Essays on Strategic Management Assignment

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Strategic Management Part IBackground InformationAnheuser-Busch InBev is a leading global beer brewer and one of the world’s top five consumer product companies. It has grown and developed from a company that was confined to local activities into a company that is one of the key players in the beer industry in the international economy and market. Anheuser-Busch InBev has roots that can be traced back to Den Horen in Leuven, Belgium, which began making beer in 1366. Anheuser & Co brewery was established in 1860 in the USA. In 1987 two of the largest breweries on Germany, Artois and Piedboeuf merged forming Interbrew.

Following the merger Interbrew acquired a number of local breweries in Belgium. (Beverage Daily 2004). In 2000, Interbrew acquired Bass and Whitbread in the UK. In 2002 Interbrew strengthened its position in China. In 2004 the combination of Interbrew and AmBev created InBev. In the year 2006 InBev acquired the Fujian Sedrin brewery in China thus making it the number three brewery in China. In November 2008, the industry transforming, revolutionary combination of Anheuser-Busch and InBev was complete to make today’s top five consumer product companies in the world, Anheuser-Busch InBev.

Anheuser-Busch InBev has its headquarters in Leuven, Belgium. They operate in six international zones and market close to 300 brands, and the organization has spread its strong hold in the all the major markets across the globe. Anheuser-Busch InBev holds the number one or number two position in over more than 20 key markets and has strong market presence in both developed and developing markets. Anheuser-Busch InBev leverages the strength of close to 120,000 people from across 30 countries worldwide.

Their primary objectives and goals include commitment to responsible drinking with specific programs in each market, commitment to strong environmental management with the recycling of 92.7% of the company’s waste and encouraging young talent with their programs. Anheuser-Busch InBev is a truly consumer-centric, sales driven organization. It has over the years developed and changed to adapt the requirements and demands that have risen in the market, and has successfully adopted the technological changes to ensure that its production and marketing processes are more efficient and economic. With operations and license agreements across the globe Anheuser-Busch InBev is considered to be a truly global brand (Anheuser-Busch InBev). The IdeaAnheuser-Busch InBev, in its attempt to establish itself in the new emerging markets, has now planned to extend its global arm towards Vietnam and establish itself as a leading brand in that country through a joint effort with a Vietnamese company Hapro Corporation.

Hapro Corporation is the daughter company of Hanoi Trading Corporation, a state-owned company with 33 member companies. Hapro Corporation is involved in manufacturing, processing, exporting and importing a variety of goods ranging from agricultural products, machinery, and distribution through supermarkets to food, spices and beverage manufacturing and infrastructure development (Hapro Group).

Joint venture with this company will provide Anheuser-Busch InBev easy access to the Vietnamese market. Since Vietnam has a developing market for beer Anheuser-Busch InBev is looking to expand its business in that country. Anheuser-Busch InBev is looking to gain significant market share and establish itself fully in the Vietnamese market. This will help it gain control over the markets that have recently entered the global economic system.

(News and Events) Another reason that has led Anheuser-Busch InBev to introduce its beer into the Vietnam beer market is because the company is experiencing a decrease in the volume of stock. Through the introduction of its beer products into a new market that has great potential it hopes to exploit and completely explore the opportunity which can result in an increase in the volume of stock of the company. The company is trying to cover more market and bring more area under its fold of influence. This is an imperative move in the company’s long term plans to grow, develop and establish itself as a global leader in the industry.

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