ANHEUSER-BUSCH
Discussion Board Forum 1
Anheuser Busch
Christopher Anderson
Liberty University
BUSI 530
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ANHEUSER-BUSCH
Anheuser-Busch
Anheuser-Busch is a very successful beverage company, mostly known for Budweiser
beer. Budweiser was one of the first beers that Anheuser-Busch ever came out with numerous
years ago. Since that time the tastes of society have changed in America and people are looking
for different types of beverages. The beverages people are looking for are more in favor of a
refined pallet. There are however those individuals who still enjoy a Budweiser as well.
Over the past year Anheuser-Busch has been in a bit of an influx. Stock for Anheuser-
Busch started out at 110.26 per a share on 30 March 2017, currently one year later the stock is at
109.63 per a share. The stock is not down very much, in fact it is not even down a full point.
The high in the past year was 110.98 and the low was 109.54. At one point the 52-wk high was
126.50 and the 52-wk low was 101.21. (NYSE:BUD)
Anheuser-Busch is such a large company that it is managed by shareholders. It is
difficult at times for all the shareholders to agree on what direction the company should be going.
It is tough when all of the decisions need to be made by people who are different and may not
always agree, but Anheuser-Busch does not seem to have problems with the shareholders. The
decision making needs to be delegated “delegation can only work if the shareholders have a
common goal. Fortunately there is a natural financial objective on which almost all shareholders
can agree: Maximize the current market value of shareholders investment in the firm” (Brealey,
Myers, Marcus, 2018, p. 12).
In looking at Anheuser-Busch over the past five years there have been a few dips in the
stock prices but overall they have been steadily climbing. Anheuser-Busch is a great company to
be investing in. Currently the market for beer is growing and changing. If Anheuser-Busch
continues to adapt to a changing market they will continue to be successful. Currently in the
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beer market craft beer is where companies are investing. Anheuser-Busch has been purchasing
numerous craft beer companies. Once they purchase the company they keep the same label but
manufacture the beer in their plants.
Anheuser-Busch has also been expanding into the malt liquor market with King Cobra,
Spykes, and Hurricane. By expanding into different markets they are able to reach different
people with their product. Budweiser itself has so many different varieties of itself whether it is
with fruit or a lighter beer it is still all labeled as Budweiser. Because Anheuser-Busch is taking
the time to re-evaluate the beer market they are in they are able to determine where they need to
be and how they can place themselves to be of importance. “High R&D intensity is often taken
as an indication of the importance of knowledge and technology in a firm or industry” (Riley,
Michael, & Mahoney, 2017, p.1899).
If someone is interested in investing in Anheuser-Busch they will find that Anheuser-
Busch is a very solid company that is flat within the last year, but has been growing over the
previous years. Anheuser-Busch has continued to produce the same product that made them
successful in the first place which is Budweiser. They have also realized that they need to adapt
and change to keep up with what is going on around them in the beer world. Craft beer is what is
going to continue to make Anheuser-Busch successful since that is where beer is currently
trending. By purchasing craft beer companies Anheuser-Busch has been able to capture more of
the beer market overall. “To carry on business, a corporation needs an almost endless variety of
assets” (Brealey, et. al., 2018, p.3).
Conclusion
Anheuser-Busch is a company that would be a great investment at this time. Anheuser-
Busch is a company that is able to reinvest in themselves since they are already successful and
References
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that is why they have the funds to purchase craft beer companies. By investing in the craft beer
market Anheuser-Busch will be able to expand their influence and have a greater influence on the
ever expanding beer market. By expanding their horizons Anheuser-Busch will be able to
sustain if not grow its market share.
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Brealey, R. A., Myers, S. C., & Marcus, A. J. (2018). Fundamentals of Corporate Finance
(ninth edition). New York, NY: McGraw Hill.
Riley, S. M., Michael, S. C., & Mahoney, J. T. (2017). Human capital matters: Market valuation
of firm investments in training and the role of complementary assets. Strategic
Management Journal, 38(9), 1895-1914. 10.1002/smj.2631
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