Heineken International Case Analysis Heineken N.V. is a Dutch brewing company, founded in 1864 by Gerard Adrian
Question:
Heineken International Case Analysis Heineken N.V. is a Dutch brewing company, founded in 1864 by Gerard Adrian Heineken in Amsterdam. As of 2017, Heineken owned over 165 breweries in more than 70 countries. It produces 250 international, regional, local and speciality beers and ciders and employs approximately 73,000 people. With an annual beer production of 188.3 million hectolitres in 2015, as well as global revenues of EUR 20,511 million in the same year, Heineken N.V. is the number one brewer in Europe and one of the largest brewers by volume in the world. Heineken’s Dutch breweries are located in Zoeterwoude, ‘s-Hertogenbosch and Wijlre. The original brewery in Amsterdam closed in 1988 and is preserved as a museum called Heineken Experience. Since the merger between the two largest brewing empires in the world, Anheuser-Busch InBev and SABMiller, in October 2016, Heineken became the second largest brewer in the World. As part of the expansion plan, Heineken N.V. also bought Jamaica’s Red Stripe beer from Diageo Plc., reportedly bringing Heineken’s stake in Desnoes & Geddes Limited, the operating company for Red Stripe, to just over 73%. Using your knowledge of the modes of entry used in international trade, explain the following:
A. Describe the mode of entry used by Heineken in Jamaica along with the advantages and disadvantages associated with this mode of entry. (10 marks)
B. Develop an export strategy to have Heineken use the Red Stripe brewery for production and then export to the other CARICOM states.
Strategic Management Text and Cases
ISBN: 978-1259900457
9th edition
Authors: Gregory G Dess Dr., Gerry McNamara, Alan Eisner