Heineken Case Paper

Heineken: ?

Ideakay Consulting Group:

Tyler Tilton, Cayla Jones, Andy Eddington, Katie Devos and Elly Rusia

Global Business Strategy

October 3, 2016

Dr. Paula Englis

Company Information

In 1873, Heineken was founded in the Netherlands. In the following decades the company was able to expand to become the leading imported beer in the United States. It wasn’t until the 1990s that Heineken lost their leading position to Corona, a Mexican made beer. Heineken’s family foundation was the basis of their culture and was maintained through the three generations of family members who helped make the company what it is today. In 2002, Freddy Heineken passed the control on to his daughter Charlene de Carvalho who appointed Freddy Ruys, the first non-family member to lead the company. Under Ruys, Heineken began a series of acquisitions that led them to become the third largest brewer in Russia. They rose to the top of seven countries across Eastern European industry when they acquired BBAG in 2003. Despite these acquisitions, in 2005 Ruys resigned due to a lack of progress and Jean- Francois van Boxmeer became the first non-Dutch CEO. Boxmeer had a long history with the company and was able to bring new ideas to the company on how to expand globally and continue the foundational family culture. Heineken strengthened their position in Western Europe by acquiring Scottish & Newcastle in 2008. In 2010 with their acquisition of FEMSA, they expanded into Latin America. The following year a deal with the Ethiopian government allowed Heineken to enter Africa with two breweries. They continued to build upon this with their ground breaking of a new brewery in 2015. In 2013 Heineken bought Asian Pacific Breweries giving them 30 new breweries. All of these acquisitions has helped Heineken to fulfill their mission of providing the world with a quality beer above all others rooted within their family values.

SWOT Analysis

A SWOT Analysis looks at the important strengths, weaknesses, opportunities, and threats of a business. This insight can help guide decision making when problems arise. Heineken SWOT allows us to evaluate their internal and external elements and view the company as a whole.

Strengths

From the beginning, Heineken has been a pioneer of international expansion that has led to worldwide recognition of their brand. As they strive to be a global player, the firm has leveraged acquisitions to enter into local markets and have expanded their reach by acquiring Asian Pacific Breweries, FEMSA Cervesa and Al Ahram Beverages Co. to increase their presence in the Asia-Pacific, Latin American and Muslim countries respectively. Simultaneously, Heineken maintained its position as the dominant player in Western and Eastern Europe by acquiring BBAG in Austria and midsized breweries in Russia.