The Heineken family entered the beer business in 18641, when Sir Gerard Adriaan Heineken bought a brewery in the heart of Amsterdam. Over the past 140 years, three generations of the Heineken family have built and expanded the brand and the company worldwide. In recent figures, the company has pursued a leader position in Europe and taken the third place in the world, behind ABInBev and SABMiller. Thus, the present report extensively analyzes the strategies
and processes in which Heineken's major success relies.
Firstly, it is important to analyze the Macro environmental factors that influence the brewing
industry as a whole and the Micro environment which directly affects Heineken's performance.
Moreover, by analyzing the environment that surrounds the company, it is possible to identify opportunities to be seized and threats that must be minimized. Thus, threats have been increasing; besides fierce competition, stricter laws and popularity of non‐alcoholic drinks make it harder to succeed in the beer market. Nevertheless, there is also a promising flush of opportunities such as the green and health trends, and the exploration of emerging markets. The present report also focuses on an intensive Heineken's organizational analysis and strategy formulation. The goal is to gain a deeper understanding of the strengths and weaknesses of the company as well as the strategies and activities that lead to its great triumph in the international beer industry.
Heineken's ultimate goal is to build a stronger, more competitive global business and provide superior value to the customers. And it has been able to do so by "harnessing our core strengths: the commitment and excellence of our people, the strength of our brands and our ambition to build profitable future growth" (Jean Francois von Boxmeer, Heineken CEO).
[...] Heineken is committed to sustainable development and as such, to optimizing our financial results with minimal impact to our business environment . To do this, we abide by a number of governing business principles and three core values respect, enjoyment and passion for quality that reflect our passion for beer and our respect for our employees, business partners, customers, shareholders and all others who are connected to our company.”(Heineken, N.V. 2009) 4 .2) Values and Objectives . Organizational Values As stated above, Heineken embraces three core values and executes a set of strict business principles, namely: Respect: Heineken respects individuals, society and the environment. [...]
[...] Based on this analysis investment decisions can be made, taking into account the attractiveness . The Mainstream and Economy segments have reached the Maturity stage, representing the largest ones . Regarding the Mainstream segment, it is also the most profitable. These can be considered as “concentrated industry”, as in these Figure 9 Industry Life Cycle segments, the beer industry is dominated by a small number of powerful players who hold a high market share and therefore can influence the industry. [...]
[...] Human Resources Management as Heineken became a global company, it hires thousands of workers from different countries. Moreover, in 1998 the Heineken University was created to train current and future executives worldwide . Figure 27 Heineken Internationalization Strategy Below is Heineken's internationalization strategy and entry mode . Heineken is a true global player and holds a strong brand portfolio. It is the best geographically spread brewer in the world, detaining strong market positions in several international markets and successfully using different business models and approaches . [...]
[...] The goal was to add value to the competitive advantage of the company, by inspiring Figure 16 Heineken University people who are directly and indirectly linked to the organization to create, spread and . apply knowledge. Employees are responsible for self‐development and learning process. To Heineken, Learning & Development are essential components of daily work, hence the most powerful learning experiences happen in the work place . o IGP International Graduate Program 18 month program for those focused on a long term international career; used as a recruiting tool for the company . [...]
[...] Heineken sought growth through that strategy as well and was successful, being among the three largest players in the global beer industry. In figures that means: In 2009, Heineken's revenue amounted to 14,701 million (21,177 million the beer volume added up to 125.2 million hectoliters . The following part provides a short analysis of Heineken's main competitors which are Anheuser‐ Busch InBev InBev) and SABMiller . InBev reached revenue of 36,758 million US$ and a consolidated beer volume of 409 million hectoliters in 2009. [...]
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