Environmental Analysis Anheuser-Busch

Topics: Alcoholic beverage, Marketing, Beer Pages: 11 (3511 words) Published: December 7, 2008
This paper will address trends and forces that are affecting Anheuser-Busch and will more than likely continuously affect the company. This paper will also assess the company’s market and address the organization’s strengths, weaknesses, opportunities, and potential threats. Finally, the paper will present three long-term objectives then restate the mission and vision statement. Refine the analysis of the forces and trends

Strategic adaptability is crucial for any company trying to survive in today’s economy. Companies must examine the market looking for opportunities to grow and improve the business in a changing environment. Webster’s dictionary defines adapting as adjusting or becoming adjusted to a specific use or situation (Webster’s, 1996). “The most prominent factor in the remote environment is often the reciprocal relationship between business and the ecology” (Pearce & Robinson, 2004). Numerous businesses today are “going green” due to concern about the environment; however, while other companies are “going green,” Anheuser-Busch has been practicing this philosophy since the 1800’s when one of A-B’s founders, Adolphus Busch, began recycling leftover grain for cattle feed. A-B has adapted in several ways from recycling more than 27 billion cans annually, becoming a national leader in wildlife rescue and habitat conservation, to striving to conserve water and energy through the Bio-Energy Recovery Systems (BERS) technology, which is a process that reclaims nutrient-rich leftover water to create renewable energy that provides fuel for the breweries (Anheuser-Busch, 2008). To continue the efforts of environmental stewardship and adapting in today’s efforts of “going green,” A-B implemented an Electronics Recycling Initiative at the Sea World in San Diego that has recycled over 240,000 pounds of recyclable electronics that not only aided in protecting the environment but also helped support the restoration and protection of native habitats for migratory species (Anheuser-Busch, 2008). “Many of the world’s largest corporations are realizing that business activities must no longer ignore environmental concerns” (Pearce & Robinson, 2004). Macroeconomic Forecast

During the fluctuation of the economy, the demand for beer has yet to waver. Today the economy is in the worst condition ever yet the future forecast for Anheuser-Busch (A-B) in the beer industry looks remarkable. Consumer spending varies based on disposable income. When the disposable income decreases, consumers do not spend as much on nonessential items and when disposable income increases, consumers are more apt to spend more. Regardless of how much disposable income consumers have, consumers tend to find the necessary resources to use to purchase beer. Consumer spending is not the only variable with future forecasting; demographics are vital to the equation. Young adults are considered to be the largest consumers of alcoholic beverages. A-B should take advantage of the increased population overseas by focusing on global demographics to increase continuous growth. The consumption of alcoholic beverages and energy drinks is steadily growing creating potential for growth for A-B. Social and Cultural

“Environment presents firms with opportunities, threats, and constraints, but rarely does a single firm exert any meaningful reciprocal influence” (Pearce & Robinson, 2004). A-B believes in giving back to the community and has numerous benefits and outreach programs proving the company’s social and culture efforts. For more than a century, A-B has extended a helping hand to the needy by donating to community organizations worldwide and touching innumerable individual lives. Over the past 10 years, A-B has contributed in excess of “$370 million to charitable organizations,...

References: Anheuser-Busch. (2008). Retrieved September 26, 2008 from http://www.anheuser-busch.com/ethics/docs/securities_insider.htm
Anheuser-Busch. (2008). Retrieved September 30, 2008 from http://www.anheuser-busch.com/Environment/Environment.html
Anheuser-Busch. (2008). Retrieved October 4, 2008 from http://www.beerresponsible.com/
McConnell, C. & Brue, S. (2004). Microeconomics: Principles, Problems, and Policies. New York: The McGraw-Hill Companies.
Dictionary. (2008). Retrieved September 30, 2008 from http://dictionary.reference.com/browse/ecology
Hearld Tribune
Pearce, J., & Robinson, R. (2004). Strategic Management. New York: The McGraw-Hill Companies.
Webster. (1996). Webster’s II new riverside dictionary, revised edition. New York: Houghton Mifflin Company
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