Contents
Overview
Report of the
Executive Board
Report of the
Supervisory Board
Financial
statements
Other information
Risk category
Risk description
What we are doing to manage the risk
Industry consolidation
Marketing and Brand
Management
Disruptions in the
supply chain
Social media
We might fail to successfully participate in industry
consolidation and miss opportunities to acquire
target companies. Specific risks are:
Competitive disadvantage
Missed opportunities
Overpaying
Unsuccessful business integration
Inability to further build our brands due to lack of consumer
insight, unsuccessful innovations and ineffective use of
social media. The Company may not be able to defend
its intellectual property rights. Specific risks are:
Limited or unsuccessful innovations
Failure to use opportunities of social media
Social media can work as an accelerator of other risks
Disruptions in the supply chain may lead to inability to deliver
key products to key customers, leading to increased costs,
lower volumes and lower market shares. Specific risks are:
Failure of IT systems
Factors beyond our control like natural disasters, political
instability, military conflicts
Social media has become increasingly important in the
beverage sector. We may not be able to use the opportunities
afforded by social media to manage any related risks
(e.g. legal drinking age restrictions, IT or information security).
We may not be able to control information or respond in
a timely manner.
Effective competition in
relation to pricing, quality
and reliability
Make use of cost advantages
via economies of scale
Strong due diligence processes
Implementation of a common
business integration process
Strengthened Commercial
Organisation
Central marketing academy
Investments in consumer
and market intelligence
Strengthened innovation
organisation to respond
to industry changes
Effective use of social
media and consumer and
marketing intelligence
Investments in protecting
brands, including the
registration of trademarks,
anti-counterfeit measures
and domain names
Business continuity plans
Implementation of
back-up scenarios
Monitoring of the solvency
of customers and suppliers
Supplier performance
measurement system to
identify and monitor high
risk supply areas, and
where necessary, the ability
to intervene
Global insurance policies
Attention to effective use of
social media and consumer
and marketing intelligence
Monitoring social media
platforms by various
departments (marketing,
corporate relations, legal)
Heineken N.V. Annual Report 2013
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