Anheuser Busch InBev is a company that participates in globalization. The organization owns different offices and plants in more than 30 countries located in Africa, South America, North America, Asia, and Europe. Globally, the organization has found itself as a leader and number one brewer. The company brews a large variety of beer counting more than 200 hundred different recipes in distribution. Four beers specifically made by this company are “the world’s top ten selling beers”, (McShane, Sampson, & Restrepo, 2010). This has created strong revenue for the company. A name recognized throughout the world in different bars, clubs, and pubs this company is top 5 worldwide in consumers, (McShane, Sampson, & Restrepo, 2010).
The company has difficulties managing debt. This was observed when the company cut incentives for its top executives. Executives and others in authority no longer received work perks such as: first and business class travel, executive dining, and limited office space, (Inkpen, 2010). It was done to retain revenue and reduce unnecessary spending. The debt was retained when the company bought Anheuser Busch in 2008, (McShane, Sampson & Retrepo, 2010). The debt put restrictions on profits and expansions. Before the company can make any significant decisions about these issues, they must first reduce their debt owed.
The company has many opportunities in marketing. Marketing will allow InBev to advertise and make a name for its self. The company must do this to take advantage of different opportunities. InBev is a popular drink throughout South America. With Brazil hosting events such as the World Cup and later the Summer Olympics, InBev can take use this to increase revenue, (McShane, Sampson, & Retrepo, 2010). It helps that the company owns offices in this region. Being close to home, Brazil offers opportunities to the company. The company can sponsor these world sporting events like this that encourage and promote public drinking. Sponsoring a team or individual, the company can market and develop stronger branding, image, and expand on media and commercialization.
The company recognizes reputation as a threat. In the event of unforeseen circumstances or slandering of the InBev name, the company may be held responsible. Loss of their reputation can reduce company profits. A company with a poor reputation will not have trust from the public, nor will they have the sales generated to remain stable. Consequently, “AB InBev may not be able to protect its current future brands and products and defend its intellectual property rights including trademarks, patents, domain names, trade secrets and know-how”, (Day, 2008). The company may also face threats to lost profits. Profits can be lost when interacting in the global market. This includes sales tax, inflation rates, price of raw materials, operations, manufacturing, distributing, exchange rates, and government regulation. The change in prices for these things can also change the price of the product. Increase in product can cause sales to decrease and profits to decrease. This can be a significant threat for the organization.
Factors of success can be found in InBev’s premium beers. These are the beers that are successful in different countries around the world. The type of beer and the location where the beer is sold, is strongly related to the success of the company. Bud Light is the popular beer in both Canada and the United States. Harbin is the favorite beer of China, Jupiler in Belgium, Cass in South Korea and Klinskoe in Russia, (Day, 2008). The beer sold and where it is sold is important. Consequently, the quality, taste, and brewery of beer are related to company success. To maintain future accomplishments the company should improve their beer. Though each brand is popular in each zone, the company can expand this to maintain the success and popularity of the brand.
“We can only achieve our dream of becoming the best beer company in a better world if we have the best people; Talented people who are engaged and thrive in our culture represent our most important, and indeed only, sustainable competitive advantage”, (Day, 2008). Consequently, InBev view their employees as their sustainable growth. Hiring employees who are dedicated and talented can help the company grow. It will achieve the company goal and mission. Talent and dedications equals to progress, be innovative, and the ability to think ahead. It is important that InBev recruit and regain employee’s locally. It can increase company value, reputation, and become a favorite beer for the nation, the current generation, and the next one to come. Using talented and innovative employees is a great way to create and maintain this advantage.
To Be Learned
InBev Anheuser-Busch is a company that makes and sales beer. Beer is an alcoholic beverage. Not many people like beer as a beverage, it is culturally unacceptable in most religions, and one must be of age to consume it. Also, most individuals who are older in age tend to consume less alcohol than younger individuals. Due to the setbacks of the consumer market for alcohol, the target consumer group is much different for this product. Men are more likely to drink beer than women; younger people are more likely to drink beer than older people. Though there are differences and a strict marketing segment, the company is able to sustain and maintain. Narrow target audiences have stimulated growth for this company. Some may see this as a disadvantage, yet InBev was able to use this as an advantage. No matter how narrow the target market, any company can become profitable for sustainability.
Day, R. (2008). In Gwendolyn Ornnig (Chair). Annual report 2008. In Marianne Amssoms (Ed.), AB InBev. Retrieved from http://www.ab-inbev.com/pdf/AR2008_UK_WEB.pdf
- Inkpen, A. (2010). Case 11: Inbev and anheuser-busch.
- McShane, J., Sampson, A., & Restrepo, R. (2010, November). AB InBev (NYSE: Bud). Retrieved from http://www.trinity.edu/smf/inc/reports/fl2010/12