Executive Summary

From our research, Budweiser is content with being the number one beer company in the world,
increasing sales each year in operation. We found that Budweiser met many views associated with the
world, business, and behavioral dimensions. The company also displayed its stability as we reviewed
Budweiser, owned by Anheuser-Busch, under the marketing view and the financial view. Not only do they
hold almost half of the market share in the industry but their stock prices, sales volume, and net sales
have all increased from 2002 to 2003. We also looked at Budweiser in terms of geography and culture.
We found due to the fact that the "western" countries consume the majority of beer, it only makes sense
that Anheuser-Busch concentrates on that market. Along these lines, another key goal that is also
important to Anheuser-Busch is to boost other beer markets that are located in other cultures, where at
the time beer is not a major consumption.
Input-Processing-Output Model for Budweiser
Mission Statement of Budweiser
Budweiser's mission is to be the number one beer company in the world by enriching and entertaining an
increasing global audience. To deliver a substantial amount of 15% return to our shareholders, we will add
to life's enjoyment through our products, services, and relationships. In addition our goal is to increase
sales by 25% each
year.
Organizational Dimensions of Budweiser
World Dimension
Geographical View: Anheuser-Busch is a global enterprise with distribution centers in the United
Kingdom, Japan, Canada, and Spain.
Civilization View: Due to Anheuser-Busch's global distribution, the company itself cannot represent only
one single civilization. If fact, the company is made up of many different civilizations, including the United
Kingdom, Japan, Canada, and Spain. One of the main reasons that these particular countries have a
distribution center may be due to their culture. The people there view beer as a favorable product that
everyone should be able to enjoy, and one of the reasons the product is popular may be because of that
belief. This provides an enormous market for the beer industry.
Behavioral Dimension
Culture View: Since Anheuser-Busch is a global enterprise, there are many different cultures represented
in their workforce. By embracing a well-diversified workforce, Anheuser-Busch promotes a well-rounded
organization. Employees are more likely to have self-motivated goals that are inline with the company's
goals of the company, and without satisfied employees the company would not maximize its profits. "We
actively support numerous community programs sponsored by a wide variety of ethnic groups; we
encourage the development of minority- and women-owned companies by purchasing $250 million in
annual goods and services from those companies; and one of our 10 core values is building a highperforming, diverse workforce" (Diversity at Anheuser-Busch, pg. 1).
System View: At Anheuser-Busch, the process of making beer is one that is and has been followed very
closely. In order to produce one of the world's top beverages, all the task associated with the process
must be done in "an efficient, reliable, and predictable manner" (Rienzo, pg. 64). Technology plays a

major role, as the beer must go through many stages from the milling to the fermentation and aging of the
beer. Mash tanks, brew kettles, fermentation tanks, and lager cells are some of the machinery and
equipment needed to produce a consistent beer time and time again. Not to mention the refrigeration
process needed to keep the finished product fresh. But machinery is not the only tool being used to make
sure Budweiser's beer is consistent. A brew master follows the beer through every process, tasting it for
consistency. This person must ensure that the final product is fresh, tasty, and drinkable for future
customers.
Business Dimension
Product View: Anheuser Busch is most commonly known for the different types of beer that they produce.
Most people are not aware of the other things that exist within the corporation. Along with its theme parks,
Anheuser Busch owns its locomotive, packaging, recycling, and media companies. Anheuser Busch also
sells other products related to their beer, such as clothing and other accessories.
Service View: At first glance, Anheuser-Busch's service view is to provide its customers with quality beer.
However, Anheuser-Busch is a corporation that provides a broad range of services within different
aspects of the corporation. These special groups need to come together to create the final product. The
different companies and services within the corporation include: Anheuser-Busch, Inc, the company's
brewing subsidiary, Anheuser-Busch International Inc., the company's international beer subsidiary, Busch
Agricultural Resources Inc. which provides high quality brewing raw materials and services to AnheuserBusch's brewing operations, and Busch Media Group, Inc, who performs all media planning and buying
for Anheuser-Busch's advertising. A great deal of effort and coordination within these groups is the way
that a quality Anheuser-Busch product such as Budweiser can be found at any grocery or convenience
store at a cheap price with attractive packaging.
Marketing view and the Financial view of Budweiser
Anheuser Busch is an extremely large corporation that operates internationally. Budweiser is a product of
Anheuser Busch and is currently the number one selling beer in the world. Anheuser Busch's marketing
strategy makes this possible.
Anheuser Busch typically advertises their products during sports events. The sport audience is a large
audience that typically consists of people that have the same general attitude toward the sport they are
watching. Similar target markets exist for Anheuser Busch because of this reason. Budweiser is
advertised excessively throughout the football season. This means that their target market during football
season are typically loud and obnoxious men that range from the ages of 18-49 are overweight and have
a crude sense of humor. This is great because a large part of the United States population seems to fit
this profile.
Anheuser Busch currently holds 49.2% of the market share and has had a 5.4% volume growth. The
marketing strategies of Anheuser-Busch make this domination of the beer industry possible. The great
thing about beer is that there is no substitute for it. A better or more efficient product will never replace
beer. As long as Anheuser-Busch effectively markets their product to the consumer masses they will
continue to dominate the beer industry well into the future.
Anheuser-Busch is a corporation that focuses its resources on a variety of operations and investments
that include beer, adventure park entertainment, packaging, aluminum beverage container recycling, malt
production, rice milling, real estate development, turf farming, metalized paper label printing and
transportation services. However, the most profitable and well known aspect of these investments is beer.
Budweiser has been the world's best selling beer since 1957, and is distributed in more than 70 countries.
Budweiser leads the U.S. premium beer category, outselling all other domestic premium beers combined.

Also, one in almost every five beers sold in the United States today is a Budweiser, this makes AnheuserBusch a very profitable and financially stable company (Anheuser-Busch, 2004).
Due to a sluggish economy, 2002 was not a stellar year for most companies. However, Anheuser Busch
experienced significant gains in many areas; stock price was up 7.1% with total return to stockholders,
including dividends at 8.7%. Domestic market share reached 49.2% and sales volume grew to 101.8
million barrels (Anheuser-Busch, 2004).
As the following table shows, recent highlights from 2003 show net sales increased by 4.3 percent
compared to 2002, reflecting a 3.9 percent increase in domestic beer segment net sales and increased
sales for the international beer, packaging and entertainment segments. Income before income taxes
increased 7.7 percent vs. the full year 2002, due to increased domestic beer segment pretax income,
along with improved profit contribution from all of the company's remaining business segments. Domestic
beer segment pretax income was up 6.8 percent, reflecting higher revenue per barrel and increased beer
volume. International beer segment pretax income increased 19.3 percent, primarily due to volume and
profit growth in China (Anheuser-Busch, 2004).
Year Ended December 31 ($ in millions, except per share)
2003 vs. 2002
2003 2002 $ %
Gross Sales $16,320 $15,687 Up $633 Up 4.0%
Net Sales $14,147 $13,566 Up $581 Up 4.3%
Income Before Income Taxes $2,824 $2,624 Up $200 Up 7.7%
Equity Income $345 $352 Dn $7 Dn 1.9%
Net Income $2,076 $1,934 Up $142 Up 7.4%
Diluted Earnings per Share $2.48 $2.20 Up $.28 Up 12.7%
Relationships between Geographical and Culture View from World and Behavioral Dimensions
Global distribution allows Anheuser-Busch to belong to several civilizations, but mainly Western and
Japanese. The many different geographical locations and cultures share in their enjoyment for several
sport activities including golf, baseball, and soccer. These activities are typically viewed by most Western
civilizations as leisure activities, providing Anheuser-Busch with a market in which to promote their
product. Since Anheuser-Busch was founded in the United States, they are continually striving to reach
out to other countries where the people have similar wants and needs as Americans. They recognize that
in order to distribute their product globally, they have to not only provide a superior product to the people,
but become a part of their civilization.
Since the consumption of beer is most popular in the Western countries, Anheuser-Busch is most
dependent on maintaining a relationship with that market. Though you do not need beer to survive (even
though some would argue that fact), the Western culture would not be the same without the presence of
beer. Anheuser-Busch would most likely try to strengthen that belief among the other cultures they
distribute to in the venture to increase sales. The more that the beliefs of the culture are like those of the
company's, the more beer they will sell.
The company needs to know whether the product will fit into the new culture. One of the most important
pieces of information gathered while researching the expansion site is about the culture. If the culture is
not compatible with the product, or there is no potential in that market, that information must be given to
management immediately. Building the business in the right geographical location so that the existing
culture will value the product is crucial to whether or not the business will be successful.