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Budweiser Case Study Solutions

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1. Assess Anhueser-Busch’s effort to reach an agreement with the Czechs to invest in Budvar. What, if anything, should the American company have done differently? Some efforts made to reach agreement were- a) Busch wrote to Czech promising to invest capital in brewery , marketing expertise and share management. b) Czech government sold all stakes except Plezensky Prazdoj because all that competed directly with Budvar. c) Anheuser-Busch thought to capitalize by investing in Budvar and also the trademark issue was resolved. d) To win over Czechs regarding the matter of taste, Busch spent $1 million on a cultural center in Ceske Budejovice. e) In 1992, the Czech Government decided to get involved in the industry privatization process. American Company should have focussed on the taste of the beer, as the taste was better in Europe. Also,for Czech’s the geographical origin was important, so Anhueser-Busch should have introduced their beer with a different name in Czech. 2. Do you agree with Anheuser-Busch’s decision to break off negotiations and go to court on a country-by-country basis to assert its rights to the Budweiser name?
Anheuser-Busch’s decision was correct because they already succeeded in European market by selling Budweiser beer under the brand name “Bud”. But after failure in Czech, they decided to do on country-by-country basis and won cases in Ireland, Portugal, Sweden and six other countries. They were also able...

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