Heineken’s Organizational Structure and Threat Management

Heineken’s Organizational Structure and Threat Management
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Heineken’s Organizational Structure and Threat Management
Increased awareness of and sensitivity to health concerns raised by the consumption of beer and other alcoholic beverages leads to a significant decline in their sales volumes thus negatively affecting the revenue returns for the industry. The industry players in the beer manufacturing and brewing sector have no option but to come up with new global strategies that would safeguard their market positions while also maintaining their competitiveness. Heineken, for instance, implemented a global strategy that aims for agility in responding to the customer needs and demands in the market, identifying and focusing on existing and emerging growth opportunities, and reducing its cost of production. Yielding positive results from the new strategies requires a cohesive effort by all the members of the organization. Heineken’s organizational structure and management are embedded in an open culture that serves to deliver on the company’s interests effectively. The organization enjoys a superior market position to its competitors, which is threatened by the global campaigns against alcohol abuse and the increased awareness to personal health among the younger consumers of its over 200 local brands. A breakdown of Heineken’s organizational structure and management determines its efficacy in dealing with the outlined business threat and maintaining or achieving its prospects in the long term.
Heineken’s organizational structure allows for a decentralized approach as its management is divided into five categories each having a special role or handling specific tasks in the decision-making process. The organizational structure consists of Heineken Holding N.V., Heineken N.V, Supervisory Board of Heineken N.V, and an Executive Board of Heineken N.V (Heineken, 2015). Heineken Holding N.V serve as the leadership of the entire organization with no specific task other than leading the business. It is made up of four directors and holds the final decision on the corporate direction to be followed by the entire organization. Heineken Holding N.V delegates tasks to the Heineken N.V, which is the legal unit of the organization and serves to ensure that the directives of the leadership are implemented. The supervisory board, on the other hand, advice the management of the executive board of the Heineken N.V. The advisory role played by the supervisory board entails the consolidation of all the input and opinions of the organization’s stakeholders (Heineken, 2015). The Executive Board Heineken N.V is responsible for the formulation of strategies and their implementation, and management of the daily operations of Heineken N.V and its subsidiaries. The executive board has the mandate of making key decisions related to the daily operations of the organization and its subsidiaries and thus saving time on the process.
However, corporate decisions take a longer period as consultations have to be made along the hierarchy before a final directive is given by the Heineken Holdings N.V. The decentralized appr...