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    Heineken International

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    Research Heineken International (http://www.heinekeninternational.com/homepage.aspx).

    Using your readings, the Library, and the Internet, write responses to each of the following:

    1. What is your impression of the operation of Heineken International?

    2. Conduct a SWOT Analysis of Heineken International.

    3. Does Heineken International have a competitive advantage and/or a competitive strategy? Justify your answer.

    4. Choose one Heineken International product. Describe the components of this product value chain.

    5. What strategic alternatives are open to Heineken International? Explain and justify your answer.

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    Solution Preview

    1. What is your impression of the operation of Heineken International?
    My impression of Heineken International is that it is a very large multinational brewery. Its operations are spread in 65 countries and employ more than 50,000 employees' world wide. It has several well recognized brands like Heineken Pilsener. It has different brands targeted at different segments of the market.
    However, my impression of the company is not good. It has repeatedly entered illegal cartels for fix prices. The European Commission has imposed Euro 219 million fine on Heineken International last year because Heineken International was involved in price fixing with other breweries namely InBev, Grolsch and Bavaria. In 2004 Heineken International was found colluding with Kronerbourg and was fined Euro 2.5 million. Later the fine was reduced because Heineken International turned whistle blower. Even though the financial health of Heineken International is positive, the collusions show that the company is willing to undertake unethical acts to make extra profits.

    2. Conduct a SWOT Analysis of Heineken International.
    Strengths: Heineken International has several strong brands like Cruzcampo, Tiger Beer, Zywiec, Starobrno, Zagorka, Birra Moretti, Ochota, Murphy's and Star. In addition, Heineken International has an excellent top executive team of Jean-Fraincois van Boxmeer and Rene Graafland. The Heineken recipe is an important strength because there are several people that like the recipe and would not like to change their beer even if the prices were increased. This allows Heineken International to charge higher than normal prices for its beer, especially premium brands. Heineken ...

    Solution Summary

    This explanation provides you a comprehensive argument relating to Heineken International.