Business Strategic Essay Example | Topics and Well Written Essays - 2000 words

Business Strategic - Essay Example number of mergers and acquisitions over the years have seen AB InBev increase its production, market and distribution of about of its beer 200 brands that include the popular global brand Budweiser Beck’s. In addition to brands such as Stella Artois, Klinskoye, Bud Light, Leffe Hoegaarden, Skol, Jupiler, Brahma, Quilmes, Harbin, Sedrin, Michelob, Sibirskaya, Chernigivske and Korona (Reuters, 2014; Solitro, 2013). The company’s production and distribution is based on a division of its brands into global, multi-country and local beer in order to take advantage of different tastes of its customers based on geographical and regional presence. The beer brands produced by AB InBev has been further been categorized into premium brands, mainstream, and sub-premium brands to take care of the economic aspects of their customers (Reuters, 2014). This essay explores value chain analysis of AB InBev PLC that will provide a clear perspective on how the company achieves maximum process effectiveness. Therefore, this analysis will rely on key aspects of the value chain hypothesis introduced by Porter where the main activities under review will cover inbound logistics, operations, outbound logistics, marketing and sales, and service, which are all essential components in the operations of a company in the beverage industry (Porter, 2008). The importance of this value chain analysis is to find out how AB InBev PLC creates its competitive advantage and shareholder value that can only be attained through measures that ensure the cost of providing their products remains low. This is in order to generate a profit margin in addition to identifying and making assessment of competency in core areas of the company (Woodside, 2009). Inbound Logistics for any company covers all the necessary activities that take place to ensure uninterrupted supply of the necessary inputs and raw materials the company needs for a smooth production process (Dagoon, 2005). To have a have control over