Saturday, October 20, 2012

Week 6: Hierarchies I: Strategy Formation in Firms


  1.    Choose a firm on which you have data, for instance through a recent annual sustainability report. Analyse the underlying society-nature paradigm of this firm. [it is useful to substantiate your analysis with quotes from the report or website(s)]
  2.    Give a well-argued assessment of the extent to which this firm, in your opinion, contributes to the sustainable development of the larger system of which this firm is a part.

For this assignment, I chose Heineken International, with more focus on Heineken NV.
Heineken's slogan is ''Brewing a Better Future'' represents the objective it has to become the World's greenest brewery (sustainable)by 2015. According to the annual report, it seems (is alleged) that they have been progressing according to their established plans to progress in the triple bottom line.  From my viewpoint, I believe this firm possesses an ''Environmental Protection'' paradigm . where the ''private interest government'' form of coordination is obvious
Taking a look at Heienekn NV, '' Heineken cares'': as an alcohol producing industry, it is engaged in many campaigns and have a responsible advertising policy, even though the alcohol industry was given responsibility for regulating its own advertising and promotional activities through their own ''Committee for Advertising Rules'' and so far not controlled by legislation, government sanctions are present if violation occurs.On a local system boundary, it seems that Heineken NV is quite bound to those regulations, but that would not be the case on other countries, for instance in Russia (according to Andrei; a Dutch-Russian classmate) Heineken commercials are there on T.V. throughout the day!

On the Planet aspect '' Green Brew'' and ''Green Commerce'': Heineken gives big focus at present on renewable energy ''Wind Turbines'' and that took place after getting a government subsidy on it. Meanwhile, on other aspects as reducing the carbon and water footprint, they allege on their report to become close to their targets, but the progress is not significant according to their figures (2009-2011) and still water use does not follow a well- regulated resource management strategy, maybe it will if the government provides some regulation on it.

(Taken from 2011 sustainable report)



taken from 2009 sustaianbility report


It is most definitely unreasonable to assess an organization's  level of sustainability according to what has been  mentioned in their sustainability reports , which are designed to be a mean of attractive publicity. Generally speaking, Heineken is a profit- oriented organization, with shareholders fully aware that becoming more sustainable guarantees competitive advantage, rather than being a core value. The variation of how sustainability is attained if we take the  the planet aspect as an example, it is clear how Heineken  complies to the government regulations of each country in which it operates ( if we make a comparison between 2011 sustainability report of Netherlands and Egypt, there's even no need to get into details to make a point….. for a  132 –page Dutch report full of numbers, charts and statistics and the 4- page Egyptian report, referred to as ''Factsheet''!!)
Another comparison between the Dutch, Egyptian and Nigerian reports regarding reduction of water consumption, the goals set are significantly different, showing more action and responsibility in the Netherlands, not to mention that the Dutch breweries are the world's biggest!!

Egyptian figures (2011)


Nigerian Figures (2011)


Dutch figures (2011)


If Heineken truly aspires to become the world's greenest brewer by 2015, some unified goals regarding energy, water consumption, …etc  among all producing countries should be established.
On narrowing the system boundary into Netherlands,  Heineken seems to achieve noticeable progress in the three cornerstones of sustainability, this is a quote  written by a Heineken outsider and figure of the Dutch government, might be regarded as a fair support to that:
 Ton Rombouts, Mayor Of ‘S-Hertogenbosch in 2009's sustainability report:
“Sustainability and corporate governance are engrained in the company. From the time the company opened its doors in 's-Hertogenbosch in 1958, Heineken has been strongly involved in the economic and social development of the town. As far as sustainability is concerned, the company has successfully been the driving force behind the national flagship project 'Sustainable revitalisation of the Rietvelden Industrial estate', which included a focus on soil sanitation and the structural protection of industrial water collection. The company is also very committed and dedicated to improving the links between education and the business world. With the brewery's support, many small and large events have blossomed into image-defining events, and great meeting places for people from the region and beyond, such as Jazz in Duketown, Burgundian ’s-Hertogenbosch, Martime ’s-Hertogenbosch, and last but not least, the annual Carnival. With the biennial Brewery Cultural Award for the city of ’s-Hertogenbosch, the company reinforces its connection with cultural life in the city. It gives young professional artists an opportunity to develop. The star in the Heineken logo is clearly casting its rays on the development of the city.”  

Refrences:
Heineken Sustainability reports:
1) Heineken NV 2011:
2)Heineken Egypt 2011:


3) Heineken Nigeria 2011:

4) Heineekn NV 2009:






No comments:

Post a Comment