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Summary Case Study.docx MGMT410 Case Study: Heineken American Public University MGMT410: Strategic Management Case Study: Heineken I. Major Facts “ Competitive Advantage January 18, 2015, Dutch Brewer Heineken founded a new brewery outsider of
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Case S MGMT410 Case Study: Heineken American Public University MGMT410: Strategic Management Case Study: Heineken I. Major Facts “ Competitive Advantage January 18, 2015, Dutch Brewer Heineken founded a new brewery outsider of Addis Ababa, Ethiopia. This building gave the comp...
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MGMT410
Case Study: Heineken
American Public University
MGMT410: Strategic Management
Case Study:
Heineken
I. Major Facts – Competitive Advantage
January 18, 2015, Dutch Brewer Heineken founded a new brewery
outsider of Addis Ababa, Ethiopia. This building gave the company the ability
to advance and expand its beer brewery within Ethiopia. The newer facility
would not only produce Heineken beer but the additional Bedele, Harar, and
Walia beer. In 2013, the company became a popular option and was
announced the world’s third-largest brewery. This happened once Heineken
took over the Asian Pacific Breweries which also took over Tiger, Bintang,
and other more popular Asian beer. The business also took over Mexican
brewer FEMSA Cervesa which had three beer brands in its own and opening
30 locations was then provided making now a competitive market in Latin
America. October 2005, Jean-Francois van Boxmeer was brought in as
Heineken’s first non-Dutch CEO to replace Thorny Ruys to bring in change.
Heineken used cross-border deals to expand over 175 beer brands in more
than 100 countries globally. Heineken took control of Scottish and Newcastle
in the European markets: United Kingdom, Ireland, Portugal, Finland, and
Belgium. Heineken based itself on family-driven traditions, three generations
of the family has run the business with their portraits still hanging in the CEO
office. Non-family members were appointment to manage and run certain
non-family members including some company shares given away. In 2002,
, Freddy Heineken passed away giving his legacy and fortunes to his daughter
Charlene de Caralho who wanted all the firm’s major decision ran through
her. Fit 2 Fight cut the board from five members to two
CEO Van Boxmeer and Chief Financial Officer Rene Hooft Graafland. This
was done to centralize control and to win over younger customers across
different markets. Heineken then cut down the executive committee from
36 member to
12 and created regional management positions to hold accountability and
provide incentives. Another issue began to arise was developing a global
presence and reaching new customers in the brewery market. In the 1990s,
the company lost its 65-year lead in beer branding to Modelo’s Corona which
gained the lead quickly by reaching the Hispanic Americans. Light beer was
then introduced in order to try to market to more target groups, and appeal to
more individuals.
Even still the brand was deemed outdated and losing its favorability.
II. Major Problem - Challenges
There were major issues that the Heineken company faced. To begin, the company
hired a team of exclusive employees, but these employees are not a part of the
ancestorial line. The company has been kept in the family for generations and finally
straying away from keeping the traditions. The Heineken corporation is known for
its conservative style, confined pattern, and distinct branding. Downsizing in
management practices and keeping each individual in charge of each region is a
concern. Lastly, Heineken is losing
its company favorability due to other brands rising up and relating to more diverse
groups that the Heineken is slowly falling out with.
III. Possible Solution – Growth Strategies
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