Southwest Airlines: Expansion is the Name of the Game

Anheuser-Busch Co.

Table of Contents Introduction............................................................................................................3 A Short istor! of Anheuser"#usch Companies.................................................$

Core #usiness %hilosoph! of Anheuser"#usch Companies..............................&' Existin( )ision* +ission* ,b-ecti.e and Strate(ies of Anheuser"#usch........./0 )ision and +ission for Anheuser"#usch Companies.......................................3& ,pportunities and Threats to Anheuser"#usch................................................33 Competiti.e %rofile +atrix 1C%+2 for Anheuser"#usch.................................3& External 4actor E.aluation +atrix 1E4E2........................................................3/ ,r(ani5ation6s Internal Stren(ths and 7ea8nesses.........................................33 External 4actor E.aluation +atrix 1I4E2.........................................................39 S7,T +atrix.......................................................................................................3' :uantitati.e Strate(ic %lannin( +atrix............................................................9; <on( Term Strate(ies and ,b-ecti.es................................................................9/ =e! >atios and %ro-ected Consolidated 4inancial Statements........................93 Anheuser"#usch Strate(ies for the 4uture........................................................93 Implementation and Expected >esult................................................................99 Annual ,b-ecti.e and %olicies............................................................................9' %rocedures for Strate(! >e.iew and E.aluation..............................................9? >ecommendation for Anheuser"#usch Compan!.............................................$; >eferences.............................................................................................................$3

Anheuser-Busch Co.

Introduction What is the formula to steer ones company into a corporate success story? From time immemorial to the present modern day of information revolution there have been many volumes and tomes of business books that have been ritten. !hese books have been tryin" to dissect and "ive a desi"n of success in the art of doin" and mana"in" a business.

#et$ so far the authors of these books have only unraveled some of the pieces by hich can make a company or corporation attain a relative success in the industry it tries to e%cel. !here are still many$ almost all of businesses$ both lon" in operation and have &ust entered the foray of their chosen industry that are left in partial blindness over the issue of ho they can drive their company to the hill of success.

!his 'uestion of formula is difficult$ almost impossible to "ive a definite$ foolproof ans er. (f one ould scan the list of "iant companies saunterin" under the ray of corporate bliss and financial success$ one ould pick several amon" these companies to have been in the business since the advent of the product or service they are offerin" the consumer public.

(t is easy no for one to "ive a superficial formula to conclude that the success of the company can be all attributed to the fact that it is the pioneer company in the business. Who comes first emer"es as the victor in the end? )uccess then is "iven a functional

Anheuser-Busch Co. definition that it belon"s to the first in line+ success is "iven on a first come first serve basis. But is this kind of syllo"ism in the art and orld of doin" business is appropriate? !hou"h nobody can debate the fact that the first comer in the industry has an ed"e in the business and has a "reat say as to hat kind of competition may ensue hen a rival sprouts up to challen"e its presence$ the first comer has no absolute control and no absolute monopoly of the market$ especially if the ne rival comes out ith astute business strate"y.

(t is safe to say then that the first comer only have at least five minutes of leadership and success over the market hen the rival company entered the competition. After this fiveminute success$ everythin" is a free-for-all battle for ever company over the lordship of the market and the industry in "eneral.

(t can also be said that the pressure al ays rest on the shoulders of the leader of the pack since this company is the tar"et competition that all the remainin" companies aspire to beat and clobber on the "round. !he stress one en&oys as a successful company$ especially if its one of those pioneer companies in the business$ is not an easy task to maintain and at the same time sustain for the company a continuous "ro th in the industry.

,very rival company is on every direction launchin" different and varied business strate"ies aimed at replacin" the company at the top. With this a fact of everyday

Anheuser-Busch Co. business for the leader in the industry$ the ei"ht of the pressure to e%cel is much heavier on the shoulders of this leadin" company. .evertheless$ this heavy ei"ht of stress and forces of competition assaultin" the leader of the pack is not everythin" to the disadvanta"e of the leadin" company. As they say$ for every "reat challen"e one is e%pected to face it ith a much "reater response. !his is the fine lesson that the leadin" companies have learned that enabled them to stay on top of the "ame.

#es$ the competition is stiff$ harsh and a cutthroat at that. But successful companies$ especially those ho remain to stay in operation after a decade or even a century$ is not ne to this fact of the business terrain of the industry they are involved in. !his is already "iven.

What then the rival companies and those ne in the industry / and even those companies involved in different industries / need to see and find out is the astuteness of business strate"ic maneuvers these leaders of the pack have been practicin" and applyin" to their business.

!he 'uestion that may arise no is hat made this company tick for a very lon" period of time. What makes the company to ac'uire the business astuteness and ability to parry the blo s of its rivals in the industry? What business tools do the company used throu"hout these years of successful operation? And hat makes the company continue its fli"ht of success even up to this present day?

Anheuser-Busch Co.

As have been mentioned earlier in this introduction$ many have already tried to dissect and "ive a fool-proof formula for a company to succeed in its business$ but then everythin" is not said and still many 'uestions are left ans ered. But of course$ like any other endeavors in this orld$ there is no such thin" as 011- ord as to ho to become$ say$ successful. 2ne needs to have ample time to prepare$ practice the endeavor ith determination and stamina of a bull$ and learn from the lessons that it encounters alon" the ay.

!his then is the cru% of this case study at hand3 the successful bre in" company of Anheuser-Busch Companies that has been in operation for a very lon" period of time. !he 'uestion of ho it started as a company and ho it has able to ithstand the stron" inds of chan"in" times ill be attempted to be "iven the ri"ht ans ers and to ards hat direction no $ in this modern times$ does the company has to steer itself to continue flyin" on its in"s of success.

A Short

istor! of Anheuser"#usch Companies

!he company of Anheuser-Busch has its history started in 4506 in the humble city of )t. 7ouis$ 8issouri. !he idely popular Bud eiser 7a"er Beer as first produced by the company in 4569 :;Bud eiser$< n.d.=. #et$ the history of the company cannot simply be stated that it started in 4506$ in 8issouri and stop there. !he history of Anheuser-Busch is inseparable from the story of its founder Adolphus Busch$ a >erman-born immi"rant in ?nited )tates :;Adolphus Busch Bio"raphy$< n.d.=.

Anheuser-Busch Co.

Adolphus Busch as born on @uly 41$ 45*A in a small city of Bastel$ >ermany. Ce as the second youn"est son amon" 22 children of ?lrich Busch and Barbara Dfeiffer Busch. When he arrived in ?nited )tates he had a lot of concern since he basically had no here to stay to. From .e #ork$ he traveled est and found a lo ly &ob as a clerk on the riverbank of )t. 7ouis$ 8issouri. Adolphus Busch as an industrious$ enterprisin" and determined youn" man that bein" a clerk did not make him contented. 2n his o n$ he ventured in the business of bre ery supply and as soon able to earn and "ain modest profit.

!hen Adophus Busch met ,berhard Anheuser$ ho then had &ust bou"ht one of the small$ stru""lin" bre eries in )t. 7ouis. Anheusers company then as basically operatin" ithout makin" no profits at all$ and barely han"in" on to the business.

!he t o became friends and the latter introduced Busch to his dau"hter 7illy hich blossomed into a love affair. )oon the t o youn" people married and Busch dissolved his company and started orkin" as a beer salesman for his ,berhard Anheuser ho had become his father-in-la .

(f one ould characteriEe Busch$ he as never a timid man. Ce as kno n for his orkin" ethics as a hard- orkin" man ho had the honesty to evaluate the state of the business. (t may not be appropriate or enou"h to describe Busch as an astute businessman but his talent of runnin" a business stemmed from his innate orkin" ethics. !his

Anheuser-Busch Co. characteristic ould soon earn a name for him as ;one of the most flamboyant industrialist of the nineteenth century< :;Adolphus Busch Bio"raphy$< n.d.=.

Busch in no time$ because of his orkin" ethics$ became a full partner in his father-inla s bre in" company. !his opportunity also earned for Busch the kno led"e of learnin" the ins and outs of runnin" a bre in" company. Besides this fact$ Busch as some sort of a visionary in terms of his the industry he as involved in. Ce kne for a fact that the first beer as accidentally created durin" 5111 B.C. As a man of hi"h ambition and vision for his o n company$ he had the insi"ht that beer ould become a popular alcoholic bevera"e in the future$ and probably forever.

(n order to make true his vision for Anheuser company$ he did his o n research on ho to improve the taste and 'uality of Anheusers product. Ce traveled throu"hout ,urope &ust to study different bre in" techni'ues. !he primary "oal of Busch as the creation and formulation of a beer product that can cross the boundaries of )t. 7ouis+ a beer that ould appeal to every people ithout distinction of nationality and culture. And this dream and vision that he had set for the kind of beer to sell came near in 459A hen he as able to buy half of the o nership of the company.

Ce then proceeded ith his vision of a popular beer that ould cater to all nationality. With the help of his best friend$ Carl Conrad$ the t o e%perimented ith the taste of the beer at the )t. 7ouis bre ery. !hen in 4569$ they "ot the taste that they ere lookin" for

Anheuser-Busch Co. hen they combined traditional bre in" method ith a deft blendin" of finest barley malt$ hops$ yeast$ rice and ater :;Adolphus Busch Bio"raphy$< n.d.=.

!hus Bud eiser as born. Ce named the ne beer product after a small to n in >ermany. !he company as also renamed Anheuser-Busch. Bud eiser then became the best-sellin" beer in the orld beatin" by ide mar"in its rivals in the beer industry. After the introduction of Bud eiser as a product by Anheuser-Bucsh$ the company "re in ten folds and rapidly. (t eventually became a ma&or international bre in" company operatin" around the orld$ doin" business and marketin" in different countries.

(n 4551$ Adolphus Busch as named the president of the Anheuser-Busch upon the death of his father-in-la $ ,berhard Anheuser. Busch held on to this position for more than three decades and at the same time considered by the company and those in the bre in" industry as the founder of Anheuser-Busch Companies.

As to the packa"in" of the Bud eiser$ Busch decided to "ive a "o si"nal in usin" the ea"le desi"n for the lo"o of the bre ery in 4562 / but hy an ea"le as chosen and used as not recorded thus lost already in history. !hou"h some say this is a si"n of sho in" respect for America$ hile some claim it merely as havin" an unlimited vision. !he ;A< in the lo"o stood for the ori"inal o ner and father of Buschs ife3 Anheuser.

! o decades after the assumption to the presidency of the company$ Busch$ the ever enterprisin" industrialist$ developed and introduced in the market the beer brand he

Anheuser-Busch Co. named 8ichelob. !his ne brand of beer proved to be the pre-eminent super-premium beer on the market.

.ot stoppin" from the achievements that Adolphus Busch had for himself and his company of Anheuser-Busch$ he ent on improvin" his beer products by usin" the process of pasteuriEation to ensure the freshness of the beer after bottlin". Busch himself kne that beer does not taste best hen it is consumed after a lon" time after bottlin" it. Beer is best consumed as soon after it has been bre ed.

With this "ro th in the business and never-endin" innovations applied on AnheuserBusch beer products$ the bre in" company e%panded horiEontally. (t as able to purchase bottlers and "lass companies that ere necessary in the production of the companys beer product.

(t as no time at all that the company had able to control all the means for producin" its o n beer. And on the advent of t entieth century$ in 4A14$ Anheuser-Busch as assured on its path to ards the leader in the beer and bre in" industry in the ?nited )tates hat ith the production of breakin" the million-barrel mark for the first time since the companys foundin". !he bre in" companys production in 4A14 reached a record hi"h of bre in" 4$119$-A- barrels.

Furin" the 4A21s$ in the time of Drohibition$ Anheuser-Busch ad&usted and made a Bud eiser a ;near beer< :;Bud eiser$< :n.d.= or a ;dealcoholiEed Bud eiser< :;2ur

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Anheuser-Busch Co. Cistory$< n.d.=. Fue also to the economic atmosphere durin" this era in the history of the ?nited )tates$ the innovation and industrialist character of the company as sho n throu"h its business strate"y to diversify.

!he need for the company to survive this economic sta"nation proved to be a test in the character of the company. (n order to survive and keep the company afloat amidst the uncertainty in the beer and bre in" industry$ it must need to create ne products from hich the company could stay financially viable and keep its operation intact and continuous.

!he Anheuser-Busch company then ventured into different lon" line of products that included ice cream$ barley malt syrup$ "in"er ale$ chocolate and "rape-flavored bevera"e$ root beer$ corn syrup$ and bakers yeast :;2ur Cistory$< n.d.=. !he company did not stop here. !hey also ventured on truck and bus bodies and refri"erated cabinets.

After the .ational Drohibition in 4A**$ the company anted to strike ahead of its competitors and launched an ne beer product the Bud eiser Clydesdales. A year after that$ Adolphus Busch died and as replaced as the president of Anheuser-Busch Companies by his "randson Adolphus Busch (((.

!he succeedin" years became years of innovation and e%pansion for the company that as then leadin" the bre in" industry in the ?nited )tates since the company had already surpassed the one million-barrel production since the start of the millennium.

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Anheuser-Busch Co. 2ne of these innovations as the introduction of Bud eiser in can in 4A9*. Busch Bavarian beer as also introduced in the market as one of the beer products of AnheuserBusch.

!hen in the 4A91s the company of Anheuser-Busch struck record breakin" achievements that as unima"inable hen the company as first founded and e%panded by the late Busch or even by Anheuser himself+ the company &ust reached a sta""erin" production of beer by ten million barrels per year.

(t as also durin" this decade hen the old bre ery in )t. 7ouis here the company first started its operation as declared by the ?nited )tates as a .ational Cistoric 7andmark. !his declaration as a testament to the fact that the bre in" company had become a symbol of American ay of life.

!hen in the 4A51s Anheuser-Busch as a company as listed in the .e #ork )tock ,%chan"e :.#),=. 8ore than that$ the company built subsidiary companies to help in their operation and production of beer products. A couple of these subsidiary companies ere Anheuser-Busch (nternational$ (nc.$ BAG($ and Busch (ndustrial Droducts.

(t as also durin" this decade hen the company of Anheuser-Busch made history throu"h its fla"ship product Bud eiser and other beer products such as Bud Fry$ and Bud (ce by takin" the steps to e%pand in the "lobal marketplace. !his step earned for the company the ri"hts to bre and sell in Canada$ @apan$ and almost every here.

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Anheuser-Busch Co. !his corporate development spurred the company to a sta""erin" rise in production$ hich "ave the company half the share of beer sales orld ide. 7ike ise$ in the local shore of ?nited )tates$ it as able to corner an estimated -1 percent of the beer market :Black$ n.d.=.

!hus Bud eiser is ready to become in the international "lobal market hat it has become in the ?nited )tates. !his as a beer hich is mass-produced+ a beer that epitomiEe the ;"ood life< created and made possible by a corporate enterprise :Black$ n.d.=. Another ne beer product as also introduced in the market3 the Bud 7i"ht. !his as also the era hen the company learned and e%ploited the use of deft advertisin" campai"n to stay on the top in the bre in" industry. ;Bno When to )ay When$< responsibility campai"n advertisement as one of these ell-thou"ht of advertisin" slo"an that the company had launched.

(f the million-barrel annually as not enou"h for the company to sho its force and dominance in the beer and bre in" industry in the ?nited )tates$ the company$ like an insatiable company hun"ry for achievement$ reached in 4A59 a billion-barrel of beer bre ed since the be"innin" of the operation of the company.

What ensued ith this sle of achievements and financial "ro th as the ability for Anheuser-Busch Companies to e%pand and ac'uire other companies. (n 4A5A the company purchased )eaWorld. !hen in 4AA* the company$ as part of its e%pansion pro"ram invested in >rupo 8odelo :Corona beer= based in 8e%ico. A couple of years

4*

Anheuser-Busch Co. after that$ the company turned its vision to ards ,ast by purchasin" ma&ority interest in Chinese bre ery3 the Bud eiser Wuhan (nternational Bre in" Company.

!he company that as started by the visionary Adolphus Busch is no e%periencin" continuous "ro th ith an annual orld ide production of beer reachin" e%ceedin" the volume of 411 million barrels. And there seems to be no stoppin" this "iant bre in" company from introducin" more beer products in their sleeves since it &ust launched and introduced to the consumer its ne product the 8ichelob ?ltra Amber in 2119.

Anheuser-Busch Companies still make beer that is almost half of the all the beer that American consumers drink. !he company is still re"arded as a mi"hty multinational bre ery committed to e%cellence in their beer products. Furthermore$ this multinational company is revered as the moral triumph of the free market.

Anheuser"#usch Compan!: The American @ream Furin" the early nineteenth century hen there as almost a mass immi"ration of every nationality comin" from every continent in the orld$ especially ,urope$ to the ?nited )tates$ the sellin" point by hich the country as chosen by these millions of immi"rants as the hu"e economic pro"ress that livin" in the country promised. For these immi"rants$ ?nited )tates as the place here their dreams of economic prosperity could come true.

4-

Anheuser-Busch Co. ?ntil this present time$ the country of ?nited )tates still imbues this promise. (n their minds$ every opportunity of makin" it bi" in any industry of their choice is freely "iven by the democratic freedom that pervades the country. ,very immi"rant then is said to be chasin" this promise the moment they step foot in ?nited )tates$ pursuin" hat no is called the American Fream.

And if there is a 'uintessential American Fream e%istin" ri"ht no in ?nited )tates particularly in the bre in" and beer industry$ there can be no company that fits this description other than Anheuser-Busch Companies.

!his "iant bre in" multinational company is basically the American Fream of an 45-year old Adolphus Busch / an immi"rant ho left >ermany to seek opportunity for economic prosperity in the ?nited )tates :>oldber"$ 2111= and like ise his ife ho as also an immi"rant in the country.

!heir fortune and realiEation of their American Fream basically came from their fla"ship beer product Bud eiser$ ta""ed by the company as the ;Bin" of Beers.< 7ike hat Cocacola is for the American consumer$ Bud :as Bud eiser is also kno n= is also hat is for the Americans3 ori"inal American product.

Bud eiser also epitomiEes the easy and comfort lifestyle "iven to Americans by their country+ at the same time makin" this beer product of Anheuser-Busch also as the international embodiment of the American ay of life :;Bud eiser$< :n.d.=.

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Anheuser-Busch Co. !his product of Anheuser-Busch Companies$ Bud eiser is an American drink. At the present estimate one out of five alcoholic drinks bein" sold in the ?nited )tates is a Bud :Black$ n.d.=. What more$ Bud eiser represent holly the American beer for American consumers. Anheuser-Busch Companies rivals like )AB8iller is 95 percent )outh African o ned$ the same ay ith 8olson Coors hich is 04 percent Canadian o ned :;American 2 ned$< n.d.=.

Bud eiser in all its "lory is unapolo"etic ith its bein" an American product+ ith red$ hite$ and blue as colors of its packa"in" ith a bald ea"le. !here is also a particular 4Ath century kind of patriotism about a Bud. ,ach container of Bud eiser even encoura"es nostal"ia for the past3 ,ven the forthri"ht promise$ made on every container$ encoura"es nostal"ia3 H!his is the famous Bud eiser beer. We kno of no brand produced by any other bre er hich costs so much to bre and a"e. . . .H American sees this thin" as somethin" fittin" for the American ay of life. !he most popular and dominant beer in American and international "lobal market is proud to boast not a slo"an or motto but a -9- ord declaration for the hole orld to see and read :>oldber"$ 2111=.

8oreover$ because of Bud eiser$ Anheuser-Busch Companies is the leadin" and dominant bre ery in ?nited )tates for more than a century. !he economic success of this company$ due to its production of an e%cellent product and adherence to 'uality and dedication to "ive the best product to the American consumer$ is an American Fream came true$ especially to the clan of the Busches.

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Anheuser-Busch Co. Core #usiness %hilosoph! of Anheuser"#usch Companies !here is probably no company or corporation that has no core business philosophy by hich its or"aniEation follo s as a "uide or standard by hich the company can attain its "oals and visions and overall success in the industry it is involved in. )ince the lack of core business philosophy can be likened to a ship that is steered to ards no definite destination. Add to that the lack of this core business philosophy is mana"in" the company ithout set of values to see to it that the company can achieve hatever it envisions itself in the industry in the future.

For every company and or"aniEation for that matter$ the core business philosophy or value must be spelled out and made clear to every member of the or"aniEation. !his business values emanates from the top mana"ement do n to the bottom of the or"aniEation and at the same time this values and philosophy can be seen in the output in the service or product of the company.

!he importance havin" a core business philosophy or value is a must for a company to survive the cutthroat competition in the market and in the industry in "eneral. Cavin" this factor instilled in the company prepares it from the debacles and challen"es that it must face as it "oes alon" in slu""in" it out ith its rivals in the industry.

Furthermore$ the e%istence of a clear philosophical value of a company can mean success or doom for the company on the very onset of its operation. Clear and ell understood

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Anheuser-Busch Co. value of ho should the business functions takes a hu"e part in helpin" the company "ets nearer to its sole destination3 success in the industry.

7ike ise$ in the case of Anheuser-Busch Companies$ from the time hen its considered founder Adolphus Busch started orkin" for the company$ it has already set the foundation by hich the company ill be mana"ed and ran. (t must be remembered that Busch$ after marryin" the dau"hter of Anheuser and be"an orkin" as a beer salesman for the company$ sho ed his relentless passion for bein" a hard orkin" man by spendin" lon" e%tra hours for the company.

!his orkin" ethics of Adolphus Busch ill prove to be the foundation of ho and on hat "round the bre in" company can attain survival in the market and eventually dominance in the beer industry. !his orkin" ethics of Busch is not alone the core foundation that he had instilled in the company of Anheuser-Busch Companies.

2ne of these is the thirst for innovation hich from the start spelled out the success of the company. (t must be recalled that it as Adolphus Busch ho initiated the application of innovation in the company by e%perimentin" ith the taste of the beer that they ould sell to the public.

Busch$ alon" ith his best friend Carl Conrad$ spent hours at the )t. 7ouis bre ery concoctin" and e%perimentin" ith all the in"redients of hat makes a beer a beer$ until they "ot at last the taste that they envisioned a beer should tastes like. !hat as a

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Anheuser-Busch Co. 'uintessential innovation done for the company by Busch and Conrad. And that innovation catapulted the company into the stratosphere of beer industry.

?p to the present day$ this core business value and philosophy of Adolphus Busch can be seen and observed on ho the present mana"ement of Anheuser-Busch Companies sustains their success. !he company as seen does not stop from &ust havin" the same beer products that they produce.

Continually$ the company of Anheuser-Busch is introducin" ne beer products in the market to reach a far$ broader consumer base. !he company does not stop from e%perimentin" ith different taste of beer and al ays on their toes for hat could be the taste of beer that a diversified drinkin" consumer ants.

Aside from these 'ualities of bein" an or"aniEation that values hard ork and innovation$ the company of Anheuser-Busch proves to be a company that is kno n for its no nonsense business-style of mana"in" its or"aniEation and company. External Audit !here is no doubt that e%ternal factors or forces have an effect on the types of products developed by a company. !hese factors also determine nature of the companys position in the industry and on hat market se"mentation strate"ies ould it apply. !hese factors even have an effect on the type of services offered$ plus the choices of businesses to ac'uire or sell or mer"e ith.

4A

Anheuser-Busch Co. When Anhauser-Busch Companies performs an e%ternal audit about the company$ havin" a "ood si"ht of the financial viability of the business they are en"a"ed in$ the company has the chance to create and develop a clear mission for hich it can aim its business strate"ies. Another advanta"e of this e%ternal audit is the opportunity to desi"n "ood business strate"ies ith hich the company can apply in its operation$ both internal and e%ternal$ in order to achieve lon"-term ob&ectives. Another plus factor as to hat this e%ternal audit can offer the company is the ability to develop policies ith clear insi"ht and ob&ective perspective by hich it can achieve annual ob&ectives hich is primarily the "oal of "ro th and profitability for the company in "eneral.

!o count$ there e%ist nine trends and events that have an effect

ith "reat si"nificance on

all products$ services$ market share and even a companys or corporations or"aniEations around the "lobe. !his fact has been proven and tested by time and history of those involved in the business of providin" services and products to the public. ?nderneath is a list of these nine factors follo ed by short descriptions on ho company of Anheuser-Busch Companies. 4. Femo"raphic 2. ,conomic *. >overnmental -. )ocial 0. !echnolo"ical 9. ,nvironmental 6. Cultural they can affect the

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Anheuser-Busch Co. 5. Dolitical A. Competition

(t cannot be overstated that the economic forces have a direct impact on the internal and e%ternal operation of a company. !hese economic forces direct and determine the potential attractiveness of various strate"ies that a company can apply on its every day to day operation thus "ain and achieve the full potential of the company to lord over the industry it is involved in. !o start$ in this modern day settin" and society here many household have double incomes :both the man and his ife has to endure the daily "rind of ork to meet both ends of havin" a "ood comfortable life=$ their combined household income can be concluded as hi"her$ thus "ivin" them the opportunity to en&oy hatever the market of consumption can offer. !his fact is a "ood prospective account on the part of Anheuser-Busch Companies by hich it can e%ploit the market to its full benefits and potential as a company.

2ne of the ays by hich Anheuser-Busch Companies can e%ploit the opportunities "iven by these economic factors is the chance to introduce as many 'uality beer products in the market by hich the consumer public can e%perience the comfort of hat their income can "ive them. Another business strate"y by hich Anheuser-Busch Companies can e%ploit the advanta"es as presented by these economic factors is to make sure that the products of the company are al ays available ithin hand-reach of its tar"et consumers. Another thin" is by enhancin" trouble-free bre in" operations of its sle of beer products by ensurin" dependable and reliable maintenance and repair services of its

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Anheuser-Busch Co. machines and other tools and in"redients in the creation of its kno n for 'uality beer products.

As the company of Anheuser-Busch Companies evaluate and proceed into its e%ternal audit$ the company as a result may "o on monitorin" specific economic variables thus endin" ith alternation or improvement of its business strate"ies. By doin" so$ this effort of evaluatin" and performin" e%ternal audit of the companys capability vis-I-vis economic factors its business strate"ies ill be "eared to ards increasin" its opportunities for "ro th in the industry and at the same time limitin" the many threats that pose as a dan"er on the operation and "ro th for profit of the company. )ome of these economic variables that can determine and direst the business strate"ies by hich Anheuser-Busch Companies can apply to its operation are listed in no particular order as to their importance belo 3

4. (mportJ,%port factors 2. (ncome per re"ion and consumer "roups *. !a% rates -. Consumption patterns by the public 0. ?nemployment percenta"e in the overall ork force of a re"ion or country 9. Kalue of the ?) dollar in the market 6. ,%chan"e rate vis-I-vis the ?) dollar 5. ,mployment percenta"e in the ork force A. Financial health of a re"ion or a country$ etc.

22

Anheuser-Busch Co.

2ther trends in the list by

hich the operation of Anheuser-Busch can be tremendously

affected are the ever-chan"in" social$ cultural$ demo"raphic and environmental forces. (n order for the company of Anheuser-Busch Companies to survive the blo s of these forces$ the company must and ou"ht to adapt to the chan"es in the industry caused by these forces. As it is understood by many e%perts in the industry of runnin" a business$ the business operational norms by hich a company must keep its operation in line is for the consumer public to be pleased and "ratified to the fullest as the product providers can do.

!he fact of this is that the public consumers Dublic consumers

ant themselves to be pampered to the hilt.

ant to avoid hassles and to spend less time havin" themselves to

orry over the issues of ho and hen to purchase products. 8ore than this$ the modern public consumers deal ant to have the kno led"e that they are receivin" the best end of the

hen buyin" and consumin" a certain product. !hese factors alone should help

Anheuser-Busch Companies prepare and create and also to develop "ood strate"ic business scheme to s'ueeEe out everythin" that it can in these determinant factors for runnin" a business. 2ther than the social forces that have been discussed above$ trends that can pose as threats to Anheuser-Busch Companies are the demo"raphic$ cultural and environmental factors. As of this present day$ there are an estimated ei"ht billion people livin" on the surface of this planet. !here are only about *11 million of ei"ht million livin" in the ?nited )tates. !he company on a "reat business maneuver has understood this factor

2*

Anheuser-Busch Co. since the very be"innin"$ since the time of its founder Adolphus Busch. Anheuser-Busch Companies has lon" been involved in marketin" its number of core beer families in different parts of the orld. !his visionary business tactic has superseded the time of "lobaliEation. Anheuser-Busch Companies has seen the need to e%pand "lobally since the very be"innin" of its operation.

!his business strate"ic in fact as already in the minds of Adolphus Busch since the time hen he as e%perimentin" in the bre ery in )t. 7ouis 8issiouri to create a distinct taste for the companys beer that can universally appeal to everybody any here in the orld. Gi"ht no $ Anheuser-Busch Companies still see this "lobal e%pansion a part of its business strate"y+ the company kno s that "lobal e%pansion and to cater to the needs of a demandin" and dynamic "lobal public consumer is part of its mission to lord over the beer industry$ not only in its ori"in land of ?nited )tates. Another reason as to hy Anheuser-Busch Companies sees this fact of "lobal e%pansion a "ood business strate"y is the fact that presence in the "lobal market for its number of beer products means insurance for increased revenue and profit and at the same time sustainable "ro th throu"h continuous market share. While Anheuser-Busch Companies has already considered "oin" for a "lobal e%pansion since the very start of its operation$ the continuous need for analysis re"ardin" the public perception to ard life in "eneral$ leisure time$ savin" versus spendin" money$ profit 'uality and "ood customer service is part of its business &ob to assess and compare ith its business strate"ies. (t is still necessary that the company should and ou"ht to e%amine intercity environments$ customers buyin" habits and preferences$ and population chan"e

2-

Anheuser-Busch Co. in city$ county$ state$ country and continents. And on these issues the company seems to lead the pack in "ivin" an astute$ ell-thou"ht of business strate"ic reaction.

!his business strate"ic reaction can be seen from the kinds of advertisements that the company have been producin" and relayin" to the drinkin" public consumers. !here are a number of these campai"ns that have surely touched the consciousness of the drinkin" public and thus the beer products of Anheuser-Busch Companies have been in"rained in the minds of the drinkin" public as beer of choice hen it comes to moderation in drinkin"$ status as a beer drinker$ and lastly the responsibility as to drinkin" beer.

!hen the company of Anheuser-Busch also has to address the drinkin" consumers environmental concerns such as air pollution$ aste mana"ement$ and oEone depletion into consideration. )till$ like a true leader of the pack in the industry that the company is involved$ these environmental concerns have been addressed by the company to its full potential and advanta"e by diversifyin" in environmental parks. !he ac'uisition of )eaWorld and Fiscovery Cove in AriEona$ Florida is a testament to the dedication of the company of providin" a healthy environment to the consumer public. And hile the company is doin" this task of addressin" the environmental concerns of the public$ besides earnin" for the company the ima"e of havin" a heart for the environment$ it is at the same time earnin" profits and revenue from these natural parks$ addin" a hu"e sum of money to the companys coffers.

20

Anheuser-Busch Co. Anheuser-Busch Companies have taken seriously these key social$ cultural$ demo"raphic and environmental variables ithout doubt. !he company has taken these variables ith "reat consideration as the company continues to e%pand in the "lobal market. By doin" so$ the company of Anheuser-Busch then can be concluded as havin" a "ood vie of here threats and opportunities for the company e%ist. And$ thus so far$ the company is able to respond to these business variables ith flyin" colors. )till there are still other factors that affect the e%ternal audit of a company and these are the political$ "overnmental and le"al forces. (t must be understood that political forecastin" can be serious ith critical and comple% characteristics for any multinational companies$ like Anheuser-Busch$ that depend on other countries for natural resources used for their products creation$ facilities$ and products distribution. Furin" this time of "lobaliEation here each country is dependent on each other re"ardin" their economies$ markets and "overnments in "eneral and hen the continents are shrunk into one close community$ it is of dire importance for companies such as Anheuser-Busch Companies to consider the possible / this is inevitable / impact of political variables on the formulation and implementation of its business strate"ies to remain competitive and sustain the "ro th and profitability of the company in the beer industry. 2ther "overnmental and le"al forces that can affect the e%ternal audit of Anheuser-Busch Companies ould be the prospect of "overnment re"ulations and dere"ulations. !hese forces can take in the forms of chan"es in ta% la s$ e%chan"e in the currency vis-I-vis the ?) dollar and labor markets. )ince this modern times is already pla"ued by malicious

29

Anheuser-Busch Co. activities that poses "reat dan"er on every "overnment of around the "lobe$ the forces of here and the severity of terrorist activities are also included no in the e'uation.

(f a certain "overnment hich Anheuser-Busch Companies has an operation$ that "overnments decision re"ardin" economic policies may affect the operation and profitability of the company. )ay for e%ample$ if the "overnment dere"ulated several of the international la s re"ardin" tariffs and ta%es on beer products$ Anheuser-Busch Companies ould have to find ne means by hich it can provide its drinkin" consumers in that particular "overnment of its products. Finally$ Anheuser-Busch is not takin" the risk of ne"lectin" the technolo"y forces that surely has an effect on its e%ternal audit as a firm and a multinational company. For a start$ the company has already built a online site herein hich the drinkin" public can access the detailed information about the company3 its history$ publication$ annual reports$ people behind the company$ and to the ne products that the company are introducin" in the market. For Anheuser-Busch Companies$ the use of technolo"y is an economic enhancer for its overall operation and never considered it as a barrier.

!he company kno s that technolo"ical forces can be a threat to it if not used dili"ently and to its advanta"e. (t must be understood that technolo"ical forces can also pose as a threat to the health of any business if these forces are not ell taken cared of. !hese technolo"ical forces are one of the factors in e%ternal audit of a company. .e"li"ence on these issues therefore can put a company out of business. )ince the popular technolo"ical advancement ri"ht no can be found in the World Wide Web$ checkin" and utiliEin"

26

Anheuser-Busch Co. hatever it can brin" to the benefit of the company is "ood. When the ne order of this era is for more information to brin" to the insatiable consumer$ this effort of takin" "ood business of the forces of technolo"y is a "reat help for the sustainability and profitability of a company. Existin( )ision* +ission* ,b-ecti.e and Strate(ies of Anheuser"#usch When Adolphus Busch first handled the beer bre ery company hich ill later on be called Anheuser-Busch Companies$ his vision as for the company to bre a kind of beer ith a taste that ill cater to the bud of all beer drinkers. As of the present this vision of Busch has been achieved already basin" from the stron" and dominant e%istence of Anheuser-Busch beer products in the market.

What the present mana"ement of the company ri"ht no has for a vision for the company is to stay as the American Fream in the beer industry and at the same time "et a siEeable market share of the international beer market. !he company of Anheuser-Busch vision for the company is to stay on top of its "ame$ retain the almost half share of the beer market in the beer industry in the ?nited )tates and at the same time make its array of beer products create a stron" market e%istence in the international and "lobaliEed beer market.

#et$ this is not only the vision that the company of Anheuser-Busch has set for itself. )lo ly$ the vision of the company is lookin" for diversification. (t envisions the company as a company that ill not only be kno n from its array of beer market.

25

Anheuser-Busch Co. A testament of this kind of diversification is the purchase of )ea World and the openin" of Fiscovery Cove located in 2rlando$ Florida. !he company as it set itself to diversify is at the same time sho in" that the company is concern ith the state of nature and environment too. !he settin" up or ac'uisition of )ea World and Fiscovery Cove seems a far cry from a company that is kno n to be a leadin" beer company. )till$ ith a vision to make a "ood public impression$ the company has embarked on mana"in" and o nin" these environmental parks.

.evertheless in spite that the mana"ement of these environmental parks is off the path of hat should a beer company should take as a kind of diversification$ the company is successful in this endeavor. For one$ the company is earnin" hu"e profits from these environmental parks and these earnin"s add up to the total net profit of the company year in and year out.

(t is not at all a cause of surprise to kno that the main ob&ective of the company ri"ht no is to maintain its leadership in the beer market in the ?nited )tates and at the same time e%pand and e%ploit to its full potential the international beer market. !he mana"ement of the company kno s at the same time that this ob&ective to remain a ma&or player in the beer industry both local and abroad is a difficult challen"e for the hole company. Gival beer companies pose a "reat threat and risks for the company. Add to this the factors that there are chan"es in the beer market$ especially in the demo"raphics$ shifts in consumer preferences. At the same time there is a risin" competition from other forms of alcohol. And there are also innovative breakthrou"hs in

2A

Anheuser-Busch Co. this a"e of information revolution. :;Bre in" 2ur Future$< 2119=. !o sum up$ the main ob&ectives of Anheuser-Busch Company is to increase domestic beer se"ment volume and per barrel profitability$ increase in international beer se"ment profit "ro th and lastly$ continued "ro th in preta% profit and free cash flo from the other se"ments of the company :;Bre in" 2ur Future$< 2119=.

#et$ from the ords of the former C,2 of Anheuser-Busch Companies Datrick )tokes3 ;!he real test of a company is not hether it encounters challen"es$ but hat it does to respond to challen"es< :)tokes L Busch ((($ 2110=. And under this li"ht$ the strate"ies that the company of Anheuser-Busch is applyin" on its internal business operation are embarkin" on a""ressive actions by reducin" the price umbrella of several of its premium products in relation to its ma&or domestic competitors.

8ore than that it the company has embarked on innovatin" both of its products and their packa"in". At the same time$ the company has reali"ned the marketin" support behind all the ma&or beer products of the company. 8a&or internal operational policies has also been applied like cost-cuttin" measures throu"h elimination of bonuses for corporate and ?.). beer business employees :this case particularly as applied in 2110=. 7ike ise similar cost-cuttin" measure as done throu"h the freeEin" of officers salaries for the year of 2119.

Ge"ardin" its e%ternal operational strate"y$ the company has decided to focus on it core brand of beer. )ince the mana"ement kno s that beer represents 06 percent of all alcohol

*1

Anheuser-Busch Co. servin"s in ?nited )tates and in this share the company Anheuser-Busch has a share of -5 percent. (t is then the move of the company to continue to develop innovative advertisin" and marketin" strate"y for its core brand of beers. !hese core of brand of beers are Bud eiser$ 8ichelob$ Busch and .atural families.

8oreover$ the company is on the pursuit of enhancin" its e%tensive portfolio. While the focus of the company of Anheuser is still its core brand of beer$ it also tries not to ne"lect other avenues here the company can earn additional revenue.

2ne of the companys focused is the hi"h-end imports and craft beers. !he company of Anheuser sees the opportunity that it can earn additional revenue on this part since the entire industry of beer had been bolstered by the "ro th of these t o components by more than ten percent in 2119.

)ision and +ission for Anheuser"#usch Companies >ranted that the products of Anheuser-Busch Companies$ particularly the Bud eiser family of beers$ has been in the market for more than a century already and been lordin" over the market share in the beer industry in the ?nited )tates$ this does not mean that there should be a lack for a ne vision and mission for the company of Anheuser-Busch Companies. !here are still many not trodden path hich to follo and direct that company for the ne%t comin" years and decades and probably for the ne%t century. !he ne vision and mission for Anheuser-Busch Company someho does not stray afar from the ori"inal and first vision and mission that had been set by Adolphus Busch for

*4

Anheuser-Busch Co. the company since its first day of operation a century a"o in the small to n of )t. 7ouis$ 8issouri+ that is to still lead the pack of beer bre eries scattered across around the "lobe. !his vision and mission for the company has an air of difficulty since remainin" as the leader of the pack is hard to sustain durin" this uncertain times and stiff and hard competition happenin" in the beer industry in ?nited )tates and around the "lobe. #et$ there is no doubt in every e%perts in business that this vision and mission is impossible to do. As business "urus ould usually say$ those difficult and hard problems for a company is doable hile those of impossible in nature ill only take time to accomplish and "et solved. !his vision and mission for the leadin" beer bre ery in ?nited )tates can then be concluded as doable and achievable ithout a speck of doubt.

For Anheuser-Busch Company to make this ne vision and mission for the company to be realiEed ou"ht only to follo the simple yet proven business strate"y of continuously follo in" the path for e%pansion and innovation in terms of introducin" ne array of beer products to the market. !his business strate"y has orked countless of times already for the company and ( see no reason as to hy the company ill desert this style of business ethics and strate"y.

Furthermore$ the company must stick ith "reater vi"or and intensity in usin" the tools of advertisement to for ard its dominant e%istence in the beer industry. !he company of Anheuser-Busch has been kno n for utiliEin" this kind of business strate"y efficiently more than its sle of competitors in the beer market. (f e ould follo the number of effective slo"an the company has in"rained and made it in the minds of the American

*2

Anheuser-Busch Co. drinkin" public$ there are countless to be counted. Follo in" a"ain this aspect of pushin" the beer product of the company to the public is advisable for the company to continue.

,pportunities and Threats to Anheuser"#usch 2pportunities What opportunities lie before the path for continuous success for Anheuser-Busch Companies? (n the ?nited )tates$ 06 percent of alcohol servin"s is represented by beer. And from this 06 percent$ Anheuser-Busch leisurely en&oys -5.- percent share of the ?.). beer market. 8oreover$ the brands of >rupo 8odelo$ a product of Anheuser-Busch Companies e%pansion pro"ram and makers of Corona$ for it has an estimated -1 percent share of the import se"ment in the country of ?nited )tates. Anheuser-Busch has a 01 percent share in >rupo 8odelo.

M(t can thus be concluded that Anheuser-Busch Companies is one of the lar"est player in terms of import profit pool in ?nited )tates. Another product of the companys a""ressive business strate"y to have a stron" presence in international beer industry is its relative hu"e share in !sin"tao$ the lar"est beer bre er in China. Anheuser-Busch has 26 percent stake in it. Besides this fact$ Anheuser-Busch fla" product$ the "roup of Bud eiser brand$ takes half of the market share of the premium beer se"ment in China as of 2119 :;Fatamonitor$< 2116=.

**

Anheuser-Busch Co. !he company of Anheuser-Buschs stron" market presence and position "ives it ith hu"e field herein it can apply its business strate"ies and enhance the a areness about the companys brands in the drinkin" public.

!hese facts alone "ive the obvious impression that Anheuser-Busch is the company that is to beat in the beer industry$ locally ise in ?nited )tates and in the international settin" as ell. >oin" back to the previous 'uestion then$ hat still lies ahead as opportunities for the company in this obvious dominance in the beer industry$ both local and abroad.

First and foremost$ since the company of Anheuser-Busch has already con'uered the beer market in the ?nited )tates$ the opportunities that lie ahead for the company then is abroad3 the beer market share internationally speakin". !he company can look for ard to a positive result in its e%pansion pro"ram as represented by the companys "ro in" market share in China and Gussia.

7et us deal first ith the "ro in" market share of Anheuser-Busch in China. For the last previous five years$ the Chinese beer market has delivered a stron"$ stable "ro th for the companys brand of beer in the countrys beer industry. !he total "enerated revenue for the fiscal year of 2119 that Anheuser-Busch Companies earned in Chinese beer market reached a sta""erin" N2-$05- million. !his amount reflects a compound annual "ro th rate or CA>G for Anheuser-Busch of seven percent spannin" the years of 2112-2119. (n 2119 this means that the company has bre ed and sold a total of 2A$622.5 million liters :;Fatamonitor$< 2116= servin" the lar"e population of China.

*-

Anheuser-Busch Co. Whats more is that the market volume for Anheuser in this country is estimated to rise up to *5$26*.* million liters by the end of this decade. (f this ould materialiEe$ then the CA>G of 0.2 percent for the period of five years startin" 2119 to 2144 is e%pected for Anheuser-Busch. For the company$ the standard la"ers represent the most lucrative aspect of the Chinese beer market in 2119. (t as durin" this fiscal year that the company is able to "enerate a total revenue and profit of N49$**2 million. !his amount is "ives the company an e'uivalent of 99.- percent of the Chinese beer market and overall value.

8ean hile$ Anheuser-Buschs sales of premium la"er earned sta""erin" revenue of N-$909.A million :;Fatamonitor$< 2116= in 2119. (f this revenue could be e'uated to the Chinese markets a""re"ate revenues$ it thus represents an 45.A percent. (f the Chinese beer market is not an obvious representation as to the place here the company can s'ueeEe out more revenue and profit for it in the comin" years and decades to come$ then the estimate of Fatamonitor :2116= that the market share for Anheuser-Busch beer products ill "ro at a compounded annual "ro th rate of -.A percent durin" the comin" period of 2119 to 2144$ spannin" five years$ is already a "ood business pro"nosis that the company has a foolproof business opportunities to mine in the Chinese beer market.

8ean hile the presence of Anheuser-Busch Companies is startin" to be felt in Gussia. Gussia in terms of its beer markets is one of the orld lar"est. !o "ive a short back"round of the Gussian beer market$ the countrys beer market is dominated by premium la"er se"ment. Dremium la"er has about -5 percent of the total market value in Gussia. (t is also forecasted that the Gussian beer market to reach an estimated value of N42.A billion

*0

Anheuser-Busch Co. hen the year 211A comes. !his estimate is an increase of about *A.0 percent :;Fatamonitor$< 2116= compared ith 211-. And hat place is better then for AnheuserBusch Company to e%pand its beer bre ery net ork than in this lar"e Gussian beer market. !rue to the companys dedication for "ro th and continuous e%pansion$ Anheuser-Busch Companies entered into a licensin" a"reement ith Ceineken in the year of 2119. ?nder the a"reement$ Ceineken ill have the e%clusive ri"hts and license to bre $ sell and distribute Anheusers OBud product in the entire Gussia.

Considerin" that Anheuser-Busch is financially healthy plus its advanta"e of bein" ellpositioned in the beer market industry$ the company has all for itself to take advanta"e of e%ploitin" the lon"-term "ro th opportunities that is bein" offered by the beer markets in China and Gussia. First of all$ it has for itself its fully o ned product Bud eiser stron" presence in the Chinese beer market. Add to that that the company has Carbin operations and a business strate"ic alliance ith !sin"tao. (t is thus can be said that Anheuser-Busch Companies has its tentacles of bein" a hu"e multinational beer company involved in all the se"ments of the Chinese beer industry. !his stron" presence of Anheuser-Busch Companies in the international beer industry is even more reinforced by the fact that >rupo 8odelo picked the company as the e%clusive importer of its brands all over China. !his ne a"reement ill take effect be"innin" the year of 2116 and includes in the pact is Corona ,%tra$ hich is at the present the most popular 8e%ican beer in the orld. !here is also the future prospective that other 8odelo brands ill be included in the a"reement.

*9

Anheuser-Busch Co. !o cut the chase short as to here opportunities lies for Anheuser-Busch Company for the companys intention for continuous "ro th and stron" presence in the international beer market$ the discussion can be summed into t o sentences. !he stron" demand in the market for beer compounded by the stron" market presence of Anheuser-Busch Companies in the Chinese beer market can be translated as an increase in terms of revenue and profit for the company. !he opportunity that lies then for the company in Gussia$ considerin" that there is a stron" demand in that particular country for beer products$ ill mean a "ro th in terms of licensin" revenues for the Anheuser-Busch Companies.

!he opportunities for Anheuser-Busch Companies does not end and stop at the "ood business prospect that is offered by the Chinese and Gussian beer market. (t must be remembered that Anheuser-Busch Companies does not only mainly deal ith alcoholic bevera"es alone. Besides its "ood standin" as a leadin" beer bre ery both local and abroad$ the company is en"a"ed in other diversified products and services. !o name one$ it has for a lon" time invested and ventured in environmental and theme parks$ thus spreadin" its interest in other facets of American lifestyle and kind of life.

Another opportunity herein the Anheuser-Busch Companies can direct its focus is the "ro in" non-alcoholic bevera"e market. Anheuser-Busch for the start does not en&oy a "ood$ stron" presence in the non-alcoholic bevera"e market in the countries here it has an operation. 8ean hile$ its rival company Constellation Brands is involved in the sellin" and marketin" both alcoholic and non-alcoholic bevera"es.

*6

Anheuser-Busch Co. (f the survey done by Food and Bevera"e report 2119 ould be used as a basis as to here Anheuser-Busch Companies can take a peek and look at the prospect of additional revenue and profit for the company$ then it is said that there is an increase in the preference of the public consumers for non-alcoholic drinks. !his increase demand for non-alcoholic bevera"es by the public is an offshoot of the publics concern about their health and especially for drinks ith hi"h calorific values. Furin" the span of five years$ from 2114 to 2119$ the combined sales of carbonated drinks$ milk$ and includin" fruit &uice and drinks have declined by rou"hly five percent. At the same time$ the ?.). market is sho in" an increasin" trend for the consumer publics preference and demand for nonalcoholic bevera"es and lo -calorie drinks.

Anheuser-Busch Companies$ considerin" its stron" cash flo and healthy financial state$ can invest in this se"ment of the consumer market since there are clear si"ns that this trend for preference for non-alcoholic bevera"es ill stay and ill become a part of lifestyle of modern man ho are no not lackin" as to the information about healthy ay of life.

Another opportunity for Anheuser-Busch Companies here the lure of additional and hu"e revenue is enticin" can be seen in the "ro in" demand for ener"y drinks. )ince Anheuser-Busch Companies has already set foot in this se"ment of the market$ the "ro th for the company in this fast "ro in" and hi"hly promisin" ener"y drink se"ment is "reatly probable. As of the present$ Anheuser-Busch has in its array of products t o

*5

Anheuser-Busch Co. ener"y drinks3 the 451 and 451P*. !his se"ment of the market that craves for ener"y drinks is no pe""ed to be a N*.0 billion business :;Fatamonitor$< 2116=. For the ne%t comin" three years$ this business se"ment is estimated to reach a market value of ten billion dollars. !he involvement of the company in this kind of product is a "reat help in the diversification of the products the company is offerin" the public. Furthermore$ Anheuser-Busch Companies has a stron" brand e'uity that can be used to benefit from the "ro in" demand for ener"y drinks. !he company then can 'uickly and easily capture a substantial share of the ener"y drink market.

!hreats (f there are threats that pose as a dan"er to the continuous "ro th of the company of Anheuser-Busch$ the first of these is the chan"in" consumer preferences for drinkin" non-alcoholic bevera"es and ener"y drinks and the increase for optin" to choose ines and spirits over beer. )ince the main bulk of revenue of Anheuser-Busch comes from its families of beer brands$ like the Bud eiser beer family$ this trend on the preference of drinkin" public is a serious threat to the financial stability and overall healthiness of Anheuser-Busch as a company.

First and foremost$ the "ro th bein" e%perienced by the beer market$ in particular in ?nited )tates$ is sho in" si"ns of slo in" do n. (t is forecasted that for the period of 2110-211A the "ro th rate for the demand for beer in the ?.). settin" is pe""ed only at rou"hly one percent :;Fatamonitor$< 2116=. !his estimate "ro th is lo er compared ith the market for ines and spirits hich is pe""ed to "ain "ro th in the market at *.*

*A

Anheuser-Busch Co. percent and 2.9 percent. Wine manufacturers are e%pected to achieve "ro th and to eat a considerable share of the beer market because of ines affordable lo er price and success in tar"etin" the youn" adults as its consumers. )ince youn" adult is one of the tar"et consumers of beer producers$ this is a heavy blo for the companies like Anheuser-Busch. !his trend on the consumer preferences can result in the end to lo er revenue for Anheuser-Busch Companies since hu"e portion of its market is located in the ?nited )tates.

)ince one of the tools as to hy Anheuser-Busch has able to lord over the beer market$ especially in the ?nited )tates$ is its efficient and effective use of advertisin" to its advanta"e$ the strin"ent advertisin" rules in many countries is makin" it difficult for Anheuser-Busch Companies to fully market its brands of beer. (n many countries$ alcohol producers have been continuously criticiEed for their bein" irresponsible in terms of portrayin" alcoholic drinks in every kind of advertisements. !his fact is truer ,urope than any other continents here Anheuser-Busch Companies has an operation. !here is an ever presence of advertisin" atchdo"s that tar"et every alcoholic advertisin". !he claim of these advertisin" atchdo"s is that the very nature of alcoholic advertisement fuel bin"e drinkin" especially to the youn" adults. (f this is the case$ then the strin"ent re"ulations on advertisement surely have a ne"ative effect on companies such as Anheuser-Busch Companies.

Another threat to the financial health of Anheuser-Busch Companies is too much "overnmental re"ulations. As of the present$ the Anheuser-Busch Company is under

-1

Anheuser-Busch Co. e%tensive re"ulations imposed by the federal$ state and local "overnments in the ?nited )tates. Follo in" the directives of these "overnments in terms of sellin" and marketin" alcohol can be e%pensive and thus may result the profit mar"ins of Anheuser-Busch.

Competiti.e %rofile +atrix 1C%+2 for Anheuser"#usch Competitive Drofile 8atri% Anheuser" #usch Co. Critical Success 4actors 7ei(ht >atin( Score ,mployee )atisfaction 7o Cost !echnolo"y Customer 7oyalty 8arket )hare Attractin" CustomersJ Advertisin" ,%pansion Droduct Quality !otal .41 .41 .0 .40 .41 .40 .0 .41 4.11 2 2 4 2.1 * .*1 -.51 * .*1 -.* * .*1 2.A1 .21 .21 .01 .91 .-1 .91 SA#+iller
>atin( Score

Carlsber(
>atin( Score

* * 2 2 2 2

.*1 .-1 4.01 .*1 .21 .*1 4.11

2 2 2 * * 2 -

.21 .*1 4.11 .*1 .*1 .*1 .21

Note: 1&2 The ratin( .alues are as follows:

Basin" on the above Competitive Drofile 8atri% :CD8=$ Anheuser-Busch Companies leads its other rival beer bre eries in the industry. !he companys employees satisfaction is relatively hi"h$ thou"h only comin" as a second placer to )AB8iller. #et$ the company "ets a hi"h marks on the aspects of customer loyalty and customer satisfaction. (t is therefore ithout doubt that ith these characteristics of the company en&oyin" ide mar"ins as compared ith its rival beer bre eries$ Anheuser-Busch

-4

Anheuser-Busch Co. Companies leads the competition and is lordin" over the local beer industry in ?nited )tates.

External 4actor E.aluation +atrix 1E4E2 ,%ternal Factor ,valuation 8atri% :,F,= =e! External 4actors 7ei(ht Opportunities (nformation technolo"y .10 Fere"ulation of price (nternational 8arket ,%posure Durchasin" po er increase Dositive 8edia ,%posure .10 .40 .41 .21

>atin( 4 * 2 -

7ei(hted Score .10 .40 2.11 .21 .51

Threats Competition Chan"es in Consumer Dreferences !a%ation (nflation Bad 8edia ,%posure Total

.40 .41 .10 .10 .41 &.;;

4 4 4 2

.9 .41 .10 .10 .21 3./

Accordin" to this ,%ternal ,valuation Factor 8atri% :,F,=$ Anheuser-Busch Companies is able to e%ploit to the hilt all the opportunities that e%ternal factors offer the company. (t is very obvious that the company is effective in havin" positive media e%posure since Anheuser-Busch is kno n as a company that heavily relies on the tools of advertisement in "ettin" its brand of beers receives hi"h reco"nition from the drinkin" consumers. (t is

-2

Anheuser-Busch Co. not at all une%pected that the company "ets a hi"h mark creatin" for itself a positive media ima"e.

7ike ise$ the company of Anheuser-Busch "ets a "ood "rade in terms of embracin" its opportunity to "ain an international presence for its array of beer products. A mark of 2 points is already hi"h for the company that is &ust startin" to e%ploit this avenue here it can "ain more revenue and profit. !he company on the other hand does not en&oy a "ood evaluation on its (nformation !echnolo"y :(!= utiliEation. .evertheless$ ith the stature of Anheuser-Busch as the leadin" bre ery in ?nited )tates$ the effect of this lo utiliEation of (nformation !echnolo"y has no dire effect on the companys operation. !he company in the first place has already put up an online site herein consumers ould have first hand information about the company. And this is already a "ood ay of utiliEin" (nformation !echnolo"y.

As for the threats that the company has$ the only risks that poses as a "reat dan"er for the company is the hi"hly stiff competition. (t is therefore not at all une%pected that amon" the list of threats a"ainst the company$ the cate"ory of competition "ets the hi"hest mark for the company. Chan"e in consumer preferences on the other hand "ets a relatively hi"h mark. !he reason for this is that there is a "ro in" trend in the domestic market in the ?nited )tates that demands more for non-alcoholic bevera"es than the alcoholic drinks.

-*

Anheuser-Busch Co. ,r(ani5ation6s Internal Stren(ths and 7ea8nesses Anheuser-Busch Companies has numerous internal stren"ths and eaknesses as ell. Belo is a list of its internal stren"ths and eaknesses. !he rest of this case analysis ill define and hi"hli"ht later on these internal stren"ths and eaknesses of the company3

Internal Stren(ths 7oyal employees Captures -5 percent of the ?) beer market )tron" beer brands Capacity for advertisement e%penditures .urture customer loyalty Droducts have hi"h reco"nition )tron" net ork of bre eries Customer satisfaction 7o -cost structure )erve fresh beer to customers Internal 7ea8nesses Ci"h dependence on its ?.). market Cas substantial lon"-term debt Door li'uidity position Fifficulty in raisin" money for e%pansion plans Ci"h dependence on holesalers Week bar"ainin" po er in the market Financial performance is hi"hly vulnerable

--

Anheuser-Busch Co. Internal 4actor E.aluation +atrix 1I4E2 (nternal Factor ,valuation 8atri% :(F,= =e! Internal 4actors Internal Strengths Captures -5 percent of the ?) beer market Capacity for advertisement e%penditures 7oyal ,mployees .urture customer loyalty )tron" beer brands Customer )atisfaction )tron" net ork of bre eries 7ei(ht .40 .41 .10 .10 .40 .10 .40 >atin( 2 * * 7ei(hted Score .91 .-1 .41 .40 .-0 .21 .91

Internal Weaknesses Ci"h dependence on its ?.). market Door li'uidity position Ci"h dependence on holesalers Total

.10 .40 .41 &.;;

4 2 4

.10 .*1 .41 /.?9

What this (nternal Factor ,valuation 8atri% :(F,= tells about the internal aspect of Anheuser-Busch is the fact that the company en&oys a "ood lead in the beer market in the ?nited )tates+ the home base of the company. (t is not a surprise then that this se"ment here the company cornered a siEeable chunk of the beer market in ?nited )tates "ets the hi"hest mark of .91 in this evaluation. !his internal factor of the company has a "reat and sta""erin" impact on the healthiness of the company$ financially- ise and business in the "eneral.

-0

Anheuser-Busch Co. 7ike ise$ the company also en&oys a hi"h mark on its financial capacity for advertisement e%penditures. (t must be noted that Anheuser-Busch Companies relies heavily on advertisement for its marketin" strate"y. (n the fiscal year alone of 2119$ the company spent N664.2 million and 960.* million for advertisin" and sales promotion respectively. (n the cate"ory of stron" beer brands$ the company also "ets a relatively hi"h mark of .-0. For the reason that the fla"ship products of Anheuser-Busch already e%ist in the beer market for more than a century already$ these products are easily reco"niEable and earn loyalty from the public consumers.

As for the eaknesses of the company$ the company really falls short on bein" too dependent on its domestic market. (t is like puttin" all e""s in one basket. !he company of Anheuser-Busch then is held hosta"e by the ?.). beer market. We can therefore$ say hatever happens to the market in ?.). is the same fate that the company ill e%perience or suffer.

-9

Anheuser-Busch Co. S7,T +atrix !he follo in" )W2! analysis belo captures the key stren"ths and eaknesses ithin the company$ and at the same time describes the opportunities and threats facin" the or"aniEation. Stren(ths 7eadin" in beer market position )tron" beer brands 7ea8nesses Ci"h dependency on domestic market Door li'uidity position

)tron" net orks of bre eries Ci"h dependence on holesalers ,pportunities Threats >ro in" Chinese and Gussian beer markets Chan"in" consumer alcoholic preferences (ncrease share in non-alcoholic bevera"e market >ro th in ener"y drinks )ince Anheuser-Busch Companies has been in e%istence for more than a century already$ hat comes ith this lon"evity in the beer industry is that the company no en&oys a hu"e or rather almost half of the domestic beer market share in ?nited )tates. (t follo s then that this is the main stren"th of Anheuser-Busch. !his multinational bre in" company is the leader of the pack of beer producers both locally and abroad. What "ives Anheuser-Busch Companies this leadership in the beer industry is for the simple reason that it has in its sleeves a line-up of stron" beer brands. 7ike ise$ it can be said that the company$ since it en&oys the leadership in the beer industry "lobally$ has a very stron" net ork of bre eries scattered strate"ically all over the orld. #et$ these stren"ths are bein" threatened by the companys hi"h dependency on domestic market. !he company basically is held hosta"e by the market of ?nited )tates. As ( have )tiff advertisin" rules in many countries >overnmental rules and la s

-6

Anheuser-Busch Co. mentioned above$ hatever happens to the market in the ?.). is the same fate that Anheuser-Busch Companies ill e%perience and suffer. Another eakness in its financial portfolio is the companys poor li'uidity position. (f the company ould try to plan in investin" for e%pansion$ it may face the difficulty of obtainin" the funds for such a pro&ect. Another eakness that is evident in the operation of the company is hi"h in its dependency in lettin" the holesalers do the sellin" for the company.

At the same time this eaknesses of the Anheuser-Busch Companies is bein" a""ravated by the e%ternal threats to the hole or"aniEation in "eneral. First$ there is a "ro in" trend in the market in the chan"e of preferences of the consumer public. !here is the threat of bein" beaten by the competition bein" launched by other types of alcoholic bevera"es like ines and spirit. (t is estimated that the "ro th market share of the ines and spirits is more than the "ro th that ill be e%perienced by the beer in the comin" several years to come. Another threat that poses a dan"er to the international operation of the company is the stiff re"ulations bein" implemented by forei"n countries re"ardin" alcoholic bevera"es. (t must be understood that the main marketin" tool bein" used by AnheuserBusch to sell its product to the public is by the heavy use of advertisement. (f this tool for marketin" ill be deprived for the use of Anheuser-Busch then there is really a threat for the company to suffer financial losses in the comin" future if this threat is not addressed promptly. !hen there is the presence of "overnmental re"ulations that is rei"nin" the freedom of the company to direct its business strate"ies in its full potential. .evertheless$ these eaknesses and threats posed a"ainst on the company of AnheuserBusch can be address ith "ood insi"ht as to here do the opportunity for "ro th lie for

-5

Anheuser-Busch Co. the company. )ince the company is already dead-serious about pushin" its brands of beer in the international market$ the opportunity of achievin" hu"e revenue and profit can be found in the "ro in" beer market of China and Gussia. !he company has already started e%ploitin" this opportunity and so far it is achievin" positive results in its operations in both countries.

8ore than hat this e%pansion in China and Gussia can offer$ there is a "ro th aitin" for the company in the se"ment of marketin" non-alcoholic bevera"es. !here is ri"ht no a trend to ards this se"ment of the market and the company of Anheuser can "rab this opportunity. !here is also a "ro in" market for ener"y drink that the company can venture in and earn for it a niche in this nascent business. Both of the previously mentioned opportunities for Anheuser-Busch are also means by hich the company can diversified its products.

:uantitati.e Strate(ic %lannin( +atrix

-A

Anheuser-Busch Co.

Bey Factors (nformation technolo"y )tron" beer brands Femo"raphic Chan"es Durchasin" po er increase Dositive 8edia ,%posure !otal should R 4.1 (nternational 8arket ,%posure 8arket )hare 7oyal ,mployees .e"ative 8edia ,%posure 7o Drice Customer )atisfaction Attractin" CustomersJ Advertisin" !otal should R 4.1 !otal

Anheuser-Busch (ncrease )ales A) !A) A) !A) Wei"ht 4 to 4 to 1.*0 4 .*0 1.40 1.9 1.40 2 1.* 1.20 1.4 4 * * 1.60 1.* 2

,%pansion A) !A) 4 to 4.1.9 1.9 4 1.2 *

4.1.9 1.9 4 1.*

1.40 1.9 1.41.2 1.2 1.4* 1.45 4

4 2 * * * -

1.40 2.1.25 1.9 1.9 1.*A 1.62

2 4 2 * -

.* 1.9 1.25 1.9 1.5 1.02 1.62

2 2 * -

.9 4.2 1.25 1.9 1.5 1.02 1.62

6.--

9.6-

5.92

Based on the above Quantitative )trate"ic Dlannin" 8atri% or :Q)D8= the strate"ic options that is available ri"ht no for Anheuser-Busch Companies are three3 remain as it is or retain the status 'uo+ increase the sale of its beer products+ and lastly but not the least is the enticin" opportunity to venture into an e%pansion pro"ram. As can be seen ith the variables at the left side corner of the table$ ( enumerated the factors that are proven to be success factors in the beer industry.

01

Anheuser-Busch Co. And if one ould look at the total marks each strate"y that is represented in this matri% the strate"y that "ot the lo est mark is the business strate"y to &ust increase the sales of the products of Anheuser-Busch. !his strate"y basically proves to be not an attractive option for the company. !he intention of this strate"y mi"ht be "ood but this lacks the ima"ination of a true visionary hich Anheuser-Busch company has been kno n for.

7ike ise$ the prospect of stayin" or retainin" the status 'uo$ usin" the old business strate"y for the company suffers a lo mark of 6.--. (f one ould think$ retainin" the status 'uo is the same as puttin" the company in a state of sta"nation. What is then the purpose of this matri% but to employ ne strate"ies by hich the company can use and apply in is day to day operation.

!he business option left for the company to follo and hich "ot the hi"hest mark of 5.92 is the strate"y for the company to venture into an e%pansion pro"ram. A couple of the aspects that "ot a stron" approval are the stron" e%posure in the international market and the utiliEation of (nformation !echnolo"y. !his t o are &ust a couple of the factors that ensures the success of a multinational company ith the mission to con'uer the international market.

<on( Term Strate(ies and ,b-ecti.es Based on the Quantitative )trate"ic Dlannin" 8atri% Anheuser-Busch Companies should focus on venturin" in an e%pansion pro"ram. Bey factors that ould allo this e%pansion

04

Anheuser-Busch Co. to be successful ould be the utiliEation of information technolo"y :like settin" up online site for the company=$ the companys e%istin" stron" beer brands$ and demo"raphic chan"es of the customers to name a fe . )ince the stren"ths of Anheuser-Busch is its stron" presence in the domestic beer market in ?nited )tates$ then it can be concluded that this same dominance in the beer market can be achieved in countries here the company chooses to e%pand. And basin" from the opportunities that are laid in front of the company$ the Chinese and Gussian beer market are enticin" markets herein hich the company can e%ploit to further its vision and mission for leadin" the beer industry+ but no $ in the international arena.

)ince one of the eaknesses of the company is its focused dependency on domestic market$ the option of venturin" into forei"n shores for its operation is an attractive choice for it. !he company then at the same time ill avoid the pitfalls of bein" held hosta"e by one market and simultaneously e%ploit the opportunity of e%pandin" its operation. Basin" from the data "athered and financial statistics discussed and "iven earlier in this paper$ the opportunities of continuous "ro th for the company is achievable if the company ould venture in the beer markets of China and Gussia.

(t is then the lon" term strate"y of the company to e%ploit every uncharted territory here the demand for beer products is hi"h or "ro in". !he first tar"et places then ill be China and Gussia and probably in the ne%t succeedin" years other countries as ell. !he ob&ective of this strate"y then is very obvious3 it is to maintain the lordship of AnheuserBusch in the beer industry in an international settin". (f the consolidated net earnin" of

02

Anheuser-Busch Co. the company reached -.0 percent in 2119$ it the ob&ective of this plan to increase that net "ro th rate by up to 9 percent in the first year of the implementation of the recommendation. =e! >atios and %ro-ected Consolidated 4inancial Statements Dro&ected Fiscal #ear Fiscal #ear 2119 2116 (ncrease N in 8illions N 46$A06.5 N 4A$1*0.2 N 4$166.-----------40$646.4 49$991.4 A-*.1 A55.6 4$1-5.1 0A.* 2$269.A 2$-4*.0 4*9.9 055.5 92-.1 *0.2 4$A90.2 2$15*.4 446.A 49$*66.2 46$*0A.5 *$962.*$5A2.6 4$94-.4$644.2 046.6 0-5.6 542.0 594.2 A52.9 221.* A9.5 *4.1 -5.6

Income Statement Information >ross sales .et sales / interse"ment .et sales / e%ternal Fepreciation and amortiEation (ncome before income ta%es ,'uity income$ net of ta% .et income #alance Sheet Information !otal assets ,'uity method investments >ood ill Forei"n-located fi%ed assets Capital e%penditures

Anheuser"#usch Strate(ies for the 4uture (n a letter to the shareholders ritten by Anheuser-Busch Companies Dresident and C,2 Au"ust A. Busch (K :;Bre in" 2ur Future$< 2116=$ Busch (K stated one by one the strate"ies that the company is "oin" to pursue in the future for the companys continuous "ro th. (n "eneral he enumerated the strate"ies as improvement in the internal operations

0*

Anheuser-Busch Co. of the company. Amon" the business plan that the company ill follo and implement in the comin" year is listed belo 3

4. (nternal development 2. Ac'uisitions and alliances ith other beer producers spread across the orld *. Fedication to focus on the companys core brands -. ,%pansion of the companys portfolio of hi"h-mar"in$ hi"h-"ro th products.

!he company is also in pursuit of "oin" beyond beer production in the alcohol cate"ory. For a start$ the company has already tested a ne product of distilled spirit named @ekyll L Cyde. !he company also introduces )D#B,)$ hich is a series of uni'ue flavor shots. !he aim of the company is to reach out to the contemporary adult consumers.

)imilar ith my recommendation$ the company also is lookin" for ard in venturin" to the "ro in" international market for beer products around the "lobe. !he company in this aspect e%perienced an annual "ro th rate of 21 percent since 4AAA$ of hich the revenue comin" from this se"ment represented the *2 percent of net income of the company for the fiscal year 2119. At the same time the company ants to enhance its packa"in" and entertainment operations that are "ivin" the company net profits year after year. Ge"ardin" its financial stren"th$ the company tar"ets to increase it cash flo hich it has

able to do in the fiscal year of 2119+ increasin" it by 24 percent or an added N*11 million to hat it had in 2110. Implementation and Expected >esult

0-

Anheuser-Busch Co.

!here are only several simple steps in the implementation of this recommendation to the board of directors of Anheuser-Busch Companies. !he first simple step is for the top mana"ement to create a team of mana"ers ith proven back"round in international business transactions$ particularly those ho have had involvement in business activities in China and Gussia. )ince these tar"et countries have different cultures compared ith the home based of the company that is ?nited )tates$ it is important that those ho ill represent the company of Anheuser-Busch have a "ood "rasp as to the business culture of the mentioned countries.

!his team of mana"ers and e%ecutives ill then have to contact$ deal and "et a favorable a"reement ith other beer producers in the said countries. )ince the Anheuser-Busch Companies has already be"un some small steps in an attempt to penetrate the beer market of these countries$ there are still much more that a aits the company if it ill pursue ith a""ressive business manner the beer market of these countries.

And to repeat the fact that a relative hu"e share has been invested in Chinas ma&or beer producer !sin"tao by Anheuser-Busch$ this team of mana"ers ill pursue to increase the share of the company in the said bre ery and at the same time scout for prospective bre eries in China that have the potential to "ro as a ma&or player in the Chinese beer market. !hese prospective bre eries then ill be the tar"et for ac'uisition by the company to stren"then and reinforce the companys involvement in Chinese beer market and industry.

00

Anheuser-Busch Co. 7ike ise the same business strate"y ill be applied in the country of Gussia. Gussia represents one of the hu"e beer market in the orld and ith the same business strate"y as applied on China ill be applied to Gussia$ the prospect of "ainin" a positive result for the company of Anheuser-Busch is "reat.

(t is e%pected by this recommendation that in a short time spannin" probably si% months$ these detailed top mana"ers and e%ecutives assi"ned in China and Gussia ill be able to close several deals concernin" investment in stock shares of leadin" beer producers there. At the same time a positive result is e%pected that these teams of top mana"ers and e%ecutives have successfully scouted for prospective bre eries hich the company of Anheuser-Busch ill ac'uire.

!he overall e%pected result of this recommendation then is to "ain a considerable and palpable presence in the beer market and industry in these countries. And the time frame for that is not later than si% months. What this effort ill "ive the company of AnheuserBusch ill be additional revenue that can still "ro e%ponentially in the comin" years. As the trend in the drinkin" habit of public consumers in the domestic beer market in ?nited )tates$ here the bulk of income of the company comes from$ this e%pansion pro"ram ill "ive the company a breathin" space to pursue its "oal of continually increasin" its production of beer annually. (t is also e%pected that this international se"ment of the operation of Anheuser-Busch ill add to the consolidated revenue and net profit of the company by at least 4.0 percent at the ma%imum. (t is thus e%pected that the "ro th rate of the company ill shoot up to 9 percent in the succeedin" years.

09

Anheuser-Busch Co.

Annual ,b-ecti.es and %olicies !he use of clear and definite annual ob&ectives "ives the company a partial representation of the pro"ress of its lon"-term ob&ectives$ vision and mission. (t is a tool by hich every top level mana"ers of the company are able to discern the achievability of a particular pro"ram set to result in the comin" years a favorable result for the company in terms of its financial healthiness$ competitiveness in the industry it is involved in. 8uch more annual ob&ectives are small steps "eared to ard a more definite status of the company in the industry. For the case of Anheuser-Busch$ the lon"-term ob&ective in "eneral is to remain the leader of the pack of beer producers locally and abroad. (n order to achieve this "oal$ the table belo represents the dissected tasks of each ma&or se"ment of the or"aniEation on ho to achieve this "eneral vision and mission of set by the company for itself. Another point that must be cleared and understood is that annual ob&ectives are basically tools by hich the top mana"ers of the or"aniEation can evaluate the performance of the company accordin" to a previously set strate"y it has made. We can say thus that annual ob&ectives are ma&or instruments for monitorin" the pro"ress in attainin" lon"-term ob&ectives :Favid$ 2110=.

Anheuser" #usch Companies <on("term ,b-ecti.e

06

Anheuser-Busch Co. ,%pand its beer operation "lobally and maintain its domestic market share. Fiversify in different drinkin" products @omestic +ar8et Annual ,b-ecti.e 8aintain the market share of brands of beer. Fiversify in ener"y and nonalcoholic drinks International +ar8et Annual ,b-ecti.e (ncrease forei"n revenues by 0S this year. Denetrate Chinese and Gussian beer market

>A@ Fevelop the online site of the company to "ive more information about the companys products.

%roduction (ncrease production of beer barrels by 41 percent

+ar8etin( ,n"a"e in partnership ith media to achieve an a""ressive advertisin" campai"n Create and implement marketin" scheme for forei"n markets.

4inance (ncrease the consolidated net "ro th of the company from -.0 S to 9S

%ersonnel !rain employee to "ain more efficiency in their tasks.

(ncrease Consolidated .et )ales by NA-* million.

05

Anheuser-Busch Co.

Fevelop shre d advertisin" campai"n that follo s a countrys rules and re"ulations. %rocedures for Strate(! >e.iew and E.aluation Drocedural strate"y for revie of this recommendation$ first and foremost$ ill be handled by the Board of Firectors themselves since this pro&ect is of "reat importance for the continuous "ro and profitability of the company. !he e%pansion in operational activities of the company in forei"n shores cannot be "iven an iota of doubt that it ill soon be the source of more revenue and profits for the company in the comin" future.

!he Board of Firectors may meet concernin" this ob&ective and strate"y pro&ect every three months to evaluate and study the pro"ress of the pro"ram. !he meetin" may last for t o to three hours since short time meetin" "ives more than hat lon"$ tedious meetin" can "ive to the company :Favid$ 2110=. !he a"enda durin" this short period of time of the meetin" ill be to assess the cultural barrier in dealin" ith forei"n counterparts in the pursuit of the company to e%pand internationally.

Gevie and evaluation on the financial as ell as the operational aspects ill be studied durin" this time. Furin" this short period of time the internal and e%ternal evaluation factors of the company ill also be reassess to see hether the company is able to address the eaknesses of the company in the industry it is involved in. !his evaluation

0A

Anheuser-Busch Co. and assessment done on by Board of Firectors ill help the company take a peek as to hat areas in the industry$ especially in the international market$ it has shortcomin"s. Foin" this simple procedural revie of the pro&ect$ the Board of Firectors can have a better picture as to the hole pro"ress of the strate"y bein" undertaken. !his simple procedural revie then can be used as the basis for evaluatin" hatever there are benefits or risks that the pro&ect "ives or poses to the company and to the hole or"aniEation in "eneral.

>ecommendation for Anheuser"#usch Compan! !he vision that had been set by the late founder of Anheuser-Busch Companies Adolphus Busch has already become a reality after settin" the business strate"y of the company to cater to the buds of beer drinkers any here in the orld. After a century of operation and presence in the domestic beer market of ?nited )tates$ the array of beer brands produced by Anheuser-Busch Companies have already captured -5 percent of the beer market in the country. !he fla"ship beer product of the company$ the Bud eiser beer family$ is already an institution and a reflection of the ay of the American ay of life. .o that the company is a multi-billion business focusin" on the beer industry$ the mammoth company is still on its toes$ ever alert to the challen"es that it has to face in order to stay as the leadin" player in the industry it has chosen to be involved in.

#et$ upon cursory look and application of simple business tools to "au"e the capacity of the company to sustain its "ro th in the beer industry there are still some eaknesses and threats that pose to be a risk for the continuance of the companys operation. Basin" on

91

Anheuser-Busch Co. simple )W2! matri%$ the stren"th of the Anheuser-Busch Companies proves to be its o n eakness after all. >iven that the beer products of Anheuser-Busch Companies has able to corner the beer market of ?nited )tates$ takin" half of the overall market share$ this fact still does not ensure the continuous smooth operation of the "iant company. (ts over-dependence on the domestic market for its main source of revenue poses a risk to the financial viability of the company. As ( have mentioned earlier$ hatever happens to the market of ?nited )tates is the same fate that Anheuser-Busch Companies ill e%perience and suffer in the end.

.evertheless$ there are still several opportunities for the company to "ro as a ma&or player in the providin" products to public consumers. 2ne of these opportunities is the "ro th in diversification in the portfolio of drinkin" products of the company. (n this modern times$ there is a trend in the chan"in" preference of the consumer public to prefer non-alcoholic bevera"es and for ener"y drinks. !he company of Anheuser-Busch has already taken the first step by testin" and introducin" in the market several ener"y drinks like 451 and 451 )ports.

#et$ the most enticin" and attractive opportunity for Anheuser-Busch is the "ro in" demand for beer in the international market. !his ( ould say the company has already made an initiative to e%ploit and penetrate to "ain additional revenue and profit. (t has invested in shares in several forei"n bre ed beers around the orld and as of this date$ the companys total bul"in" net profit is relatively helped by the revenue it "ets from its international ventures. Gi"ht no $ there are t o attractive countries by hich Anheuser-

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Anheuser-Busch Co. Busch can choose to put up an operation or en"a"e into alliance ith those local beer producers there to enhance its o n brand of beers presence in those countries. !he company is able to prove this strate"y a deft business move hen it ac'uired a considerable share in the !sin"tao$ the most popular bre ery in China. At the same time$ the company also has activities for business alliances ith those located in Gussia.

8y recommendation is that the company should pursue these t o beer markets to ensure its financial viability in case somethin" ron" happened in its market share in ?nited )tates. Both the country of China and Gussia are hu"e beer markets in the orld and this fact alone should stir the company of Anheuser-Busch to put an e%tra effort in penetratin" these markets. !he financial returns in these countries is almost sure$ considerin" that these countries beer market is still "ro in". Anheuser-Busch Companies has already con'uered the domestic beer market of the ?nited )tates. (t is then the ri"ht time to "o beyond the borders of America and con'uer some uncharted territories. Anheuser-Busch Companies has no choice but to e%pand its operation and sustain its continuous "ro th. And the first step to be done is penetratin" these beer markets of China and Gussia. !hen the fla"ship beer product of Anheuser-Busch hich is Bud eiser ill no lon"er be &ust an American beer$ but the universal beer for everybody around the orld.

>eferences: ;Adolphus Busch Bio"raphy$< :n.d.=. Encyclopedia of World Biography on Adolphus Busch. Getrieved .ovember A$ 2116 from http3JJ .bookra"s.comJbio"raphyJadolphus-buschJ

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Anheuser-Busch Co. ;American 2 ned$< :n.d.=. American 2 ned. Getrieved .ovember 4-$ 2116 from http3JJ .ab holesaler.comJbealdistributin"JCustomJAmerican2 ned

Black$ B. :n.d.=. Bud eiser. )t. @ames ,ncyclopedia of Dop Culture. Getrieved .ovember 4-$ 2116 http3JJfindarticles.comJpJarticlesJmiT"4epcJisTtovJaiT2-4A41145* ;Bre in" 2ur Future$<: 2119=. Anheuser-Busch Companies 2119 Annual Geport. Getrieved .ovember 4A$ 2116 from http3JJ busch.comJpdfJ2119AGTAnheuserTBusch.pdf ;Bud eiser$< :n.d.=. 1960s: Commerce. Getrieved .ovember A$ 2116 from http3JJ 1-.html Fatamonitor. :8ay 2116=. Anheuser-Busch Co. Company Profile. Favid$ F. G. :2110=. !ra!egic "anagemen! Concep!s and Cases 10!h ed. .e @ersey. Dearson Dractice Call >oldber"$ @. :2111=. Buds for 7ife3 A 8an and Cis Beer / 7e"acy of Anheuser-Busch. #a!ional $e%ie&. Getrieved .ovember 4-$ 2116 from http3JJfindarticles.comJpJarticlesJmiTm4252JisT45T02JaiT99419069 ;7etter to )hareholder$< :2110=. Anheuser-Busch Companies 2110 Annual Geport. Getrieved .ovember 4A$ 2116 from http3JJ .anheuser.bookra"s.comJresearchJ4A91s-commerce-bbbb-1-Jbud eiser-bbbb.anheuser-

busch.comJTpdfJ2110AGT7etter!o)hareholders.pdf. ;2ur Cistory$< :n.d.=. Welcome !o Anheuser-Busch Companies. Getrieved .ovember 4-$ 2116 from http3JJ .anheuser-busch.comJourTcompanyJhistory.html

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