Case Anheuser

|CHINA BREWERY ANALYIS |
|Anheuser Busch and Harbin Brewery Group of China |
|CASE ANALYSIS |




|Sajjad Ali Shaikh 5458Khalid Yousuf 3724 |
|Baqi bullah 3614 Farhan Aslam 6036 |
|Arsalan Liaqat 4714 |
|5/4/2008|





Contents
Executive summary 2
Mission, objectives and strategies. 3
Vision 3
Mission 3
Value 3
Strategic objectives: 3
Industry Analysis 4
PEST ANALYSIS 5
Political and legal 5
Economical 5
Social 5
Technological 5
Environmental 5
Global Market 6
Key Success Factors 8
Driving Forces 8
CPM 9
EFE (EXTERNAL ANALYSIS FACTORS) 9
IFE (INTERNALANALYSIS FACTORS) 10
TOWS 12
SPACE MATRIX 13





Executive summary


This case is about Anheuser Busch and Harbin Brewery Group of China. Anheuser Busch is one of the leading brands of beers. company was established in 1864 in St. Louis, Missouri, United States, Anheuser Busch has grown to be one of the world’s largest beer companies, Operating 12 breweries within and 15 breweries outsideof the United States, It is best known for the world’s top two selling beers, Bud Light and our flagship brand Budweiser current market share of the company in the world is 10.8.

Chinese Beer market is an increasing market with a huge potential. Ranked 1st for volume per year but 11th rank for litres per person. Low average price for beer. Huge foreign interest on this market but foreigninvestment usually failed. In 2004 company acquire Harbin brewery in china. Foreign companies tend to face problem as provincial regulation are there to protect local companies and furthermore to keep the tax revenues within province. Regulatory roadblocks were designed to keep tax revenues at home. Many recognized global brands were unable to make there mark because they didn’t understand the customertaste and preference which is clearly visible as they hold 0.5 percent of Chinese market.

Anheuser-Bush entry into China was in 1993 through a 5% participation to the capital of Tsingtao brewery, the internationally renowned Chinese brewer based on the East coast and later in February 1995, through a 140 Million $ acquisition of a 80% stake in Zhongde Brewery, a large brewery in Wuhan, inHubei province, eastern China. The Company produced its global brand “Budweiser” in Wuhan and engaged a massive advertising campaign to build the name as a premium brand all over China. The results were not as expected due to the fragmented nature of the market, the severe competitive rivalry in the crowded premium segments and the difficult logistical problems in transportation, warehousing anddistribution. The market share of Anheuser-Bush in China in 2003 was around 1%.


Mission, objectives and strategies.


Vision: Through all of our products, services and relationships, we will add to life’s enjoyment.

Mission:
• Be the world’s beer company (Products and services; Self-concept)
• Enrich and entertain a global audience (Customers; Markets)
• Deliver superiorreturns to our shareholders (Concern for survival, growth and profitability)

Value: We believe in…
• Quality in everything we do. (Self-concept)
• Exceeding customer expectations.
• Trust, respect and integrity in all our relationships. (Philosophy)
• Continuous improvement, innovation and embracing change. (Philosophy)
• Teamwork and open, honest communication
• Each...