Heineken, a well-known beverage around the world, provides alcohol and alcohol-free

beer to satisfy the demands of its consumers. Heineken management involves multiple-level
strategic, tactical, and operational decisions. For me, since there are no stores selling only
Heineken in Ho Chi Minh City yet, I want to open myself. To promote long-term growth and
preserve a competitive edge, strategic decisions are taken. Conducting market research, creating
growth strategies, deciding which new product categories to launch, and looking into potential
mergers and acquisitions are all part of this decision-making process.
Most of the strategic choices are based on Heineken's actual business actions. This
includes improving the store's design, price policies, and marketing initiatives. Making educated
judgments about product selection, shelf space allocation, and supply chain efficiency requires
efficient use of technology and data analysis. Operational choices guarantee that everyday
activities go off without a hitch by taking care of the urgent demands of the organization. These
choices include managing supplier replenishment, hiring, training, and maintaining shop sites.
Delivering outstanding client experiences and maintaining operational efficiency may be
achieved through establishing effective lines of communication, training initiatives, and
performance monitoring tools.
A cost that remains constant regardless of how much is produced or sold is known as a
fixed cost. However, variable costs change in direct proportion to changes in production or sales
volume. In the case of Heineken Vietnam, a few fixed expenditures are rent, salary and wages,
and utilities. On the other hand, Heineken Vietnam has two variable costs: the selling price of the
product and packing charges. Understanding the distinction between fixed expenses and variable
costs is crucial for effective financial management and decision-making. Heineken may at first
utilize break-even analysis to pinpoint the time when total firm revenue completely covers all
fixed costs, and the company begins to turn a profit. It is useful for establishing price strategy
and sales objectives. Finding variable costs is the second phase in cost control, allowing
Heineken to match these costs to sales volume. Knowing the factors that influence variable costs
can enable the business to execute cost-cutting measures or raise supplier prices to boost
profitability.
It is critical to examine several elements when analyzing how the cost structure of
Heineken Vietnam has changed over time. To begin with, price increases for goods and services
could directly impact Heineken's cost structure. In reaction to rising inflation, costs for
inventory, transportation, utilities, and labor all increase. Heineken would need to alter its pricing
practices in order to be profitable and cover these increasing costs. Second, adjustments to
product prices might significantly affect Heineken's cost structure, especially in the supermarket
and retail industries. If prices increase as a consequence of changes in the cost of commodities or
the dynamics of supply and demand, Heineken will need to take these cost increases into account
when deciding the pricing it sets for its products. Thirdly, changes in raw material prices may
directly impact Heineken's cost structure. For instance, if the cost of raw materials used in the
production or packaging of goods increased, Heineken would experience higher variable costs.
Tet is a significant occasion that affects both the supply and demand sides of the Heineken
company's operations. During this time, consumers' purchasing patterns change, and demand
frequently rises. The growing demand may require Heineken to expand its inventory and
workforce, which would momentarily increase variable expenses.
 Since my business jut meet the break-even point and is not making revenue, purchasing
new equipment is not available for quarter 4 2023 and the quality of the equipment has not been
reduced yet. By using SWOT analysis, open another store in Ho Chi Minh City is a viable
option. There are strengths and opportunities for my business to be successful, however, there
are weaknesses and threats that come along. Heineken has a strong brand awareness in the
industry compared to other brands, which might lead to repeat sales. However, in the alcohol
beverages industry, there are also many strong brands which can make the competition more
competitive than imagined. Because of its reliance on a single site, the business is more
susceptible to risks like natural catastrophes and store-specific problems. By building a second
store in a different location, my business may reach more customers and enter new markets.
Analyzing franchise or partnership models could open new career opportunities. But thorough
market research and feasibility studies would be required in order to assess the new location's
potential. Important factors to take into account are cost, demand in the market, accessibility, and
level of competition. A thorough financial analysis that takes into account projected revenues,
expenses, and returns on investment would be beneficial for determining the company's ability to
develop sustainably and economically.

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