Heineken: Global Awareness Exercise

Heineken Name Institution Due Date Heineken Identify important issues related to the economic, political, and cultural dimensions of Heineken’s global beer business. Be sure to identify at least one issue related to each dimension. Although primarily related to one dimension, describe how each issue could be affected by one or more of the other dimensions. A global brand like Heineken needs to consider all facets that could, in the end, be problematic to its objective of maintaining its presence in the world. So, in its expansion strategy, it is crucial that the organization considers all factors and issues including but not those limited to economic, political, and cultural dimensions. From an economic standpoint, one issue that is apparent from the article is the fact that sales of beer have been slowing down in the U.S. and Europe. For an organization like Heineken, this is a piece of information that is dreaded because it means slowed growth and reduced profits. Additionally, this also warrants new strategies of expansion which have to be considered. However, one thing that stands out for Heineken is the fact that demand for beer has “been growing elsewhere, especially in developing countries.” Even as demand in, maybe is prime markets, has been slowing down, Heineken has received a lifeline because of the growing markets in the developing countries. However, the decision to expand into the developing countries could be affected by certain political factors including the decision-making process which appears to be firmly under the Heineken family. A cultural issue that appears to emerge is related to the company’s expansion strategy. Heineken’s aggressive expansion strategy means that the organization is forced to incur a lot of money. Expanding to different cultures, even though profitable in the end, could be strenuous in the short-term. Dealing with different cultures can be a problem as the company is forced to change its strategy every time it is making headways in a new territory. For example, in Egypt, Heineken had to change its approach and consider non-alcoholic drinks. Even though in the end these did bring profits, the company is forced to reorganize and re-strategize. This issue can be affected by the economic dimension because if a decision to expand makes financial sense, nothing will prevent the organization from going ahead with its decision. Finally, a political issue that can impact the company has to do with the presence of the family in the company and the control it still exerts. The family is still powerful and behind a majority of the company’s decisions. So, at times, differences could spill to the company and greatly affect the outcome. One issue that can affect this issue is the company’s profitability. The assumption here is that everyone cares about the company’s profits. So, the wrangles as a result of the family’s presence can only be affected by economic gains. Analyze how the identified issues related to ...