...International Case 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 ...
Words: 1700 - Pages: 7
...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...
Words: 5428 - Pages: 22
...Heineken Case Study The United States beer industry represents 233 million hectoliters of the world’s 1,501 million hectoliters and is a dynamic part of the United States national economy, contributing billions of dollars in wages and taxes. Within the U.S., the beer market accounts for nearly 50% of total volume of alcohol, with the import specialty and light beer segments driving growth. Heineken was established in the United States in 1863 and in a short time it became the world’s largest brewer with 116.8 million barrels of beer sold. Heineken’s number one position depends on the number of markets they are present with their products. Local markets are important but the international markets will provide more opportunities to grow. Exporting beer continues to boost year after year. In 2006 the increase was over 18% compared to 2005. The United States exported approximately 34.4 million hectoliters of beer in 2006 compared to 29.9 million hectoliters in 2005. Heineken expands constantly and recently has purchased Hartin, 4th largest brewer in China, and invested $33M in convertible bond of Tsing Tao Brewery. Heineken’s partnership with Budweiser in Italy allowed Budweiser to brew, market, and distribute “Heineken” and make use of Budweiser’s distribution network in Europe. Heineken has been the most successful beer company in Europe and the rest of the world due mostly to the quality of their product, their marketing/advertising and their sponsorship ability. They...
Words: 1430 - Pages: 6
...1. Cervecería Heineken, fundada en Amsterdam, visión cerveza más alta calidad. 2. Ganó medalla de oro en París 1889, una de las cervezas más vendidas en los Países Bajos. 3. En 1993, ventas netas 9.049 millones florines, utilidad 798 millones de florines. 4. 82% ventas a la cerveza, 18% bebidas gaseosas, alcohólicas y vino. 5. En 1993, ventas cerveza bajo supervisión Heineken 5.6 mil mm de litros (2do en el mundo) , Anheuser -Busch el primero con 10,000 mm de litros. 6. Ventas de marca, Heineken 1.52 mil mm de litros en 1993, otras marcas Amstel, Buckler y Murphy's de distribución internacional. 7. Heineken otorgaba licencia a fabricantes de cerveza extranjeros para que lo produjeran según la fórmula original. 8. No podía ejercer influencia sobre la forma en que un concesionario comercializada sus propias marcas, pero imponía un control riguroso sobre producción y comerciación. 9. El socio ideal para Heineken era aquel que no tuviera ambiciones internacionales para sus marcas locales. 10. Industria cervezera en 1990, cada vez más global, tendencia a mercados en desarrollo por creciente consumo per cápita que prometían crecer más rápido que en mercados maduros (países desarrollados). 11. Europa, excesiva oferta, presiones sobre margen, esfuerzos por segmentar mercado (tipos de cerveza). 12. 1993, Heinkeken 24% volumen total...
Words: 385 - Pages: 2
...establishment and very brief history Heineken International is a Dutch brewing company, founded in 1864 by Gerard Adriaan Heineken in Amsterdam. It owns over 190 breweries in more than 70 countries and employs approximately 85,000 people. Cruzcampo, Tiger Beer, Żywiec, Starobrno, Zagorka, Birra Moretti, Ochota, Murphy’s, Star and Heineken Pilsener are some of it’s well known brews all over the world. Milestones of Heineken history; 1864 Gerard Adriaan Heineken buys the Haystack brewery on February 15th 1873 On January 11, HEINEKEN’s Bierbrouwerij Maatschappij N.V (HBM) is established. 1889 HEINEKEN is honored with the "Diplome de Grand Prix" at the World’s Fair in Paris 1900 HEINEKEN imports first beer into Africa. 1932 HEINEKEN co-founds Malayan Breweries and starts to brew Tiger for the first time 1933 After 13 years of prohibition, Heineken® sets foot on American soil 1937 HEINEKEN’s Nederlandsch-Indische Bierbrouwerij Maatschappij, Multi Bintang, begins operation 1939 HEINEKEN is listed on the Dutch stock exchange 1946 HEINEKEN enters Nigeria 1968 HEINEKEN acquires Amstel, its major rival in The Netherlands 1974 HEINEKEN acquires a majority stake in the Dreher Group 1975 A new Dutch brewery opens in Zoeterwoude, the largest modern brewery in all Europe at the time. 1991 The former Amsterdam brewery on the Stadhouderskade is converted to a Heineken museum which was renamed Heineken Experience in 2001. 2003-20010 HEINEKEN acquires Brau Union in Austria, Romania...
Words: 5447 - Pages: 22
...Heineken In an industry that has major companies taking over small companies, Heineken is trying to compete while going through some major management changes. The stubby green bottle that the beer is sold in is recognizable by drinkers of all ages, however younger drinkers are beginning to believe that the brand is becoming obsolete. In order to appeal to a younger crowd, the company must continue to build on its brands, market, and create new products that will be attractive. The implementation of new management will help to make this happen by introducing new ideas and new strategies the firm can use to grow on. However, an issue Heineken may encounter with this is that the company has been ran by the same conservative style for many years and some may not be open to the new CEO’s visions. The strengths that Heineken has includes the large amount of beer brands it has in a large amount of countries. Their 170 beer brands include brands they have picked up from small brewers in over 150 countries worldwide in order to gain access to new markets. They are one of the world’s largest brewers with over 125 breweries in over 70 countries worldwide and are ranked 2nd only to Budweiser in a global survey. In order to maintain their premium position, the company has introduced a light beer to keep up with the popularity of “light beers” in the United States. Not only are they looking to stay attractive to the tastes of those in the U.S., but also the Hispanics taste as well. As...
Words: 1083 - Pages: 5
...Therefore, shapes of organizational change in the case of Heineken Inc a large, Dutch beer-brewing company consists of initial radical change succeeded by incremental change. The change in the distribution system of beer from factory to consumer was a radical change by General Manger Feith. The impact of this radical change became intensely personal with the agents and management. Because the agents where the eyes and ears of Heineken and their job duties were to serve as many pubs as possible they were threaten by the sudden change. However, the organization change was a cultural shock and encountered much resistance by sales people, lower management and commercial managers. Similarly, CEO Freddy Heineken was not keen on diversification and blocked the majority of initiatives. He was too set in his ways. After all, “the study focuses on a major change in the distribution system of beer and a period of structural inertia, caused by long CEO tenure” (Beugelsdijk, Slangen, & Herpen, 2002). It took many years but finally the shape of the organization change resulted from a radical change into an incremental change. Actually, it is said that “incremental change goes on all the time-or at least it ought to” (Nadler, 1998, p. 50). In sum, the change in the distribution system of Heineken was the very first major change ever. References: Beugelsdijk, S., Slangen, A., & Herpen, M. (2002). Shapes of organizational change: The case of Heineken Inc. Journal of Organizational Change Management...
Words: 295 - Pages: 2
...Organizational external environment for Heineken First we describe the term ‘organziational external environment’, before linking to Heineken. The ‘organziational external environment’ is a combination of events, conditions, entities and factors surrounding an organization that influence its choices and activities, and determine its risks and opportunities. Operating environment is oftenly used instead of the organizational external environment. The first Organizational external factor we will take a look at is the customer segment. Due to the fact that Heineken operates all over the workld, we can state that it is hard to satisfy all these customers needs with only one type of product. Heineken owns over 250 local, regional and international speciality brands aswell as other beverages, thus meeting a wide range of consumer preferences and tastes. In addition to their ‘flagship’ Heineken brand they continuously invest in the expansion of their other global brands, for example including the commonly know Strongbow, Desperados, Sol and the dutch Amster Premium Pilsner. These are all brands which increase the rate of innovation for Heineken to drive top-line growth which refers to an overall growth rather than a segment growth. Besides this, a world-class in-store execution and strong customer management capabilities enable Heieken to create value for customers as well as for the long-term business success. When we take a look at governemntal factors influencing an organization...
Words: 585 - Pages: 3
...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 ...
Words: 68409 - Pages: 274
...Marketing Plan Greenpeace Project Group 2 Greenpeace Project Coach: Study Year : Date of Marketing Plan: Helen de Haan 2010-2011 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...
Words: 12016 - Pages: 49
...Heineken Organizational strategy: Heinekens strategy is based on six business priorities they found most important. 1. Grow the Heineken brand 2. Consumer-inspired, consumer-oriented and brand-led 3. Capture the opportunities in emerging markets 4. Leverage the benefits of Heineken’s global scale 5. Drive personal leadership 6. Embed and Integrate Sustainability Considering these six priorities and adapting the strategic types from Miles and Snow, we think Heineken is a prospector. Due to their continued search for market opportunities in emerging markets, Heinekens on-going search of new ways to connect with the consumers and the personal drive of leadership. One of their first major international successes was after World War 2, when the German beer brewers still had to build up a brand. Heineken took their beer overseas to the Unites States of America. There Heineken became an exclusive beer, imported beer was not for everybody. They got this image of an exclusive beer because a Heineken beer was twice as expensive as a normal beer. Heineken distinguished it self in the American market because the Dutch beer had an alcohol percentage of 5%, whereas the American beers had a percentage of 3%. Heinekens break through found place in the ’70, when the prosperity in the USA rose, the people could afford the exclusive Heineken beer. Heineken did not only have successes in emerging markets or with introducing new products. One of their failures was the introduction...
Words: 1061 - Pages: 5
...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 ...
Words: 68409 - Pages: 274
...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...
Words: 444 - Pages: 2
...We are HEINEKEN Company Presentation 2013 | Heineken NV | Heineken Holding NV HEINEKEN: A leading global brewer with excellent growth platforms Second largest brewer in the world by revenue1 A highly diversified emerging market footprint Heineken®, the world’s leading international premium beer Heineken® available in 178 countries Highest beer brand equity in the world2 Diverse product portfolio More than 250 international, regional, local and specialty beers and ciders Leading brewer and largest beverage distributor in Europe A broad geographic footprint Excellent spread of profits and cash flow 2 1 Inclusive of APB Pro-forma 2012 2 Millward Brown: BrandzTM Global Equity Study 2012 HEINEKEN through the years A proud, independent global brewer 1864 1939 Gerard Adriaan Heineken acquires his first brewery in Amsterdam, Netherlands HEINEKEN is listed on the Dutch Stock Exchange 1865 – 1938 Import to Africa and USA, expansion in Western Europe and entry into Asia Pacific 3 2002 – 2007 2009 Expansion in Central and Eastern Europe 1940 – 2001 Expansion in Africa, and Americas 2008 Acquisition of Scottish & Newcastle 2010 The Heineken Africa Foundation is launched 2012 Acquisition of FEMSA beer business in Mexico and Brazil 2009 Joint ownership of India’s No. 1 brewer United Breweries Limited 2011 Acquisition of five breweries in Nigeria and two in Ethiopia ...
Words: 2245 - Pages: 9
...Title: “Who Will Take Over” View Point: The Heiress (Charlene de Carvalho) Time Content: Current I. Problem Statement Who will take over of the business operations of Heineken, which is the world’s 3rd largest brewer considering that the owner and founder has only one legitimate heir who has no experience in handling such business? II. Statement of the Objective Be able to identify who will take over the operation of Heineken within the most reasonable time and who can be effective in ensuring that the company will remain profitable and competitive in the market maintaining the legacy and brand name built by the founder of the company. III. Areas of Consideration Strengths * Heineken is a well- established company and its product is well known to the market. It’s the world’s 3rd largest brewer. * The company has a strong business penetration in the Americas and Europe markets. * The company has Jean Francios van Boxmeer as the company’s CEO who was considered to be one of the top CEO’s of the world. He has a strong and reputable experience in improving the company’s financial statement. Weaknesses * The death of the owner/founder of the company, Freddie had made the company’s management and its shareholders worried about the future of the company. * Charlene who is the only legitimate heiress has no experience neither an exposure to the actual operation of the company. She also does not have...
Words: 1575 - Pages: 7
