Business Communication of Heineken Company - Essay Example

?Group Work: Business Communication Presented to Part Produce a corporate communication Heineken is one of the world’s leading brands for more than 130 years. It is the next best imported beer in U.S and the best in Europe. The company has a global network of distributors with 115 breweries in many countries. Its premier brands are Heineken and Amstel Light. Heineken aims at sustainable growth as a market leader and expand its product portfolio. Innovation of new products, marketing strategies, communication and packaging is essential to the company’s growth. The goal of the company is sustainable growth reflected in consistency and profits. In order to achieve its goals, the company need commitment to accelerate efficiency, reduce cost, focus on potential markets and implement efficient decision-making and execution processes. One of the greatest challenges the company is faces is that the beer industry is in its mature competitive stage. In the beer industry, 37% of American adults are beer drinkers. Furthermore, it is the widely purchased hot drink with a projected steady growth. The beverage is enjoyed by all types of consumers. Competition from other competitors is immensely strong. Every company tries to strengthen their global position. Some of Heineken’s rivals are InBev and Grupo Modelo. To cope with the stiff competition most companies, sorted to merging and acquisition. For example; South African PLC united with Miller, and Molson was acquired by Coors. In 2004, InterBrew merged with Ambev and later acquired Anheuser-Busch. Heineken has to ensure that it is well presented globally. It became the first company in worldwide distribution of its products aided with strategically placed warehouses. In its operations, small brewers were acquired that made it the biggest beer maker in Eastern Europe. With many brewers across the world, the company has the strength of shipping its products to local areas with minimum costs. Through the acquisition of many breweries, it managed to spread it label. The company decided not to advertise its product on TV in UK from the year 2006. This communication strategy is challenging because most corporations used media to reach homes of millions (Lin, no date). Part 2: Evaluation of corporate communication Is the communication strategy chosen by Heineken a creative corporate communication? The strategy was a right one. The aim of corporate communication is to pass your message across to clients, organization staff as well as to the stakeholders. The message preached is the starting point of discussion within the organization, and a message can be communicated through many options. The point of argument for Heineken was that TV channels cannot effectively reach targeted market because they are many. The company sought for better alternatives that were adequate and effective than TV adverts (Aashwin 2005). Heineken became sponsors of Heineken European Cup in rugby union and European Champions League through Amstel beer. Through this strategy, the company would get exposure on TV with a target of reaching its consumers. This mode of approach looks more effective than blanket TV adverts. Creativity in reaching its global market puts it ahead of its competitors. Through this sponsorship program, customers get associated with the product of the organization. Heineken incorporated other efficient ways of communication. Communication is conveyed through mission statement, packaging, logos, livery, endorsement and straplines. Part 3: Legislation Communication policy is required by organizations because it provides guidelines managers should use in daily communication with employees, stakeholders and customers. Guidelines are also issued on company spokesperson and rights of employees. A clear definition of operational methods is required because they are used in marketing and influence physical design of markets and regulations. Factors to be considered when developing operational methods are; sales methods, what to be handled in terms of standards or grading and types of licensing and leasing arrangements. Operational issues must reflect government and community concerns. Some of these concerns include; weights and measures application, rental and stall allocation policies, dispute resolution strategies and enforcement of environmental, public health and food safety needs (Goodman, 1994 pp. 131-132). Ethical issues Henry Ford stated “A business that makes nothing but money is a poor kind of business”. From his statement, he implied that a compelling business must have a code of ethics. In general terms, ethics is the study of standards of behavior that promote the moral and welfare of human beings. Business ethics are codes of conduct that govern moral features in commercial activities. Guideline principles for business ethics and standards are; business ethics should define acceptable code of conduct in business and underpin decision-making procedures of the organization’s management. There is a distinction between ethical business behavior and law. Business ethics entails what is correct and what is incorrect while business law looks at what is lawful and what is not lawful. Two practices of business ethics are; legal compliant programs, and empirical studies into moral beliefs and attitude of businessmen and women. Claims for best practices, application of theories like traditional ethics, justice or state to firms subscribe to business ethics. There are five ways of thinking ethically. These are “The right good, rights and duties, fairness, virtue and the common good” (Santa Clara University-Welcome. n.d.). Management strategies for companies vary from organization to organization. Comparative strategical analyses for business ethics management are: it should rely on employee values, compliance, ethics exhortation and management of values. Five tests for ethics responsibility rely on the question; “Are you responsible?” They are severity of the harm, certainty of the harm, degree of involvement, cost of acting and certainty of the solution (Albert, 1968 pp.2-8). Ethical decisions are legal and comply with ethical standards of a community. Business ethics is linked to corporate social responsibility like; “Should supermarkets sell lager cheaper than bottled water?” Ethical codes of an organization should cover corporate social responsibility, supply chain and customer relations, environmental policy and actions and rules governing personal and corporate integrity (Hooker, 2003). Operational issues Organizations face many challenges due to globalization of the market place from digitalized technology that has revolutionized communication. Other challenges arise from business processes to innovation and customer relations. Major issues facing organizations are competition, ways of attracting new customers and access to capital and financing of projects. Sustained growth, recruiting of new employees, increasing costs pose threats to organizations. Companies have to train and retain skilled employees, change management strategies, abide by government regulations and customer relations. Operational issues like communication, government regulations are essential to any business and at the same time quality of products and services need to be improved. Limited resources like money, labor remain to be constant issues that need solutions. All activities must be fulfilled within a specific time frame of which in case of any failure, losses are likely to be incurred. Time becomes essential for the success of any business. Issues of concern in management perception are; growth, sharing of business vision with middle level managers and employees, customer service, strategic planning and leadership. Other issues of importance include health-care costs, control of operation costs, eroding margins, emerging markets and government regulations. A check-list is required for effective operation of the business. Display Screen Equipment is a Health and Safety Regulation that seeks to protect the health of workers. DSE legislation helps reduce risks from VDU work. Efficiency of DSE regulations requires employees to analyze their workstations to assess risks and modes of reducing them. The workstations use must comply with the expected minimum requirements. Employers are required to plan work activities and include breaks or several activities. Information and training should be offered. Bibliography Aashwin 2005. Creative Corporate Communication. Retrieved from http://www.bized.co.uk/educators/16 19/business/marketing/lesson/communications1.html on 20th April 2012. Albert Z. C.1968. Is Business Buffling Ethical? Harvard Business Review (January-February 1968) pp 2-8. Chryssides, D. G. & Kaler, H. J. 2006 An Introduction to Business Ethics. Thomson Learning, UK. P. 12. FAO Corporate Document Repository. (No date) Market Infrastructure Planning. A Guide for Decision Makers: Market Operational Issues. Agriculture and Consumer Protection. Retrieved from http://www.fao.org/docrep/003/x4026e/x4026e05.htm on 20th April 2012. Goodman, M. B.1994. Corporate Communication: Theory and Practice. State University of New York.U.S.A. Pp.62. 130-132. Hooker, J. 2003. Why Business Ethics. Carnegie Mellon University. Lin, J. (no date) Heineken Case Study. Retrieved from www.programmerjin.com Marcoux, A. Fall 2008. "Business Ethics", The Stanford Encyclopedia of Philosophy (Fall 2008 Edition), Edward N. Zalta (ed.), Retrieved from . On 20th April 2012. Santa Clara University-Welcome. (n.d.). What is Business Ethics? Retrieved from http://www.scu.edu/ethics/practicing/focusareas/business/introduction.html. on 20th April 2012. Tyson, E. & Schell, J. 2011. Small Business For Dummies. 4th Edn. John Wiley & Sons, U.S.A. p.333. Read More