HomeResearch & Knowledgeback to Homeback to Research & KnowledgeAB InBev: Dream, people, culture, and costback to

Case Study

AB InBev: Dream, people, culture, and cost

6 pages

March 2015

Reference: IMD-7-1662

When InBev took over Anheuser-Busch in 2008, creating AB InBev, the world’s largest brewer, the culture of Anheuser-Busch was to change dramatically. This change was entirely predictable. To know what was coming, August Busch IV and his managers needed only to look at what “os três do Garantia”, the Brazilian investment trio that called themselves 3G—Jorge Paulo Lemann, Marcel Herman Telles and Alberto “Beto” Sicupira—had done with every company they had gained control over in the past 25 years. There would be a relentless focus on costs, the establishment of an intense meritocracy, and a radical informality and openness symbolized by the smashing down of executives’ office walls to have them work side-by-side at large tables, their metrics posted publicly for all to see. This is what had happened when 3G’s Brazilian brewer Ambev merged with the Belgian Interbrew to create InBev. It is what had happened before that to Antarctica when they were bought by 3G’s Brahma to create Ambev. And it is what had happened to Brahma when they were bought by Garantia in 1989 and 3G first entered the business of making beer. “We have only one ‘trick’,” Marcel Telles says about how 3G improves the performance of their businesses, “which is to put in good people and our management system to change a company’s performance.”

Learning Objective

Understand the importance of leadership and organizational culture in performance.

Keywords

Organizational Culture, Organizational Change, Leadership

Settings

World/global, Belgium
Anheuser-Busch InBev, Consumer Goods, Beer, Manufacturing, Brewing
2008-2015

Type

Published Sources

Available Languages

English

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Case Study

Entrepreneurship through acquisition: Sébastien Perroud and the IAR Group

Entrepreneurship Finance Strategy

By Benoit F. Leleux, Dominik Hanslin, Iuliia Mordacheva, Matthias Rey and Frank Schuster

Case Study

Rede Mulher Empreendedora: Navigating mission integrity and financial sustainability

Entrepreneurship Sustainability Diversity and Equity and Inclusion

By Vanina Farber, María Helena Jaén, Jose Mello, Lilian de Miranda, Patricia Araripe, Peter Munk Laursen and Rabia Chishti

Case Study

Employees in Foxconn’s business empire

Leadership Organizational Behavior Talent Management

By Zhike Lei and Yunfei Feng

Article

What is the role of the board in a transformation?

Boards are playing an increasingly active part in shaping change efforts.

Board Leadership Business Transformation

By Didier Cossin and Yukie Saito

in Management Today

November 2024

Article

Se il manager sceglie di centralizzare la catena decisionale

September 2024 marks a turning point in corporate management and a drama in the management world, which began with an essay by Paul Graham, patron of Silicon Valley's leading startup incubator, Y Combinator.Graham coins a new paradigm, the founder...

Family Business Team Dynamics Organizational Behavior Leadership

By Alfredo De Massis and Paolo Lacchè

in Il Sole 24 ore

21 November 2024

Case Study

Not so black and white: Grupo Inca’s black alpaca dilemma (A)

Social Innovation Business Ethics Sustainability

By Vanina Farber, Carolina Duran Silva, Baris Silahcioglu, Hugo ten Zijthoff and Shih-Han Huang

Article

How advanced AI is redefining the role of the manager

Here are six ways in which the role of a manager may evolve in an age of advanced AI.

Artificial Intelligence Business Transformation Technology Management

By Michael Yaziji

in I by IMD

Entrepreneurship through acquisition: Sébastien Perroud and the IAR Group

By Benoit F. Leleux Dominik Hanslin Iuliia Mordacheva Matthias Rey and Frank Schuster
Case reference: IMD-7-2515 ©2024

Summary

GENEVA (SWITZERLAND), AUGUST 2021. There was a lot at stake for Sébastien. This was the culmination of his 18-month NCA supported search journey to find a company to acquire. Instead of a single target, he was now faced with the prospect of acquiring 4 separate companies at once, consolidating them into a group. One, SAS, was bigger than the others but also faced significant financial issues. Hopefully he had identified three additional companies as acquisition targets, all profitable and with low levels of debt but individually a bit too small. Should he pursue all three as a single deal or add SAS for a four-company deal? In a last-ditch effort to figure out the best deal configuration, he ran some simulations about the potential returns of the group with and without the SAS turnaround. With those projections in hand, it was time to finalize the management buy-in proposal to present to the investment committee the following week.

Reference IMD-7-2515

Organization IAR Group

Industry Finance and Insurance, Private Equity

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Entrepreneurship

Finance

Strategy

Browse all topics

Rede Mulher Empreendedora: Navigating mission integrity and financial sustainability

By Vanina Farber María Helena Jaén Jose Mello Lilian de Miranda Patricia Araripe Peter Munk Laursen and Rabia Chishti
Case reference: IMD-7-2613 ©2024

Summary

The case focuses on Rede Mulher Empreendedora (RME), Brazil’s largest support platform for female entrepreneurship, and its founder, Ana Fontes. Founded in 2010, RME had grown into a significant network by 2023, impacting the livelihoods of over 12 million women in Brazil, a country with substantial gender disparities. The platform offers initiatives to empower women economically and provides knowledge and tailored content to help them manage their businesses and navigate Brazil’s entrepreneurial landscape. By 2023, RME was at a critical juncture. Although RME had clear objectives to empower women, there was uncertainty about how each initiative contributed to its mission. Financially, RME experienced a dramatic shift: In 2022, it raised US$6 million, but in 2023, fundraising efforts dropped to US$2.6 million – a 57% decrease. This decline exposed RME’s heavy reliance on corporate philanthropy, from organizations like Google.org, Visa and the Mapfre Foundation, which constituted 80% of its income. The remaining 20% of revenue came from projects funded by RME’s partners, which proved inadequate to sustain the organization’s ambitious goals. Besides, in 2023, the fundraising campaign fell far short of expectations. Reduced funds meant that new projects were postponed, and existing initiatives faced the threat of being scaled back. Fontes must ensure financial sustainability, identify new revenue streams and reduce dependence on philanthropy while staying true to RME´s mission. Her goal is to achieve self-sustainability while continuing to fulfill the mission. This involves analyzing whether RME should pivot to a for-profit enterprise, remain a non-profit or adopt a hybrid approach to balance its social impact with financial viability. Students must put themselves in Ana’s shoes and evaluate the potential benefits and trade-offs of these models to determine the best path forward.

Reference IMD-7-2613

Organization Rede Mulher Empreendedora

Industry Services

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Entrepreneurship

Sustainability

Diversity and Equity and Inclusion

Browse all topics

Employees in Foxconn’s business empire

By Zhike Lei and Yunfei Feng
Case reference: IMD-7-2584 ©2024

Summary

Foxconn, a Fortune Global 500 giant and the world's largest electronics manufacturer, made headlines in 2023 by announcing a shift to a five-day, eight-hour workweek in its Chinese factories - a significant departure from its long history of extended work hours and grueling conditions. While this decision was celebrated by labor advocates as a critical step toward improving work-life balance, it sparked a complex debate among Foxconn employees. Many workers had come to rely on overtime pay just to make ends meet, as their basic wages barely covered essentials like rent and food. Foxconn had long faced criticism for pushing its workers to the brink, most notably in 2010, when 17 employees in China attempted suicide by jumping from company buildings, resulting in 14 tragic deaths. Despite this devastating toll, Foxconn's business growth remained unshaken. The company’s rise from a startup to the world’s largest electronics manufacturer is deeply intertwined with China’s massive influx of domestic migrant labor, where millions move to urban areas in search of better opportunities. This case delves into the reality of labor on Foxconn’s frontlines, exploring working conditions, compensation and living accommodations, as well as the far-reaching aftermath of the tragedies that shook both Foxconn and its clients, such as Apple. Beyond China, Foxconn’s global operations have faced similar scrutiny, and as the company expands into regions like India, it confronts new challenges. Cultural and regulatory differences further complicate its labor issues. This case highlights the critical tension between safeguarding worker dignity and well-being while meeting the relentless demands for productivity - whether in developed or emerging economies. As Foxconn continues to evolve and reshape its labor practices, the question remains: How can companies maintain profitability while ensuring the dignity, safety and well-being of their workforce?

Reference IMD-7-2584

Organization Foxconn

Industry Manufacturing

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Organizational Behavior

Talent Management

Browse all topics

What is the role of the board in a transformation?

By Didier Cossin and Yukie Saito
in Management Today November 2024

Summary

Boards are playing an increasingly active part in shaping change efforts.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Board

Leadership

Business Transformation

Browse all topics

Se il manager sceglie di centralizzare la catena decisionale

By Alfredo De Massis and Paolo Lacchè
in Il Sole 24 ore 21 November 2024

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Team Dynamics

Organizational Behavior

Leadership

Browse all topics

Not so black and white: Grupo Inca’s black alpaca dilemma (A)

By Vanina Farber Carolina Duran Silva Baris Silahcioglu Hugo ten Zijthoff and Shih-Han Huang
Case reference: IMD-7-2609 ©2024

Summary

Grupo Inca, a conglomerate that owned Peru’s leading textile business with a long history of working with alpaca fleece, was at a crossroads regarding the conservation and commercialization of black alpaca fiber. Historically, black alpacas were as common as their lighter-colored counterparts, but market preferences drove them to near extinction. The Inoue brothers, fashion designers committed to social impact, expressed an interest in creating a luxury collection using rare black alpaca fiber. This presents Grupo Inca with both an opportunity and a dilemma: Should it invest in developing this niche market despite uncertainties of both supply and demand, or collaborate with local government and NGOs to ensure sustainable practices, or maintain its current direction and do nothing? This compact case explores the intricacies of actions vs. impact, ethical responsibility and long-term strategic thinking. It provides a rich context for discussing the impact of business decisions on biodiversity and sustainability, the role of corporate values in guiding strategy and the potential for innovation in sustainability. Students will explore Grupo Inca’s role in the decline of black alpacas, assess the ethical implications of the company’s actions and develop strategic recommendations through scenario planning. The accompanying teaching note also covers methods to leverage AI tools to generate ideas and explore solutions that enhance students’ learning.

Reference IMD-7-2609

Organization Grupo Inca

Industry Manufacturing, Textile

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Social Innovation

Business Ethics

Sustainability

Browse all topics