Anheuser-Busch, as an ever-expanding company, continually re-invents, innovates, and improves its internal processes. Part of this is the continuous improvement of its supply chain management processes. Having vertically integrated most of its supply chain, Anheuser-Busch is less involved in supplier selection and the improvement of external sourcing. Rather, they focus on their internal processes in order to create a competitive advantage in the market. In an attempt to decrease costs, and in turn improve their bottom line, the company looked internally. They found a startling inefficiency: the water material requirement in their products was extremely high. This not only conflicted with their corporate social goals, but threatened to be a long-term unnecessary cost driver Anheuser-Busch chose to actively innovate its processes and sourcing channels. In their analysis of the company, it became apparent that production of Anheuser-Busch products required a tremendous amount of water. The issue of water conservation is an extremely difficult issue in the supply chain of Anheuser-Busch. Though the issue may seem simple, it touches many different steps and elements of the brewing process, making it a vital aspect of the chain. There is …show more content…
no specific instance in which the water consumption of Anheuser-Busch originated. Instead, this problem is larger than what was first anticipated from initial research. Essentially, over usage of water is a continuous improvement opportunity for Anheuser-Busch. The use of water in production cannot simply be lessened by reducing volume. Anheuser produces a multitude of products, including the third-largest selling beer brand in the world. As a result, the demand for their products is extremely high; this demand is spread around the world. As such, Anheuser must find a solution which allows them to continue their current level of production. This requires them to look to innovation in order to reduce material requirements of their products, thus reducing their overall consumption. In addition to the need to reduce water usage in their brewing process, Anheuser-Busch must develop methods to reduce the water utilized in other parts of their supply chain.
One major usage of their water supply is their crops used for brewing. As their supply chain is vertically integrated, the company is responsible for growing its own crops. This increases the burden they must bear with regards to water usage. It is essential that this element of the supply chain be the focus of continuous improvement. Furthermore, Anheuser needs to make a greater effort to protect their water sources. As these resources are invaluable, it is essential that the company create programs to safeguard them from depletion or
contamination.
The strengths of Creemore Springs are their access to natural spring water, unique recipe, and reputation for producing high quality beer. This reputation has earned them numerous awards since their induction in 1987. Creemore Spring’s weaknesses is their current, complex cleaning process which results in broken and chipped bottles. Opportunities available to Creemore Springs include the municipal sewer service that would provide them with financial savings when disposing of their effluent water. The current threats to Creemore Spring’s successful operation are the two major beer brands that control 90% of the beer market and the bottle cleaning contracts lack of quality control.
The company launched an initiative collaborating with the “Lyft”, which will provide free rides for drunk customers [8]. This indicates the amount of dedication the company has towards its customers. It also provides tours to customers across the 12 flagship breweries in the United States [9] and would also help customers with samplers. Any company that values its customers would become a great success and Anheuser Busch has proved this again. It also values its employees making sure every one of them feels like an owner and everybody would work as considering the results to be personal [10]. All these put together has helped the ANHEUSER BUSCH to brew beers that are loved by their customers and in making it the leader of its domain of
1. How was Lincoln able to grow and prosper for so long in such a difficult commodity industry that forced out other giants such as General Electric, Westinghouse and BOC? What is the source of Lincoln’s outstanding and enduring success?
The scope of this report is an evaluation of the profitability of each brand. The report does not intend to make recommendations of how invest and promote new products and how to increase brewing capacity.
Customer loyalty is another competitive advantage. Trader Joe’s doesn’t provide membership card to the customer, however customer still would like to choose Trader Joe’s just because of this
There is a lot of competition when it comes to advertising a company’s product because people are working hard to get their product to be the best seller and they are trying to find more innovative ways to do so. In order to make it easier, marketers target a specific group of people and focus on how to get their attention. A brand that does this well is Bud Light because in recent years they have started to shift their attention towards millennials. Their main audience was middle aged people but they have decided to change gears and target a different group because millennials, more specifically college students, are more likely to buy beer in bulk. Millennials are always in some way or form on social media and have easy access to information and companies use this to their advantage in order to get their brand across. Bud Light also uses different and engaging campaigns to grab the attention of their intended target. Bud Light has been targeting millennials because they are
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...
Vickers, A. (2002). Conserving our finite water supplies in an era of chronic drought: Practical steps. Electronic Green Journal Issue 17.
I chose to do my research about an ongoing issue with drinkable water. To narrow it down, I decided to concentrate on bottled water. This topic interests me personally, and I believe might be interesting for my classmates, as the issue affects everyone. Maybe if we realized the problems it causes, we would try drinking from a glass at home or carrying water in a refillable steel container instead of plastic. I hope that my research will change the perspective of the reader about such a convenient thing – bottled water.
Nestlé was accused of wasting 30% of water they pump; it’s shocking to know that for one liter of water to reach the shelf takes 80 plus liters of oil and 3 liter of water which is incredibly inefficient. In fact Nestlé intended to increase the amount of production of bottled water calling it the next hot commodity, which is not a good feeling when it comes to sustainability. As a corporation, they have the mentality that if they don’t bottle this water, some other company will. I would like to point out that Starbucks stopped bottling water in California during the time of drought. The issue is many other industries would be using the water for their operations but they actually need it and not creating a problem instead of solving one. Most of the water bottling companies make claims that they are only meeting consumer demand, but rationally thinking who would demand a less sustainable, less tasty and way more expensive than tap water. In 1970s the bottling water industry started, at that time people took it as a joke, but the marketing strategies were designed to scare people about the tap water and pictures of pristine springs and mountains were shown on the labels. Nestlé in one of its ads claimed- bottled water to
Have you ever been driving in your car, saw your fuel tank was coming close to empty, and thought to yourself, maybe I should park and not drive around as much? Did you think twice about how easy it was to fuel your car with gas at the nearest gas station? Did you stop and think, maybe one day, there will not be enough gas available to fill my car? One way this will happen, is if we continue to buy bottled water. Energy, oil, and petroleum are all used in the production of single use bottled water. In 2011, it was estimated that the average American consumes approximately 29.2 gallons of bottled water a year (Holt 2012), and America is the world’s leading consumer of bottled water (Arnold and Larsen 2006). Bottled water needs to be produced, transported, and then stored. This long process requires a great deal of energy. Other sacrifices of energy include: branding and keeping the bottled water cold.
Although Anheuser-Busch governs the brewery industry top management also sought to dominate the craft beer market. Their endeavors were rewarded when Red Hook beer sold company stock to Busch. This mutual agreement was beneficial to Red Hook because it offered opportunities for them to serve a larger customer base, increased their distribution suppliers and provided additional brewery locations. Anheuser-Busch attacked the evolution of microbreweries with “gusto” therefore, forever shaping the revolution of craft beer makers.
Through Coca Cola water stewardship program, they have implemented a rights-based approach to water. Coca Cola requires it system’s bottling plants to assess vulnerabilities of the quality and quantity of their community water sources and production water (if they differ), determine potential impacts from water use and discharge of wastewater; and then address the issues identified in the development and implementation of a source water protection plan (SWPP).
Essentially we have been sold a lie not a promise. We have been duped not assured. We have been seduced not ethically inspired into a practice of drinking behavior that is crushing our personal budget economy and well as planting an ecological time-bomb that will make toxic the environment of our children’s future. To address this futuristic hydro-apocalypse, I am proposing a radical solution that targets this silently growing disaster from a three point pincher strategy aimed at number one; a massive population re-education and cheaply effective home practice of tap water filtration of tap water aimed at teaching the merits and rewards of this new pa...
Companies rely on water just as much as the individual person does, water is essential to not only life by how a company runs, which is why it will have a drastic impact on economics at the lowest level. A water decreases in supply, businesses will have to place a higher priority on the management of their water resources. Initially water was seen as a “free raw material”, but now that the “marginal cost of water is rising around the world” many companies have begun to shift their perception of the commodity. Christopher Gasson, publisher of Global Water Intelligence stated, “Previously, water was treated as a free raw material. Now, companies are realizing it can damage their brand, their credibility, their credit rating and their insurance costs. That applies to a computer chipmaker and a food company as much as a power generator or a petrochemicals company.” These consequences may also apply to individuals as well. As the water supply drops, governments and companies will begin to change individual incentives to promoting water preservation and reuse. However, one benefit that may come about from the declining water supply will be the demand for individuals with a background in environmental engineering, as more companies will seek to lessen their negative environmental footprint. By doing so, this again changes individual