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Anheuser-Busch Ethical Dilemmas and it's Business Strategies

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Anheuser-Busch Ethical Dilemmas and it's Business Strategies

Introduction

Following business ethics is an integral part of the success of business practices. Any business, whether local or global, cannot progress and grow until they follow the ethical rules and regulations defined by the global business community. Although every organization, whether operating in production or services sector, tries to abide by these rules and design their products and strategies according to them, there are some companies that keep making and selling those products that have a controversial ranking. Production and selling of alcohol are one of the most prominent issues whose example can be taken in this regard and currently, Anheuser-Busch is the biggest producer of alcohol in the world.

Discussion

Introduction of the Company, Product and the Ethical Dilemma associated with it

Anheuser-Busch Companies, LLC is a brewing company working in America. It has its head office in St. Louis, Missouri and has been working as a subsidiary of Anheuser-Busch InBev (AB InBev) since 2008. The company produces a number of brands including Budweiser, Michelob, Rolling Rock, Shock Top, Natural, Busch, and LandShark Lager. It is the biggest producer of alcohol, beer and other alcoholic drinks (Arnold, & Shockley Jr, 2001). The company has been under the fire multiple times for producing and selling alcohol and alcoholic beverages which are unethical and harmful for health. It has been prohibited multiple times from producing and selling its products in history.

Perception of the Product in Different Cultures

The perception and understanding of alcohol are different in different cultures. On the whole, alcohol is considered extremely harmful and is strictly prohibited by medical specialists all over the world, if viewed from the medical and health point of view. On a social scale, consumption of alcohol and alcoholic beverages is considered acceptable and it is used as a drink in many social gatherings and functions like weddings and parties. It is a normal practice in the United States, but in some parts of the world, alcohol is considered extremely bad and it is strictly banned to produce, market or sell alcoholic products even for medical purposes, just like in Muslim countries.

Handling of the Ethical Implication by the Company

Anheuser Busch has been a victim of various controversies since the very beginning. As soon as the brewery was acquired by the parent company, it has been a part of various litigations and ethical issues. The beer producing company has handled its problems and controversies in various ways, according to the nature of the issue (MacIntosh, 2010). For example, in some cases, the Anheuser Busch closed the production of its entire product line, after facing various objections from the people of the society. However, in some cases, the company has taken a stand and provided its stance that the allegations against it are totally baseless and an attempt to deter the goodwill off the company.

Strategies of the Company to Instill a Sense of Ethics in the Marketing Department

Anheuser Busch has always been known for its strong marketing strategies and powerful advertising presence. The products of the company are mostly advertised during major sports events like Superbowl (Dickson, Naylor, & Phelps, 2015). Although the company has faced most of its controversies on its unique advertising style, still the marketing department at Anheuser Busch is motivated and planning to continue creating more such content. It is all due to the constant motivation and successful appraisal strategies of the brewing company.

Conclusion

Hence, it can be concluded that although the products produced and sold by Anheuser Busch and not good for health at all and all the experts have conjoined opinion against it, the beer-producing company is handling its controversies very expertly and has maintained itself on the top rank of this category excellently.

References

Arnold, T., & Shockley Jr, R. L. (2001). Value creation at Anheuser‐Busch: A real options example. Journal of Applied Corporate Finance, 14(2), 52-61.

Dickson, G., Naylor, M., & Phelps, S. (2015). Consumer attitudes towards ambush marketing. Sport Management Review, 18(2), 280-290.

MacIntosh, J. (2010). Dethroning the king: the hostile takeover of Anheuser-Busch, an American icon. John Wiley & Sons.