FINAL PROJECT CORPORATE STRATWGY

 Madeline Marcías ( Group

Coordinator)

 Adriana Méndez
 Itzá Acuña
 Mike Dixon
CORPORATE  Elian Rojas

STRATEGY
Group 5
 1. Contents
2. Corporate Strategy Diagram......................................................................................4

3. Company Name..........................................................................................................5

4. Description..................................................................................................................5

5. Purpose......................................................................................................................5

6. Mission Questions....................................................................................................5

7. Current Vision.............................................................................................................7

8. Current Mission..........................................................................................................7

9. Mission Statements..................................................................................................8

10. Vision.......................................................................................................................8

11. Values......................................................................................................................8

12. External Environment............................................................................................8

Image 1, External Environment.........................................................................................8

12.1 Remote................................................................................................................9

11.2 Political.....................................................................................................................9

12.3 Economic..........................................................................................................12

12.4 Social.................................................................................................................14

12.5 Developed from:.................................................................................................14

12.6 Technological...................................................................................................15

12.7 Ecological..........................................................................................................16

12.8 Loss of................................................................................................................16

13. Industry Enviroment:..............................................................................................18

Image 3, Five Forces.....................................................................................................18

13.1 Threats of entry..................................................................................................19

13.2 Powerful suppliers..............................................................................................19

14. Operating environment:......................................................................................20

Image 5............................................................................................................................21

Image 6............................................................................................................................21

15. Internal Analysis..................................................................................................22

15.1 SWOT.................................................................................................................22

15.1.1 Strengths.........................................................................................................23

15.1.2 Weakness.............................................................................................................23

15.1.3 Opportunities........................................................................................................23

15.1.4 Threats..................................................................................................................24

Diagram 2........................................................................................................................24

Swot Diagram.................................................................................................................26

Diagram 3........................................................................................................................26

15.2 Value Chain.......................................................................................................27

Image 7, Value Chain......................................................................................................27

15.2.1 Primary Activities.............................................................................................27

15.2.2 Support Activities............................................................................................30

15.2.3 Hiring...............................................................................................................30

15.2.4 Human talent management.............................................................................31

15.2.5 Workers with indeterminate contracts have the following benefits:................31

16. 16 Generic Strategy...............................................................................................32

16.1 Image 8, The value discipline.............................................................................32

16.2 Choose Generic Strategy...................................................................................33

17. Long-Term Objective...........................................................................................33

18. Short-term objectives..........................................................................................34

19. Tactics....................................................................................................................34
19.1 Value Proposition...............................................................................................34

19.2 Sales Strategy....................................................................................................35

19.3 Marketing Strategy.............................................................................................35

19.4 Promotion Strategy.............................................................................................35

19.5 Distribution Strategy...........................................................................................35

20. Conclusion and recommendations....................................................................36

21. Bibliography.........................................................................................................36
 2. Corporate Strategy Diagram

Company Mission,
Social Responsibility,
and Ethics

External Environment Possible?

(Global and Domestic) Internal Analysis
 Remote
 Industry
 Operating Desired?

Strategic Analysis and Choice

Long-Term Objective Generic and Grand

Strategies

Short-Term
Objectives;
Functional Tactics Policies
Reward System

Organizational Structure,
Leadership and Culture

Major Impact Strategic Control, Innovation, and

Minor Impact Entrepreneurship

 3. Company Name
Compañía Cervecera de Nicaragua

4. Description
Compañía Cervecera de Nicaragua (CCN) was founded in 1926 by a group of
Nicaraguan investors. Located in Managua, Nicaragua, CCN has produced high quality
beer for over 80 years. In 1996, CCN merged with Industrial Cervecera, S.A. (ICSA) to
form the largest brewery in Nicaragua.

CCN is one of the most technologically advanced and modern breweries in Latin
America. Its production process is fully automated and environmentally friendly. With
state-of-the-art technology such as flash pasteurization and automated processes, CCN
produces world-class products.

A highly specialized and qualified quality control team constantly supervises the entire
process, from the receipt of raw materials to the packaging and distribution process.
CCN also has the distinction of being the first brewery in Latin America whose
production processes have obtained ISO 9001 version 2000 certification.

In 2002 Compañía Cervecera de Nicaragua diversified into the Beverage Business by

acquiring the company Fuente Pura. In August 2005, CCN entered the Juice Market,
soft drinks and isotonic.

5. Purpose
Be the number one beer company that produces, develops, and distributes its products
in addition to refreshing beverages for Nicaraguan.

6. Mission Questions
 Why is this firm in business?
This of our customers. We are satisfied that it is a profitable business, beer is
almost an indispensable product for the universe of consumers.  
 What is our economic goal?
Generate economic value for our shareholders and other stakeholders. Increase
NOPAT Efficiently manage the invested capital Strengthen the competitive
position of the businesses and brands managed by INCECA.  What is our
operational philosophy in terms of quality, company image and self-concept? Our
company has a functional and flexible organizational structure that responds to
the needs of a modern industrial company, with a strong vocation for customer
service and a strong commitment to quality in all its operations and the needs of
its stakeholders. The maximum authority of the company is constituted by the
Shareholders' Meeting and the Board of Directors, who delegate the
administration to the General Management, which is supported and assisted by
the functional and support managers.  
 What are our core competencies and competitive advantages?
Our main competences are our qualified personnel and the first-class attention
we provide to each of our clients. It is what has allowed us to remain the best in
what we do. The competitive advantages that CCN has are the accessible prices
of its products, to accommodate us to the economic reality that Nicaragua lives,
and the loyalty programs that we have, which no other company offers. It is a
leading product on the market, minimal competition, the main product toña rooted
in national consumption. Maintaining a leading product in the market, the
competitive advantages in the market come by themselves and with the effort of
the good organizational structure that CCN has.
 What customers do and can we serve?
Our clients give us the important information that CCN requires to be able to
work on a day-to-day basis and it is the feedback of the purchase options that we
detect in each transaction that is made. Without feedback from our consumers,
we will not be able to evolve to continue improving the service and product that
we offer. CCN provides its service in such a way that it is increasingly better for
our consumers to make their purchases, as well as guaranteeing a satisfactory
experience when consuming our products. We provide the service so that they
 feel more comfortable and we dedicate delivery times, seller visits and service
channels to seek an answer.
 How do we view our responsibilities to stockholders, employees,
communities, environment, social issues, and competitors?
Employees Make CCN the best place to work and make collaborators the living
reflection of our philosophy. At CCN we work every day so that our collaborators
live our values and have an appropriate organizational climate for their
development, which is reflected in:   The pride of working for CCN     A high level
of employee satisfaction and commitment to the company     Job stability     A
catalog of benefits oriented to the needs of different groups of collaborators.
Communities Fundación victoria (FUVI) is a non-profit organization created so
that low-income youth have access to comprehensive technical training and thus
contribute to improving the quality of life and well-being of Nicaraguan families.
Environment We protect the environment and make rational use of natural
resources by establishing environmental programs. CCN promotes
environmental protection, health, education, and support for the most vulnerable
groups of workers. We manage post-consumer waste together with the
community of Isla de Ometepe, Biosphere Reserve, located in the middle of Lake
Cocibolca in the department of Rivas, in the south of the country; in Districts VI
and VII of Managua; and days of collecting plastic bottles by CCN workers.
Social problems Support and respect human rights within their sphere of
influence Eliminate all forms of forced labor Support the eradication of child labor
Work against corruption in all its forms, including extortion and bribery.

7. Current Vision
To be recognized as a world-class company, an example in Nicaragua in the generation
of economic, social and environmental value.

8. Current Mission
Constantly refresh Nicaragua by working for your preference, trust, and enjoyment.
 9. Mission Statements
Our mission is to enrich our customers with mouthwatering, quality tasting beers. While
providing an exceptional level of customer service and support. Offering quality and
safety processes, health and safety of its workers and environmental management.

10. Vision
To ensure “Compañía Cervecera” will be renowned for brewing excellent quality beers
as well as delivering fantastic customer service, by ensuring pride and passion
underlines every brew and customer interaction.

11. Values
 Integrity,
 Conscience of the obligation,
 Productivity – effectiveness
 Enjoy work

12. External Environment

Image 1, External Environment

Remote Environment

Industry Environment
 Economic
Operating Environment
 Social
 Entre Barriers
 Competitors  Political
 Supplier Power
 Creditors  Technological
 Buyer Power
THE FIRM  Ecological
 Customers  Substitute
 Labor Availability
 Suppliers  Competitive
Rivalry
 12.1 Remote

11.2 Political
 Fair-trade Decisions: Fair Trade was created to bring small producers at a
disadvantage closer to market, to which they had no access. It was a movement
where different actors in the North promoted responsible consumption through
Fair Trade, based on three essential pillars:
- Economic: it has to do with a guaranteed minimum price that allows you the
producer to project himself in the future: plan his expenses and his income and
obtain resources to finance the harvest.
- Social: because it has a focus on empowering people and improving their life
conditions.
- Environmental: the producer is responsible with the environment because he
lives there and it must guarantee future generations that land; is not someone
who they come to get something, and he leaves.
These three pillars have been the strength of Fair Trade, but in this process other
actors entered the market and Fair Trade became a marketing tool for both
producers and importers, and tools had to be generated that would allow it to be
evidenced and differentiated. Here Certification and standards are born. Before
we worked with principles, with values, with some indicators ... Then these
became norms that comply; went from being a movement to strengthen the small
producer to a marketing tool with a market logic. In that walk sometimes we
We have been strengthening and sometimes we have been losing advantages.
(Threat)
 Antitrust Laws: There are not antitrust laws in Nicaragua, in its place there is a
"law for the promotion of competition" consisting of 9 chapters and 55 articles.
Article 1.- Purpose of the Law. The purpose of this Law is to promote and protect
free competition among economic agents, to guarantee the efficiency of the
market and the well-being of consumers, by promoting the culture of competition,
the prevention, prohibition and sanction of anti-competitive practices.
(Opportunity)
 Article 2.- Scope of Application. Any act, conduct, transaction or agreement
carried out by economic agents in all sectors of the national economy, including
those carried out outside the country, are subject to the provisions of this Law,
insofar as they produce or may produce anti-competitive effects in the National
market.
 Tax Programs: In February 2019, the Nicaraguan national assembly approved
the reform of the tax concentration law, which among many other things,
increased the contribution rates of companies and workers. (Threads)

LAW N °. 987
"Article 24 Definitive withholdings to resident and non-resident taxpayers
The following rates of definitive withholding of income from work are established:
1. From fifteen percent (15%) to the indemnities stipulated in number 3 of article
19 of this Law; 2. Twenty-five percent (25%) to the allowances received at
meetings or sessions of members of boards of directors, boards of directors,
boards or directive or advisory bodies and other similar boards or organizations,
except the allowances received by the councilmen and councilors for Attendance
completed at the ordinary or extraordinary sessions of the Regional Councils,
Municipal Councils and work of Municipal Commissions, for which the retention
rate will be twelve point five percent (12.5%); 3. Twenty percent (20%) to income
from work to non-residents. "

"Article 32 Subjective exemptions

The legally constituted cooperatives up to an annual amount of less than or equal
to Sixty Million of Córdobas Netos (C $ 60,000,000.00) as gross income. When
this amount is exceeded, the cooperative must pay the IR for the excess of said
value. When cooperatives are organized in unions and centrals, they will be
taxed individually"

"Article 33 Conditions for subjective exemptions

 When exempt subjects habitually carry out remunerated economic activities that
imply competition in the goods and services market, the income from such
activities will not be exempt from the payment of this tax” (Threat)

 Minimum Wage Legislation: Law No 625, minimum wage law, cost of 16

articles.
Article 1.- This Law regulates the setting of the minimum wage, in exchange for a
labor benefit, guaranteeing the worker and his family the satisfaction of basic and
vital needs, with a minimum of well-being compatible with human dignity, in
accordance with ordinal 1, of article 82 of the Political Constitution of the
Republic of Nicaragua.
Article 2.- Minimum wage is the ordinary remuneration that satisfies the minimum
needs of material, social, moral and cultural security of the worker and that is in
relation to the cost of the basic necessities of life and the conditions and needs in
the various regions. from the country.
Article 3.- The minimum wage is non-waivable and cannot be subject to
compensation, discount of any kind, reduction, withholding or embargo, except
for social security, alimony of the worker's relatives declared judicially, and others
provided by law.

Article 4.- The minimum wage will be set every six months according to the
modalities of each job and the economic sector. This setting can be per unit of
time, work or task, and can be calculated by hour, day, week, fourteen, fortnight
or month.
The non-convocation of the National Minimum Wage Commission will carry
administrative responsibilities to the Minister of Labor. The President of the
Republic will apply a pecuniary sanction not less than an amount equivalent to
two months of salary, nor greater than an amount equivalent to six times his
monthly salary, which will be deposited in the General Treasury of the Republic,
without prejudice to other measures that the President of the Republic may take.
(Opportunity)
 Pollution and Pricing Policies: DECREE No.25-2001, this decree consists of 5
articles
Article 1.- The Environmental Policy of Nicaragua is established with the purpose
of guiding the coherent actions of the public administration, at its central, regional
and municipal levels, as well as the actions of civil organizations and the
Nicaraguan population in general, in order to preserve, improve and recover
quality
environment conducive to life, guaranteeing environmental management
harmonized with economic growth, social equity, improvement of quality of life
and sustainable preservation of the environment. (Opportunity)

LAW No. 182, consumer defense law

Article 6.- The goods and services offered in the national territory must comply
with the quantity and quality conditions so that their remuneration is equivalent to
the payment made by the consumer, all in accordance with quality standards,
labels, weights and measures and other requirements that must be met by the
goods and services sold in the country. (Threat)

11.3 Economic
 Prime interest rates: There are not prime interest rates in Nicaragua, at the end
of 2018 the short-term lending rate was 11% and the long-term lending rate was
10.9%. (Threat)
 Inflation rates: Inflation is over 5%. (Opportunity)
 Trends in the growth of the gross national product: Due to the socio-political
crisis that the country is going through, the trend of the gross domestic product is
downward, there are still no official data from the central bank but FUNIDOS
forecast a drop of between 7.3 and 10.9 percentage points for 2019. (Threat)
 Unemployment rates: According to official data from the central bank, at the
end of 2018 unemployment rate was 5.5% and the underemployment as a
percent of employed persons was 44.2%. (Threat)
 Globalization of the economy: For countries like Nicaragua, globalization, led
from developed countries, has not meant an insertion symmetrical between
nations, that is to say that this process has not taken into account the regularities
and socio-economic particularities of regional economies (case of Free Trade
Agreements, the legal framework, public spending, policies tributary.)

Internal disparities are also visible when we witness activities and economic
groups benefited, under neoliberal policies, with access to credit, tax exemptions,
state-of-the-art technology, access to markets and incidence in national
legislation for their own benefit, among others. This has transformed Nicaragua
in one of the Latin American countries with the greatest inequality in income
distribution.

A study carried out in 2007 by the International Labor Organization (ILO) and the
World Trade Organization (WTO) indicates that "... there is no evidence enough
to conclude that openness and insertion in globalization lead by themselves
alone to increase quality employment in developing countries… success or
failure in this matter are more related to the type of economic policies specific
that were applied in the different experiences of opening and insertion external ".
(Threat)
 Outsourcing: Currently, Nicaragua is home to more than 45 companies in the
service outsourcing sector, which export increasingly specialized services to
destinations such as the United States, Canada and Europe; representing 3% of
its total exports.
Among the main reasons why the country has gained a lot of popularity in this
sector, its proximity to the markets of North and South America, its competitive
cost structure and the quality of its human talent stand out. (Opportunity)
Main exported services
Customer service
Technical support
Transtienda services
 Website design
Mobile application design
Accounting
Digital marketing
Collection
Software development, among others

11.4 Social
Present in the external environment:

 Beliefs & Values

La Gritería is a Nicaraguan holiday in honor of the Immaculate and Immaculate
Conception of Mary that emerged in the late eighteenth century. It is celebrated
on the night of December 7, the eve of the Catholic feast of the Immaculate
Conception of Mary, devotees walk the streets and visit different altars erected in
honor of the Virgin Mary, in temples and private houses, performing prayers,
chants and burning gunpowder. (Opportunity)
-The Nicaraguan is friendly; he gives everything without expecting anything.
(Opportunity)
-The Nicaraguan is characterized by his family unit. (Opportunity)
-We are very believers in our faith. (Opportunity)
-We are disrespectful, the Nicaraguan does not know how to measure when
speaking. (Threat)
-The indiscipline is very common in Nicaraguans; we are desperate and too noisy
in our activities. (Threat)

 Lifestyles: Since April 2018, the Nicaraguan economy has been strongly
affected, the open unemployment rate reaches almost 25%, this has caused the
lifestyle of many families to change, due to the loss of jobs or lower wages, now
families try to buy the basics, the middle class is getting smaller and poverty is
increasing. (Threat)
 11.5 Developed from:
 Ecological conditioning: People do not yet develop a very strong ecological
culture like in other countries where consumers use this factor for their decision
making. (Opportunity)
 Demographic makeup: According to the last census carried out by INIDE in
2008 we were 5,668,866 inhabitants, of which 2,809,918 are men and 2,858,948
are women.
The crude birth rate is 24.87 per thousand inhabitants and the crude death rate is
4.77 per thousand inhabitants, the migration rate is -7.10, the total growth rate
being 13.0. Nicaragua's population is characterized by being a young population;
76 percent of its population is under 40. (Opportunity)
 Religion: Most of the Nicaraguan population, 91%, is a believer. The most
widespread religion is Christianity, with 90.05% of people who profess it.
In recent years, the percentage of believers has been maintained, has gone from
91% to 91%. As for Christianity it has not changed, in the previous survey
90.05% professed it and according to the latest data 90.05% of the population
profess it. (Threat)
 Education: Nicaragua has an educational system with a duration of between 16
and 13 years. 6 years of primary education, 5 years of secondary education and
5 years average of higher education, 2 years if it is technical education.
However, the secondary school enrollment rate is 87% and for higher education
there are no data, our budget for education is one of the lowest in the region as a
percentage of GDP (Opportunity)
 Ethnic conditioning: Nicaragua is a country with varied ethnic groups:
Nicaraguans, Matagalpas, Creoles, Chorotegas, Mayagnas, Branches and the
Garifuna. (threat)

11.6 Technological
 Technological Forecasting: In general, we have very low technological indices,
in the region Costa Rica leads, and in Latin America, Mexico.
 More than 90 percent of the Nicaraguan population uses cell phones, only about
51% of those surveyed know how to use the office package, and more than 80
percent of people who use cell phones have smartphones In this aspect, we
have been growing due to various factors coming from both private companies
and the State.
The Android operating system has more users in the country, a very important
fact for application developers. (Threat)

11.7 Ecological
Threats to our life-supporting ecology

Destruction of waters, destruction of forests: A 1981 study by IRENA on water

quality in Nicaragua found that 75% of the country's water sources were contaminated
by agricultural residues, 50% by sewage, and 25% by highly toxic industrial wastes.
Before 1979, the US companies that exploited the gold mines had dumped more than 4
thousand tons of cyanide into the rivers near the mining towns of Bonanza, Siuna and
Rosita. Every year, coffee production results in high contamination of the Matagalpa
and Jinotega rivers.

It is estimated that in the 1970s alone, 30% of Nicaraguan forests disappeared in part
due to looting by transnational logging companies. Today, some of the forests most
"mutilated by the criminal hatchet", those located near urban areas, continue to be
exploited in an alarming way due to the high demand for firewood, which represents
90% of domestic fuel - because it is more cheap - and 25% of the industrial.

Extensive forest clearing, excessive use of pesticides, water pollution, soil erosion with
loss of soil fertility, massive urbanization, etc. These are some of the direct and indirect
environmental effects caused by the agro-export economic model, concerned only with
increasing the benefits of minority or transnational groups and indifferent to the long-
term consequences that this form of exploitation may have for the population and for the
population. environment. (Threat)
 11.8 Loss of
 habitat
Xolotlán Lake: Industries dump very diverse and very dangerous waste into the
lake. Among the most damaging are those of the Penwalt chemical industry,
which dumps mercury into the lake. It is estimated that this transnational firm,
today of mixed ownership, dumped 40 tons of mercury into the waters of
Xolotlán. The Momotombo geothermal plant, completed in several of its phases
during the revolution, spills 8,640 cubic meters of hot water and wastewater daily
into the lake, containing arsenic and highly concentrated salts.
Being a very beautiful place, Lake Xolotlán is today not only unsightly, but
dangerous for the health of the managuas, who swim and fish there and then sell
this fish from the water with high concentrations of mercury in the capital
markets.(Threat).
 Biodiversity: So far in Nicaragua it has not suffered any loss of its biodiversity,
but it is threatened by various factors such as:
- Lack of biodiversity research and monitoring programs
- Lack of funds
- Lack of researchers
- Lack of an institute that brings together experts on the subject
- Lack of specialized publications for the dissemination of results (Threat)

 Environmental legislation: General Law of Environment and Natural

Resources (Law No. 217), for companies establishes that they must implement
Technologies that increase their productivity in a sustainable way. (Opportunity)
 Eco-efficiency: Nicaragua has never been eco-efficient; most companies carry
out their activities without considering the damage they do to the environment
because the state is not strict regarding regulations in this regard. (Threat)
 13. Industry Enviroment:

Image 3, Five Forces

1. Determinants of Entry Determinants of Rivalry

Economies of scale Industry growth
Proprietary product differences Fixed (or storage) costs/value added
Brand identity Intermittent overcapacity
Switching costs Product differences
Capital requirements Brand identity
Access to distribution Switching costs
Absolute cost advantages New Entrants Concentration and balance
Proprietary curve Informational complexity
Access to necessary inputs Diversity of competitors
Proprietary low-cost product design Corporate stakes
Government policy Threats of new Exit barriers
Expected retaliation entrants

Industry

Suppliers Bargaining Power

Competitors Buyers
Bargaining Power

Of Suppliers Of Buyers

Intensity of Rivalry
Determinants of Supplier Power Determinants of Buyer Power
Differentiation of inputs Threats of Bargaining Leverage Price Sensitivity
Switching costs of suppliers and firms in substitutes
the industry Buyer concentration Price/total purchases
Versus firm Product differences
Presence of substitute inputs Substitutes concentration Brand identity
Supplier concentration Buyer volume Impact on quality
Cost relative to total purchases in the Buyer switching cost performance
industry Relative to firm Buyer profits
Switching cost Decision makers
Impact of inputs on cost or differentiation
Buyer information incentives
Threat of forward integration relative to Determinant of
Ability to backward
threat of backward integration by firms in substitution threat Integrate
the industry Substitute product
Pull-through
 Relative price
performance of
substitutes
Switching cost
Buyer propensity
of substitute
13.1 Threats of entry
 Economies of Scale: Since CCN is a huge company this is less than
a threat, an opportunity, because the production has increased
significantly, and the costs have been lowered thanks to the technological
advances as time goes by.
 Product Differentiation: This is a monopoly company since it sales all
types of beers and distribute it all over Nicaragua and even outside of the
country, and the product is different from other beverages.
 Capital Requirements
 Cost Disadvantages Independent of Size
 -Access to Distribution Channels: La compañía cervecera has
complete distribution channels that cover the three regions of the country:
Pacific, Central and Caribbean. This advantage allows you to reach
beyond what the competition can reach and always places its brands as
the preferred ones. However, the Brahva beer (Cervecería Rio) has also a
certain level of national coverage since they use the infrastructure of
distribution of Embotelladora Nacional, S.A. (Ensa) also in charge of
distribution of Pepsi products. In the case of the beers of other importing
companies, their scope is much less, and it’s for sale only in pre-
established places.
 Government Policy

13.2 Powerful suppliers

Compañía Distribuidora de Nicaragua, Punto Ideal and Fundación Victoria.
Powerful buyers (clients)
According to (Kerin, 2009) clients within socioeconomic segmentation:
 It groups the market according to social strata, whose purchasing behavior could
be relatively similar. These seven groups are:
Group A: Made up of those households that enjoy the highest incomes in the
community, they can give themselves luxuries and enjoy all the comforts.
Group B: Made up of those households that enjoy high incomes in the
community, they can have almost all the luxuries and enjoy all the comforts.
Group C-1: citizens with the ability to have incomes that allow them to cover their
needs without problems.
Group C-2: citizens with the capacity to meet their needs for food, clothing,
housing and only some amenities.
Group C-3: citizens with income capacity to cover their needs for food, clothing
and housing and few amenities.
Group D: With the capacity to have a fixed and stable income, but reduced. This
is the reason why they live very tightly.
Group E: Not having a fixed income and extreme poverty is the characteristic of
households in that group.

14. Operating environment:

“Every corporation is successful only when the operational environment is taken
into consideration”.
Customer profiles
 Geographic: The customers are all over the country, as we know the most
crowded places is where beers are mostly consumed, in restaurants, bars. That
means that in the capital is where the sales percentage is way higher than it is in
rural cities.
 Demographic: Sex, age, marital status, educational level and occupation are
some of the characteristics that are considered in the analysis of the population.
Any characteristic of the population that can be measured or counted is
susceptible to demographic analysis. The demographic situation of the city is
very well classified by different points of sale that are in the city, which is why
people are the ones who make the decision to make purchases at the closest
 point of sale, having greater shopping facilities and greater alternatives. The
demographic position of the different points of sale in our city is very well
segmented, making it easier for all people in general to make their respective
purchases, also facilitating sales positions such as Restaurants, Bars, meat
sales, etc.
 Psychographic: This involves Personality, lifestyles, interests, tastes, concerns,
opinions, values.
 Buyer behavior: To analyze the buyer’s behavior it was necessary to do some
researches and a survey was found in which beer consumers participated and
down below the responses are.

Image 5

Image 6
 Human resources: nature of the labor market
 A firm’s personnel recruitment and selection alternatives often are influenced by
the nature of its operating environment. A firm’s access to needed personnel is
affected primarily'' by four factors: the firm’s reputation as an employer, local
employment rates. the ready availability of people with the needed skills, and its
relationship with labor unions.
 Reputation: It has a long history, CCN has produced high quality beer for more
than 80 years and is currently a great company with a very good working
environment with great growth opportunities and is a monopoly company.
 Employment rates: Due to the situation the entire world is suffering known as
coronavirus, there is no position available because this pandemic has made a
huge impact in the firm’s economy.
 Availability: As soon as there´s an available position is up to the applicants to
send their curriculum vitae and the recruitment team will be keeping in touch with
the selected ones to set up a face to face interview to continue with the
application process.
 Labor union: an organized association of workers, often in a trade or profession,
formed to protect and further their rights and interests. Since Nicaragua is a
developing country CNN does not belong, but here exists a ministry of labor that
stands for the workers’ rights.

15. Internal Analysis

15.1 SWOT
SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the
environmental Opportunities and Threats facing that firm. SWOT analysis is a
historically popular technique through which managers create a quick overview of a
company’s strategic situation.

15.1.1 Strengths
As a trained beer company and the largest in the country, we feel empowered with great
strengths that will allow us to continue growing.

1.- Trained staff for each area.

2.- Variety of brands and flavors.

3.- Excellent product marketing.

4.- Excellent distribution logistics.

5.- National coverage.

6.- High inventory turnover, low inventory costs.

7.- Preparation and continuous development of products

8.- Variety of products for each type of market.

15.1.2 Weakness
Aware that our weaknesses are challenges that concern us to grow, we have to analyze
both external and internal factors to focus on these weaknesses and seek solutions.

1.- High cost of operation

2.- Little negotiating power with distributors

3.- Increase in price of the product for raw material susceptible to change

15.1.3 Opportunities
One of our objectives is to always be in constant search of opportunities and many
times in our weaknesses or in our environment we are surrounded by opportunities.

1.- Few companies in the business

2.- National market to be exploited

3.- Preference for CNN products

4.- Access to new suppliers in different markets

15.1.4 Threats
1.- Income of multinational companies

2.- Demand for substitute products

3.- Increased raw material prices

4.- Political persecutions

5.- Increase in customs taxes

Diagram 2
SWOT Strengths- S Weakness- W
STRATEGIES 1.- Trained staff for each area. 1.- High cost of operation
2.- Variety of brands and flavors. 2.- Little negotiating power with
3.- Excellent product marketing. distributors
4.- Excellent distribution logistics. 3.- Increase in price of the
5.- National coverage. product for raw material
6.- High inventory turnover, low susceptible to change
inventory costs.
7.- Preparation and continuous
development of products
8.- Variety of products for each
type of market.
Opportunities- O Strategies – SO Strategies - WO
1.- Few companies in 1.-Achieve differentiation from 1.- Maintain good relationships
the business low competition with distributors and suppliers
2.- National market to 2.-Publicize more about the 2.-Strategic alliances to promote
be exploited variety of CN products new products and lower launch
3.- Preference for CNN 3.-Take aggressive approach to costs
products new markets 3.-Achieve product
4.- Access to new 4.-Find efficient distribution differentiation
suppliers in different channels for new markets
markets
Threats- T Strategies - ST Strategies- WT
1.- Income of 1.-Promote the company more to 1.-Increase quality in the most
multinational create loyalty to the company popular products
companies 2.-Maintain high sales level to 2.-Create improvements and
2.- Demand for maintain product turnover training for after-sales service
substitute products 3.-Find several quality raw 3.-Create a campaign to
3.- Increased raw material suppliers promote the products and the
material prices company
4.- Political 4.-Having the mission and the
persecutions clear vision in the employees to
5.- Increase in be able to guide the company
customs taxes
Swot Diagram

Diagram 3
 15.2 Value Chain

Image 7, Value Chain

Support Activities
General Administration Margin

Human Resources Management

Research, technology, and systems developments

Procurement

Margin
Inbound Operations Outbound Marketing Service
Logistics Logistics and Sales

Primary Activities

15.2.1 Primary Activities

 Inbound Logistics: The relationship with the suppliers of goods oversees the
purchasing management, which reports to the supply chain management. In
2018, a tender area was created to learn more transparently about the supply of
goods and services required by the organization. An online portal was made
available to providers that allows them to register as a provider.

The supply chain is also responsible for the management and control of returnable and
non-returnable containers, packaging materials and packaging, and in conjunction with
the production areas must ensure the use and rotation of these assets.
There are six grain silos to supply production in Managua and three in the municipality
of El Realejo, where malt and grain are stored when they enter the country.

 Operations: The main production plant is in Managua. For beer production there
are the following facilities and processes:

- Cooking room, in which the raw material and the adjunct are transformed into
mosto.

- Fermentation and filtration room. The mosto is fermented, and beer is

obtained which is subsequently filtered.

- Packaging and packaging lines. There are two lines of packaging in glass
bottles and one in aluminum containers. beer is also packaged in siphons.

To support production, the maintenance and industrial services area has:

- Machines and boilers room. They guarantee the extraction and treatment of
residual process water, industrial refrigeration, the generation of steam and
compressed air. Furthermore, the electric flow is guaranteed to be
permanent.

- Industrial maintenance. Includes electrical, mechanical, instrumental and

automation maintenance in a predictive, preventive, and corrective way.

To produce natural mineral water and soft drinks there are the following facilities and
processes:

In Managua:

- Water purification plant.

- Syrup plant to produce refreshing drinks.

- Bottle blower for PET bottles.

 - Gallon, PET and bag filler for water and drinks.

- Bottle water filler.

In Rivas:

- Water purification plant and bottled water filler.

Leon has new facilities:

- Water purification plant and bottle water filler.

The final product is packaged and stored in the finished product warehouse of CEDIS
Managua, Rivas and now Leon, until its distribution to other foreign centers, distributors,
and customers.

 Outbound Logistics: CCN serves all of Nicaragua through a distribution center

in Managua and eight centers, located in the cities of Boaco, Estelí, León,
Masaya, Matagalpa, Ocotal, Rivas and Santo Tomas.

CCN also exports Toña beer to Costa Rica, the United States, and Honduras. For sale
and distribution to be possible, CCN has its own vehicle fleet that includes light vehicles,
motor freight, trucks, and heads.

 Marketing and sales: Commercialization Marketing is done by marketing

management. Organizationally, it serves under the sub-managements of key
accounts, events, and home, trade marketing, Managua sales and foreign sales.

 Service: The technical services department, part of the marketing management,

provides the maintenance service of the cold equipment that is provided to
customers.
 15.2.2 Support Activities
 General Administration: At the Nicaraguan beer company, the highest
governing body is the general shareholders' meeting, which meets at least once
a year. The assembly elects the board of directors who elect its president. The
board of directors meets at least once a month. The immediate administration of
the company is delegated to the general manager.

To be a sustainable company, CCN has defined its triple utility strategy with objectives
in the economic, social, and environmental dimensions that are deployed in the
organization through group and individual compliance goals. The goals are stability
considering the context, risks, and impacts of the organization as well as the
expectations of the company's stakeholders.

The board of directors reviews and approves the annual goals, the executive
committee, made up of the CEO and area managers, monitors and guarantees their
fulfillment. Through the integrated business management system, the progress of
compliance with the goals is reviewed monthly through the management indicators.

 Human resources management: At CCN, by professional category the workers

are organized into: Directors or Area Managers 1%, Managers and Bosses 5.9%,
Coordinators, supervisors, and specialists 11%; and people technician and
operator 82.2%.

Of the total of workers 19.8% are women and 80.2% men.

15.2.3 Hiring
According to the internal work regulations for an applicant to be part of the brewing
family, he must be over eighteen years of age and possess documents that identify him
and prove his aptitude and health condition.
The internal selection and hiring procedures guarantee the suitability of the applicant
with respect to the position to be carried out, evaluating skills and conduct, which
facilitates a process with fewer biases.

15.2.4 Human talent management

In 2018, the total number of training hours per worker was 38.1. The professional
category that received the most hours was that of coordinators and supervisors.

All CCN workers are eligible for scholarships and financing for their technical studies or
higher. In 2018, eleven workers participated in the Retirement Outplacement program.
Those who begin their retirement due to retirement can prepare to remain active in this
stage of their lives and among other topics they are trained in:

- Management of personal finances.

- Micro Investments

- Psychosocial and family insertion workshops for older adults in early

retirement.

15.2.5 Workers with indeterminate contracts have the

following benefits:
- Food; basic basket, children's basket, and glass of milk to pregnant
women.

- Education; Scholarships to children with excellence, school loans.

- Health; medical financing, glasses subsidy, life insurance. In case of

subsidy, 100% of the salary is guaranteed.

- We loan, personal loans and salary advance loans.

- Gifts; children's party or school voucher, toys for children under 12

years, gifts for academic degrees, marriage, years of service, and
other special celebrations.
 - Others: uniforms for personnel covered by collective agreement and
uniform subsidy for staff with indefinite-term contracts. Supervisors and
managers are offered medical expenses insurance and travel
insurance in addition to group life insurance.

 Research, technology, and systems development: In 2018 CCN made

several significant investments in technology such as:

- The installation of a modern bottled water filling plant in the city of Leon.

- Palletizing robot for the bottle filling line in Managua.

- Updating automation in production.

- It made available to suppliers an online portal that allows them to register

as a supplier.

16. 16 Generic Strategy

16.1 Image 8, The value discipline

2. OPERATIONAL
OPERATIONAL
EXCELLENCE
Optimize processes and increase commonality
EXCELLENCE
to improve quality and drive cost down

CUSTOMER INTIMACY
Quickly adapt to new changing markets to
develop faithful customer and build market
share

PRODUCT LEADERSHIP
CUSTOMER Sustain a rapid innovation cycle to continuously
bring innovate products to market and maintain
PRODUCT INTIMACY
a superior brand image
LEADERSHIP
 17.2 Choose Generic Strategy
Low-Cost Leadership

Currently, the company is acquiring machinery and opening operations bases in more
areas of the country to lower production and transportation costs. Technological tools
have also been placed in the hands of customers so that they can place their orders
and, in this way, sufficiently fast

17. Long-Term Objective

Profitability

 Improve processes with the help of new machinery and technology to be cost
leaders and have a bigger profit margin

Competitive Position

 Maintain the quality of our products

Employee Relations

 Maintain the enthusiasm of workers through incentives and standards that create
a pleasant work environment for all workers.

Public Responsibility

 Reduce the amount of waste and recycle as much as possible

Productivity

 improve production efficiency and expand installed capacity

Employee Development

 Having a highly efficient staff with the help of periodic training

Tech Leadership

 To be the company with the most efficient machinery and technology in the
region
 18. Short-term objectives
• Less than a year

-Due to these tough the whole world is going through; CNN is still one of the companies
that is operating and continue offering more than beers but a reliability with its
customers.

- Continue to be being leaders in the Human Resources department giving each

individual the self-motivation needed to work effectively.

-Avoid unemployment as much as possible, even if it involves getting rid of some

resources.

19. Tactics

16.1 Value Proposition

Our value proposition is offering our customers refreshness and enjoyment at
reasonable prices ensuring peace of both body and mind. Hence we intend to:

1. Market the benefit, not the product.

2. Ensure customer satisfaction.

3. Develop long relationships.

4. Market the company.

This value proposition shall be communicated through advertisements, personal selling,

sales literature and catalogs, and referrals that emphasize how the company is able to
provide refreshment, enjoyment and fulfillment to the customers.

6.2 Competitive Edge

Our competitive edge will be our dominance of access to previously remote areas,
customer orientation and traditional high-quality brew through stringent quality control.
 16.2 Sales Strategy
We intend to focus on improving our implementation, by working on key objectives and
better coordination of marketing efforts. For the short term at least, the selling process
will depend on personal selling and advertising to lure and inform potential clients about
the products we offer and the benefits of consuming our products. Our marketing does
not intend to affect the perception of need as much as knowledge and awareness of the
product categories.

16.3 Marketing Strategy

One core element of our marketing strategy will be that of differentiation from our
competitors. In terms of promotion, we intend to sell our company as a differentiated
strategic ally, not just our products. In price, we intend to offer extremely reasonable
prices in comparison to the competition and we need to be able to sustain that. Market
penetration through lower prices shall be undertaken where need be, while premium
pricing will be the case of the upper end of the market.

16.4 Promotion Strategy

Our promotion strategy will be based primarily on informing potential customers of us
and making the right information available to our target customer. Since we shall be
targeting different segments, the promotional tools and messages may vary slightly to
match the intended market. However, in all cases the marketing will convey the sense
of quality, refreshes and health in every picture, every promotion and every publication.
Promotional campaigns will seek to promote the 'sharing aspect' of the beer, customers
drinking these products in groups.

16.5 Distribution Strategy

We believe that through our obsession for improvement, and commitment to a
leadership position in our respective markets, we can overcome the traditionally binding
constraints of resource base, firm size and narrow conceptualization of our business
domain. This shall be undertaken through coordination and logical integration of our
distribution operations. We aim to reduce cycle time for key processes, eliminate rework
and waste, and optimize our human resources utilization.
Trade Channels:

• Wholesale Distribution Channels

• Retail Distribution Channels

20. Conclusion and recommendations

The Nicaraguan brewing company has many years of experience in the country and has
positioned itself as the main distributor of beers, juices, water, and other beverages in
the country.

It does not have great competence and has a low cost strategy, since it invests a lot in
machinery, technology and education for its workers, in this way it is more efficient and
makes better use of its resources, so that it continues to improve we have the following
recommendations:

1. Keep focus on the corporate strategy: keep up with demands and do not run
out of beer. Gaining consumer loyalty can be a long process, but it only takes
one bad experience or one missed opportunity to destroy that trust. If your
loyal consumers are not able to get their favorite beer, they will accept a
substitute which results in your loss and another’s gain.
2. Manage and notified every step of the company: Managing growth and the
complexities that accompany it can ensure customer retention and help your
brewery remain competitive.

21. Bibliography
http://biblioteca.clacso.edu.ar/ar/libros/nicaragua/cielac/globalizacion_en_nicaragua.pdf

http://pronicaragua.gob.ni/es/oportunidades-de-inversion/195-externalizacion-de-
servicios/

http://www.albasud.org/publ/docs/33.pdfhttp://legislacion.asamblea.gob.ni/Normaweb.n
sf/($All)/DA5444C04962C5F60625755B007759AE?OpenDocument
https://www.uca.edu.ni/index.php/19-publicaciones/contenido-boletin-campus/1501-
primer-estudio-sobre-indicadores-tecnologicos-en-el-pais