Heineken Case Essay example

5420 Words Jan 19th, 2015 22 Pages
Heineken Brewing Company Case Study
MBA650 Business Policy
John Barber

Heineken is a major competitor in the mass production beer industry. The firm is facing internal and external environment challenges which are affecting its sales and profitability. The corporation is involved in a competitive, concentrated, and differentiated industry that has allowed major rivals to achieve growth through mergers and acquisitions. The case study addresses the issues that the organization is encountering. The company is facing declining sales due to changing consumer tastes and increased competitive pressure. Heineken is attempting to increase sales and retain its position as a premium beer, but is faced with a lack of support from two
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His first actions as CEO were to streamline decision-making processes and organizational communication within the company. To do this, he cut several executive positions, and increased accountability and responsibility among senior individuals. The next phase was to increase revenue by acquiring established breweries to increase their market share. The recent acquisitions include FEMSA, Cervesa and Scottish & Newcastle, along with five Nigerian breweries (Dess et al., 2102).
Heineken is continuing to make strides to rid itself of its long held conservative culture, which has allowed them to make more strategic decisions at a quicker pace. Marketing its newly acquired brands; Dos Equis and Tecate, has been a major success with Hispanic Americans. Although Heineken is considered to be a premium beer, recent efforts have been able to lower the average age of the Heineken drinker from 40 for the average drinker down to roughly 30 years old. With such an increasingly competitive market place, Heineken is continually seeking ways to improve efficiency and increase market share (Dess et al., 2102).

Problem statement
Currently Heineken has lost support from two specific demographics; Hispanic Americans and young Americans. Corona, a Mexican beer, has been able to outsell Heineken within the United Sates since the late 1990's. With Hispanic American's representing one of the fastest growing segments of beer drinkers; Heineken is continually losing out on

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