Top Banner

of 14

Heineken Beer Market

Oct 24, 2014

ReportDownload

Documents

The UKs original provider of custom essays www.ukessays.com If you are using this resource in your work please remember to reference and cite the original work found here: http://www.ukessays.com/essays/business/heineken-beer-market.php

Subject Area - Business Heineken Beer MarketExecutive Summary Chapter 1 analyze threats Heineken is facing and opportunities the company can get from the beer market by using two model PESTLE and Porter Five Forces. PESTLE describe what difficulties come from external environmental factors that the company is facing and Porter five force analyze the threats as well as opportunities of Heineken in suppliers, buyers, competitors, substitutes and new entrant. OT factors in SWOT analysis also use to define in chapter 1 for threats and opportunities of the company. Chapter 2 describes strengths and weaknesses in the company operation through the analysis of internal environment such as company resources, organizational structure and culture. The resources with include tangible, intangible, management capability and marketing which used to identify what the advantages Heineken are managing for the performance of their operation. SW in SWOT also use at the same time to analyze strongly what strengths and weaknesses Heineken is taking. Chapter 3 assesses how Heineken perform in term of effectiveness, efficiency and return to shareholders based on efficiency ratios and performance investment ratios. This assessment identifies the market share and market growth of company in the market. Chapter 4 finding the options those are available to the company and recommendation of the most appropriate ones for future strategic direction. Chapter 5 finding recommendations for structures, systems and policies which use to implement these strategies successfully. Chapter 6 the outline of my assessment of the usefulness of strategic management models for Heineken analysis. How PEST, Porter Five Force, SWOT, resource-based and financial analysis use to be described for my analysis successfully. Get help with your essay from our expert essay writers... Introduction Today beer is widely available and enjoyed in most countries and cultures around the world. Heineken is one of the largest companies in a global network of distributors and breweries. In addition, Heineken owns and manages one of the worlds leading portfolios of beer brands in terms of sales volume and profitability. Moreover, the company has been able to remain one of the worlds leading consumer and corporate brands for more than 130 years. It became Europes favorite beer brand - successfully exported to every corner of the world. Chapter 1 Analysis of the external general

Find more free essays like this one... We have a large reference library of essays that you can use as research materials to help with your own writing check out our free business essays. Share this resource with your friends... We hope you found this information in this free pdf useful. Please spread the word and tell your friends how this information has helped you with your studies and feel free to share this pdf with others, so it can help them too.

Keep up to date with the latest essay writing hints, tips and free research materials to help you with your assignments - simply subscribe to our RSS feed or join us on Facebook now! Page 1 of 14 Copyright 2003 - 2011 UKEssays & All Answers Ltd

The UKs original provider of custom essays www.ukessays.com If you are using this resource in your work please remember to reference and cite the original work found here: http://www.ukessays.com/essays/business/heineken-beer-market.php PESTLE model Political Beer is a kind of drink that the government excises significantly because it contains alcohol which is addicted people. Therefore, this will affect Heineken Company in sale volume in the market. With internationalisation and globalisation, more and more brewers are hunting for new markets, governments on the other hand with and intention to gain maximum profit as well as get empathy on ethical grounds are imposing heavy taxes on liquor and beer imports. As a result, this fact will bring threat for Heineken. For example, recently drinking alcohol is prohibited on public transport in London. This hence will impact on the beer market because people want to enjoy their beer not only at home but also at public where they can have fun time with their friends. Economic Heineken has many operations in mature mainly Western European and it is reported in Euros. Therefore, the currency fluctuations could create threat to the overall company results, especially relating to the US dollar. However, Heineken has a clear policy on hedging transactional exchange risks; this would postpone the impact on financial results. Nowadays, unemployment has risen due to recession in the market and this will result in more people will choose some cheaper alternative. As a result, Heineken with premium price will be impacted for that. This also brings threats for company in distribution aspect. Social culture Nowadays, beer is not only for men enjoy it but women also drink beer to enjoy its taste. Furthermore, life style of the new generation has become very fast and different, which result in lack of time in today life. Thus the consumption at bars is declining. This means that the beer market will be affected by this as well as Heineken Company, this will lead to go down in sale volume. Furthermore, demographic changes would influence the company a lot. For examples, in China where the population is going up rapidly and this combined with consumer having increasing amounts of leisure time. Therefore, these would lead to consumption of beer in China grew by 33.56% between 2000 and 2006. China now has overtaken the United State to become the largest national beer market in the world. As a result Heineken Company will have significant sale volume in this market. Technology You can get expert help with your essays right now. Find out more... Now it is hard to find a part of the companys business that doesnt use technology. Therefore, technology is developed will impact the company as well as beer industry. Information technology security upgraded has created opportunities for Heinekens worldwide business operations, and connectivity in the company and with outside partners is increasing. For example, the recent advancement in the technology has opened huge markets for organizations to access world population without any barriers. This can be taken as a chance to reach out to almost every location on the globe. Hence Heineken will open their market in many locations in the world.

Find more free essays like this one... We have a large reference library of essays that you can use as research materials to help with your own writing check out our free business essays. Share this resource with your friends... We hope you found this information in this free pdf useful. Please spread the word and tell your friends how this information has helped you with your studies and feel free to share this pdf with others, so it can help them too.

Keep up to date with the latest essay writing hints, tips and free research materials to help you with your assignments - simply subscribe to our RSS feed or join us on Facebook now! Page 2 of 14 Copyright 2003 - 2011 UKEssays & All Answers Ltd

The UKs original provider of custom essays www.ukessays.com If you are using this resource in your work please remember to reference and cite the original work found here: http://www.ukessays.com/essays/business/heineken-beer-market.php Porters five forces model The bargaining power of suppliers The suppliers of raw materials to Heineken Company are mainly farmers. Therefore, the threat for power of supplier is high. The bottle supplier for Heineken is provided by Heye Glas Nederland which is fully supplied the green bottle for the worldwide distribution of Heineken beer. In the past, Heineken kept only 33% its stake in Heye Glas in order to secure the supply of high quality export bottles at a lower cost to meet the needs for demand but now Heineken has kept 100% stake in 2002. Beer is produced by water, barley, hops and yeast. These ingredients are supplied by farmers. Heineken also mentioned that competition for agricultural products from the biofuels industry that is affecting their costs. The bargaining power of buyers The buyers in this industry have many choices as there are many companies serving beer. This will increase the choice of the customer and hence the threat for power of buyers is high. For example, for serving customer at the pub, there are a lot of beer brands for them to fit their taste such as Guiness, Carlsberg, Tiger. Therefore, buyers now have a choice to choose the one they like. As a result, choosing of customer for what kind beer they want to drink will bring threats for Heineken. The threat of potential new entrants Nowadays, an explosion of smaller brewers has entered the market during the past decade that making the industry much more competitive. Heineken is one of the largest brewers in the world and they have to share market with other brewer. The barrier in the beer market is low. Therefore, the threat of potential new entrants for Heineken is high. This will make Heineken considering to create innovation or uniqueness into their product that can sustain competitive advantages in the beer market. The threat of substitutes Beer is a kind of beverage which contains alcohol. However, people can switch to drink wine which also is alcohol drink. Customers taste is not similar so that they have right to choose what they want to enjoy, so this will affect the beer market as well as Heineken Company. As a result, the threat of substitute for beer market is high. Get help with your essay from our expert essay writers... The extent of competitive rivalry Heineken has achieved the economy of scale in