Budwiser Corporate Analysis

Essay by venny_m March 2005

download word file, 16 pages 0.0

Executive Summary Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder value and increase efficiency. Through their extremely effective marketing strategies A-B has gained control of over 47% of the global market share. In the process of doing this, Anheuser-Busch has become one of the most recognizable trademarks. This is not without its faults though. Anheuser-Busch's aggressive advertising campaign has targeted more than who they bargained for. Through A-B's catchy advertisements, they have attracted customers other than the 21+ age group, and recreational drinkers. It is the opinion of many researchers that Anheuser-Busch is negligent in their advertising, and insists that changes need to be made. Through proper regulation of their advertising, consumers would be allowed to make choices free of media persuasion. Situation Analysis Environment: Cooperative Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder value and increase efficiency. As noted in the Annual Report for 1999, Anheuser-Busch remains focused on three major objectives to enhance shareholder value: Increasing per barrel profitability which, when combined with continued market share growth, will provide solid long-term earnings per share growth.

Profitable expansion of international beer operations by building the Budweiser brand worldwide and making selected investments in leading brewers in key international beer growth markets. The company has made significant marketing investments to build Budweiser brand recognition outside the United States and operates overseas breweries in China and the United Kingdom. The company also has a significant equity position in Grupo Modelo, Mexico's largest brewer and Continued support of profit growth in packagingproducer of the Corona brand. and entertainment operations. Packaging operations provide significant efficiencies, cost savings and quality assurance for domestic beer operations, while entertainment operations enhance the company's corporate image by showcasing it's heritage, values and commitment to quality and social responsibility to 19 million visitors annually as well...