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Heineken - Company Report

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  1. Company Profile of Heineken
    1. History of Heineken
    2. Business
    3. Industry
    4. Strategy
    5. Products
    6. Customers
    7. Sales and Profit
    8. Trends
    9. Structure
    10. Employees
    11. Vision
    12. Mission
  2. External Environment
    1. Economical
    2. Social, Cultural, Demographic and Environment
    3. Political, Governmental and Legal
    4. Technological
    5. Competitive
  3. Internal Analysis
    1. Internal Analysis: product, price, place, brand strategy
    2. Organization of HK
    3. Employees
    4. Financial
    5. Future outlook
  4. Long-Term Objectives
    1. Identification of Long term Objectives
    2. Intensice Strategy: Market penetration, Market development, Product development
    3. Integration ans Diversification Strategies
  5. Michael Porter's Five generic strategies
  6. Michael Treacy and Fred Wiersema model

The Heineken company was started up in 1864 by Gerard Adriaan Heineken. In 1873 the brewery's name changed to Heineken's Bierbrouwerij Maatschappij. In 1874 Gerard Adriaan Heineken opened a second brewery in Rotterdam. In 1886 Dr. H. Elion developed the ?Heineken A-yeast? in the Heineken laboratory. This yeast is still the key ingredient of Heineken beer. In 1887 Heineken switched to the use of bottom-fermenting yeast.
After World War I, the company focused more on export. During this period, Heineken tried to increase its stock price by purchasing competing breweries. In 1968 Heineken merged with its biggest competitor, Amstel, and in 1975 opened a new brewery in Zoeterwoude. The Amstel brewery was closed in 1980.

Now, Heineken owns over 119 breweries in more than 65 countries and employs approximately 54,004 people. It brews and sells more than 170 international premium, regional, local and specialty beers. Heineken claims that the original Heineken recipe has not changed since the beer was first produced nearly 150 years ago.

[...] Therefore Heineken focuses on: - Reducing debt through initiatives that strengthen cash generation and cash conservation. These include programs to reduce capital expenditure, networking capital and the sale of non-core assets. The Company has instigated a program to increase the cash conversion rate in excess of 100 per cent in the period 2009 2011. - Improving performance of newly acquired companies. Every new business has specific, focused action plans to improve their performance. - Reducing costs through Total Cost Management. [...]

[...] Heineken is positioning on the Premium segment (except for Netherlands where the brand is positioning on the middle segment). This means the brand wants to be recognize for the quality of its beer. Nowadays Heineken's beer is the same than 100 years ago, the company insists that consumers know they drink one of the best beer in the world. Positioning of Heineken towards its competitors: Price Heineken is one the most expensive beer. This is the decision of the company to sell its beer at higher price than its competitors. [...]

[...] Furthermore, Heineken could strenghten his brand and gained popularity. - Asia-Pacific Like the performance in Africa and Middle East the performance here went up due to similar reasons. Sales also increased due to improved sales mixes, innovation and higher sale prices. In Thailand the number of beers sold increased inspite of the uncertain political and economical situation. Nevertheless, the profit was lower as cost were rising. Social, Cultural, Demographic and Environmental - Social It can be distinguished about societies where drinking is integrated into religious ires and customs and where it is not part of the religion. [...]

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