Asahi Breweries' Performance Measurement

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Asahi Breweries’ market performance in the past three years had amazed the Japanese business community. Being a marginal player before 1986, the company had recorded an increase of 71.9% beer sales volume in 1988 while the whole industry grew only 7.6%. At the same period, the company’s market share grew from 10.5% to 20.6%. The company’s current flagship product is its Super Dry beer, a revolutionary beer with an appealing and a distinct sharp taste. Accordingly, Asahi’s competitors have also moved into the dry beer market and attempted to capitalize the surprising profitable opportunity. Thus, Asahi has encountered many challenges resulted from the high growth rate of sales and emerging competition. Asahi’s capital infrastructures and…show more content…
Because of the support from Sumitomo Bank, Asahi’s financial power has been strong. Finance Director Hiroshi Okada reaffirmed the public that Asahi has a very low cash flow risk because its stocks are doing very well in the market. The company projects a 7% sales growth for the next few years, but even if the sales does not materialize, Asahi will not run into bankruptcy because it has lots of undervalued assets, which can be sold to generate a great deal of wealth to support the company’s operation. This strong financial power is both unique and value-added to Asahi’s future growth.
Asahi’s distinctive competence also comes from its engineers and technicians, but its shortage of sales personnel, administrative staffs, and large distributors are threatening the company’s future performance and growth. Higuchi management style’s positive effect may not last long because of the lack of empowerment. There will also be increase in the cost of hiring and retaining 800 more permanent employees, and attracting more large distributors, which have mostly been captured by Kirin. Other possible reasons are the failure to meet distributors’ expectation, the consequential uncertainty of its future performance, and the lack of market coverage in eastern Japan. Asahi’s physical capacity is another key weakness that limits its future growth. It takes a long time for Asahi to

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