The report will critically evaluate and assess global risk which has an impact on the Heineken Company and the analysis is based on the factors which have been published by the World Economic Forum at the Global Risk report 2021. The World Economic Forum has highlighted the risk which have an impact towards the global business and risk which have likelihood for effecting the organization.
The report has focused on three main risks which can impact on the business process of the Heineken which is environmental risk, economic risk and technological risk.
Table of Contents
1. Globalization and Global risk
2. Introduction
2.1 Company overview
3. Analysis on competitive environment of Heineken Beer
3.1 PESTEL analysis
4. Impact on the Global risks on Heineken
4.1 Environmental Risk factors
4.1.1 Risk Mitigation strategy by the company
4.1.2 Further recommendations on mitigating the risk
4.2 Economic risk factors
4.2.1 Risk Mitigation strategies by the company
4.2.2 Further recommendations on mitigating the risk
4.3 Technological risk factors
4.3.1 Risk mitigation strategy by the company
5. Conclusion and Recommendations
Objectives and Core Themes
This report aims to critically evaluate and assess global risks affecting the Heineken Company based on the World Economic Forum's Global Risk Report 2021. It focuses on the impact of these risks on business operations and identifies the strategic measures taken by the company to mitigate these threats.
- Analysis of environmental risks, specifically climate change, and their impact on brewery resources.
- Assessment of economic risks stemming from the Covid-19 pandemic and its long-term effects on global business.
- Evaluation of technological risks, particularly the increasing threat of cyber-attacks on manufacturing and brewing industries.
- Identification of strategic mitigation actions and provision of further recommendations for the organization.
Excerpt from the Book
4.1 Environmental Risk factors
As explained by the WEF Global risk report 2021, the GRPS has identified that Climate action failure is the second most likely long risk which could occur in near future and according to the report top likelihood risks are falls under environmental factors. Extreme weather, Climate action failure and Human environmental damages. Climate change continues to be the most disastrous risk. Even though the lockdowns reduce the global emission, warnings have given that it could be bounced back. Apparently the global emission has fallen by 9% in the first half way of year 2020 as most of the industries were closed due to Covid-19 but in order to maintain this each year should have a similar decrease. The whole world should support to prevent such a risk as it will affect the whole community. (World Economic Forum, 2021)
Beer Industry has a close connection towards the climate changes as most of the ingredients are natural resource. Beer ingredients such as barley, water, hops production level and the quality can be vary according to the environmental factors. Weather pattern changes, unpredictable agricultural schedules, increasing of pests and decease are some of the threats which could impact the beer industry as an environmental risk factor.(Bettermen, 2020)
Summary of Chapters
1. Globalization and Global risk: Defines the concept of globalization and identifies five major categories of global risk as outlined by the World Economic Forum.
2. Introduction: Provides an overview of the Heineken company, its global operations, and its commitment to sustainability and "Brewing a Better World."
3. Analysis on competitive environment of Heineken Beer: Conducts a PESTEL analysis to evaluate the external macro-environmental factors influencing Heineken's business operations.
4. Impact on the Global risks on Heineken: Detailed analysis of how environmental, economic, and technological risks specifically impact the brewery and what strategies are employed to mitigate these challenges.
5. Conclusion and Recommendations: Summarizes the key findings regarding global risks and emphasizes the necessity of strategic planning and regular system updates for long-term organizational success.
Keywords
Heineken, Global Risk, World Economic Forum, Environmental Risk, Climate Change, Economic Risk, Covid-19, Technological Risk, Cyber-attacks, Risk Management, Sustainability, Brewery, Mitigation Strategy, Globalization, Business Resilience.
Frequently Asked Questions
What is the primary focus of this report?
This report critically evaluates how global risks, as identified by the World Economic Forum, impact the business operations and strategy of the Heineken Company.
What are the main risk categories discussed?
The report focuses on three primary risks: environmental risks (specifically climate change), economic risks (linked to the Covid-19 pandemic), and technological risks (specifically cyber-attacks).
What is the overarching goal of this research?
The research aims to identify how these external threats affect Heineken and to assess the current strategic actions taken by the company to mitigate these risks while providing further recommendations.
Which methodology is used to evaluate the external environment?
The report utilizes the PESTEL analysis framework to evaluate the macro-environmental factors—Political, Economic, Social, Technological, Environmental, and Legal—that affect Heineken.
What does the main body of the work cover?
The main body examines the specific impacts of climate change on natural ingredients, the financial and operational consequences of the pandemic on beer production, and the growing cybersecurity threats faced by manufacturing industries.
Which keywords best describe the work?
The work is characterized by terms such as Global Risk, Heineken, Risk Management, Sustainability, Climate Change, and Cyber-attacks.
How does climate change specifically impact Heineken's production?
Climate change affects the availability and quality of essential natural ingredients like barley, hops, and water, which are critical for the brewing process and highly dependent on stable environmental conditions.
Why are cyber-attacks considered a critical risk for the company?
As Heineken operates as a high-tech company using AI, IOT, and E-commerce, it becomes highly vulnerable to digital threats, data breaches, and service outages that can severely damage operations and brand reputation.
- Quote paper
- Dilini Slemmerman (Author), 2021, Impact of Global Business Issues on Heineken Company, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/1183183
