Professional Documents
Culture Documents
Overview
History Who we are today Vision and Mission External Audit EFE CPM Internal Audit IFE Strategic analysis SWOT Matrix Space Matrix Grand Strategy Matrix BCG IE Matrix Strategic Summary Possible Strategies QSPM Decisions Implementation
History
1852- George Schneider founded Bavarian Brewery in St.Louis Missouri 1857- Adolphus Busch arrived in St. Louis 1860- Eberhard Anheuser acquired Bavarian Brewery
History
1870s Production: 18,000 Barrels Anheuser Busch became 1st U.S. Brewery to adopt the use of pasteurization 40 Refrigerated railcars 1880s Acquired rights to bottle and sell Budweiser(01-24-1880) Production: 739,951 Barrels
History
1881 Adolphus Busch Glass Manufacturing Company began Production
History
1901 1st time to break the million barrel mark within a year 1,006,494 1920 Jan 16th National Prohibition took affect Began production of other goods ex: ginger ale, root beer, ice cream, and malt syrup 1933 Prohibition repealed
History
1940- surpassed the three million barrel mark 1953- Clydesdales first appeared in the tournament of Roses Parade 1961- Michelob was for the first time sold in bottles
1974
History
1980
Anheuser Busch signed a licensing agreement with Labette Brewing Company of Canada to brew and sell Budweiser in Canada
History
1991 Federal excise tax doubled on beer 2000 20th Anniversary of companies listing on NYSE Total global volume 121.3 million barrels 2001 Bud light became the #1 selling beer in the U.S. 2002 Anheuser Busch 150th Anniversary
Competitors
The Miller Brewing Company 2nd largest brewery in the US is the With sales in over 80 countries Offers over 50 brands of beer The Adolph Coors Brewing Company 3rd largest brewery in the country Among Coors product Coors Light is the 4th largest selling beer in the nation
Vision Statement
through all of our products, services and relationships, we will add to lifes enjoyment
External Audit
Opportunities Governmental restrictions are much lower in the countries that AnheuserBusch is expanding to There has been a noticeable shift in consumer preferences toward beer in traditional wine-drinking countries. An expected increase in the domestic number of beer drinkers over 21 should contribute an additional 1% annual gain in beer sales for the next few years Demand for American brews in Asia, Latin America, and Europe is growing Quickly growing populations in developing international markets Americans have experienced annual increases in disposable income since 2000. Threats The domestic beer marketplace is highly regulated There have been sharp increases in federal excise taxes on alcoholic beverages International breweries and microbreweries expanding into the USA Domestic population only increases at an annual rate of about one percent. (limited growth potential for domestic beer and entertainment operations) Changes in peoples disposable income may have unfavorable effects
EFE Matrix
Key External Factors Weight Rating Weighte d Score 1.00 0.15 0.15
Opportunities
1. Governmental restrictions on beer exist in countries into which A-B is expanding 2. Noticeable shift in consumer preferences towards beer 3. An expected increase in the domestic number of beer drinkers over 21 should contribute additional 1% annual gain in beer sales for the next 3 years 0.25 0.05 0.075 4 3 2
4. Demand for American brews in Asia, Latin America, and Europe is increasing
5. Quickly growing populations in developing international markets 6. Americans have experienced annual increases in disposable income since 2000
0.1
0.1 0.025
4
3 3
0.4
0.3 0.075
EFE Matrix
Threats Weight Rating Weighted Score
0.25
2
2 2 2
0.5
0.05 0.15 0.05
2. There have been sharp increases in federal 0.025 excise taxes on alcoholic beverages 3. There have been sharp increases in federal 0.075 excise taxes on alcoholic beverages 4. Domestic population only increases at an annual rate of about one percent. (limited growth potential for domestic beer and entertainment operations) 5. Changes in peoples disposable income may have unfavorable effects Total 0.025
0.025 1.00
0.075 2.9
IFE Matrix
SWOT Matrix
S-O Strategies
1. Reinvest in core business to improve efficiency and add capacity as needed
2. Increase equity investment in Tsingtao of China and CCU of Chile
W-O Strategies
1. Increase preventative education expenses to maintain good public image
S-T Strategies
1. Adjust pricing strategy to offset excise taxes
W-T Strategies
1. Adjust policies and procedures regarding derivatives and hedging in the event of potentially negative foreign currency exchange
Space Matrix
Conservative Aggressive
Defensive
Competitive
BCG Matrix
IE Matrix
2. Horizontal diversification
3. Conglomerate diversification 4. Joint venture
Quadrant IV
Strategic Summary
Alternative Strategies IE Space Grand Total
Forward Integration
Backward Integration Horizontal Integration Market Penetration
X
X X X
X
X X X
2
2 2 2
Market Development
Product Development Concentric Diversification Conglomerate Diversification Horizontal Diversification Joint Venture
X
X
X
X X X X X X X X
2
2 2 2 2 1
Possible Strategies
Increase presence in Asian, eastern European, and Latin American markets Unload less profitable theme parks and possibly expand the more profitable parks Continue to dominate market share with extensive advertising Increase education on responsible consumption to maintain good public image
QSPM
QSPM
Decisions
Primary
Increase presence and awareness in Asian, eastern European, and Latin American markets
Possibilities
Continue to dominate market share with extensive advertising Increase education on responsible consumption to maintain good public image Unload less profitable theme parks and possibly expand the more profitable parks
Implementation
Invest $182 million over three years in Tsingtao Brewery Company, Ltd. Of China. This investment will increase Anheuser-Buschs equity interest to 27% of Tsingtao. Invest if needed $165 million in Compania Cervecerias Unidas S.A. (CCU), the largest brewery in Chile. This investment would increase Anheuser-Buschs equity interest in CCU from 20% to 30%, and would make Anheuser-Busch products more available in the Latin American markets.