The Application of Game Theory in Business Strategy

LSM545: The Application of Game Theory to Business Strategy
Project Notes

Course LSM545
LSM545_20121121_01

Student: Joeri Vertongen Instructor: Arun Sharma

Content
1. Value Creation 2. Recommendation 2.1. Rival strength 2.2. Dictated by the Game 2.3. Relevancy of Rival’s Strength 2.4. Change the Game 3. References 3 4 4 5 5 6 7

2

1. Value Creation
Anheuser Busch Inbev S.A. is the leading global brewer, they take great pride and care in brewing beers, and that’s also how they want them to be enjoyed with great care. This is why they committed to responsible drinking which is at their heart in line with their strategy of to be the Best Beer Company in a Better World.(1) Through commitment to be the Best Beer Company in a Better World, Anheuser-Busch InBev S.A. is the beer industry leader in social responsibility initiatives, ranking as the No. 1 brewer in social responsibility in FORTUNE Magazine’s “World’s Most Admired” beverage companies’ list. The Better World efforts focus on three pillars: promoting responsible drinking; protecting the environment; and giving back to the communities in which we live and work. Around the world, Anheuser-Busch InBev S.A. has developed and implemented social responsibility programs and campaigns in partnership with parents, government officials, community organizations, retailers and others. From promoting responsible drinking messages on some of the world’s most watched television programming, to turning coconut husks into renewable energy to fuel breweries, to volunteering in the community, Anheuser-Busch InBev S.A. and its employees are committed to making a difference.(2) To focus on this effort Anheuser Busch Inbev S.A. has set 6 global responsible drinking goals which will be independently audited. The global responsible drinking targets are reaching 100 million adults with programs to help parents help talk to their children about underage drinking, providing ID-checking materials and other education to

References: Johnson J, The Application of Game Theory to Business Strategy, Course, Cornell University Johnson School of Business Management, Ithaca, New York, 2012 Johnson J, Competitive Advantage and Profitability, Course, Cornell University Johnson School of Business Management, Ithaca, New York, 2012 N.A., The Nine-Step Pouring Ritual, website, Anheuser-Busch InBev S.A., Stella Artois, Leuven, Belgium, 2 December 2012, http://www.stellaartois.com/?p=506 N.A., Stella Artois, website, Wikipedia, Wikimedia Foundation Inc, San Francisco, CA, 30 November 2012, http://en.wikipedia.org/wiki/Stella_Artois N.A., Social Responsibility: Better World Programs, website, Anheuser Busch Inbev S.A., Brussels, Belgium, 2 December 2012, http://www.ab-inbev.com/go/social_responsibility/better_world_programs N.A., 2011 Global Citizen Report: Connecting for a Better World, Report Social Responsibility, Anheuser Busch Inbev S.A., Brussels, Belgium, 2012, http://www.ab-inbev.com/pdf/ABI_CSR11_Global.pdf N.A., Responsible Drinking, Report Social Responsibility, Anheuser Busch Inbev S.A., Brussels, Belgium, 2012, http://www.ab-inbev.com/pdf/ABI_CSR11_Responsible_Drinking.pdf Clark C., Responsible Drinking: AB InBev Sets the Record Straight on a Misnomer, blog, CSRwire Talkback, Springfield, MA, 21 September 2012, http://www.csrwire.com/blog/posts/548responsible-drinking-ab-inbev-sets-the-record-straight-on-a-misnomer Amssons M., Caspersen C., Couk K., Gerdes T., Staley G., Vallis L., AB InBev Announces Significant One-Year Progress toward Global Responsible Drinking Goals on Third Annual Global Be(er) Responsible Day, Press Release, Anheuser Busch Inbev S.A., Brussels, Belgium, 20 September 2012, http://www.ab-inbev.com/press_releases/hugin_pdf%5C529098.pdf Jackson M., Great Beers of Belgium, Brewers Publications, Brewers Association, Boulder, CO, 2008 Jackson M., Lucas S., Great Beer Guide, Dorling Kindersley, Strand, London, United Kingdom, 2000 N.A., Global Beer Production by Country in 2011, Annual Report, Volume 36, Kirin Institute of Food and Lifestyle, Kirin Holdings Ltd, Japan 8 August 2012, http://www.kirinholdings.co.jp/english/news/2012/0808_01.html 7 Amssons M.(Editor), Anheuser Busch Inbev Annual Report 2011, Annual Report, Anheuser Busch Inbev S.A., Kirkwood Printing, Leuven, Belgium, 2012, http://www.ab-inbev.com/pdf/AB_InBev_AR11_EN.pdf N.A., Traffic Safety Facts 2010, Annual Analyst Report, National Highway Traffic Safety Administration, U.S. Department of Transportation, Washington, April 2012, http://www-nrd.nhtsa.dot.gov/Pubs/811606.pdf Cook, C.D., Belgium: Diverse Beer Styles, Delectable Brews, article, All About Beer magazine, Chautauqua, January 2009, Volume 29, Number 6 http://allaboutbeer.com/learn-beer/styles/2009/01/belgium-diverse-beer-styles-delectablebrews/ Sekar S., The Global Brewery Industry, presentation on localization versus globalisation, analyst report, Staffordshire University, Staffordshire, united Kingdom, 2009 8