...Analysis – Heineken Ronald J. McIntosh MG 495 Strategic Management - Winter 2014 City University of Seattle Abstract Heineken begins it story as a company in 1864 when its founder, Gerard Adrian Heineken purchased a small brewery in Amsterdam, Netherlands. Since that time, multiple generations have expanded the Heineken brand to be the third largest brewer in Europe and expanded its branding reach globally. The company’s portfolio includes 170 international premium, regional, local and specialty beers to date and is considered one of the world’s great brewers. These premier brands are available in just about every country globally as well as being recognized as an international premium beer brand (Euromonitor International, 2012). In its branding expansion efforts, the company offers international premium, along with local, regional, specialty beers and ciders. Examples of this can be demonstrated by the acquisition of Scottish & Newcastle followed by the acquisition of FEMSA, Mexico’s second largest brewer and merging its position in the Middle East and Africa with purchases in Nigeria and Ethiopia (Euromonitor International, 2012). Key Learning Points External Environment Exporting...
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...Assessment 2 Topic: The effectiveness of the Strategic Management Practices of the Organization. Company Name: Heineken 1. Introduction: Competitive advantage is a common word in business world. Organizations practice Strategic Management, which consists analysis, decisions & actions to create & sustain competitive advantages. It contains two essential sides to get in to the main perspective of Strategic Management. First, strategic management is an ongoing process, which are analysis, decisions & actions. It is mainly focused on analysis of strategic goals- vision, mission & objectives with the internal & external environment of the organization. Afterward, comes the decision making process. The higher authority needs to take all the strategic decisions. In this level, two important questions arise. What industries should we compete in & how should we compete in those industries? After sort out these questions, action must be taken accordingly. Second task is to analyse why & how some firms outperform others. Managers need to focus on gaining the competitive advantages, which must be sustainable. That means focusing on two fundamental questions: How should we compete in order to create competitive advantages in the marketplace? Michael Porter argues that sustainable competitive advantage cannot be achieved through operational effectiveness alone. Most of the popular management innovations of the last two decades-total quality...
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...(SBU) – Heineken. Being the world’s 3rd largest beer brewer, Heineken’s opportunities and threats are subjected to external forces and internal proficiencies. The beer industry is in its mature stage. Therefore, opportunities mostly come from economical, social, technological and environmental factors. With an increase of affluent consumers, especially in emerging markets (i.e. Brazil, Russia, India, China and South Africa), would allow Heineken to expand its brand further. Moreover, changing preferences and ageing population create new prospects through various technological innovations. As consumers are getting more environmental-friendly, Heineken has the vision to implement several green initiatives so as to better position their brand. With 50% of the global beer market held by four largest players, the beer market is highly consolidated, thus very competitive. Hence, it is difficult for new entrants to enter the beer market. Despite being a highly-valued brand, Heineken faces threat from wide availability of substitution and low switching costs by buyers. On the other hand, Heineken’s vertical integration greatly reduced suppliers’ bargaining power. Conversely, due to ease of switching brands at low switching costs, buyers possess higher bargaining power. A strong base of resources and well developed competencies offers Heineken a competitive advantage. Thus, Heineken’s forward-thinking approach to its strategies is suitable. In conclusion, Heineken is able...
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...Feb-instroom, term 2, project 2 31-05-2010 1 Preface This marketing plan provides a comprehensive strategic plan for the NGO Greenpeace. It is aimed for Executive Managers and those who will conduct supervision of the implementation of this marketing plan. The marketing plan does not focus on technical issues, but rather examines basic principals concerning the internal- and external environment, strategy execution and the result realized after execution. To reinforce the purpose and profitable outcome of the marketing plan, there are, throughout this manuscript, numerous illustrative extracts with commentary, including company reports and other sources. Throughout the text some marketing- and financial terminology is used, for this reason foreknowledge of marketing and finance will be essential in understanding the analysis used in this manuscript and the true purpose of the strategic plan. Topics in the manuscript follow a logical coherent order. In part 1; general information about the internal- and external environment of Greenpeace is given, correctly identifying potential internal- and external threats and opportunities that may be in effect. After an exhaustive and thorough analysis, the information collected will be instrumental in conjuring up an efficient and effective marketing strategy which is clearly laid out in Part 2; “Marketing Strategy”. The manuscript ends with a description of the results and benefits achieved by the strategy. It is sincerely hoped that this...
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...Company Overview 3 Executive Summary 5 Mission Statement 6 Vision Statement 6 Objectives 6 Strategies 6 Products 8 External Assessment 9 Competition 9 AB/InBev 9 SABMiller 11 Heineken 12 Craft Beer 13 External Trends 14 AB/InBev Trends 14 Water Management 15 Energy Use 16 Recycling 16 Government/Political/Legal 17 Economics 17 Internal Assessment 18 Growth Strategies 24 AB/Inbev Strategies 25 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...
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...and strategies from the Carlsberg and Heineken. The Carlsberg Group, one of huge beer company in the world. One of the strategies that Malaysian company could learn is to make a connection between its external environment and the company. Based on Carlsberg’s goals and value, the organization tries to join its capacities and assets with its organizational structure in order to be the most proficient. Through this way of internationalization, an organization borrows to another licensee the utilization of its rights, copyrights or ability on products and procedures, so this firm, the licensee can make its products and offer in the solid business sector it operates. The licensee company will should pay royalties contingent upon the business volume in return of it. It is an extremely basic method for penetrating in another business sector as a result of it is not necessary to do an important investment, so the risk that the organization must backing is not particularly solid. Carlsberg has utilized authorizing amid decades as a part of better places. The company has diverse accomplices who brewer its beers everywhere throughout the world. The primary market where Carlsberg was available utilizing this way of entry is Cyprus, 1967. On the other hand, Heineken which is another giant company in the world. One of the strategies that Malaysian company could learn from Heineken is to face with the alcohol pressure in the business sector. Heineken have the system to deliver and sell...
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...Heineken: Cultural Issues of a Global Organization As the top beer selling company on a global scale, Heineken Inc. has persevered successfully across 70 countries of cultural differences in its 145-year history in the international industry. Marketing alcoholic beverages across many countries comes with language barriers, translation issues, cultural acceptance issues, and possible resultant misunderstandings by stakeholders. What may be accepted and understood as a socially responsible marketing message in the American market can be an insult to African or Middle East markets. A socially acceptable Swiss image of a girl in a bikini holding a bottle of beer can cause significant cultural rejection in conservative markets, such as Israel. Furthermore, target marketing varies from country to country because of age legality and local customs. As Heineken continues to dominate one of the most competitive industries in the world, they must also continue to consider, address, and positively influence multiple consumer cultures across their global market to maintain standing as a competitive international organization in their industry. When advertising to a global market, Heineken must understand the language and cultural acceptance of alcoholic beverages within each country. In more conservative Arabian countries, such as Egypt, beer is still considered to be sinful by many locals but is slowly gaining acceptance partially because it is relatively low priced (Euromonitor International...
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...what is the marketing environment, it includes the environment macro and micro environment. In addition, consumer behavior is an extremely important factor in sales for each company, the choice of the customer will determine your company's products. to occupy high positions in the number who consume the products of the company, we should learn more about the goals and business strategy in order to gain the advantage, as well as to capture the market and understand customer behavior. Those are important factors in the business environment. For the Heineken beer company, all of the above concepts are to be demonstrated and put out clear strategies for the marketing of products on the environment. Task 2.1 *Micro environment is the environment includes factors that exist with the company and those affecting the ability to serve clients of that business and is a combination of craft and the scientific method to improve the company looking good products and the direct relationship of the company, then produced and provided about the possibility of serving the company. Micro environment consists of six steps. +Company is where you work, manufacturing and especially the problems related to marketing management. The senior management of the business is the people who have the influence to the activity of the company, by the most active marketing strategy must be adopted before they go into effect. Heineken beer is famous brand all over the world. Heineken beer is currently rated...
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...Heineken Brewing Company Case Study MBA650 Business Policy John Barber Abstract Heineken is a major competitor in the mass production beer industry. The firm is facing internal and external environment challenges which are affecting its sales and profitability. The corporation is involved in a competitive, concentrated, and differentiated industry that has allowed major rivals to achieve growth through mergers and acquisitions. The case study addresses the issues that the organization is encountering. The company is facing declining sales due to changing consumer tastes and increased competitive pressure. Heineken is attempting to increase sales and retain its position as a premium beer, but is faced with a lack of support from two key demographic groups which includes Hispanic American's and young Americans (Dess, Lumpkin, Eisner & McNamara, 2012). A case study of the firm, and its market environment, utilizing value chain analysis, and Porter’s Five Forces was conducted. Recommendations and alternative strategies were developed to increase the position of the Heineken brand and regain sales from Hispanic Americans and young Americans. The implementation of the recommendations and alternative strategies may increase Heineken’s opportunity of sustainable long term growth within the industry. Introduction Heineken is the third largest brewer in the world and currently distributes more than 170 brands of beer in over 150 countries worldwide. However, over the past...
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...EXECUTIVE SUMMARY According to Powell (2003), strategic management is considered as a crucial factor to firms’ development and expansion because it deputizes the science of crafting and making initiatives systematically in both short and long periods directed at wining firm’s goals. Firm’s mission statement, vision and strategies are inherently tied, and constitute the key concepts that allow a firm to obligate such objectives. Along with this, the firm strategy has to be immediately fixed and improved to move in conjunction with the needs of the external environment (Stead et al., 2004). Understanding the importance of strategic management, the report’s purpose is to exploit supplied information from the case study “Global forces and the European brewing industry” to carry out the external environment analysis which uses PESTEL and Five Forces Models. Basing on the achievements from the industry analysis, a further analysis called strategic groups which based from strengths and weaknesses of four brewing firms is made to categorize each kind of firms. References from books, journal articles were used to providing proper prove for supporting the trend in the case. INTRODUCTION The case study reflects how international forces have influence on European brewing industry as well as how such breweries firms has tried to overcome the difficulties. Despite of the fact that the European governments have enforced some restrictions and carried...
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...Opportunities and Threats IV - Marketing objectives V - Marketing strategies A. Target markets B. Marketing Mix 1-Product 2-Pricing 3-Distribution 4-Promotion VI - Implementation - Marketing structure Bibliography I. Intro on company Heineken N.V. has wide international presence through a global network of distributors and breweries. It owns and manages one of the world’s leading portfolios of beer brands and is one of the world’s leading brewers in terms of sales volume and profitability. Its principal international brands are Heineken and Amstel, but the group brews and sells more than 170 international premium, regional, local and specialty beers and ciders, including Cruzcampo, Birra Moretti, Foster's, Maes, Murphy's, Newcastle Brown Ale, Ochota, Tiger, Sagres, Star, Strongbow and Zywiec. [3] Heineken has the widest presence of all international brewers, thanks to their global network of distributors and 125 breweries in more than 70 countries. The Heineken brand is positioned as a premium brand all over the world except for its domestic market, the Netherlands. History The Heineken story began more than 140 years ago in 1864 when...
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...Heineken N. V. Annual Report 2013 Front cover image igNITE beer bottle We are always committed to surprising and exciting our consumers. That’s why we have introduced the interactive igNITE beer bottle. The bottle lights up when you ‘CHEERS’ or drink and flashes along to the beat of the music. It ignites the night. Annual Report 2013 Contents Overview Report of the Executive Board Report of the Supervisory Board Financial statements Other information Welcome to HEINEKEN HEINEKEN is the world’s most international brewer with its brands available in 178 countries around the world. We are We value We want A proud, independent, global brewer committed to surprising and exciting consumers everywhere. A passion for quality, enjoyment of life, respect for people and our planet. To win in all markets with Heineken® and with a full brand portfolio in markets where we choose. Overview 2 The Quick Read Regional Review 16 Our Regions 58 Consolidated Statement of Cash Flows Report of the Executive Board 3 Chief Executive’s Statement 17 60 Consolidated Statement of Changes in Equity 5 Outlook 2014 19 6 Executive Committee 20 Central and Eastern Europe Contents Operational Review 8 Our Business Priorities 10 Grow the Heineken® brand 11 Consumer-inspired, customeroriented and brand-led Africa Middle East 18 Americas Asia Pacific 21 Western Europe ...
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...Heineken N. V. Annual Report 2013 Front cover image igNITE beer bottle We are always committed to surprising and exciting our consumers. That’s why we have introduced the interactive igNITE beer bottle. The bottle lights up when you ‘CHEERS’ or drink and flashes along to the beat of the music. It ignites the night. Annual Report 2013 Contents Overview Report of the Executive Board Report of the Supervisory Board Financial statements Other information Welcome to HEINEKEN HEINEKEN is the world’s most international brewer with its brands available in 178 countries around the world. We are We value We want A proud, independent, global brewer committed to surprising and exciting consumers everywhere. A passion for quality, enjoyment of life, respect for people and our planet. To win in all markets with Heineken® and with a full brand portfolio in markets where we choose. Overview 2 The Quick Read Regional Review 16 Our Regions 58 Consolidated Statement of Cash Flows Report of the Executive Board 3 Chief Executive’s Statement 17 60 Consolidated Statement of Changes in Equity 5 Outlook 2014 19 6 Executive Committee 20 Central and Eastern Europe Contents Operational Review 8 Our Business Priorities 10 Grow the Heineken® brand 11 Consumer-inspired, customeroriented and brand-led Africa Middle East 18 Americas Asia Pacific 21 Western Europe ...
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...1. What are the dominant business and economic characteristics of the global beer industry? * Market Size and Growth Rate * The size of the global beer industry approximated $385.5 in 2005 and $376.7 in 2004. This is a growth rate of 2.3% during the year 2005. * This is a mature industry with slowing growth, but it will continue to grow at a small rate. * Number of Rivals * During its early development and rapid growth stage, there were many rivals and the industry was very fragmented. * The lack of a transportation network made exportation impossible for centuries and brewing was a local, then a national domain. * Mergers and acquisitions are beginning to increase in frequency and the industry is experiencing a period of consolidation. * A determining factor of beer is that it has different national tastes based on different countries. Specialty beer-makers can find niche markets to sustain themselves without economies of scale. * Scope of Competitive Rivalry * The largest producers compete on global levels with strategic alliances set up to distribute the beer in other countries. * Most companies started out on a local or regional level, and then changed the company’s focus to incorporate a multinational or global perspective. * While many companies have exported products, most companies still use the production capabilities in their native country. * Having a presence in foreign country...
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...2 The Marketing Environment Learning Outcomes After reading this chapter, you should be able to: » » » » » » Identify and define the three key areas of the marketing environment Describe the key characteristics associated with the marketing environment Explain PESTLE analysis and show how it is used to understand the external environment Explain the environmental scanning process Analyse the performance environment using an appropriate model Understand the importance of analysing an organization’s internal environment and identify the key resources and capabilities C A S E I N S I G H T 2.1 Crompton Greaves Limited, an Indian multinational company, is in the business of design, manufacture, and supply of all kinds of T&D (transmission and distribution) equipment, including complete solution services, to its large base of customers in India and abroad. The company boasts of a global presence today. How does it keep abreast of the marketing environment? We speak to Biswaroop Ukil, General Manger–Marketing (Power Products and Solutions), to find out. stabilizes to a certain extent, the domestic demand for T&D products is expected to grow, given the picture painted by central planners and various government agencies. The Indian industry for T&D products is quite mature, with several local manufacturers and multinationals possessing the necessary technology, production facilities, and exclusive sales and service networks across the country. Apart from firms employing...
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