Heineken Case Study - Document that was mandatory to get a good grade in the course PDF

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Document that was mandatory to get a good grade in the course...

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Nicholas Nerys Professor Falk BPL 5100 Case Study – Heineken Culture plays an important role of an organization’s growth and success. Heineken, a growing and well-known brand in the beer industry, has been battling to try and combine its culture with its long-lasting acquisitions, goals, vision, and mission. Heineken is an international beer brewery operating in over 70 countries around the world with 190 breweries making it the third largest beer brewing company in the world with nearly 10% of the global market for beer. In today’s day and age along with the concept of globalization, it is important for a company to take risks, expand, change, and improve themselves. With that being said, it is essential for companies to not lose its main concentration and goals while trying to achieve other things, such as profit, recognition, and size. The concepts of Chapter 7 discuss international strategy by examining the objectives of the importance of international expansion, its motivations, risks, advantages, and disadvantages. By examining the Heineken case and the company’s international expending strategy we can learn how globalization and international expansion is done. Heineken was one of the pioneers of an international strategy, using cross-border deals to expand its distribution of its beer brands in more than 100 countries around the globe. Heineken is only second to Budweiser in global recognition, its taste and green bottle are iconic signs that have been attached to the product, and therefore, in order for the company to penetrate other markets it has to do so by acquiring and merging with other brands all while keeping the original as it is. The beer industry was undergoing significant change, its competitors started to grow and expand globally by acquiring and merging with their competitors from around the globe in foreign markets in order to become global players. When facing this type of issue, a company has to act immediately avoiding falling behind, or predict this type of behavior and act as soon as possible. For this reason, it is important for managers to monitor the environment for future opportunities or threats that may hurt or benefit the company. When Heineken analyzed these trends, they hesitated and responded late. When they understood the importance of these trends, Heineken had begun to firmly grow globally. Heineken had new opportunities, new targets, and new ways to conquer the market while keeping its culture, mission, vision and goals stronger than before. But one thing that they most keep in mind is globalization and the way react to changes. “The era of global brands is coming,” said Alan Clark, managing director of SABMiller Europe. Heineken’s main goal is to please consumers with its products. When a company has been established and has maintained its culture for years, it is difficult to change that. If a company’s culture has proven to be beneficial and productive from generation to generation, it is important to maintain that structure and flow and then build on that core and expand from there. Van Boxmeer, the first non-Dutch CEO the company has had, agreed with the family-controlled structure and said that “Since 1952 history has proved it is the right concept,” and that “without its spirit and guidance, the company would not have been able to build a world leader.” When a

company is well connected with a mission, vision, goals, and specific culture, there is no reason to change it. This strong culture is already a strong foundation for a bright future and success. In conclusion, through this case I have recognized some of the weaknesses Heineken has. Starting from the inability to react to change. They rather play it safe that risk what they have, which is sometimes good, but in this case it is bad. This is making them struggle to acquire or merge with other major breweries from around the world. While it is good for Heineken to keep its image, it is also important to develop new ways to be considered and look appealing to younger drinkers like others and myself. On the other hand, Heineken is a well differentiated brand, its color, logo and package is a strength to the company’s brand recognition. The same way Heineken grows, many more competitors are growing through the fast acquisition and merging of many other breweries and this is an unavoidable threat. If Heineken does not act on relation to this, it may damage the brand’s image. What they need to do is to use their opportunities to target its threats and reinforce their strengths by also globalizing more. They have a big opportunity in front of them, which is targeting Hispanic consumers and younger consumers that are growing rapidly within the US....