SWOT Matrix and the Grand Strategy - 275 Words

SWOT Matrix and the Grand Strategy Matrix for Anheuser-Busch InBev (Essay Sample) Content: Name: Instructors Name: Course details: Date Due: SWOT Matrix and the Grand Strategy Matrix for Anheuser-Busch InBevAnheuser-Busch Companies Inc. is a firm developed under the collaboration of families and events. It was an idea from the Bavarian immigrant, which was failing at the moment. Started as a soap manufacturer, the firm used the ideas of Adolphus Busch, which was experienced in brewing with the intention of stimulating the business. Their partnership, Anheuser and Busch, ignited the business of brewing and thus increased their sales and distribution throughout the nation. This paper will give a brief description of the SWOT and Grand Strategy matrix analysis, which positions the competitive nature of the firm in global market (Anheuser-Busch InBev). SWOT AnalysisThe main purpose of Strength, Weaknesses, Opportunities and Threats (SWOT) matrix is to give managers the ability to come up with an analysis of the competitive position of their firm. The matrix und er study has both internal and external factors that help in building the business. Ideally, strength and weaknesses form the internal factors while opportunities and threats form the external factors (Bohm). The following table shows the SWOT matrix for Anheuser-Bushc InBev Limited.StrengthsVast portfolio of brands Using variegated and exposure across various regionConstant novelty product introductionLeading position Strong heritage Availability of health-conscious beer brandsWeaknesses Competition cause its market share goes downCompany is highly dependent on whole sellers for its sales Poor after-sales service Negative image Advertising Peoples notion Opportunities Cut debtContractual agreement Introduction of new products Greater demand New innovation to add healthier drinks Specialty beers for upper class and expansion for the middle classSOIncrease market share in global markets Infiltrate aggressively in advertising sponsorships Work with other firms like wall-Mart will help to increase salesRe-investment in core business to improve efficiency Re-investment in essential portfolios to increase capacity WOIncrease preventive expenses on education to sustain good public imagePartner with other distributors to improve on domestic sales Use research and development to give lower calories of beers Improve on the awareness strategy through advertisement Rationalize entities to improve operations inside divisions Threats Government involvement Advertisement and marketing costs Illicit liquor tradeIncreasing US malt barley pricesAging populationSeasonal sales industrySTAdjust the pricing strategy that will help in offsetting the excise taxes Continue dominating the market share by use of advertising strategies Improve on technology Improve on product quality Increase global market share WTAdjust polices that concerns derivatives Adjust procedures regarding derivatives Improve on advertising non-alcoholic products Research and development to reduce alco hol content Improve on the low calorie adverts ThreatsGovernment involvement: the Federal Bureau of Alcohol, Tobacco and Firearms have the mandate that regulates policies and taxation on federal level. Individual state has a complicated set of regulations that control the industry of alcohol, tobacco and firearms. The regulations normally increase the taxes every time. The firm has to comply with the regulations (Daft and Daft).Advertising and marketing costs: for the firm to increase brand awareness, the firm has to increase the advertising and marketing activities form them to catch up with their new competitors (EBSCO Publishing). OpportunitiesCut debt: the removal of risk by financing $37.6 billion of the $54.8 billion from the original acquisition helps in reducing the debt (Hartline). Contractual agreement: the firm signed a contract with iTradeNetwork to help it in finding solutions for demand (Phadtare). Introduction of new products: the introduction of products like Bud L ight Lime helps in increasing the revenue of the firm (Rao, Rao and Sivaramakrishna). Greater demand: considering the fixed price on the alcoholic beverages, which are higher than that of other competitors, the consumers still consume their products (United States. Dept. of Agriculture). StrengthsVast portfolio of brands: the firm has over 200 brands of beer. The recognize brands include Budweiser, Stella Artois, and Becks.Variegated and exposure across other regions offer assistance in risk reduction. The firm is a leading position in major beer markets: the firm was number one firm in terms of sales volume ( Wikiwealth). WeaknessesThe competition cause its market share goes down: some firms like Miller Coors are big competitors, which dominate the market. Company is highly dependent on whole sellers for its sales: the firm depends on wholesalers, which is a challenge on the logistical constraints (Williams and Rothwell). Grand Strategy MatrixGrand strategy matrix analysis is also an important strategy for a firm. Anheuser-Busch Companies Inc. is a good market share position. The firm has a strategic point, which places them in Quadrant I. This matrix offers the managers an...