...BUSINESS ETHICS ------------------------------------------------- Anheuser-Busch ------------------------------------------------- Corporate Social Responsibility in marketing and advertising ABSTRACT The area of corporate social responsibility (CSR) is a constantly evolving field with direct impact on an organizations strategies and success, and it has become an important part of how the beer making industry promotes and advertises itself. Current portrayals of corporate social responsibility in the beer making industry are misleading and do not show the true nature of these practices. Relatively little research has been conducted on how the beer making industry promotes corporate social responsibility in their attempt to promote and facilitate other business interests. This case study will attempt to investigate the beer making industry’s recent corporate social responsibility endeavors and engagements and explain how they run in concurrence or adjacent to the industry’s political and corporate strategies. Anheuser-Busch Companies, Inc. is an American brewing company and a wholly owned subsidiary of Anheuser-Busch InBev (AB InBev). The company operates 13 breweries in the United States and became the largest brewer in the United States in 1957. They also currently have four of the top ten selling beers and rank as one of the top five consumer products companies in the world. Anheuser-Busch International, Inc. was established in 1981 as a subsidiary responsible...
Words: 2563 - Pages: 11
...149 AB InBev Annual Report 2012 Corporate Governance Statement Contents 150 152 155 155 157 159 164 Introduction The Board of Directors Chief Executive Officer and Executive Board of Management Internal Control and Risk Management Systems Shareholders Structure I tems to be Disclosed Pursuant to Article 34 of the Belgian Royal Decree of 14 November 2007 Remuneration Report Corporate Governance Statement 1. Introduction 1.1. The 2009 Belgian Code on Corporate Governance The corporate governance practices of Anheuser-Busch InBev are reflected in its Corporate Governance Charter, which is available on www.ab-inbev.com/go/Corporate_governance. The Charter is regularly updated. As a company incorporated under Belgian law and listed on Euronext Brussels, Anheuser-Busch InBev adheres to the principles and provisions of the Belgian Corporate Governance Code, published in March 2009 (www.corporategovernancecommittee.be). However, in order to reflect Anheuser-Busch InBev’s specific shareholding structure and the global nature of its operations, the Board of directors has adopted certain rules which depart from the Belgian Corporate Governance Code. In summary, these rules are the following: Principle 5.3./1 (Appendix D) of the Code: “the Board should set up a nomination committee composed of a majority of independent non-executive directors”: The Board of directors appoints the chairman and members of the Nomination Committee from among the directors, including at...
Words: 17331 - Pages: 70
...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...
Words: 1029 - Pages: 5
...Anheuser-Busch Incorporated/InBev: Do they still hold the crown for the “King of Beers?” Shawna L. Bendinger International Business MT3000 Dr. Carl W. Proehl August 23, 2015 Abstract The Anheuser-Busch Company, Incorporated was once described as one of “America's greatest well-liked Corporations” by the Magazine of Fortune and were positioned one hundred and forty-two in the Fortune Five hundred. From its beginning as well as historical indicators, to its multiple products, prohibition, their trademark Budweiser, the Budweiser Clydesdales, and the Budweiser Frogs, to its financial issues, the acquisition, to their controversies such as the “ethical aggravation, Spykes juvenile, marketing of Alcohol, environmental documentation, and the Budweiser statement.” Plus, the company’s most recent controversial marketing strategy appearing in April of this year, “Up for whatever.” Add the shenanigans and controversial court rulings of alleged vehicular homicide and negligent homicide charges of two separate women against August Adolphus Busch IV, has the ‘King of Beers’ lost its crown, has the ‘Prince’ turned back into a ‘Frog’? Outline I. History A. Established B. Prohibition C. Acquisition 1. 1852, St. Louis, Missouri, Eberhard Anheuser, Adolphus Busch 2. From 1920 to 1933, under the Eighteenth Amendment of the Constitution prohibiting...
Words: 3089 - Pages: 13
...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...
Words: 1925 - Pages: 8
...Corona Beer: From a Local Mexican Player to a Global Brand Case Analysis Chris Brown, Jennifer Roath, Janissa Pheann BUSA 499 November 30, 2009 Table of Contents: Business Overview............................................................................................................p.3 Products.................................................................................................................p.3 Structure................................................................................................................p.3 Leadership.............................................................................................................p.3 Historic Strategies.................................................................................................p.3 Strategic Issues......................................................................................................p.3 PESTEL Analysis.............................................................................................................p.4 Political.................................................................................................................p.4 Economic..............................................................................................................p.4 Social.....................................................................................................................p.5 Technological......
Words: 5955 - Pages: 24
...Analysis………………………………………………………………………………………6 Strengths Weaknesses Opportunities Threats Marketing Planning……………………………………………………………………………….7 Marketing Objectives Marketing research Target Markets………………………………………………………………………………………8 Measurement………………………………………………………………………………………..8 Implementation……………………………………………………………………………………..9 Messaging Packaging Distribution Control Branding and Positioning Marketing Mix……………………………………………………………………………………….11 Product Price Place Promotion References………………………………………………………………………………………………12 Executive Summary and Introduction Our vision at Anheuser-Busch is to add to life’s enjoyment through our products, relationships and services. With our Mission being to be the best beer company in the world, while still enrich and entertaining. We also wish to give amazing results to the shareholders and the community. We try to bring to life our dream to be the best beer company in the world. Our goal is to connect our efforts to a collective responsibility we share with our employees, consumers, wholesalers, retailers, law enforcement, elected officials, educators and other partners. After all, these are our roads, our kids, our neighborhoods and this is our Earth; and it is our obligation to work together to help support our communities. Budweiser, Bud Light and other brands also take ownership of our Corporate Social Responsibility efforts by creating consumer centric programs for adults. These programs enhance brand sponsorships and through our work...
Words: 2068 - Pages: 9
...Analysis: Page 23 Organizational Citizenship: Page 24 Strategic Positioning: Page 30 Summary: Page 33 Appendix: Page 38 PCS Data Sheets: Page 38 Works Cited: Page 89 Introduction Boston Beer Company (SAM) is one of the fastest growing breweries in the United States of America currently holding the largest market share of craft brewers in the country, and 6th largest of all brewers. Founded in 1984 in Boston, Massachusetts and staying true to both its local and family roots, this high quality beer has become an icon throughout the nation. Another extremely successful and predominant corporation in the beverage-alcohol industry is that of Anheuser-Busch Inbev SA (BUD) which will serve for the purposes of this paper as a benchmark for how a firm should be performing and operating in this field. Being that Anheuser-Busch has been operating since 1852, has 13 breweries nation-wide, and is one of the most iconic breweries in the world, it truly is a unique comparison of “David vs. Goliath” for these two companies. The History of the Boston Beer Company Jim Koch, founding member of The Boston Beer Company, has a long proud history of brewing a robust, full flavored beer in his family. In fact, it was his great-great grandfather Louise Koch, who concocted the original recipe for the brands metaphorical bread and butter “Samuel Adams Boston Lager” which is by far the bestselling brand in the portfolio of beers the company holds and distributes. The “Sam Adams”...
Words: 19150 - Pages: 77
...MarketLine Industry Profile Alcoholic Drinks in China February 2012 Reference Code: 0099-2201 Publication Date: February 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED China - Alcoholic Drinks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2201 - 2011 Page | 1 EXECUTIVE SUMMARY Market value The Chinese alcoholic drinks market grew by 9.8% in 2011 to reach a value of $96.5 billion. Market value forecast In 2016, the Chinese alcoholic drinks market is forecast to have a value of $145.6 billion, an increase of 50.9% since 2011. Market volume The Chinese alcoholic drinks market grew by 5.7% in 2011 to reach a volume of 53.2 billion liters. Market volume forecast In 2016, the Chinese alcoholic drinks market is forecast to have a volume of 67.6 billion liters, an increase of 27.1% since 2011. Category segmentation Beer, cider & FABs is the largest segment of the alcoholic drinks market in China, accounting for 65.1% of the market's total value. Geography segmentation China accounts for 38.7% of the Asia-Pacific alcoholic drinks market value. Market share SAB Miller is the leading player in the Chinese alcoholic drinks market, generating a 17% share of the market's value. Market rivalry Growth within the alcoholic drinks market has been robust and steady within the last few years, which tends to reduce the rivalry to some extent and attract...
Words: 7894 - Pages: 32
...incredible rate over the past few years. Through mergers and buyouts InBev now has notable beers such as Skol, Corona, Stella Artois, Beck’s, and Michelob Ultra among others under their massive and still expanding portfolio. In July of 2008, InBev agreed to buy Anheuser-Busch from its local roots for $70 per share for a total of around 52 Billion Dollars. This huge merger created the largest brewing company in the world and sent shockwaves through the business world. At the center of all this corporate movement is Carlos Brito, AB InBev CEO. Carlos Brito has been the CEO of InBev since 2005 when he took over for John Brock. Brito is a Brazilian citizen and has been a part of Ambev, a Brazilian brewing company, since 1989 after working at Shell Oil and Daimler Benz. Over the next 16 years Brito worked in finance, sales, and operations and watched as Ambev combined with Interbrew, a Belgium brewing company that can trace its roots back to 1366, among others to create InBev. Brito quickly made a name for himself and distinguished himself as a natural born leader. Carlos Brito has quickly become an expert in cutting costs making the companies he has worked for become as profitable as possible. After Inbev bought Anheuser-Busch in 2008 he cut costs by $1.1 billion dollars. In the time since InBev has seen its share prices quadruple. Some may think that Brito is the type of manager who is relentless and employees respect but don’t like; but that is part of Brito’s growing mysticism....
Words: 2750 - Pages: 11
...STRAYER UNIVERSITY Corona Beer: Modelo Assignment 3 By: Victor Delvan Brown 02/19/2010 Professor R. Lee Viar IV BUS599 Introduction Grupo Modelo (GM) is a Mexican brewer company with more than 50% share in Mexico. The Mexican beer market was the largest producer and distributor in the beer market. The company is also an important player in the United States premium beer segment with a market share of about 6%. Three of its brands Corona Extra, Modelo Special and Corona Light are among the top ten highest selling imported beers in the US. One of the most important trends in the beer market is the volume growth which has primarily come from emerging markets. Since 2000, the compound annual growth rate (CAGR) has been 2.8% for the global beer market. However, CAGR has seen 5.1% in Asia, 3.9% in Africa and the Middle East, and a substantial 6.2% in Eastern Europe. Grupo Modelo has a distribution system covering over more than 122 countries, with its flagship brand, Corona, being the fourth largest selling brand in the world. Grupo Modelo operations...
Words: 1256 - Pages: 6
...Hudepohl Brewing Company Bob Pohl, age 32, was appointed general manager of the Hudepohl Brewing Company following the unexpected death of the company’s president in March 1980. Since 1975, Pohl had managed Hudepohl’s marketing response to rapidly changing conditions in the brewing industry. The death of the president, a relative, left Pohl as the only member of the founder’s family active in the day-to-day activities of the business. Pohl was optimistic about the company’s future despite Hudepohl’s recent disappointing performance. Since 1978 the brewery had been operating at less than 40% of its one-million-barrel1 capacity, and in 1978 the company had experienced the largest operating loss in its history—$538,000. After adjusting for gains on Hudepohl’s securities portfolio and a tax loss carryback, net income for that fiscal year was $95,161, down from $268,611 in 1977. After only three months as general manager, however, Pohl was predicting improved earnings in the near future. A 7% gain in sales during the first four months of 1980 seemed to confirm his expectations. Pohl felt that by 1983 Hudepohl would achieve a 10% growth in sales. Background on the Company Based in Cincinnati, Ohio, Hudepohl was the twentieth largest brewery in the United States. (Financial information is presented in Exhibits 1, 2, and 3.) Ownership and Organization Hudepohl’s board of directors consisted of seven members, all descendants of founder Louis Hudepohl. Chairman John Hesselbrock...
Words: 9359 - Pages: 38
...Table of Content Question 1 3 PEST analysis 3 Porter’s 5 forces 5 Question 2 6 Michael Porter's Generic Competitive Strategies 6 Threshold Resources 7 Core Resources 7 Question 3 8 Ansoff Matrix 8 Market penetration 9 Product development and Market development 9 Organic development 10 Question 4 10 Johnson and Scholes framework of Suitability, Feasibility and Acceptability 11 SABMiller’s strategic priorities: 11 Constraint of acquisitions 13 Reference 14 Question 1 Using information exclusively from the European Brewing Industry and SABMiller cases as supplied and appropriate models from the course analyse the external environment in which SABMiller operated in 2010. After conducted a series of cross broader mergers and acquisitions SABMiller successfully become the second largest brewer by volume in the world. SABMiller is now operating worldwide: Latin America, Europe, North America, Africa, Asia, and South Africa. Nevertheless, the environmental condition and potential of growth vary between each region (Blee and Whittington, 2010). European brewing industry was one of the world’s major beer consumption regions. Recent years, the market has come into mature stage of the industry life cycle and demand is now decreasing (Euromonitor, 2010). PEST analysis and Porter five forces model are the appropriate methods to evaluate external environment on European Brewing Industry (Johnson...
Words: 3492 - Pages: 14
...Corp -Bargaining power of buyers (high). Top 5 soft drink companies -Bargaining power of suppliers (high)—>Alcoa, Alcan, Reynolds -Threat of Substitutes (high): plastic and glass, -Threat of New Entrants (low)—>the industry is already in long run MC. Smaller firms have been eliminated. 4Ps: -Price, rising COGS due to rise of price of alum by 15%, 65% COGS is RM. TC=7.5%, Labor=12% In house manufacturing, 55%. Consolidation of soft drink bottling. Machinery=2-piece can, 20-25 M per line, 3 piece=8,5-9M/line. Most plants 12-15 lines. -Customer. #1, Coke, #2 Anheuser-Busch, #3 Pepsi, #4 Seagram -Distribution. Manufacturer locate plants close to customer. Crown cork and seal locate plants to multiple customers (Connelly). -Suppliers. Alcoa, Alcan, Reynolds. Should invest in supplier to increase quality of products rather than diversify to other canning industries. Cuts down R&D costs and avoids basic research. Connelly: -Cut staff, reduce hq staff to 80. Reduce payroll by 24%, cut 1647 jobs -Accountability––>managers become “owner operators”,...
Words: 428 - Pages: 2
...2010). Beer consumption is continuously increasing not only in the United States but also globally. There are several trends within the global beer market which accounts for the potentials seen throughout the industry. One of the main trends of the global beer industry is the growth rate. The growth rate globally over the past five years is reported at 3.5%. “The largest contributors to this growth have been China (now the world's largest beer market), Africa and Eastern Europe” (SABMiller Investors, 2011). Another trend seen in the industry is consolidation. At the beginning of the twenty first century there were ten major brewers accounting for one third of the beer sales. Today there are four top brewers which include “Anheuser-Busch InBev, SABMiller, Heineken and Carlsberg – accounting for almost 50% of beer sales volumes and up to 75% of the global profit pool” (SABMiller Investors, 2011). This is due to the increase in consolidation. Another trend in the beer industry is premiumisation. This term refers to the sales of premium beer brands. “As economies improve, the trend towards premium will resume as consumers become more willing to pay for authentic, more image-oriented brands that reflect their socio-economic and lifestyle aspirations” (SABMiller Investors, 2011). Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets. This is a case analysis of Corona Beer (Modelo)...
Words: 1526 - Pages: 7
