Heineken Case Study Solution

Heineken was founded in 1864 by Gerard Adriaan Heineken in Amsterdam Netherlands. Heineken has over 165 breweries in more than 70 countries and employs approximately 76,000 people. Heineken is currently the second largest brewer in the world which has lead the European market with a 60% market share. In the US it is the second imported beer following Grupo Modelo’s Corna beer. The high level of competition concerning the imported segment has decline Heineken’s sales. This leads to the fact that Heineken N.V bought back the rights’ distribution and also implemented an owned subsidiary in White Plains N.Y, so that it can attain a new market out in the United States.

The New York’s headquarters is where Heineken’s operations are run, data center

HOPS concerned orders and also renewal for individual Heineken’s distributors based on factors like past sales performance, seasonal trends and geography.Due to this new system, the company’s distributors looked online and also reviewed their sales prediction, changed their order if they want to and With this system, Heineken distributors accessed on line and reviewed their sales forecast, modified their order if desired, and submitted their orders. At the end, HOPS took orders and processed the information right away and made them available for Heineken so that managers can plan the brewing and delivery agendas.Since the order plans were available in real time, the company’s brewery in Europe was able to manage to regulate its brewery and shipment agendas. Moreover, the HOPS system could inform distributors of promotional events, new products or production blockage. This type of information system is to be able to deliver qualitative and quantitative results in theshort and mid-term, and help the company to attain its objective on the long

Heineken 's total revenues for fiscal year 1998 were over US$7.3 billion, a 10.4% increase from 1997

7. Net. Total net income was $522.2 million with a net profit margin (see Exhibit 5 for Net Profit of Heineken from 1997 to 2000).

HOPS,

Qualitative

1. Staff spent less time on ordering issues and more time working with distributors to sell beer

2.Relation with distributors improved

3.It eliminated Heineken 's district management duties of its sales staff

4. Increased of the sales force, without hiring an additional person

5. Human error in order taking was eliminated and now orders are received electronically instead of via telephone or fax

6. A more accurate planning throughout the entire material flow process

7. Better inventory utilization

8. It allowed the company to learn about new technology and encourage it to think creatively about new ways to do business

This web based system helped the company to attain a lot of objectives, improve customer’s satisfaction and increase Heineken’s sales and revenue. However, Internet system is susceptible to informatics attack, which are the main worry for Heineken USA and its distributors concerning the security issue that it represents to the