International Business Management: Case Study Of Interbrew

One of the Nation’s third-largest craft breweries, based out of Colorado, New Belgium Brewing Company, Inc. (the Company). The Company was founded in 1991, a privately held corporation. Its first operation started off in the basement of Jeff Lebesch (founder). The Company prides itself on its branding strategies “triple bottom line” and social responsibility which focuses on economic, social, and environmental factors. New Belgium’s marketing strategy links the Company’s viewpoint to the quality of its products. The Company continues to support the community, giving back & advocating positive change. However for continued success, New Belgium has to continually analysis its situation in the marketplace,

The case, Charles Foster sends an email, is a perfect example of the how globalization and increased cross cultural interaction is increasing the complexity and ambiguity facing the managers of large multinational companies. The specific focus of this case is to address the repercussions that can occur by using inadequate communication methods, given the importance and complexity of a situation. Also, the case addresses the possibility of cross cultural communication misinterpretation leading to confusion and confrontation amongst the parties involved. The objective of this qualitative analysis is to utilize both theory and practical

The situation can even explode for Export Brands International, as large beers conglomerates with tremendous power, are targeting the same segment and are creating similar beers. We have the real example of Anheuser-Busch new Bud Light Lime which was selling extremely well in the United States attacking Corona position and following the traces of the

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Interbrew had developed into the world's fourth largest brewer by acquiring and managing a large portfolio of national and regional beer brands in markets around the world. More recently, senior management had decided to develop one of their premium beers, Stella Artois, as a global brand. This case examines the early stages of Interbrew's global branding strategy and tactics, enabling students to consider these concepts in the context of a fragmented but consolidating industry.

In the summer of 2008, InBev NV, a Belgian-based brewing company formed from the merger of InterBrew and AmBev, offered a bid of $46.6 billion to acquire Anheuser-Busch Co to create the world’s largest brewing company at $65 a share. The initial offer was subsequently declined in part because the company felt the offer undervalued the company greatly. InBev later increased their offer to $70 a share and in Mid-July, Anheuser-Busch accepted the offer making the total cost of the deal $54.8 billion dollars. The issue then becomes whether the offer of $70 is justifiable to InBev’s shareholders. The merger brings about two different management styles. The culture at InBev focused on extreme cost-cutting measures and profitable incentive-based compensation programs. However, Anheuser-Busch’s culture differed in that they prided itself on philanthropy, diversity, and community involvement. In addition, this company possessed many luxurious offices and corporate fleet of aircrafts. Furthermore, they invested heavily in advertising, derived most of their profits in the United States, and possessed a lackluster international expansion plan. Issues the financial managers face will be differing business philosophies in regards to marketing (“Grow/Defend/Maintain/Cash” matrix approach vs the large marketing budget of Anheuser-Busch), culture (cost cutting measures vs company perks), and the future of the twelve

With regards to Interbrew’s suppliers, Interbrew has begun to use a smaller number of its best suppliers and work closer with them. They also have gone to single suppliers for the major commodities and were moving towards extending this approach to all operations worldwide. This indicates that the suppliers will have low to medium power with Interbrew, as Interbrew will be placing such huge orders7 from them as they are the fourth largest brewer in the world. Interbrew is currently using this strategic sourcing and it has proved successful. This indicates that Interbrew should use a cost focus strategy as they can apply this method to all of their suppliers and generate additional savings through working with a smaller supplier base.

Such cross border deals have provided significant benefits to the brewing giants. This has given them ownership of local brands propelling them into dominant market positions around the world as global brands sell at significantly higher prices and the margins are much better as compared to the local beers.

The right international strategy for Grolsch going forward is a transnational strategy, though there are strong elements pushing this toward a global strategy. In reviewing strategy within the beer industry, either generally or through frameworks (see exhibits), it appears the optimal path currently involves both multi-domestic elements and global

Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty

That is undoubtedly case for Heineken. Analyzing its strengths and weaknesses it is clear that Heineken wasn’t a truly a global brand at the time the case was written, but was working on it. The confirmation of this is that the company’s presence in more than 170 countries all over the world. The brand is nationwide recognized, as a brand that was established in 19th century and from a local beer became a global icon. Heineken by working so hard on standardizing the brand image achieved its results. The goal for Heineken at the time was to build a demand for the product. In countries where the beer market is already mature like Japan, Australia or Spain Heineken never stopped growing. The obstacle for Heineken to become a global company was connected to the fact that Heineken’s marketing communication in many different countries was not consistent. Another obstacle that Heineken overcame over the years was the fact that it was difficult for the company to overcome the image of its beer as only for special occasions. To be global, Heineken must create the image and perception that Heineken is a daily beer. Also as of 1993, Heineken was associated in countries like Latin America as just only regular imported beer. To become global, the company needs to create advertising campaign in those countries emphasizing values of imported beer to build brand value and attract different customers. To be global Heineken needs to standardize its image and make it consistent

What are the seven cultural variables in the communication process? Explain 1)Attitudes, 2) Social organization, 3) Thought patterns, 4) Roles, 5), Language, 6) Nonverbal communication, 7) time.

A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter (Porter, 2013)

Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy)

International business contains all business transactions private and governmental, sales, investments, logistics, and transportation that happen between two or more regions, nations and countries beyond their political limits. Generally, private companies undertake such transactions for profit governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources includes capital, skills, and people. for international production of physical goods and services such as finance, banking, insurance, and construction.