Applied Strategic Management. Heineken

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Acknowledgement ……………………………………………………………………………..3 Outline ……………………………………………………………………………………........4 Executive Summary ………………………………………………………………………........6 Industry Life Cycle …………………………………………………………………………….7 Key Success Factors (KSF) ………………………………………………………………........8 Porter’s Five Forces ………………………………………………………………………........9 SWOT Analysis

Internal Factor Analysis Summary (IFAS) ……………………………………………12 External Factor Analysis Summary (EFAS) …………………………………………..13 Strategic Factor Analysis Summary (SFAS) …………………………………………………..15 TOWS Matrix ………………………………………………………………………………….17 Assessment of Current Company Performance …………………………………………… .....19 Review of Option for Future Direction …………… ………………………………………......21 Implementation of New Strategies ………………………………………………………..........22 Usefulness of Strategic Management Models ………………………………………………….23 List of Reference ……………………………………………………………………………….25
Acknowledgement
First and foremost, I would like to acknowledge and extend my heartfelt gratitude to our supervisor Mr. G.V. Nathan who have made the fully completion of this assignment of applied strategic management and giving us vital encouragement and support. He guided us through every step very clearly by providing templates to us in order to ensure our works are high quality. Furthermore, he let us some free spaces to add on our own creativeness in the project. This may lead to our works to be more attractive. Last but not least, I really appreciated to Mr. G.V. Nathan who always provides the constant reminders and much needed motivation during these times.

UNIVERSITY OF BRADFORD / MDIS
APPLIED STRATEGIC MANAGEMENT
PROJECT OUTLINE
Name: Low Hong Yang
Student Number: UB 09030534
Batch No: BAFD2 0911A
Selected Company: Heineken N.V. Ltd

Brief of company
Heineken has wide international presence through a global network of distributors and breweries. Heineken owns and manages one of the world’s leading portfolios of beer brands and is one of the world’s leading brewers in terms of sales volume and profitability. Heineken operates more than 125 breweries in 70-plus countries. Our principal international brands are Heineken, Amstel and Kingfisher, but the group brews and sells more than 200 international premium, regional, local and specialty beers and ciders, including Murphy's Irish Red (Europe), Cordoba (Argentina), and Tiger (Asia). Reasons for selecting Heineken

The reason for me to select Heineken is that they are doing very well in their brand strategy, high quality products and sustain competitive advantages in emerging market. In the latest news, Heineken raised their profits despite of falling beers sales and this makes me getting more interest to know how they succeed in the brewing industry. Main strategic issues facing the company

Excise duties on beers had been risen 3 times in Russia since 1.01.2010 •Europe and USA market remain challenging and sales declining due to down-trading •Weak economy will continue to put pressure on beer consumption Company’s contribution to the National Economy

In India, the real GDP US$1.2 trillion and annual growth rate 7.6% in 2009. In 2010, Heineken has partnership with India’s leading brewer and this contributed a number of employments and may enhance the GDP growth due to 70% of population below 30 years of age.

Company’s contribution to the Regional Economy
According to Heineken annual report 2009, it stated:
Provides 55,301 employments in worldwide
All regions contributed to 14% organic EBIT (beia) growth •Heineken is Western Europe’s leading brewer and the region is the biggest contributor to Group profitability and the total revenue is €8,432m. •In the developing regions, Central Eastern Europe, Latin America, Asia and Africa, beer consumption...
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