Anheuser-Busch Case Analysis

Anheuser-Busch Case Analysis

June 8, 2008

Table of Contents

1. Description of Firm

• History

• Critical Strategic Events

• Leadership

• Competition

2. Strategic Analysis

• Competition Analysis

• Porter’s Five Forces Model

• Competitive Profile Matrix

• External Opportunities and Threats

• External Factor Evaluation Matrix

• Internal Strengths and Weaknesses

• Internal Factor Evaluation Matrix

• Strengths-Weaknesses-Opportunity-Threats Matrix

• Strategic Position and Action Evaluation Matrix

• Boston Consulting Group Matrix

• Internal and External Factor Matrix

• Grand Strategy Matrix

• Quantitative Strategic Planning Matrix

3. Financial Analysis

4. Final Strategic Assessment

Anheuser-Busch:

History

Anheuser-Busch (A-B), a major company in the United States, is considered a true American success story for a business that started out of nothing. Even as an avid malt-beverage consumer, I did not realize the extent of A-B’s dominance and prevalence in the beverage market place. Today, A-B is consider, by far, the most dominant company in the American beer market, controlling almost half of the beer sales in the United States—the world’s most profitable beer market.

The business started out around the year 1852 in a Bavarian brewery. Around the year 1860, the brewery was bought by a German immigrant by the name of Eberhard Anheuser who arrived in St. Louis only a few years before. Upon acquiring the business, Mr. Anheuser would change the name to E. Anheuser & Co. About a year later, Mr. Anheuser would find a business partner when his daughter’s husband began working for him in the brewery. In 1876 after months of testing, the world famous Budweiser Beer was introduced and from then on the company started to take off. Shortly after in 1879, the brewery would again change its name to Anheuser-Busch Brewing Association. Unfortunately, after seeing his dreams become a reality through the success of his brewery, Mr. Anheuser would die in 1880, leaving Adolphus Busch to run the business. Adolphus Busch was definitely the right man for the job as he was not only a master brewer but a good business man. Through skillful management, advertising savvy, and an undying commitment towards quality, Adolphus kept the company strong throughout is 23 year tenure until he passed in 1913; leaving his son August Busch Sr. to take over.

In 1920, despite the high demand for the Anheuser-Busch alcohol beverages, the business hit a huge road-block to their continuation of success--the U.S. prohibition of alcohol came into effect. Once this occurred, the true business savvy of the Busch family was tested and shown when they adapted to this huge obstacle by creating a whole new line of diversified products such as ice-cream, malt syrup, refrigerated cabinets, baker’s yeast, non-alcoholic Budweiser, root beer, and other flavored beverages and various products.

By 1933, however, the national prohibition ended giving A-B the green light to start back to their success streak that has continued up until today. The business has been a true example to others on how to capture mass market share by making bold but intelligent moves.

Critical Strategic Events

• 1933 – National Prohibition ends and the savvy marketing campaign that still shines today is begins when the Budweiser Clydesdales are introduced

• 1936 – Budweiser is sold in cans in an effort to save on costs

• 1955 – Busch beer line is introduced

• 1959 – The company’s first amusement park, Busch Gardens, is opened in Florida

• 1964