Strategic Initiative Paper – Anheuser-Busch Strategic Initiative Paper – Anheuser-Busch Introduction Strategic Planning Initiative Anheuser Busch with its strategic planning focuses on being the “best Beer Company bringing people together for a better world†(Anheuser-Busch InBev Investors, 2015). Doing this by maintaining the quality of the brands the company is already known for and delivering new innovative products such as the Bud Light Lime Ritas family that has created a whole new category of alcohol beverages. The product appeals to non-beer drinkers “especially women†capturing some of the hard liquor, cocktail and ready-to-drink categories. Other innovations such as Cubanisto, a rum flavored beer has been introduced to European markets.

These new innovative strategies much like past innovations will continue to push Anheuser Busch into a bright future. The company will continue developing new brands and building new consumption occasions while also promoting responsible drinking. The strategic innovations doesn’t rely solely on new products but has also turned to some new packaging. For example and new sixteen ounce recloseable aluminum bottle was introduced along with the first twenty-five ounce. Both packaging types are currently exceeding expectations and have been expanded from Bud Light to other brands (Anheuser-Busch InBev Investors, 2015).

References Anheuser-Busch InBev. (2015, October 11). INVESTORS . Retrieved from Anheuser-Busch InBev: annual-and-hy-reports/2014/AB_InBev_AR14_EN_full.pdf MAT540 Homework Week 2 MAT540 Week 2 Homework Chapter . A local real estate investor in Orlando is considering three alternative investments; a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions.

The following payoff table shows the profit or loss that could result from each investment: Investment Weather Conditions Shortage Stable Supply Surplus Motel $-7,500 ,000 ,000 Restaurant 3000 7,000 6,500 Theater 5000 6,000 4,000 Determine the best investment, using the following decision criteria. a. Maximax b. Maximin c. Minimax regret d. Hurwicz (α = 0.4) e.

Equal likelihood 2. A concessions manager at the Tech versus A&M football game must decide whether to have the vendors sell sun visors or umbrellas. There is a 35% chance of rain, a 25% chance of overcast skies, and a 40% chance of sunshine, according to the weather forecast in college junction, where the game is to be held. The manager estimates that the following profits will result from each decision, given each set of weather conditions: MAT540 Homework Week 2 Decision Weather Conditions Rain 0.35 Overcast 0.25 Sunshine 0.40 Sun visors $-400 $-200 ,500 Umbrellas 2, a. Compute the expected value for each decision and select the best one. b.

Develop the opportunity loss table and compute the expected opportunity loss for each decision. 3. Place-Plus, a real estate development firm, is considering several alternative development projects. These include building and leasing an office park, purchasing a parcel of land and building an office building to rent, buying and leasing a warehouse, building a strip mall, and selling condominiums. The financial success of these projects depends on interest rate movement in the next 5 years.

The various development projects and their 5- year financial return (in ,000,000s) given that interest rates will decline, remain stable, or increase, are in the following payoff table. Place-Plus real estate development firm has hired an economist to assign a probability to each direction interest rates may take over the next 5 years. The economist has determined that there is a 0.45 probability that interest rates will decline, a 0.35 probability that rates will remain stable, and a 0.2 probability that rates will increase. a. Using expected value, determine the best project. b. Determine the expected value of perfect information.

Project Interest Rate Decline Stable Increase Office park

12strategic Initiative Paper Anheuser Buschstrategic Initiative Pape

Strategic Initiative Paper – Anheuser-Busch Strategic Initiative Paper – Anheuser-Busch Introduction Strategic Planning Initiative Anheuser Busch with its strategic planning focuses on being the “best Beer Company bringing people together for a better world†(Anheuser-Busch InBev Investors, 2015). Doing this by maintaining the quality of the brands the company is already known for and delivering new innovative products such as the Bud Light Lime Ritas family that has created a whole new category of alcohol beverages. The product appeals to non-beer drinkers “especially women†capturing some of the hard liquor, cocktail and ready-to-drink categories. Other innovations such as Cubanisto, a rum flavored beer has been introduced to European markets.

These new innovative strategies much like past innovations will continue to push Anheuser Busch into a bright future. The company will continue developing new brands and building new consumption occasions while also promoting responsible drinking. The strategic innovations doesn’t rely solely on new products but has also turned to some new packaging. For example and new sixteen ounce recloseable aluminum bottle was introduced along with the first twenty-five ounce. Both packaging types are currently exceeding expectations and have been expanded from Bud Light to other brands (Anheuser-Busch InBev Investors, 2015).

References Anheuser-Busch InBev. (2015, October 11). INVESTORS . Retrieved from Anheuser-Busch InBev: annual-and-hy-reports/2014/AB_InBev_AR14_EN_full.pdf MAT540 Homework Week 2 MAT540 Week 2 Homework Chapter . A local real estate investor in Orlando is considering three alternative investments; a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions.

The following payoff table shows the profit or loss that could result from each investment: Investment Weather Conditions Shortage Stable Supply Surplus Motel $-7,500 $12,000 $23,000 Restaurant 3000 7,000 6,500 Theater 5000 6,000 4,000 Determine the best investment, using the following decision criteria. a. Maximax b. Maximin c. Minimax regret d. Hurwicz (α = 0.4) e.

Equal likelihood 2. A concessions manager at the Tech versus A&M football game must decide whether to have the vendors sell sun visors or umbrellas. There is a 35% chance of rain, a 25% chance of overcast skies, and a 40% chance of sunshine, according to the weather forecast in college junction, where the game is to be held. The manager estimates that the following profits will result from each decision, given each set of weather conditions: MAT540 Homework Week 2 Decision Weather Conditions Rain 0.35 Overcast 0.25 Sunshine 0.40 Sun visors $-400 $-200 $1,500 Umbrellas 2, a. Compute the expected value for each decision and select the best one. b.

Develop the opportunity loss table and compute the expected opportunity loss for each decision. 3. Place-Plus, a real estate development firm, is considering several alternative development projects. These include building and leasing an office park, purchasing a parcel of land and building an office building to rent, buying and leasing a warehouse, building a strip mall, and selling condominiums. The financial success of these projects depends on interest rate movement in the next 5 years.

The various development projects and their 5- year financial return (in $1,000,000s) given that interest rates will decline, remain stable, or increase, are in the following payoff table. Place-Plus real estate development firm has hired an economist to assign a probability to each direction interest rates may take over the next 5 years. The economist has determined that there is a 0.45 probability that interest rates will decline, a 0.35 probability that rates will remain stable, and a 0.2 probability that rates will increase. a. Using expected value, determine the best project. b. Determine the expected value of perfect information.

Project Interest Rate Decline Stable Increase Office park $0.4 $1.55 $3.5 Office building 2.5 1.8 2.75 Warehouse 1.7 1.45 1.5 Mall 0.8 2.3 3.5 Condominiums 3.2 1.5 0.5 MAT540 Homework Week 2 4. The director of career advising at Orange Community College wants to use decision analysis to provide information to help students decide which 2-year degree program they should pursue. The director has set up the following payoff table for six of the most popular and successful degree programs at OCC that shows the estimated 5-Year gross income ($) from each degree for four future economic conditions: Degree Program Economic Conditions Recession Average Good Robust Graphic design 150,,,,000 Nursing 160,,,,000 Real estate 125,,,,000 Medical technology 135,,,,000 Culinary technology 110,,,,000 Computer information technology 130,,,,000 Determine the best degree program in terms of projected income, using the following decision criteria: a.

Maximax b. Maximin c. Equal likelihood d. Hurwicz (α=0.. Construct a decision tree for the following decision situation and indicate the best decision.

Fenton and Farrah Friendly, husband-and-wife car dealers, are soon going to open a new dealership. They have three offers: from a foreign compact car company, from a U.S. producer of full-sized cars, and from a truck company. The success of each type of dealership will depend on how much gasoline is going to be available during the next few years. The profit from each type of dealership, given the availability of gas, is shown in the following payoff table: MAT540 Homework Week 2 Dealership Gasoline Availability Shortage 0.7 Surplus 0.3 Compact cars $25,000 $150,000 Full-sized cars -90,,000 Trucks 125,,000 Decision Tree diagram to complete: Compact cars Full-sized cars Trucks Shortage 0.7 Surplus 0.3 Shortage 0.7 Surplus 0.3 Surplus 0.3 Shortage 0.7 $250,000 $150, -$90,000 $650,000 $125,000 $170,000 How Initiative Affects Costs and Revenues of the Supply Chain As Anheuser Busch has a supply chain currently in place, the new product line fits seamlessly into the currently established supply line.

The increase in popular product, such as the Bud Light Lime Ritas and Cubanisto has created new opportunities for the supply chain managers to refine the process and delivery schedules. They still have to maintain the delivery and volume of their other products, however they can now add the new products to the inventory. The results of a survey of 180 supply chain professionals from 18 industries confirm that significant cost reduction is possible with a concerted supply chain improvement effort. Sixty-one percent of respondents have cut supply chain costs by 1% to 10%, while 13% have saved between 11% and 20%. Additionally, companies are using the results from their improved Supply Chain Management (SCM) to generate revenue increases.

Fifty-two percent of those responding have upped revenue 1%–10%, and 11% have raised revenue by 11% to 20% or more. These numbers prove that serious attention to SCM can bring five to eight points of new profit to a firm’s financial statements. (Ramaswami, 2005) Ramaswami, R. (2005, Dec 15). Supply Chain Initiatives Cut Costs, Increase Revenue, Survey Finds . Retrieved from MULTICHANNEL MERCHANT: