SWOT Matrix and the Grand Strategy Matrix for Anheuser-Busch InBev (Essay Sample)

Name:
Instructor’s Name:
Course details:
Date Due:
SWOT Matrix and the Grand Strategy Matrix for Anheuser-Busch InBev
Anheuser-Busch Companies Inc. is a firm developed under the collaboration of families and events. It was an idea from the Bavarian immigrant, which was failing at the moment. Started as a soap manufacturer, the firm used the ideas of Adolphus Busch, which was experienced in brewing with the intention of stimulating the business. Their partnership, Anheuser and Busch, ignited the business of brewing and thus increased their sales and distribution throughout the nation. This paper will give a brief description of the SWOT and Grand Strategy matrix analysis, which positions the competitive nature of the firm in global market (Anheuser-Busch InBev).
SWOT Analysis
The main purpose of Strength, Weaknesses, Opportunities and Threats (SWOT) matrix is to give managers the ability to come up with an analysis of the competitive position of their firm. The matrix under study has both internal and external factors that help in building the business. Ideally, strength and weaknesses form the internal factors while opportunities and threats form the external factors (Böhm).
The following table shows the SWOT matrix for Anheuser-Bushc InBev Limited.
Strengths
Vast portfolio of brands
Using variegated and exposure across various region
Constant novelty product introduction
Leading position
Strong heritage
Availability of health-conscious beer brandsWeaknesses
Competition cause its market share goes down
Company is highly dependent on whole sellers for its sales
Poor after-sales service
Negative image
Advertising
People’s notion Opportunities
Cut debt
Contractual agreement
Introduction of new products
Greater demand
New innovation to add healthier drinks
Specialty beers for upper class and expansion for the middle classSO
Increase market share in global markets
Infiltrate aggressively in advertising sponsorships
Work with other firms like wall-Mart will help to increase sales
Re-investment in core business to improve efficiency
Re-investment in essential portfolios to increase capacity
WO
Increase preventive expenses on education to sustain good public image
Partner with other distributors to improve on domestic sales
Use research and development to give lower calories of beers
Improve on the awareness strategy through advertisement
Rationalize entities to improve operations inside divisions Threats
Government involvement
Advertisement and marketing costs
Illicit liquor trade
Increasing US malt barley prices
Aging population
Seasonal sales industryST
Adjust the pricing strategy that will help in offsetting the excise taxes
Continue dominating the market share by use of advertising strategies
Improve on technology
Improve on product quality
Increase global market share WT
Adjust polices that concerns derivatives
Adjust procedures regarding derivatives
Improve on advertising non-alcoholic products
Research and development to reduce alcohol content
Improve on the low calorie adverts 
Threats
Government involvement: the Federal Bureau of Alcohol, Tobacco and Firearms have the mandate that regulates policies and taxation on federal level. Individual state has a complicated set of regulations that control the industry of alcohol, tobacco and firearms. The regulations normally increase the taxes every time. The firm has to comply with the regulations (Daft and Daft).
Advertising and marketing costs: for the firm to increase brand awareness, the firm has to increase the advertising and marketing activities form them to catch up with their new competitors (EBSCO Publishing).
Opportunities
Cut debt: the removal of risk by financing $37.6 billion of the $54.8 billion from the original acquisition helps in reducing the debt (Hartline).
Contractual agreement: the firm signed a contract with iTradeNetwork to help it in finding solutions for demand (Phadtare).
Introduction of new products: the introduction of products like Bud Light Lime helps in increasing the revenue of the firm (Rao, Rao and Sivaramakrishna).
Greater demand: considering the fixed price on the alcoholic beverages, which are higher than that of other competitors, the consumers still consume their products (United States. Dept. of Agriculture).
Strengths
Vast portfolio of brands: the firm has over 200 brands of beer. The recognize brands include Budweiser, Stella Artois, and Beck’s.
Variegated and exposure across other regions offer assistance in risk reduction.
The firm is a leading position in major beer markets: the firm was number one firm in terms of sales volume ( Wikiwealth).
Weaknesses
The competition cause its market share goes down: some firms like Miller Coors are big competitors, which dominate the market.
Company is highly dependent on whole sellers for its sales: the firm depends on wholesalers, which is a challenge on the logistical constraints (Williams and Rothwell).
Grand Strategy Matrix
Grand strategy matrix analysis is also an important strategy for a firm. Anheuser-Busch Companies Inc. is a good market share position. The firm has a strategic point, which places them in Quadrant I. This matrix offers the managers an...