Developing Bridges across the Globe:
Business Strategies of Global European Firms
The changing business environment, the changes in communication technology, and political changes all encourage and facilitate the emergence of global business, transnational companies and the emergence of common markets around the globe. With the emergence of a global economy, the export of business culture and business interests has been dramatically growing. Most reputable companies like McDonalds, Starbucks, Miguel Torres Family Winery and Duvel Moortgat SA are no longer run in a ‘national’ way like they have been in the past. In fact, while touring Duvel’s manufacturing plant in Puurs, Belgium, I learned during a conversation I had with Christian Cols, Business Development Manager, that the Belgian brewer's growth has far outpaced competitors in Western Europe's sluggish beer markets. Sales have doubled in the past five years. It is now Belgium's second biggest brewer in revenue terms, after global leader Anheuser-Busch InBev SA. In the 1920s, Duvel developed its signature beer, initially named Victory Ale in commemoration of World War I. With an attractive brand and distinctive taste, Duvel can get away with charging higher prices. Today the silky ale accounts for roughly 55% of the company's revenues. In 2010, Duvel increased net profits to €18.9 million ($27.5 million) from €14.9 million. Its share price has climbed to around €74, from €16 in 2003. Revenue, €137.3 million last year, is expected to grow to €172.1 million in 2012, according to analysts. While Anheuser reported that their total volumes fell 2.5% in Western Europe and 0.9% in Central and Eastern Europe for 2011, Duvel, expanded sales in Belgium by 24%, in the Netherlands by 17% and in France by 10%.
In order to expand into new markets, gain global clients, challenge today’s global financial crisis and become sustainable, ‘globalization’ has become the key factor in business strategies for European...
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