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Transcript of Heineken
Miles and Snow's
Organization's External Environment
Introduction giving Context
Heineken's organizational structure
Heineken's Internal environment
Heineken's external environment
Miles and Snow's
Theory that classifies organizations into one of four strategic types based on the rate at which they change their products or markets.
Porter Competitive Strategy
Fit 2 Fight program designed to save 450 million Euros between 2006 and 2008.
Stressed importance of efficiency improvements, speed of implementation etc.
Effective and efficient
How effective and efficient does Heineken work based on the 4 approaches?
Ladies and Beer
There are thousands of different alcoholic beverages
Threat of substitutes
Organizational Internal Environment
Philosophy: People are the main source of competitive advantage
Bartlett and Ghoshal's Four Strategies
Heineken Aim: Transnational Strategy
Attemps to achieve maximum local responsiveness while mainting economy of scale
Heineken’s overall strategy is “to have a mainstream beer that can be a local beer such as Amstel.” — Heineken CEO and Chairman of the Executive Board Karel Vuursteen
Heineken paid 60 m Euros to be featured in the James Bond film "Skyfall"
4 areas where they can make the biggest difference
brewing a better future
Largest brewer in Europe
3rd-biggest brewer in the world.
International presence 115 breweries in more than 65 countries. Global network of distributors.
more than 170 beers
Principal brands Heineken® and Amstel®,
Recognized as most valuable international premium beer brands.
Heineken is a...
Goals: Stability & flexibility
Heineken wants to maintain current costumers and build loyality.
Efficiency is key to cost-advantage.
Moderately centralized & looser controls on new undertakings.
Unique marketing approach and image development.
However Dynamic Environment?
Heineken sets its bears at a relatively high price.
High advertisement spendings.
Market penetration: Campaigns and status.
Gentlemen's drink: elegant & royal image.
Heineken CEO K. Vuursteen explained the brand has a “a two-track policy.
Broad leadership has preference.
” In specific markets where such an approach is not feasible, they “aim toward segment leadership in which the Heineken brand makes [Heineken] the leading brewery group in the premium segment.”
Transnational Strategy is very rare and difficult in practice.
REALITY: Between the line of global Strategy and Transnational Strategy.
COSTS plays a big role.