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External Environment Heineken Essay

601 words - 3 pages

Organizational external environment for Heineken
First we describe the term ‘organziational external environment’, before linking to Heineken. The ‘organziational external environment’ is a combination of events, conditions, entities and factors surrounding an organization that influence its choices and activities, and determine its risks and opportunities. Operating environment is oftenly used instead of the organizational external environment.

The first Organizational external factor we will take a look at is the customer segment. Due to the fact that Heineken operates all over the workld, we can state that it is hard to satisfy all these customers needs with only one type of product. Heineken owns over 250 local, regional and international speciality brands aswell as other beverages, thus meeting a wide range of consumer preferences and tastes. In addition to their ‘flagship’ Heineken brand ...view middle of the document...

These two known factors are just a miniscule part of the list of governmental laws and regulations Heineken has to deal with. Every country has its own policies and in some cases, for instance in the United States of America, certain regions within a country have specific laws and regulations. This makes it an astonishing job for the management of Heineken to always be in line with the rules. The company sees itself as a part of the society the are active in. Because of this a lot a value is put in the understanding, respecting and honoring of the socio-political situation as well as the culture they are dealing with. Through this action they create value for the government as well.

When talking about the competition it might be wise to first mention the strengths and weaknesses of the company by using a SWOT-analysis. For Heineken we can state that one of its strengths is the establishment of a track record as the brewer with on of the biggest international successes in the market. As stated before, besides their flagship, the company own over 200 other brands in multiple countries all over the world. A clearcut weakness is the size of the company. Due to its geographical dispersion effective and fast communication could be a problem when having to adapt to for example a change in governmental regulations. Opportunities arise in both Asia, Latin America and India where the market has not yet settled and thus, where the most opportunities for expanding their marketshare are present. The biggest threat and competitor of the company is their rival Anheuser-Bush InBev, being the largest brewer in the world. Next to this multinational enterprise regional brewers can implement small
* Heineken's major threat is Anheuser-Busch InBev (the world's largest brewer). Small, regional brewers in various markets may pose a minor threat as well. Anheuser-Busch InBev poses a threat in the emerging markets, where it is also investing.

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