Summary
For American beer producers to succeed in entering the beer market in Austria, they must thoroughly understand the cultural, economic, and political forces that control the society and how if functions. The Austrian society and its culture is one of the older, more prominent societies in Europe. Although the country has advanced itself into a highly industrialized and technologically advanced entity, Austria can present significant obstacles when it comes to trying to do business.
The cultural forces in Austria seem to be centered on its system of values. Austrians tend to be slow decision makers by American standards. Austrians are detail oriented persons and exercise caution when faced with risks. Austria has a unique, world class education system that allows children to make choices concerning their education at a young age, which helps to give Austria a very highly skilled workforce.
The economic forces in Austria provide both positives and negatives. Austria is a member of the European Union (EU) and is very closely tied to Germany economically. Austria and Germany both conduct trade fairs that provide fantastic marketing opportunities. Austria is advanced technologically and has an efficient infrastructure that makes doing business there desirable. As a member of the EU, Austria switched to the euro as its currency. Relinquishing control of its monetary policy causes uncertainty for currency stability.
The political forces in Austria also contribute to the risks and rewards of doing business there. Austria’s trade and commerce policies seem to be mostly favorable for the beer industry. However, Austria does impose a Value Added Tax (VAT) of 20% on alcohol, which can be viewed as an unfavorable trade barrier. T...
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... problems would appear to be the current economic instability of some members of the EU that cause a drain on the entire EU economic structure and the euro. It is possible for countries that are members of the EU to suffer even if they are economically stable. Another concern is the web of regulations that can confuse any business trying to penetrate a market in the EU or one of its member nations. Legal assistance would be the best option.
Conclusion
There is a strong possibility that an American beer company can successfully penetrate the beer market in Austria and make profits in both the long and short runs. It will require a smart decision on the method of entry. The business aspect will be challenging in determining how to enter the market (i.e. distributorship or local brewery start up).Marketing will also be a key to the success of a business campaign.
The two organizations explained in this assignment are “Anheuser Busch” and “MOLSON Coors”. Anheuser Busch is a multinational company brewing more than 100 brands in the United States and holds a 45.8 percent of the beer market share1. The company is recognized as the No. 1 brewing company by Fortune magazine – “World’s Most Admired Company”2. Dreaming Big, Unity and Culture are the three main driving values and guiding principles which account for the success the company has achieved during the years1. All these combined with the dedication and motivation
The beer brands were classified as popular, premium, super premium, and ultra-premium. The distinguishing factor determining if brands belonged to different classes was whether beer was produced by four largest companies (Anheuser-...
In a period of nine years, Rahr has been able expand the beer brewing business greatly. It has increased from two thousand barrels of beer annually to twenty thousand beer barrels per year. The Rahr and Sons Brewing Company has been a significant phenomenon in the beer-brewing sector, where it has acquired over
The European Union has been helped economically ever since World War II. Right after World War II’s end, Europe was struggling to hold on. The countries of the modern-day European Union thought it would be a good idea to come together and help each others struggling economy. To this day, this decision has had a very positive outcome on the EU’s economy. As shown in Diagram 1, the European Union combined together has the world’s highest GDP at 18.3 Trillion USD as compared to the United States’ 17.4 Trillion USD GDP and China’s 10.4 Trillion USD GDP. The idea
Belgium is known for a culture of high-quality beer and this concept was formulated by an electrical engineer from Fort Collins, Colorado. The electrical engineer, Jeff Lebesch, was traveling through Belgium on his fat-tired mountain bike when he envisioned the same high-quality beer in Colorado. Lebesch acquired the special strain of yeast used in Belgium and took it back to his basement in Colorado and the experimentation process was initiated. His friends were the samplers and when they approved the beer it was marketed. In 1991, Lebesch opened the New Belgium Brewing Company (NBB) with his wife, Kim Jordan, as the marketing director. The first beer and continued bestseller, Fat Tire Amber Ale, was named after the bike ride in Belgium. The operation went from a basement to an old railroad depot and then expanded into a custom-built facility in 1995. The custom-built facility included an automatic brew house, quality-assurance labs and technological innovations. NBB offers permanent, seasonal and one-time only beers with a mission to be a lucrative brewery while making their love and talent visible. In the cases presented by the noted authors (Ferrell & Simpson, 2008), discusses the inception, marketing strategy, brand personality, ethics and social responsibility that New Belgium Brewing Company has demonstrated. The key facts with New Belgium Brewing Company are the marketing strategy, promotion, internal environment and social responsibility with the critical issues of the public, brand slogan, growth and competition.
From our research, Anheuser-Busch is content with being the number one beer company in the world, increasing sales each year in operation. We found that Anheuser-Busch met many views associated with the world, business, and behavioral dimensions. The company also displayed its stability as we reviewed one of its most successful products Budweiser, owned by Anheuser-Busch, under the marketing view and the financial view. Not only do they hold almost half of the market share in the industry but their stock prices, sales volume, and net sales have all increased from 2002 to 2003. We also looked at Budweiser in terms of geography and culture. We found due to the fact that the "western" countries consume the majority of beer, it only makes sense that Anheuser-Busch concentrates on that market. Along these lines, another key goal that is also important to Anheuser-Busch is to boost other beer markets that are located in other cultures, where at the time beer is not a major consumption.
Deutsche Brauerei has been a family owned and operated corporation for 12 generations, which has created a high level of focus and control. Each generation has kept the management and operations processes relatively simple, centered on brewing practices and quality. Deutsche Brauerei’s rapid growth in recent years can be attributed to several factors. First and foremost, the company’s success is centered on the product itself, which has won numerous quality awards and is quite popular in Germany. Another contributing factor to the recent growth may have been a bit inadvertent. The purchase of new equipment in 1994, which was necessary as a result of a fire that destroyed the old equipment, allowed the company to increase brewing capacity and efficiency. Finally, Deutsche Brauerei’s decision to enter the Ukranian market in 1998 contributed significantly to the rapid growth. The collapse of the U.S.S.R. brought market reforms, and Deutsche Brauerei jumped on the opportunity to enter the fragmented beer industry, capture the large population and capitalize on the prime location in Europe. Lukas Schweitzer was savvy enough to hire local expert Oleg Pinchuk away from a competitor as the marketing manager, and Oleg was instrumental in building the business in Ukraine by securing accounts and implementing the field warehousing to support distributors. Deutsche’s beer was hugely popular in the Ukraine almost immediately, and volume sales more than offset the depreciation of the Ukrainian currency. Sales in Ukraine accounted for 28% of Deutsche’s total sales, and skyrocketed from 4,262 euros in 1998 to 25,847 euros in 2001.
The country of Austria is a landlocked country located in central Europe, just north of Italy and Slovenia. Austria also borders Germany, Hungary, Slovakia, Czech Republic, Switzerland, and Lichtenstein. In comparison to the United States, Austria is about the size of Maine at 83,870 square kilometers. The terrain includes mountains, or the Alps, in the South and West, and flat land in the North and East (“Austria”). Mountains cover about three-fourths of the country. Austria is also known for its many valleys, lakes, and forests (Beller). The climate is temperate, with moderate summers and cold winters. Both seasons receive regular rain, except for frequent snow in the Alps during winter. The majority of the population lives in the Northeast flatland due to the poor soil and steepness of the mountain region. The Danube River runs through the northern part of the country with the capital, Vienna, on its banks (“Austria”).
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
The United States beer industry represents 233 million hectoliters of the world’s 1,501 million hectoliters and is a dynamic part of the United States national economy, contributing billions of dollars in wages and taxes. Within the U.S., the beer market accounts for nearly 50% of total volume of alcohol, with the import specialty and light beer segments driving growth.
The pandemonium was international, and everyone felt the effects of the panic. This crash was very similar to the minor crash that was experienced by the American economy a couple years ago. The recent crash led the country into a recession, unlike the crash of 1873 that led the world into a depression. There are many other reasons why the crash occurred and the short term as well as long-term effects the crash had on the international economy. The crash not only left Austria crippled, but its effects left marks on many markets all over the world, including London, New York, and Berlin.
... them. The expansion into other areas in the world is something that the company is constantly considering. Expanding their advertising and marketing to reach those individuals in the United States that have not “experienced” the craft beer industry is a constant tactic the company considers. There are also potential environmental threats that the company realizes and considers while making their business decisions.
The Greek economy has seen a large collapse following the recent worldwide recession. The European Union has expressed concerns for the impact that Greece’s economic collapse will negatively affect other member nations. Greece and the European Union are working to reduce the Greek deficit and to contain the economic crisis to Greece.
Before going into the individual regions of Austria and their influences, first to be explored will be the influences over Austria as a whole. The country has a very strong German influence, evidenced by German being the country's official language, and by Germany being Austria's largest export and import partner (Central Intelligence Agency).
This breakup of the Eurozone would have adverse effects which scares the financial market. Let us look at some of the negative impacts if the Eurozone breaks up- 1) No Easy escape- If a country becomes a member of Eurozone, then it becomes very tough for it to leave. This is because other member countries will not allow another member to endanger the survival of Eurozone and its shared economic fortunes.