Executive Summary of Anheuser-Busch Companies, Inc.

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Executive Summary of Anheuser-Busch Companies, Inc.

Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder value and increase efficiency. Through their extremely effective marketing

strategies A-B has gained control of over 47% of the global market share. In the process of doing this, Anheuser-Busch has become one of the most recognizable trademarks.

This is not without its faults though. Anheuser-Busch’s aggressive advertising campaign has targeted more than who they bargained for. Through A-B’s catchy advertisements, they have attracted customers other than the 21+ age group, and recreational drinkers.

It is the opinion of many researchers that Anheuser-Busch is negligent in their advertising, and insists that changes need to be made. Through proper regulation of their advertising, consumers would be allowed to make choices free of media persuasion.

Situation Analysis

Environment:

Cooperative

Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder value and increase efficiency. As noted in the Annual Report for 1999, Anheuser-Busch remains focused on three major objectives to enhance shareholder value:

 Increasing per barrel profitability which, when combined with continued market share growth, will provide solid long-term earnings per share growth.

 Profitable expansion of international beer operations by building the Budweiser brand worldwide and making selected investments in leading brewers in key international beer growth markets. The company has made significant marketing investments to build Budweiser brand recognition outside the United States and operates overseas breweries in China and the United Kingdom. The company also has a significant equity position in Grupo Modelo, Mexico’s largest brewer and producer of the Corona brand.

 Continued support of profit growth in packaging and entertainment operations. Packaging operations provide significant efficiencies, cost savings and quality assurance for domestic beer operations, while entertainment operations enhance the company’s corporate image by showcasing it’s heritage, values and commitment to quality and social responsibility to 19 million visitors annually as well as adding their profit contribution.

The company’s strong commitment to achieve these objectives benefits a...

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...th the regulations.

Works Cited

1999 Annual Report, Anheuser-Busch Companies

“Anheuser-Busch Announces Record Sales and Earnings for the Fourth Quarter and Full Year 1999; Worldwide A-B Brand Shipments Exceed 100 Million Barrels.” Business Wire, 2/2/2000. Online. Electric Library.

Atkin, C.K., “The Role of Alcohol Advertising in Excessive and Hazardous Drinking.”

Journal of Drug Education 1993, p.313-325

Best, Kathleen. “Simon Wants Warning on Liquor Ads.” St. Louis Post-Dispatch 3/31/93, p. 15A. Online. Electric Library.

Fox, RichardJ.;Krugman, Dean M.; Fletcher, James E.;Fischer, Paul M., “Adolescents’ attention to beer and cigarette print ads and associated product warnings.” Journal of Advertising, 9/22/98. vol. 27. p. 57. Online. Electric Library.

Gerbner, G., “Stories That Hurt.” Journal for Substance Abuse Prevention, 1990, p. 53-57

Saffers, H., “Alcohol Advertising and Motor Vehicle Fatalities.” Review of Economics and Statisitics. 1993, p.431-442

Sellers, Patricia. “Selling: How Busch Wins in a Doggy Market.” Fortune Magazine, 6/22/87, p. 99. Electric Library.

“Tax and Sin in Moderation.” St. Louis Post-Dispatch 2/26/98. Electric Library.

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