The beer brewing industry is an important contributor to many economies of the world including that of the U.S.A. In this paper we shall give an overview of U.S. beer industry. It will contain a brief summary of the current trends in the industry and major players, the effect of the brewing industry on the U.S. economy, external environment facing the beer industry, and the opportunities and the challenges facing the industry.
Current Trends & Major Players
beer industry is characterized by flat consumption trends and dominance by three brewers, namely Anheuser-Busch (the makers of Budweiser), Miller Brewing, and Adolph Coors.
percent of the U.S. market share is held by Anheuser-Busch (45%), Miller Brewing (23%), and Adolph Coors (10%).
The above named companies are also the top three brewing companies in the world having overtaken German companies since long.
Some major brewing companies that have been closed down…… [Read More]
Forecasting: Kentucky Swamp Brew
Forecasting demand within the brewing industry is dependent upon three basic factors: "trends, cycles, and seasonal patterns" (Elfner n.d.). Trends are defined as gradual shifts in demand that permanently affect the demand for the good or service; cycles are repetitious shifts in demand that manifest themselves in cyclical and predictable patters; and seasonal shifts are changes that occur periodically (Elfner n.d.). For example, a trend for Kentucky Swamp Brew might be an upsurge of interest in craft, small batch brewing. A cycle might be a gradual upsurge of demand with an increase in the health of the economy; a seasonal pattern might be a shift from preferring darker or heavier brews in the winter to lighter brews in the summer.
Trends are likely more difficult to forecast because they can be more unpredictable. Watching industry patterns, using managerial judgment, opinion, past experiences, and instinct are all…… [Read More]
New Belgium Brewing Company
New Belgium Brewing: Ethical and Environmental esponsibility
What are the main facts of the case?
The New Belgium Brewing Company is a small, relatively 'boutique' beer company specializing in the production of unique beers that are brewed in small batches. The company until recently relied mostly upon 'word of mouth' advertising and social media. It markets itself upon quality, in contrast to its major rivals such as Coors. Its recent expansion has demanded a more intensive advertising and marketing campaign to raise brand awareness. The company hired an 'edgy' New York firm and went with a conceptual advertisement: "Follow Your Folly & #8230;Ours Is Beer" (Ferrell, Fraedrich, & Ferrell 2011: 478). The firm markets itself to serious beer consumers -- who also have a serious interest in how their beers are made, ethically as well as in terms of their taste. NBB sees its ethical commitment…… [Read More]
Inteestingly howeve, eseach does demonstate the by building the image of the oganization, custome esponse to the oganization can be quite positive egadless of the industy in which the oganization opeates (Xiaoli and Heo, 2007). Oveall, business ethics can seve as the impetus fo the development of a stong intenal cultue that pevades to the exteio of the oganization and encompasses customes (McDonald, 2007). This appeas to be what NBB has accomplished as a esult of its decision to place envionmental concens above the desie to make a fast pofit. In the end, New Belgium Bewing has become a model of copoate social esponsibility by pomoting its image and stategy though envionmental development pojects.
Mackey a., Mackey TB. And Baney, JB. 2007, "Copoate social esponsibility and fim pefomance: Investo pefeences and copoate stategies," Academy of Management Review, vol. 32, no. 3, pp. 817-835.
McDonald G. 2007, "Business ethics…… [Read More]
Brisbane Brewing Company - Social Media Marketing Plan
Through a marketing plan based on a social media platform, Brisbane Brewing Company is targeting consumers of alcoholic beverages of the ages 18 and 25. Due to their unique tastes and individual traits they should not be viewed as your common-place beer drinkers since they are crafty. And because they mainly interact through social media, many firms have now adopted this mode of marketing as an integral tool to their marketing strategies. Apart from being one method of reaching out to consumers, it is now the major means of sending out communication to people. Interestingly, many businesses still do not understand how this affects their bottom line despite the fact that its advocates shout its praises on mountain tops. Many organizations employ its use because everybody else is doing the same.
To distinguish himself from his comic namesake from Bolton, a social…… [Read More]
3) (Merrett, 1998, p. 238) the larger companies seem to have an endless level of access to labor and capital, creating a stable situation, as they often seek marginalized areas with easy access to supplies that are otherwise labor rich, but job poor. (Merrett, 1998, p. 238)
Buyers are significant only in that, buyers for beer are in every corner of every market, tough they play a much more significant role in cutting into mass market sales by substituting with products perceived as higher quality. For most buyers of beer, other than those who have a problem beer is a luxury item that does not constitute a large portion of their total purchases, such as the case would be with fuel, this is one reason why price does not always determine buyer choice. In the global beer market the diversification of products and the micro-brew/specialty brew trend has create…… [Read More]
Lauter tun (used to strain the steeped grain liquid, called wort)
3. Mash filter (used to hold the already steeped grain, which is called mash)
4. Large kettle for boiling
5. Large kettle for fermentation and conditioning
6. Optional filtering and/or bottling equipment
Once the ingredients and equipment are assembled you can begin the fascinating process of brewing beer, which is basically a liquid bread. First, soak whatever grain you selected in hot water. Temperatures and steeping times will vary depending on the type of malt you bought and the style of beer you wish to create. This step is called mashing, which is a critical phase during which sugars in the malted grain are released into the warm water. The resulting sweet grain water is called wort, and the remaining spent grain is called mash. Next you will want to separate the wort from the mash in a process…… [Read More]
In this scenario, the inefficiencies were pegged to the lack of a unified approach in the meaning that both parties saw themselves as individuals.
An actual unification between the two companies has as such yet to be reached. Each family maintained and appointed its own representatives within the leadership of the greater company. This however meant that the board would often be divided between Molson and Coors and the conflicts which arouse were of a person-role nature. It could have been more efficient if more specialized managers had been brought in from outside the organization. These managers would have revealed an unbiased stand and would have stood more chances of serving the overall interests of the united brewery.
McCuddy, M.K., Morgal, M.L., Molson Coors Brewing Company: Conflict esolution in the Aftermath of a Merger… [Read More]
In England, one of the premier locations for growing Hops in the 18th century was Kent. Kent has a long history with the growing and curing of hops; "The cultivation of hops for brewing was, in fact, introduced to Kent by Flemish brewers in the 16th century," (Kent County Council 2007:2). Once the popularity of hops exploded in England, it was Kent that vastly benefited from the rich soil and close proximity to massive amounts of seasonal laborers available to manually work the fields in the 18th century. Kent alone employed over 80,000 workers in the harvesting, drying, and sale of hops during the 18th and 19th centuries; "thousands of acres of Kent's countryside were devoted to growing hops in fields known as 'hop gardens,' with up to 80,000 people involved in the annual harvest at hop-picking time in September," (Kent County Council 2007:2). The region found great success in…… [Read More]
From his entry to the company, Ian and his side of the family was summarily ousted and perceived as outsiders. Ian claimed that Eric "refused to work with him" and as a result had "destabilized the company," ("Vying for Control of Molson Inc.," nd). The cousins had clearly outlined roles within the company so their conflict was not necessarily due to intrarole conflict or to jurisdictional ambiguity. However, their personalities did appear to clash. Ian was obviously to more brash and outgoing of the two and Eric has been described as a "shy man who was uncomfortable with public speaking," ("Vying for Control of Molson Inc.," nd). The clash between the cousins led to significant intergroup and intragroup conflicts. Each believed the other incompetent, and each believed that his methods and strategies were more effective than the other's. Eric leveraged his superior position as Chairman of the Board and his…… [Read More]
South African Breweries
There are a few important trends in the international brewing industry. The first is consolidation (Fletcher, 2011). With slowing demand in major markets, many large brewers are seeking to do two things: improve their economies of scale and gain access to new markets. This has led to successive rounds of consolidation in the industry, with most of the world's largest brewing companies now global conglomerates of strong regional brands. For SAB, this has meant not only consolidating the firm's home territory of Africa, but exploring options outside the continent as well.
The second major trend in the international beer industry is that growth has shifted to emerging markets. In the major beer-drinking markets, consumption is either stagnant or shrinking, and this has led to a quest for growth elsewhere. Many emerging markets have large populations and as these markets become more attuned to beer drinking, some of…… [Read More]
Refrigeration in American Craft rewing Industry
The purpose of this study is to examine the use and operation of various refrigeration systems used in the American Craft rewing industry. This includes such as glycol chillers, walk-in evaporative coolers and refrigerated dispensing systems including how the systems work and their function in the brewing process.
Condenser cooling uses air or water and it is reported that each of the methods are characterized by both strengths as well as weaknesses. Air-cooled compressors are reported to potentially "lose significant cooling capacity on a hot day" and this is when the capacity for cooling is most needed. The water-cooled systems are reported to be more efficient in their operation but at the same time to make a requirement of "more maintenance and investment cost." (Prochiller, nd, p.8) Cold box refrigeration systems make provision of cooling for "a small direct-draw box cooler or…… [Read More]
Other smells that give the shop character include the manure on farmers' boots, the odor of chain saw oil on loggers wearing flannel, wool, Carhart jeans, and dingy ball caps. The self-serve counter also offers up some tantalizing smells, such as hot dogs, pizza, hamburgers, and chili. All these smells combined remind me of the rodeo that comes through town. The aromas in the shop enhance the experience because they unify the entire experience.
The little store is truly a one-stop shop in that you can find almost anything you need. For example, the shelves are lined with the regular products you would expect to see in any shop including pharmaceutical items, such as pink, blue and green thermometers hanging from racks; staple groceries like Wonder bread with its red, blue and yellow packaging; toilet paper; liquor; cigarettes and Skoal; candy bars, ranging from Hershey bars to the healthy fiber…… [Read More]
Corporate Mergers and the Public Good
The United States of America, during the last years of the Nineteenth Century, witnessed a rash of corporate mergers. The Industrial Revolution had taken firm hold, and the nation was changing rapidly. Millions of Americans who had once been independent farmers or tradesmen now found themselves in the position of what some termed "wage slaves." At the mercy of their corporate employers, they worked long hours at low pay, and often under appalling conditions. The reasons for the merger mania of this period are many and complex, as are its effects upon the population as a whole. In breaking down the traditional vocational environment, the gigantic new conglomerates also transformed the entire social landscape. ork was no longer a family business shared by all generations. Communities no longer clung together for mutual protection and aid. Suddenly, the citizen of this new world was out…… [Read More]
Many problems surface for companies such as Anheuser-Busch because the company believes that their 'global' presence means they can act and do what ever it is they think is best. Such an attitude does not work well in China, because of the hundreds of brewers that provide cheap beer on a regional and local basis. Many Chinese citizens would rather drink their local beer than the 'global' beer for two reasons, once of which is loyalty but the other which is price. These are two factors that the global company has to consider when entering the Chinese market.
One of the most prevalent problems experienced by Anheuser-Busch (or any brewery) in China could be the lack of a coherent, comprehensive distribution network.
Events to consider when attempting to distribute a product that quickly loses its appeal, flavor and freshness (such as beer) would normally entail scheduling refrigerated trucks for pick-up…… [Read More]
Australia is considered to be a major beer drinking country, something that has traditionally provide a robust market for producers. Inter-state trade barriers have allowed for brewers in each state to flourish, something that benefitted James Boag, with its small domestic market in Tasmania. Boag's was able to use this strength to support its expansion endeavours, which ranged from the rest of Australia to as far away as the United States (Gale Group, 2004). The company faces some major challenges in the environment, including a social trend away from industrial beer, something that is forcing breweries both in Australia and around the world to seek out new opportunities. There are opportunities out there, however, a function of globalization and the information economy that increases the ability of companies to expand overseas and lowers the costs associated with marketing and market entry when they get there.
There are…… [Read More]
Nike television advertisements, as an ordinary girl is transformed into an Olympic runner. Bombarding the airwaves during the 2004 Athens Olympic Games, the "You're faster than you think" campaign is an example of Nike's ability to produce engaging, effective television commercials. hile the ultimate success of these advertising campaigns can only be seen in the quarterly reports of the corporations, from a design and marketing standpoint, the Nike ad is eminently successful. The "You're faster than you think" campaign promotes brand awareness and creates a brand imprint in the consumer brain, but the commercials are also artistic, clever, and entertaining. However, Nike is a large Fortune-500 company with a substantial marketing and advertising budget. Smaller companies such as those listed in Inc. magazine work with a smaller budget and therefore generally produce less dramatic television commercial spots. Moreover, smaller companies cannot afford the prime time Olympics spots like Nike can.…… [Read More]
strategic marketing plan ANGOSTUA LTD related company ( alcohol related). identifing incorporating marketing objective. Use format: SITUATIONAL ANALYSIS -Introduction -Company background -Vision -Mission (analyse) -Corporate objectives (financial & financial) -Portfolio analysis BCG show SBU -For SBU selected state critical success factors, unique resources & core competences give a competitive advantage INDUSTY & ENVIONMENT ANALYSIS -pestle implications -SPICC a table -7S's a table -7P's a table -Key drivers change -sector trends COMPETITO ANALYSIS -Porters forces -Identify major competitors, analyse including strategies -Customer analysis competitor -Portfolio analysis competitor -Company's SWOT -Two major competitor's SWOT PODUCT / MAKET FOCUS -Marketing & Product Objectives, SMAT objectives -Target Market -Segmentation -differentiation -positioning MAKETING POGAMME -Include marketing mix, financial data projections (past current sales revenue 3-year forcast (budget) showing sales, gross operating profit) -Option Ansoff growth strategy (choice & ) 2 strategies needed, market penetration objective -Promotional Gantt chart -Assumptions & Contengencies -Control.
Strategic marketing plan…… [Read More]
A microbrewery in Colorado is growing rapidly. There is a long lead time for the purchase of new equipment, so management must make a demand forecast for the next couple of years in order to ensure that it has the capacity it needs to continue expansion. There are constraints, however, in particular with respect to access to key inputs. This casts uncertainty on the demand forecasts, such that simple extrapolation of current growth rates is going to be insufficient. A decision tree is used to help with the demand forecasting, taking into account different scenarios with respect to the growth patterns and the growth constraints.
This paper is based on a real world situation. The situation at hand is that of a small microbrewery, operating in Colorado. The microbrewery is five years old and has expanded annually since its inception. The brewery produces five beers regularly, and these…… [Read More]
There are a number of trends in the global beer industry. One is consolidation, where firms are using mergers and acquisitions to enter new markets and to achieve economies of scale. For a brewer like Modelo, consolidation means that the company becomes smaller relative to the industry's top firms. Modelo has does not compete (at least with Corona) on a cost-leadership strategy, so this trend does not matter much for production economies of scale but it does matter for marketing economies of scale. Corona is also leading a trend of premium beer brands competing in the marketplace. Products such as Stella Artois, Hoegaarden, Heineken and (in international markets) Budweiser are competing with this strategy in this is one of the most important growth markets in the industry.
Modelo's international expansion was made possible through the use of strategic partnerships with distributors. These partnerships allowed Modelo to penetrate internationally markets…… [Read More]
Managing a New Product Launch
This paper discusses Keurig at home gourmet single-serve coffee product launch. Keurig is an established business attempting to break into the at-home single-serve product industry. It attempts to distinguish itself as a key player by offering gourmet coffee services. Coffee continues to be a booming product, with many opportunities. While coffee consumption continues to grow, there are many potential obstacles that Keurig may face. For example, there have always been many competitors in the market. There are two-serve and even single-serve vendors already in the market. The manner in which Keurig at home single-serve will attempt to distinguish its product successful is by promoting itself as an upscale provider to young, primarily male coffee drinkers interested in buying a high quality product with lots of variety. The odds are the company will do well if it markets its product to vendors that already…… [Read More]
Hops (Humulus Lupulus) are well recognized and extensively grown for their use in preparing beer and lager. Whilst hops have been utilized in beer preparing in Europe from the oman times, they started their widespread utilization in Flanders in the 14th century. Hops got admired recognition in Britain in the 16th century for medical and drinking reasons. The pure characteristics given by the hops, developed beer as an everyday drink instead of water, in a lot of areas water was usually unhealthy for human utilization
The Hop plant is a perpetual climbing plant that in character strings itself around trees. It is an associate of the Cannabidaceae species. Hops and cannabis are the only two types in the family and there are a lot of resemblances amid hemp (Cannabis sativa) and the cultivated hop. However, there are no "chemical" connections amid them. The nettle family is in the…… [Read More]
Carlsberg also have the largest stable of brands in the country, and nationwide blanket distribution. Lastly, Corona has experience in dealing with Carlsberg, with whom it has distribution agreements Russia, Central Asia, Turkey and a number of other countries around the world.
Corona faces intense competition from InBev (now a-B InBev after its merger with Anheuser-Busch). InBev has a different model for international expansion, comprised of purchasing breweries all over the world. This secures the company local production and distribution. It has the potential to shut Corona out of its distribution chains, reducing Corona's ability to compete in some markets. In addition, two of a-B InBev's global brands -- Budweiser and Stella Artois -- compete directly with Corona is most markets as imported superpremium beers.
There are three tactics that Modelo can employ in order to compete against a-B InBev. The first is to shore up its distribution channels. If…… [Read More]
They are able to extract premium pricing for what is otherwise an undifferentiated product, evidence of the brand's strength
The company is consistently profitable and has maintained a steady growth trajectory, including organic profit growth
Strong management has successfully negotiated Heineken through rapid consolidation and industry maturation, taking the company from a regional Dutch brewery to a global powerhouse in a few decades.
Heineken is a strong company, as evidenced by their track record of success. They have built a simple core of strengths by focusing on the beer business, refusing to be sidetracked by any distractions. This has allowed them to develop a relatively simple growth strategy and maintain it. The core of Heineken's strength is its ability to execute simple strategies very well.
Overleveraged…Heineken's expansions have left it with a balance sheet more suitable for a growth firm with high R&D costs, as opposed to a firm…… [Read More]
(South African Breweries p l c)
Strategy to be followed
Parts of the possible strategy have been discussed earlier and let us seek justification for the strategies that have been talked about. It is clear that SAB has good operating practices and sales as that has enabled to go beyond its original base through acquisition of breweries in Eastern Europe, Asia and Central America during the last few years and operate them well. egarding the increased sales in foreign countries, now the company also has Miller Genuine Draft produced by Miller and Pilsner Urquell. Both these brands are now in the Miller distribution system and this is expected to improve sales in United States. Earlier Miller had been loosing market share in United States but now the leadership has been transferred to a large, growing beer company which is ready to compete. All the deals that the company has completed…… [Read More]
Types of Takeovers
There are several consequences of whether a takeover is considered hostile or friendly. These consequences are more in the practical business realm than legal ones. Hostile takeovers are riskier for the acquirer than friendly ones. In a friendly takeover, the bidder will have a better chance to examine the company and its health. If the board is amicable to the situation, they will provide a full disclosure of the company's strengths and weaknesses. In a hostile takeover, the bidder only has access to publicly available information. There may be situations within the company that have not been disclosed. This can be good or bad depending on the situation. The acquirer might get a pleasant surprise, or they might find out that they have bought a sinking ship. Due to the risk involved in a hostile takeover, it is often more difficult to obtain financing than for a…… [Read More]
The proclivity to pass blame between organizational members also suggest an internal cultural shortcoming rooted in an unwillingness to take responsibility for planning failures. This is an unnecessary conflict which is derived from the onus on planning failure and the clear incapacity of the organization to rebound in its wake. This perspective and reality go hand in hand.
So may we observe this from an article regarding Toyota's ongoing struggles and its contingency efforts at damage control. Such a crisis can surely illuminate the behaviors that may be demanded in the face of unexpected planning failures. According to Takahashi (2010), "Toyota Motor Corp. said Friday it will temporarily halt production at its factories in France and the U.K. For a total of at least 12 days from late March, due to weaker demand for its vehicles in the region after a series of global safety recalls. The production suspension coincides…… [Read More]
The constituent company's presence in China is geographically complementary, so that their respective distribution networks can be used to build each other's brands in their respective strongholds. Further, cost synergies of $1.5 billion annually are expected to accrue (Anheuser-Busch, 2008).
These claims are reasonable. There is little geographical overlap between the different brands. In particular in China, A-B is strong in the northeast, while InBev is strong in the southeast. The two companies are also complementary, with A-B strong in North America and InBev strong in Europe and South America. The experience of InBev in its previous major move in North America (the acquisition of Labatt's in Canada) was that it was able to build market share for InBev global brands by using the existing Canadian distribution system. Therefore, their expectation of replicating this success in the U.S. is reasonable. The claim of cost synergies is, however, questionable. hile InBev…… [Read More]
In this sense, one could consider launching several new brands, specifically adapted to the South African market, created especially for it.
Second of all, in the markets where SA is a challenger, the main strategic objective is the increase of the company's market share. The current activity in this sense, with the acquisition of several important brands, seems to have delivered the expected results. As a pointer, it is advisable that the capacities in Central and South Eastern Europe be efficiently used, as these can provide significant scale economies for the company, given the lower overall production costs available in the countries. SA has already purchased local brands in Romania, Poland, Hungary or the Czech Republic, but, considering the particular efficiency of each of these local brands, the operating capacities can also be used to produce original SA brands (although in this case, one needs to consider the European market's…… [Read More]
At first, Young was ambivalent towards the Methodist -- or any other -- Church. He "held back from joining the Methodists" like his brothers had because of an "independent, deliberate personality" that rejected belief under pressure (8). Methodist revival meetings also turned Young off because of their "loud, crowded, and hyperactive" qualities," (8). Yet while living in the Auburn-Port Byron area, during an economic depression, he was "swept up by religious enthusiasm" and joined the Methodist Church in 1824 (13). The conversion turned out to be integral to Young's "program of self-improvement," (14). The Church prompted Young to give up swearing, one of his self-admitted habits. He experimented with vegetarianism, too, in an attempt to live an overall cleaner and healthier lifestyle. The religion also helped him to overcome his shyness and fear of public speaking (14). In addition to helping him on his personal path, the Methodist…… [Read More]
Global randing of Stella Artois
Interbrew's centuries of experience in brewing, beer distribution and sales are all exemplified throughout their global dominance of worldwide beer consumption as presented in the case The Global randing of Stella Artois (eamish, Goerzen, 2012). With an exceptionally high price/Earnings ratio (P/E Ratio) indicating investor confidence in their brand, operations in 80 nations, with the top 10% of markets globally accounting for 86% of sales and 61% of volume production being generated by North America, Interbrew has a solid platform to build their future marketing, selling and product development strategies on. Despite a slow to no-growth level of performance for the global beer markets of just 1 to 2%, investor confidence continues for Interbrew and their performance over the time period of the case study, further signaling the strength of their operations and strategy execution (Marinov, Marinova, 1998). Interbrew faces the challenge of profitably growing…… [Read More]
Business and Corporate Strategies
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
The most influential competitive business-level strategy that Starbucks has put in place is differentiation. Starbucks focused on creating an aspirational and consistent brand that would translate to different product markets (Thompson & Strickland, 1999). Starbucks offers a wide variety of coffee products, drinkware and accouterments, music and Wi-Fi, and personalized customer service (Flight, 2007). But the key differentiation perceived by Starbucks customers seems to be the ambience that is at once soothingly familiar and intellectually exciting (Thompson & Strickland, 1999).
Starbucks customers perceive that the company provides value through the beverages it provides and through a particular sensuality that is referred to as The Third…… [Read More]
In Iran, the American-backed Shah had become increasingly unpopular throughout the 1970s. The Shah fled Iran in 1979, finding temporary refuge in the United States. Religious extremist Ayatollah Khomeni easily filled Iran's political and social need for a backlash against American interventionism.
Iran's 1979 Revolution had a major impact on its relationship with the United States and with the rest of the world. hereas the Shah had guaranteed a steady supply of oil to the United States in exchange for "economic and military aid," the Ayatollah Khomeni did not ("The Hostage Crisis in Iran"). The situation created a second oil crisis and subsequent inflation. Moreover, the Iranian Revolution soured American relations with the nation when on November of 1979, Iranian militants "stormed the United States Embassy in Tehran and took approximately seventy Americans captive," ("The Hostage Crisis in Iran"). The hostage scenario symbolized the rise of terrorism and specifically, anti-American…… [Read More]
There may be more closings in North America, as the company has reached saturation in many areas. In response to the glut of new, underperforming stores that emerged in 2006, Starbucks will return to its core philosophies regarding location scouting. New store openings will be slow in the next couple of years, but when the economy begins to pick up the company is expected to resume opening new outlets to take advantage of the economic upswing.
Overall, the coffee industry is going to be subject to numerous challenges. As market leader, Starbucks will bear the brunt of the competitive challenges. However, they are well-positioned to weather these challenges. After a couple of relatively difficult years, Starbucks can be expected to leverage its various competitive strengths to regain dominance five years in the future.
Harris, Craig. (2008). Starbucks to close some stores, stop selling breakfast sandwiches. Seattle Post-Intelligencer. Retrieved…… [Read More]
The primary reason to own Altria is its dividend. The current dividend, $1.28 per year, results in a dividend yield of 8.34%. Given that Altria's EPS is only $1.54 per year, it is evident that the company pays out most of its profits to its shareholders. Despite the declining business, the company is well-positioned to maintain relatively stable revenue streams that will enable it to maintain this dividend. As a result, the company is suited more for long-term income investors than for short-term investors driven by capital gains. Altria's slow growth, difficult operating environment and other challenges make it a poor buy for investors seeking anything other than a relatively stable income stream.
Apple (Nasdaq: AAPL) is a designer, manufacturer and marketer of computers and related paraphernalia, both hardware and software. The firm markets desktop computers, laptop computers, portable music players (iPod), portable communications devices (iPhone) and the software…… [Read More]
There is limited risk from technological change, however, as it is unlikely that the beer production process will be radically altered by technological development.
The global trade environment also has an impact. The lowering of trade barriers allows a-B to enter more markets. They were able to build a brewery in China, for example. The reduction in trade barriers has also brought more imports into the United States. Rapid growth in the import segment has eroded a-B's market share. Foreign direct investment rules allowed InBev, a Belgian company, to buy a-B.
A-B is also subject to shifts in the global economy. In China, for example, increasing wealth has made a-B's products affordable for more Chinese. In the domestic market, not only is beer consumption affected by the state of the economy, but the types of beers consumed are also affected. As a low-cost provider of beer, Anheuser-Busch tends to benefit…… [Read More]
Gosset determined what the properties would be for a small sample in relation to a larger sample.
Gosset applied his discoveries to his work for the brewery which raised the question of what his focus was in his work as he was a theorist to a certain extent, but also a practical man who applied the knowledge that he developed. Gosset must have recognized the importance of accurate statistical information to the process of brewing as he had a statistical assistant for many years in his lab and ran a statistics department as part of the brewery (O'Connor and Robertson).
After Gosset had worked for many years developing the practical application of his theory, he was involved in a terrible car accident in 1934 which left him incapacitated for many months. During this time, he had the opportunity to continue to work on his statistical work. He recovered enough after…… [Read More]
Make much of little things, and make little of great things, and there lies the source of all happiness. Tea study does not have the danger of studying or drinking wine, even though a devotee might expend just as much energy to the perfection of tea.
Okakura's own prose, with its attitude of whimsy rather than worshipfulness: "hat a tempest in a tea cup...Perhaps I betray my own ignorance of the Tea Cult by being so outspoken," is in keeping with the principles of Teaism that he outlines. He makes delightful use of the religious nature of tea, poking fun at esterners who dislike tea, who call drinking tea a filthy custom as heretics. This lack of reverence towards tea is a key, ironic part of Japanese religiosity, he implies. By not taking things too seriously, the true ethos of tea is manifest. Tea is served with deliberation, but ultimately…… [Read More]
Modelo needs to chart a course for the company's future. The longstanding objective is to move Modelo into the top five of brewers in the world. As of 2005, Modelo remained outside of the top six. The company has 52 of the domestic market and is the best-selling imported beer in the United States, 50% ahead of next-best seller Heineken. The most significant underlying problem with respect to global market position relates to the company's ownership structure, specifically whether it will come under the A-B banner eventually or participate in some other way in the ongoing industry consolidation.
In the domestic market, Modelo faces a secondary problem in that its leading competitor FEMSA is improving its market position by controlling distribution channels and by promoting high quality subsidiary brands. FEMSA has been gaining market share steadily in Mexico while Modelo has been losing share. The domestic market…… [Read More]
AB Inbev's BCG ansoff analysis strategic options. Please avoid marketing product, specific strategic groth a company. In addition I summarise merger advantages/benefits/opportunities disadvantages challenges sussccessful inits bid buy S
Anheuser-Busch InBev: Market analysis
Anheuser-Busch InBev, is the largest brewing company in the United States, boasting some of the most successful brands of alcohol on the market in its portfolio. The BCG Growth-Share Matrix categorizes all business units according to market share and potential for market growth as cash cows, stars, question marks, and dogs, in relation to their largest competitor. 'Cash cows' generate a stable cash flow but are relatively mature in the market. A good example of this would be Anheuser-Busch's Budweiser brand. The Budweiser Clydesdales are some of the most famous brand icons in the world, and Budweiser is widely regarded as the world's most popular beer. Anheuser has strategically emphasized its 'cash cows' in its marketing mix,…… [Read More]
Human Autonomy and Economics
The modern day economists John Kenneth Galbraith and Frederick Hayek possessed contrasting views of human autonomy, or the ability of human beings to successfully direct their economic lives. Galbraith saw human agency as at least partially subject to the whims of the business cycle and other individual's economic choices, thus the state had a right to intervene in human economic life. Hayek stressed the unpredictability of human economic choices and the need for liberty from state interference, given that the state could not predict the responses of human economic life to changes in the business cycle.
Galbraith stated that when faced with a precarious job, humans stored their money, and thus caused a recession-mired economy to father contract, requiring government spending to stimulate the economy and thereby extricate society as a whole from a potential depression that could occur in this phase of the failed business…… [Read More]
Sabmiller Case Study
SABMiller Breweries Company Case Study
SABMiller Breweries Company
SABMiller Breweries Company
SABMiller breweries Company has grown since it begun over the years adopting different business strategies for its survival in the market. Surrounding environmental factors have affected its growth, and strategies that are put to counter different environmental situations. SABMiller is a South African company with its base in Johannesburg. It grew to being the second largest brewer company in the world.
During the twentieth century, SABMiller's operation faced difficulties due to the apartheid regime. South Africa faced economic sanctions due to the apartheid regime which restricted them from doing business with, external international, markets. SAB moved their capital from London to their homeland Johannesburg to enable them operate with the sanctions. SAB prioritized Domesticconsumption to keep the breweries running. SAB concentrated most of its activities in southern parts of Africa hence expanding its market.…… [Read More]
Journey motif is pervasive in global literature, attributed to the existence of collective symbols common to all human societies as archetypes (Zhang, 2008). Both Homer's Iliad and Shakespeare's Henry V incorporate the journey motif as a literary technique. This serves to elevate the status of the protagonist to the heroic level, as the character struggles to meet challenges and overcome obstacles without the familiar trappings of home, family, and social status. War is one of the reasons that heroes undertake journeys, and war indeed figures prominently in both the Iliad and Henry V, driving the plot and transforming their respective protagonists. Journeying occurs on actual and symbolic levels in both these texts. In Homer's Iliad, Achilles undergoes several changes of heart during the war. His journey is introspective, taking him from a point of habitual action through a stage of vengefulness, and finally, onward to spiritual, social, psychological, and political…… [Read More]
business people study ethics. What are the possible benefits to companies, individuals, society and the world of business?
According to a gallop poll administered by the Better Business Bureau in 2008, consumer trust in business professionals is on the decline. Of the consumer populous polled, only 42% expressed trust in banks and financial institutions, representing a 6% decline in trust since 2007, while only 24% responded positively toward contractors and service professionals, representing a decline in trust of 4%. Of the 14 industries polled, trust was lowest in real estate brokers and auto dealers, with a positive trust response of only 13%, representing a 3% decline in trust (Farrell, Fraedrich and Farrell, 2009). In particular, trust levels declined rapidly as a result of public scandals which "cost many companies their emotional appeal, the strongest driver of reputation" (Ferrell et al., 2009).
According to ethics professor Rick Garlikov, the reputation of…… [Read More]
Both Margery Kempe and the woman who can be called her mentor, Julian of Norwich, highlight the roles that women have played in Christian history. Although the Roman Catholic Church has officially canonized neither of them, the Anglican Church recognizes and honors both. Margery Kempe and Julian of Norwich both wrote extensively, and their writings have survived as testimony of the hardships women especially endured given their low social status, and how religion helped women to attain personal power and peace. Moreover, their writings reveal a mature theology that can be considered humanist as well as feminist. Margery Kempe and Julian of Norwich both share in common experiences of hallucinations related to near death experiences. Their both having near-death experiences linked the two women and anchored them to Christ as well. Kempe eventually came to visit Julian of Norwich, and the two shared in common a visionary love…… [Read More]
German immigration to the United States prior to 1877. Specifically, it will discuss to what extent and how did they influence life in the U.S.A. German immigrants to the United States influenced thought and culture in a variety of ways, but they have nearly always managed to hold on to their own culture while adapting to their surroundings.
While America has always been a melting pot of different cultures blending to form a whole, Germans have always managed to blend into society while nevertheless retaining their own special culture and society. The Germans are one of the few races to hang on to their culture so powerfully, while still successfully merging with U.S. culture. One of the most important ways they held on to their culture was by continuing to speak German, especially in the homes, and raising their children to also speak the native language. They also tended to…… [Read More]
Dolor Sit Amet
After a day of nearly warlike conditions in the French capital, a massive crowd of Revolutionaries took to arms and toppled the symbol of French monarchy. The Bastille -- a medieval era tower building that was used as a prison -- was set ablaze all day yesterday. The number of people in the Revolutionary mob is estimated to be around 1000; the numbers of casualties have yet to be determined. What does this mean for London? Is a revolution of our own brewing?
Continued on Here comes the sun!
American Tariff Act: Will it work?
Could this be the new French flag?
Houses for Sale!
With a revolution brewing in France, what are the possible outcomes of the strife? Could France emerge unscathed, or will the nation crumble? Analysts say that if France had a new flag, it would look like this one. The red…… [Read More]
Greg Smith's Beer in America: The Early Years -- 1587-1840: Beer's Role in the Settling of America and the Birth of a Nation, is a wonderfully smart and charming look on the history of beer and its connection to how America was founded and evolved into what it is today. Gregg Smith's account is an energetic recapping of early American history. It depicts beer as a foremost player, and vividly recreates the cultural and political background out of which it rose. One of the most significant but little-known characteristics of early American history is the part of beer in America's founding and formative years.
This decisive version of beer's effect on people and events that fashioned the birth of a nation dumbfound all who read it. Smith presents many key facts and events that in some way or form are connected to beer. Starting with the pre-colonial era and finishing…… [Read More]
Petty v. Metropolitan Gov't of Nashville & Davidson County
Metropolitan Police Officer Brian Petty served in the army reserves. While deployed in Kuwait he was honorably discharged after brewing homemade wine although it was noted on his discharge form that he was dismissed "in lieu of trial by court martial" (Wright 2012). When he applied to be reinstated, his application was initially rejected as incomplete because Petty merely stated he faced "military charges" without any additional information when asked if he had been accused of a military crime (Wright 2012). However, the Metropolitan Police of Nashville and Davidson County ultimately rehired Petty after an investigation although Petty was only admitted at a lower rank. He was also prohibited from 'moonlighting' as a security guard, in contrast to before the rehiring and the investigation.
As a result of this "Petty sued Metro asserting that Metro had violated USEA [Uniformed Services Employment…… [Read More]
hat drives consumption of costs?
In Activity-Based Costing (ABC), consumption of costs is driven by a company's activities (Investopedia, LLC, n.d.), such as production, administration and sales (Cokins, 2010, p. 9). The company's product consumes activities, whether main or supporting activities, and those activities consume company resources (Cokins, 2010, pp. 9, 11). In that context, a cost driver is something that drives the cost of a company's activity (Investopedia, LLC, n.d.); it is a "factor which generates occurrence of resource (capacity) expenses" (Cokins, 2010, p. 8). For example, a manufacturing business may have an activity of running machinery, which will have cost drivers such as machinery operating hours, labor, maintenance and power consumption (Investopedia, LLC, n.d.). That same manufacturing company may also have the activity of release into production, which will have cost drivers such as the number of products (Cokins, 2010, p. 13). Cost drivers are chosen according…… [Read More]
Risk Plan Outline Anheuser-Busch. Your Course Project assignment prepare a Risk Plan Outline give direction paper.
Survival in a constantly expanding business environment
Investing more finances in the first years of the enterprise
Liquor liability insurance
Having the market interested in the product
The right marketing company
The right retailer
The right attitude
Dealing with financial obligations correctly
Direct finances effectively and on time
Promote products depending on the amounts available
Concentrate on communicating with the market
Legal aspects of the business
Devising selling strategies depending on the states the company is selling its products in
Playing an active role in campaigns meant to promote moderation in drinking
c. Cooperating with the authorities
a. Making sure all workers are well-acquainted with regulations they need to follow
b. Having all machineries inspected on a frequent basis
c. Promoting a clean working environment
X. Devising strict risk tolerance…… [Read More]
Business and Social Media -- A case of Cameron's Coffee
Definition and Use of Social Media
Social media and how businesses use it
Definition and Use of Big Data
Big data and Businesses uses
Definition and Use of Cloud Computing
Cloud computing and businesses use
Definition and Use of Social Media
The collection of internet based online communication channels that are dedicated for community based input, content sharing, interaction and collaboration is broadly defined as social media. There are a number of different types of social media that include websites and applications that are used by forums, microblogging, social bookmarking and social networking.
Social media is generally used to communicate with the members of a particular community who are members of a particular type of social media. Such communication can also take place through Blogs like WordPress and Blogger or through websites…… [Read More]
Constellation Brands is an alcoholic beverage company, traded under the symbol STZ on the New York Stock Exchange. The company had revenues of just over $6 billion in the 2014 fiscal year and a net income of $839 million (MSN Moneycentral, 2015). While revenues were up significantly over the prior year, profits were down by more than 50%. Until recently, Constellation was an importer/marketer of alcoholic beverages, but the company has recently entered into the production side of the business. As an example, Constellation has built its beer business as the importer of mainstream global brands such as Corona, Tsingtao and several smaller Mexican brands. The company did not own any beer production facilities, but recently announced the purchase of Ballast Point, a microbrewery in San Diego (Kaplan, 2015). This purchases official makes Constellation a brewing company for the first time. The deal is reported to be in the $1…… [Read More]
Traditionally, beer bottles are made of glass -- a packaging material that has been around for thousands of years. Glass has been used to bottle beer since the early 20th century (Brody, Bugusu, Han, et al., 2008). ecently, Miller Brewing company became one of the first big-name brewing companies to use plastic instead of glass for beer bottles. Plastic has been shunned in beer packaging because of plastic is just porous enough to allow carbon dioxide gas to escape, also allowing oxygen in -- thereby spoiling the beer. Nanotechnology has allowed the carbonated beverage industry and beer firms specifically to capitalize on the lightweight and unbreakable features of plastic without sacrificing product shelf life or quality. Clay is the most common nanoparticle type used in the manufacture of plastic beer bottles. The addition of clay to the plastic extends the shelf life of the product to about six months (Silvestre…… [Read More]
Vedanta believed that the company overall was undervalued; Hewitt was trying to avoid the loss of a major segment of business.
Overall, merger and acquisition activity has been relatively slow in recent years. However, firms are still trying to find ways to defend their position (GM, Hewitt) and other firms are attempting to creatively extract new value through their transactions (Exxon, a-B/InBev, Vedanta). As long as there are shifting environmental considerations and new opportunities to exploit, firms will continue to seek out merger and acquisition activities.
McClure, B. (2010). Mergers and acquisitions. Investopedia. Retrieved March 14, 2010 from http://www.investopedia.com/university/mergers/default.asp
Espinoza, J. (2009). Merger pays off for AB InBev. Forbes. Retrieved March 14, 2010 from http://www.forbes.com/2009/03/05/inbev-quarter-profits-markets-equity_drinks.html
Daily, M. & Driver, a. (2009). Exxon Mobil to buy XTO Energy in big U.S. gas bet. Reuters. Retrieved March 14, 2010 from http://www.reuters.com/article/idUSTRE5BD28G20091214
Reuters. (2010). Vedanta eyes aluminum unit spinoff. The Economic…… [Read More]
Providing a Green Recycling bin, and encouraging customers to bring in their own cups, has the potential to save the company even more. tarbucks.com (2010) states, "Our customers are also concerned with the waste generated from our paper and plastic cups, which are not currently recyclable in many communities. We're concerned too, and we're committed to coming up with innovative solutions that will make our cups universally recyclable or compostable."
It is the proposal that tarbucks, corporate, would give each store $225 in incentive dollars to increase the awareness within its store for recycling needs. On average a recycle bin, the size of a common cafe store trashcan, is less than $10 a piece as found on numerous related web sites and in average home improvement stores. It is expected that a company such as tarbucks would be able to receive a bulk rate on such an item, and therefore,…… [Read More]
Some of this is achieved through control of internal elements such as yeast and fermentation byproducts; other improvements control externalities such as stems and pomace. The result is that winemakers today have a tremendous amount of control over the quality and character of their beverage. They no longer rely on wild yeasts and the element of chance to produce great wine -- the process can be controlled, can take place almost anywhere and can yield very good results.
The basic winemaking process has changed little over the centuries, but modern equipment has allowed winemakers to improve the quality and consistency of their output. Some parts of the process still rely on fairly simple mechanical devices (stemmers, filters) but other innovations rely on our dramatically improved understanding of the fermentation process. Retractable agitators, coolant-filled jackets on fermentation vessels and in-tank thermometers allow winemakers to control all of the variables that…… [Read More]
Before the Scramble for Africa of the late 19th century, Africa was hierarchical, authoritarian, and paternalistic, just like the European countries invading them. Insubordination and disobedience to the deference pyramids were punished by violence. Some tribes carried this violence out against their neighbors, from whom they stole cattle and other property. The strength of white settlers in Africa came from their technology. Before the nineteenth century, some African prophets and seers foretold of great human suffering at the hands of white invaders. There were many in tribes who resisted white settlement from the beginning, while other tribes studied the ways of the white man and tried to form alliances with the Europeans against their enemies. Many tribes were neutral, although their chiefs might accept gifts in return for cooperation. The presence of white man changed the dynamics of power in Africa in many ways.
New forms of power brought by…… [Read More]
That irony is not lost on many of the high technology executives who at one time advocated disintermediating their entire dealer channel and taking their largest customers direct only to discover that trust is the greatest catalyst of efficient transactions of all (Smith, Manna, 2004, 377, 378).
Why Disintermediation Failed to Live Up to the Hype
Before discussing the reasons why disintermediation failed to live up to the hype associated with it, there are exceptions that need to be taken into account. The first is in those industries that have undifferentiated supply chains and where price and availability alone are the only differentiators, disintermediation often takes hold. Such is the case with the Indian tea market, and many sectors of the consumer electronics industries that sell on a commodity-based strategy. These are the industries most susceptible to disintermediation as the middle tier of the distribution channels don't deliver that…… [Read More]
Given the scarcity of lever machines on the market and the unique nature of the niche market, price elasticity of demand is expected to be low. There may not be many prospective consumers, but those who want this product will be keen and are unlikely to be strongly price sensitive. The best price would therefore be at the high end of the range, $1,200. This means that the selling price to the distributor would be $600, for a contribution margin of $350 per machine when sold through the distributor, or $950 if sold through the company website. These figures have been included in the contribution margin analysis.
Marketing Issues -- Place
Distribution for a niche product is a tricky proposition. Consumers are often far apart, meaning that it is difficult to use a storefront retail location to reach these consumers. The Australian market -- in particular with respect to high…… [Read More]