ttm) Return on Assets (ttm) Est. 5 Years EPS Growth Rate Sector: Consumer/Non-Cyclical Industry: Beverages (Alcoholic) $4.83 40.39% 10.71% 11.0% BUD 23.2 20.6 1.87 8.93 3.11 Competitors Avg. 17.4 15.9 1.37 3.10 1.21 Valuation Predictions Actual Current Price Trailing P/E Valuation Leading P/E Valuation PEG Valuation M/B Valuation Price/Sales Valuation EBO (Abnormal Earnings) Valuation DCF Valuation Performance (Trailing, Annualized) Return on BUD Return on S&P 500 Return on Competitors $43.10 $32.38 $33.24 $31.48 $14.95 $16.73 $19.25 $46.87 6 mo -2.1% 18.3% - 2.9% 12 mo 24 mo -7.4% 9.9% -13.4% -10.3% 2.1% 8.9% Source: finance.yahoo.com, Valanium analysis • • Our valuations reflect a range of predictions, all falling below the current price point with the exception of the DCF estimate. However, we believe that A-B’s brand value and domestic presence are not captured within the accounting numbers...
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...Vasiliki Kontanis, Mary Kate Manganiello, Kelsey Swierczek, and Maria Tropiano Monday, November 11, 2013 Anheuser-Busch International, Inc.: Making Inroads into Brazil and Mexico 1. What were the major challenges facing Anheuser-Busch in entering the Brazilian market? In entering the Mexican Market? The export.gov website describes several market challenges that a company encounters when doing business in Brazil. These challenges include: 1) an intimate knowledge of the local environment, including the explicit as well as the implicit costs of doing business (the “Custo Brazil”); 2) Logistics, given infrastructure limitations posed by a decade of economic expansion; and 3) Tariffs and a complex customs and legal system (www.export.gov 1). The vscgrowth.com website lists the following market challenges for Brazil: 1) The language – Most professionals in Brazil will need an interpreter because English is not widely spoken in Brazil; 2) Time zones and distance – Being on the other side of the world there is no overlap in business hours meaning holding phone or video conferences will have one party up very early or late; 3) Business culture tends to be “laisse a faire” or “introspective” and the different cultural background means priorities don’t always coincide with the US business psyche; and 4) Brazilian infrastructure needs improvement so as to support and capitalize on growth opportunities (www.vscgrowth.com 1). The startupoverseas.co.uk website discusses the...
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...CASE ANALYSIS TOOLS “COMPONENTS OF A CASE ANALYSIS REPORT” * CURRENT SITUATION Anheuser Busch, leading brand of beers, has grown to be one of the world’s largest beer companies. China beer market is an increasing market with a huge potential. Anheuser Busch wanted to enter in this market through adquisitions of other Chinese beer companies and finally with Harbin Brewery. As a result of making the adquisitions, AB obtained Harbin’s shares, having reached total holding of 99,66% voting shares. * EXTERNAL ENVIRONMENT SOCIETAL OVERALL P P PEST ANALYSIS OLITICAL / LEGAL * Descentralized power structure. * Influence of provincial and municipal government towards local affairs. * Unstated hierarchy of power. * Transportation restrictions. E E CONOMICAL * Growth of China economy. * Fragmented market. * Low income in the mayority of regions. S S OCIO-CULTURAL * Poor standard of living. * Chinese people don’t have loyalty to a particular brand. * Pub culture emerging. * Price conscious consumer. T T ECHNOLOGICAL * Poor infrastructure. INDUSTRY OVERALL PORTER ANALYSIS * BARGAINING POWER OF BUYERS The power of buyers is high because Chinese people are not loyalty to a specific brand. Also, Chinese beer consumers are poor and live in agricultural heart land and pay extremely attention to the price’s product. * BARGAINING POWER OF...
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... SAB Miller Strategies 26 Heineken Strategies 27 Craft Beer Strategies 28 Growth Strategy Advantages v Disadvantages 28 Space matrix 29 SWOT Analysis 30 IFE Matrix 31 Company Overview As the largest brewer in the world, Anheuser-Busch InBev (AB/InBev) has had quite an intense but creative history. In 1852, George Schneider, St. Louis brewer and saloon operator opened the Bavarian Brewery. Four years later, he expanded into a larger location for his brewery to operate due to positive production. However, shortly after the second opening financial problems resulted in Schneider having to sell his brewery to various owners. In 1860, as the brewery reached a worsening financial position, William D’Oench, a local pharmacist, and Eberhard Anheuser, a wealthy German-born soap manufacturer, purchased the brewery and saved it from bankruptcy (Anheuser-Busch, 2012). After nine years, D’Oench sold his half of the business and Anheuser became the sole owner of the brewery. Eberhard Anheuser’s son-in-law, Adolphus Busch, immigrated to St. Louis Missouri from Germany years prior to marry Anheuser’s daughter. Busch served in the American Civil War and shortly after that became a salesman for the Anheuser brewery. Adolphus Busch...
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...MillerCoors vs. Anheuser-Busch Salman Boer Carly Gorka Stephanie Kalin Kenny Koelling Felipe Naranjo Nizam Qutubuddin Executive Summary The beer industry in the United States is an extremely competitive one. For years, the industry has been solely dominated by one contender, Anheuser Busch. However, large brewers have always been looking for opportunities to extend their reach in the industry and gain more market share. Miller Brewing Company and Coors Brewing Company have been historical staples of the American beer industry since the nineteenth century. These companies merged with international giants South African Breweries and Molson, respectively, in efforts to better compete in the United States brewing industry. However, they still could not manage to take a share of the Anheuser Busch Empire. SABMiller and Molson Coors saw an opportunity in forming a joint venture that would be able to successfully compete with Anheuser Busch in the beer industry, and in 2008, created a third company called MillerCoors. The creation of MillerCoors was a success. Since the creation of the company, in June 2008, MillerCoors has been very profitable and has enjoyed steady growth in their market share. They have done this by integrating innovation as a major goal in their products, providing them with a certain level of differentiation, while reducing costs through the exploitation of synergies that exist in their different processes. MillerCoors was one of the very...
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...Running Head: FOREIGN MARKET ENTRY AND DIVERSIFICATION Foreign Market Entry and Diversification: Corona Beer (Modelo) Case Analysis Shirley Saucer Strategic Management BUS 599 Strayer University Professor Petty Introduction Corona Beer is the flagship for the Modelo Company brand. With ninety years of relevance in the alcohol beverage industry, undoubtedly Modelo has set certain standards and criteria, which many have taken notice. The Modelo Company has easily earned its stake within this industry, persevering through strife’s such as the prohibition era. In operation since March of 1922, Modelo has solidified what it means to be a top contender in the imported beer market. In fact they are one of the only brewing companies that are still family owned and operated. Within this paper we will discuss the trends in the global beer market, Modelo's international expansion, as well as challenges that they face from competitors such as the InBev Company and whether or not they should diversify their business strategy which has made them so successful. Beer has been brewed since around the 14th century when it got its beginnings in Europe. Beer comes in many flavors and shades and is varied depending on regional brewing methods. A lot has...
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...Charlotte Beers (Ogilvy & Mather) Case analysis At the point of planning to the launch of the business, the owner of the business is very passionate and usually experienced in the line-of-business; as David Ogilvy was at the age of 38 when he started his own advertising agency in 1948. Ogilvy & Mather, an advertising agency was started in New York and expanded worldwide. By 1991, O&M was ranked the largest marketing company in the world.[1] But there comes a time when a company must look to adapt a change. With competition growing, clients of O&M changed their demands. O&M was a high-cost agency that was failing in controlling their budget and lowering their cost; they failed to see the reason for a change. Due to that fact, O&M had lost few of their multi-million dollar accounts. Many companies may have either filed bankruptcy or have shutdown in the process of losing their clients but O&M was not the type of company that would give up that easily. In 1992, Charlotte Beers was appointed CEO of O&M and a massive change was underway. She was not the type of person who would dwell on the past, but instead look to better the future. Charlotte Beers clearly made an impression on the O&M employees as she had the ability to inspire. But more importantly, she came up with three strategies which turned the company around 360 degrees; Client Security, Better Work/More Often, and Financial Discipline. Yes these strategies were formed for an advertising agency...
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...6 feet and only 30 seconds to be part of it. You would have just felt like a marketing executive at Anheuser-Busch Brewing Company, the maker of Budweiser beer. The marketing department purchased a commercial spot during the 2013 Super Bowl with its iconic mascot, a Clydesdale horse. The interesting history of this company along with the characteristics of its iconic mascot and the amounts of money to advertise during the Super Bowl is amazing. First of all, the Anheuser-Busch (Budweiser) Company adopted the Clydesdale horse during the depression, around the 1930’s. August A. Busch, Jr. presented his father, August A. Busch, Sr., with a gift. It was a Studebaker beer wagon with a perfectly conformed six horse hitch of Clydesdales (Wikipedia 2013; http://en.wikipedia.org/wiki/Budweiser_Clydesdales). The Clydesdale horses are mostly used in exhibitions and parades because of their size and grace. Secondly, is the main characteristics of these massive animals are their colors. There are different shades of Bay, Brown, Chestnut and Black predominantly, but with a white underbelly as well as a white feather (long hair) over their ankle to their hooves (Wikipedia 2013; http://en.wikipedia.org/wiki/Budweiser_Clydesdales). Their average growing is over 2,000 pounds and stand 18 hands (6 feet) tall; they are known for their grace and to become part of the Anheuser-Busch family is specific. The Clydesdale horse must be at least 4 years old, stand at least 18 hands (6 feet)...
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...Foreign Market Entry and Diversification Johnnie Farmer Dr. Travis O. Davidson Strategic Management – BUS 599 November 7, 2011 Identify and discuss the trends in the global beer market Even though the United States has the largest beer market China surpassed them in 2003. Americans are drinking more beer and the consumption per capita remained almost six times higher in the United States than it is in China. There are three brewers controlling 80% of the U.S. market, Anheuser Busch with 45%, Miller Brew with 23% and Adolph Coors with 10%. There were also 300 regional craft breweries that struggled to make a profit because of vertical integration and economies of scale which were drivers of operating margins [ (Thompson, Strickland, & Gamble, 2009, pp. C-250) ] Mexico is one of the largest beer markets in the world. They have a variety of brands with lots of different taste. Even with the mix of taste, Mexico is split between two producers and few microbreweries. These companies are FEMSA and Grupo Modelo. Grupo Modelo captured 62.8 % of the Mexican market in 2007 while FEMSA captured the remaining 37.2% [ (Thompson, Strickland, & Gamble, 2009, pp. C-251) ]. As a whole, the beer industry is expected to post a third consecutive year of declining sales in the U.S. for the first time in more than 50 years. . Shipments from beer manufacturers to wholesalers, a standard industry measure, are expected to fall by as much as 2 percent in 2011, according to Beer...
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...South Delaware Coors, Inc Brains On Tap Todd Whitaker, Debbi Danner-Rios, Aleisha Humphrey, Scott Roberts, Eric Puckett 1. What consumer behavior can Larry expect if he introduces Coors to South Delaware? Short-term behavior? Long-term behavior? 2. Who are Coors’s competitors? How does Coors differentiate itself from its competition? Heineken and Anheuser Bush are the main competitors. They differentiate themselves with their brand image. Brand image includes several different areas such as Refrigerated shipping, non-pasteurization, recycling their cans. They are a family owned company who is committed to quality beer. 3. What are the pros and cons of each marketing research report? Manson & Associates will bring an objective third party view to the research, but they won't know the ins and outs of the business like an internal employee might. Manson & Associates have up-to-date knowledge of research and analysis tools, but they can't always communicate or predict the value or outcomes as well as an internal employee might. Manson & Associates can be a costly expense, ($18,549.50) but decreased client headcount and other various efficiencies, that they can take advantage of can effectively minimize costs while maximizing value. Manson & Associates have the ability to contact a high volume of customers, but they don't always represent the client's company as well as the company itself would. Manson & Associates have the ability...
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...Mountain Man Brewing Company (MMBC) is a single product brewing and local distribution company based in West Virginia. It was founded by Guntar Prangel who reformulated an old family brew recipe, resulting in a flavorful bitter tasting beer that was launched as Mountain Man Lager or West Virginia Beer. This signature product went on to claim a reputable market share for an independent family owned brewery, in the East Central region of United State by 1960s.The company developed a brand image and reputation among its core drinkers; the blue collars and middle to low income men over 45, while upholding the unique and authentic family business model based on quality. In 2005, MMBC was generating revenues of over $50 million and selling over 520,000...
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...IN THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF ILLINOIS JUSTIN KING ) ) PLAINTIFF, ) ) CIVIL ACTIONS NO: ____________________ vs. ) ) ) JUDGE: _____________________________ ANHEUSER BUSCH and ) FRANK CUELLAR ) ) DEFENDANT ) COMPLAINT COMES NOW, plaintiff, Justin King and for his complaint, alleges as follows: 1. Plaintiff, for all times mentioned herein, was a resident of the County of Paxton, State of Illinois. 2. Plaintiff is informed and believes and thereon alleges that defendant, Anheuser Busch, was and is a business primarily operating out of the County of St. Louis, State of Missouri. 3. This is an action for damages in excess of $75,000.00, as required by 28 USC 1332. 4. Plaintiff is informed and believes and thereon alleges that at all times and places herein mentioned defendant, Frank Cuellar, was operating a certain 1992, Nissan UD2000 B, 24ft straight truck, WHITE in color, PLATE NO. 07 MO 968-7RL., fully loaded with cases of Anheuser Busch product. 5. At all times herein mentioned plaintiff was and now is the owner of a certain 2006, Harley Davidson X-73, motorcycle, BLACK in color, PLATE NO. 07 MO 327-HP8 6. At all times herein mentioned Interstate 57 was and now is a public highway running in a general northerly and southerly direction. 7. On or about the 8th day of April, 2004 plaintiff was operating his automobile in a prudent and careful manner in a general...
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...Answer To Complaint Justin King Case Civil Litigation Unit 5 IN THE CIRCUIT COURT FOR KANSAS CITY, MISSOURI Justin King - Plaintiff v Anheuser Busch - Defendant * * * * * CASE NO. Answer to Complaint COMES NOW, Anheuser Busch, the Defendant, and hereby answers the Plaintiff’s Complaint as follows: PARTIES 1. As to paragraph 1, it is hereby admitted in part. Defendant resides in said county. As for the other allegations, Defendant does not have sufficient knowledge to form a belief as to the truth of the allegations, and on that basis, denies the allegations. 2. As to paragraph 2 and 3, it is hereby admitted in part. One of Anheuser Busch’s trucks was driven in Ford County, Paxton, Illinois, which passed a motorcycle driven by the Plaintiff. 3. As to paragraph 4, it is hereby admitted in part. The Defendant passed the motorcycle in Paxton, Illinois as follows: a. Defendant must flash lights to indicate he wishes to pass. b. The Plaintiff is required to move over if conditions allow. c. Part of Defendant’s shipment did fall off truck, however, Plaintiff, could have slowed down, or swerved a different direction. d. Had the Plaintiff worn protective headgear as required by the State of Missouri, this accident may not have been as sever. Affirmative Defenses 4. The Plaintiff assumed...
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...found a good pool of talent. But she says, “Sometimes I get inquiries from very strong candidates in the top 10 percent of their class” at other schools, and she doesn’t want them to slip away. Although the insurance company is growing and hiring sales representative, Nowak can’t afford to fly across the country for a handful of interviews, so she has set up an online recruiting and selection system. Students at distant schools can view online presentations about the kinds of positions the company has available. And when an interested prospect seems like he or she might be a good match. Nowak can use Web-based interviewing to narrow her choices. The company invites those who survive the cut to fly to head-quarters for an interview. Anheuser-Busch InBev is another company that recruits on college campuses. Elatia Abate, the company’s global director of recruitment and strategy,...
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