Nico de With
Klaas Jan Streekstra
13 March 2013
H. van der Vaart
This report contains the overall business analyze of Heineken. First we start with an explanation of Heineken. We describe the company with the 7S model of McKinsey. This is a model about the structure, the systems, the style, the staff, the skills, the strategy and the shared values of Heineken. So it contains Heineken their strategy three important words: improve, empower and impact. The second chapter contains the analyses of the beer-industry. This analyze is described through the five forces of Porter. For example the bargaining power of buyers, consumers have many choices of different beer brands in the supermarket. If Heineken increase the prices they can choose another beer brand.
In the third chapter we have compared the financial performance of Heineken with the biggest competitors in the world, Budweiser and Carlsberg. Through the financial ratios as long term solvency, liquidity, return on investment, efficiency, number of employees and the DuPont chart. If you look at the number of employees you can see that Budweiser is the biggest in the world, second is Heineken and third is Carlsberg.
The fourth chapter consists of the risk management of Heineken. We explain the sales risks, operational risks, interest risks and the total risks.
The fifth chapter contains the growth management what is explained through the subjects market penetration, product diversification, market development and product development. Heineken is a company who has a big product diversification, they have taken over a lot of other drink companies. Also market development is very important for Heineken. They try to increase the sales in the upcoming markets like Asia and Africa.
In the sixth chapter we have made a forecast of 2013 and 2014. Through the ratios of the previous years we have forecasted a turnover of 2013 and 2014. Also we have forecasted the balance sheet for the coming years. If we look to the analyses of the financial performance we think Heineken will grow in 2013 and 2014.
The last chapter contains the SWOT-analyze and the confrontation matrix. Important strengths of Heineken are a diverse brand portfolio, an extensive distribution network and brand recognition. Weaknesses are extensive company size creating, misalignment of brand image and management control problems. Big opportunities for Heineken are cultural shift in emerging markets, health conscious society, rising disposable income and mergers, acquisitions and partnerships. The threats are demographics, stringent alcohol advertising regulations and increasing drunk-driving laws and competition from local brewers in emerging economies.
List of figures
Table 1: Distribution of consolidated beer volume
Table 2: The debt ratio of Heineken en his competitors
Table 3: The solvency ratio of Heineken and its competitors
Table 4: The Financial leverage of Heineken and its competitors Table 5: The interest coverage of Heineken and its competitors Table 6: The Current Ratio of Heineken and its competitors
Table 7: The Quick Ratio of Heineken and its competitors
Table 8: The Net Working Capital of Heineken and its competitors Table 9: The Cash Conversion Cycle of Heineken and its competitors Table 10: The Gross Profit Margin of Heineken and its competitors Table 11: Net Operating Margin of Heineken and its competitors Table 12: Operating return on assets of Heineken and its competitors Table 13: Return on equity of Heineken and its competitors
Table 14: Average stockturn of Heineken and its competitors
Table 15: Average accounts receivable of Heineken and its competitors Table 16: Average accounts payable of Heineken and its competitors Table 17: Total asset turnover of Heineken and its competitors Table 18: Fixed asset turnover...
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