implementation is paramount in matters ...
implementation is paramount in matters regarding company success. It addresses
the who, when, where and how of reaching the desired objectives and goals of a
company. Strategic implementation typically focuses on the entire organization
and usually occurs after SWOT analyses, environmental scans, and identifying
strategic goals and issues. As mentioned earlier, Heineken’s strength lies on
its strong brand name, digital marketing strategy, expertise in quality beer
production and a strong distribution network. Weaknesses include overdependence
on the US market, high customer concentration and low-profit margin resulting
from hiked prices for raw materials and petrol worldwide. Heineken’s also has
opportunities that would make it better than it is today and these are;
diversification into more flavors and fewer calorie beers, capitalizing on the
growing Asian market and the Middle East and coming up with unique beers on the
market for women. Lastly, threats arise from intense competition from other
beer producing companies, constant fluctuations in the price of raw materials
and a declining demand for beer in the US market. While the SWOT analysis
virtually breaks down the company and tries to rebuild it by initiating a
strategic plan, a strategic implementation follows suit to put the strategies
and plans into action so as to achieve the organizational goals. It is the
implementation that makes the company’s plans happen. A solid action plan
describes the way the organization will meet its set objectives.
excellent strategic action plan should help companies make their organization’s
vision concrete. The features of a successful implementation plan include
having a visible and visionary leader such as the CEO. This leader is
responsible for communicating the vision, behaviors, and motive necessary for
achievement (Root). Heineken’s International
Chief Executive Officer, Jean-François van Boxmeer perfectly fits this role.
Van Boxmeer did not hesitate to express the company’s vision to hit another 150
years of success in the beer industry during the 2014 Heineken USA National
Distributors Conference. The implementation plan would turn out to be a success
if everyone in the organization would be engaged in the plan. These include key
leaders like Mr. Dolf van den Brink, Heineken USA CEO who had a brilliant
company strategy for consistent growth that focuses on; One unique premise
channel, two major channels, three customers and four brands. Mr. Dolf was able
to take the company’s US market through tough times and numerous challenges and
drove the beer brand to prosperity with healthy sales growth. The senior vice
president commercial, Dirk De Vos is also another effective leader who outlined
the areas where Heineken’s strategic plan would focus on. He pointed out that
the company strategy would not change much although the company would
concentrate on grocery, convenience, Walmart and on-premise (Holtz). However,
the mandate to implement strategic plans should not be left to only the
managerial heads in the organization. Everyone in the company should be engaged
as they are all responsible for steering the organization towards realizing its
objectives and goals.
good strategic implementation should include performance measurement tools.
These tools are essential to an organization as they allow for follow up and
provide motivation. Managers can measure the job performance of employees
through various tools and processes. Since Heineken is a multinational company,
they might need to use more than one tool to measure performance as opposed to
smaller businesses that often choose a single tool that works best for them and
use it consistently. For Heineken employees to consider these systems of
measurement known as performance appraisals credible, they have to come across
as fair and just for all employees. Leaders implementing these tools should
choose tools that offer the highest possible level of objectivity. While removing
most or all subjectivity is difficult, some tools lend themselves to
objectivity better than others (Gluck). Some of these tools include;
• Balanced scorecard
• 360 Degree Feedback
• Management by objective
managers receive anonymous feedback from people they frequently interact with
in their daily operations. These include subordinates, external and internal
customers, superiors, direct reports, sales people and vendors. Managers often
trust responses from 360-degree feedback appraisals due to their confidential
nature. Respondents feel free to provide honest answers without fear of
meet with direct reports, and together, they come up with both short and
long-term goals for the year that align with the company’s business mission and
key objectives. At the end of the year, the managers measure the achievements
of their employees against organizational goals
balanced scorecard approach combines quantifiable information like budgetary
requirements and sales quotas with performance standards particular to the
position. It utilizes the key performance indicators (KPI) to track how well an
employee has reached short and long term goals.
tools allow employees to rate themselves against similar criteria used by their
supervisors. This often involves quantitative and qualitative criteria. This
method can raise the process’s credibility level in the view of the employee.
This tool offers discussion processes whereby differences can be discussed in a
safe, constructive manner when the scores tend to be somehow at odds with one
implementation of a strategic plan also involves a strategic map that identifies
and maps key ingredients that will direct performance. Such ingredients include
market, finances, people, partners, operations and work environment. While
Heineken lags behind on matters regarding its fair share of the market, it has
a good strategic plan that would provide a solution if implemented through
conducting few, bigger and better promotions, targeted distribution and
packaging assortment including slims cans. Lately, Heineken has had an
elaborate plan on taking over the Asian market as well as its growth strategy
in this region. Vietnam has been identified by the company as the next key
driver of its growing APAC business as it becomes even harder to gain profits
from the Middle East, Africa and parts of Europe. Heineken saw an opportunity
for growth across the Asian region and spent $60 million to build a brewery in
Myanmar last year (2015). The company also operates in India, China, Indonesia,
Malaysia and Cambodia and holds the country’s biggest share in half of them.
Heineken recently signed a joint venture with Asia Brewery, a Philippine
beverage producer so as to bring the Tiger and Heineken beer brands to the Philippines
Heineken beer company complies with the Dutch corporate governance code and
virtually applies all best practice provisions. The Heineken code of business
conduct holds that
all employees should behave with
integrity and fairness since these are as important as the company’s
long-standing values of respect, enjoyment, and passion. Heineken’s global code
of business conduct that is available in more than 30 languages ensures that
every personnel employed understands what is expected of them when acting on
the company’s behalf. It mainly focuses on commercial integrity, personal
integrity, and company integrity ("The HEINEKEN
Company - Age Gate").
demonstrates respect for all people and the society wherever it operates. As an
entrepreneurial and performance driven company, Heineken strives to develop its
business including business relations, while maintaining its excellent
reputation. This means the company adheres to regulation and laws as well as to
the spirit and letter of this code and its underlying policies.
Heineken does as a company, and an employee is a reflection of who Heineken are
and what they stand for as well as what they aspire to do. The company strives
to display personal integrity so as to ensure it preserves its ability to
operate, the confidence of all its stakeholders and its reputation.
believes that all its resources are entrusted to them irrespective of wherever
they work or whatever role they play. Heineken, therefore, has a duty to use
and protect these resources as intended professionally and carefully to the
best of its ability.
matters regarding Heineken’s financial information, the company recognizes the
importance of its historical performance as well as up to date financial
information and future outlooks for its investors ("The
HEINEKEN Company - Age Gate"). The company’s key figures and
financial ratios as of the last three years are as follows;
(in millions of Euros) 2013 was 19,203, 2014 was 19,257 and 2015 was
profit for 2013 was 1,364, 2014 was 1,516 and 2015 was 1,892
profit (beia) 2013 was 1,585, 2014 was 1,758 and 2015 was 2,048
from operating activities in 2013 was 2,554, 2014 was 2,786 and 2015 was
from operating activities (beia) in 2013 was 2,941 2014 was 3,129 and 2015
dividends in 2013 was 512, 2014 was 632 and 2015 was 741
operating profit (beia) as a percentage of revenue in 2013 was 15.3%, 2014
was16.2% and 2015 was 16.5%
figures show a rising trend which is a good thing for Heineken as a company.
However, a more advanced strategic plan and implementation will help the
company cement its legacy as a consistent global market leader in the beer
industry, reaping big profits.
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