This essay aims to provide a discussion on the importance and necessity of creativity and innovation in large modern organizations. It will include five themes based on studies conducted on one of the largest International beer brewing companies, namely Heinlein. Firstly, matters of how leadership at Heinlein facilitates staff acceptance and participation in innovation will be discussed, followed by how their vision contributes to a culture of creativity and innovation.
Thirdly, discuss how diversity can be used to promote creativity and how its mismanagement could result in undesirable effects.
The last two sections will focus on identifying an innovative or creative idea introduced by Heinlein and discussing the benefits of it followed by, the potential risks that could be faced if the idea was to be implemented Brief History The Heinlein Company was founded in 1864. The Heinlein family entered the ere business when the 22-year-old Gerard Adrian Heinlein bought a small brewery in the heart of Amsterdam.
Heinlein family have built and expanded the brand of the company in Europe and around the world but product diversification began relatively late in Whininess’s history, because the company’s emphasis had been on expanding its markets but has been developed in many aspects to quality of beer.
Heinlein owns and manages one of the world’s leading portfolios of beer brands and is one of the world’s leading brewers in terms of sales volume and profitability. Their principal international brands are
Heinlein and Master, but the group brews and sells more than 170 international premiums, regional, local and specialty beers and ciders, including Crampon, Birr Merit, Foster’s, Mass, Murphy’s, Newcastle Brown Ale, Cotta, Tiger, Shares, Star, Strongbox and Civvies (Oversimplifications. Com, 2015). So far, the unique Heinlein has guaranteed the pure, premium taste of Heinlein beer and the evacuation of a growing global business with the most international premium beer brands (Background of company, 2015).
Heinlein expanded using mergers and acquisitions, struggling between concessions to the market and its life in the high quality, price, and standards that put it on the map in the first place. Pursuing quality excellence through innovations projected Heinlein to success (Anon, 2015). 1. Leadership at Heinlein Heinlein facilitates staff acceptance and participation in innovation by creating an environment in which employees find happiness in producing the best quality at all times, an environment that comes from the vision of the company.
In the mission statement of Heinlein, ‘We have a passion for quality and bringing enjoyment to life, whilst respecting individuals, society and the planet,” is here the leaders of the company determine the five values that the leadership of the company believes are the correct combination of values for its future. Their values represent what they stand for as a corporate citizen, a business partner and an employer. These values inspire Heinlein and are embodied by their employees at every level, function and geography of our business (Denominationally. Com, 2015). The long-standing company values are: 1.
Enjoyment – we bring enjoyment to life 2. Respect – for individuals, society and the planet 3. Passion – for quality 4. Code of Business Conduct 5. ‘Enjoy Responsibly’ By creating these values, the leadership of Heinlein has allowed staff to feel as a big part of the organization also; due to the fact that they are allowed to participate in the quality of the company it will help the company to gain sustainable growth. For example, Code of Business Conduct of Heinlein states, “Sustainable growth requires that we act according to our long-standing values of Enjoyment, Respect and Passion.
These values guide us in how we work and conduct our business each and every day; they are at the heart of our Code of Business Conduct. This Code, together with its underlying policies, describes hat is expected from all our employees – individually and as a team – in every market and at every level” (Denominationally. Com, 2015). So in this case an employee working in the operation management department would be motivated to help develop a new idea to help the department because he/ she knows how important and valuable it is to the organization.
The fact that the company shows such devotion to the first three values is evidence to an employee that the leaders of the company are setting the right examples. Employees therefore, have a clear view of what is expected of them and how feely appreciated they will be if they comply with these values. 2. Vision of Heinlein The vision of Heinlein contributes to establish a culture of creativity and innovation by creating a framework or a foundation in which enables creative ideas and innovation to thrive. This vision allows for precise goals and objectives to be formulated for the company.
It is similar to how students are taught to address their lives, first by having a vision, then creating goals and objectives, then taking the first steps towards achieving those goals. It provides a clear outline in the direction that the company will follow. Ages ago companies would eve been able to survive on the strength of their products alone but, with the fast increasing changes in consumer behavior and the large influence by the content they consume online, organizations realize that lots and lots of creativity is needed.
They realize it is better to create a culture of creativity and innovation within the entire organization, for example, they have a long history of success in the brewing industry, they have already established a global presence by using the company’s strategy, and also the first long term value of Heinlein states, “Heinlein makes life more enjoyable. We bring joy to consumers through the expansible promotion of our products, and the sponsorship of events that are important to us.
The atmosphere within the company also reflects this value: people enjoy working for a company with our heritage, world class brands and passionate colleagues” (Denominationally. Com 2015). This shows how they affirm themselves to being something enjoyable, something that brings joy both inside and outside the company, something that consumers see as a family/ community where value is shared between all the stakeholders of the company. Heinlein tries to spread this value wherever they are around the world so that heir customers can enjoy their brands and the benefits of it.
They get involve in sponsorships that are important to show that the company has values that they stand firmly besides. All these things are derived from the vision of the company, but when made into specific goals and objectives it establishes a culture of creativity and innovation. If Heinlein can magnify this organizational strength, it can become a source of competitive advantage. 3. Diversity Diversity is the key to creativity. Not just diversity in the workforce, but in our personal lives, the teams formed and the managers whom are hired and remoter (Banterer, 2015).
Heinlein shows how diversity can be used to promote creativity by employing more than 85,000 people in over 70 countries. Having such a large based workforce with workers from almost every culture in the world stimulates a healthy environment for creativity to appear. For example, Heinlein states that, “As our business grows in scale and complexity, people are our main source of competitive advantage. We need them to think globally, work collaboratively, inspire others and develop themselves and teams. We’ve set clear priorities for achieving sustainable, long-term success.
These priorities help us to build on our unique strengths and assets: our heritage, our scale, our brands and especially our people. By ensuring that we all speak a common language and build our capabilities in a systemic way – from marketing and sales to finance and human resources – we are increasingly harnessing the power of a geographically diverse team to ensure we win consistently’ (Denominationally. Com, 2015). Heinlein shows that they are very diverse, in terms of the large workforce, and uses this as a creative tool for the organization.
On the other hand, if Heinlein mismanage the way in which hey try to promote diversity as a creative tool, then it could result in the goal of sustainability of the organization. It would not be in the best interest of Heinlein to act on a decision without having knowledge of the current diversity issues, for example when Heinlein prioritize their goals and ignored available information or a source of information relevant to diversity management then this could cause undesirable effects for the company.
It could result in violation of general cultural aspects and the established cause where it could create a strong dislike of the company among a particular group of people. There is also a long term effect of infringement that could damage customer or client relationship, therefore, making relationship management very difficult. Diversity mismanagement can also cause Heinlein to lose face in the eyes of consumers which is bad news for the organization because the offended groups will stage boycotts of the product or service and those unfounded would be sensitizes.
All this could lead to lost in the reputation of the company in the market and would make it difficult for them to rebuild confidence in its products and services. 4. An Innovative idea introduced by Heinlein The innovative idea Heinlein introduced by Heinlein, was creating a list of their business priorities that came from years of experience in the brewing industry. These priorities are fundamental to how the company creates will benefit from any idea they create, and they are as follows (Denominationally. Com, 2015): 1 . Grow the Heinlein Brand 2.
Consumer inspired, customer oriented and brand led 3. Capture the opportunities in emerging markets 4. Leverage the benefits of Whininess’s global scale 5. Drive personal leadership 6. Embed and Integrate sustainability For example, Heinlein introduced a new product by deciding to mix beer tit lemons, a drink called Raddled. When a stagnant European economy and picky consumers gave Heinlein NV (HE) lemons, the world’s third-largest brewer decided to mix them with beer. The third largest brewer in the world needed a new idea so they turn to an old one (Federally, 2015).
The idea is an original idea generated by the world’s Market leader Enhances-Busch Ellen NV (ABA) a few years back when they produced a lime-flavored variety of its Bud Light brand. Heinlein benefited from this idea because Raddled became the cornerstone of Whininess’s strategy to get 6 percent of sales a year from new products. Last year, the company got 5. 3 percent of revenue from newly introduced drinks, or about 1 billion euros ($1. 3 billion). Raddled takes Heinlein back a century; it was developed then to cater to sportsmen looking to drink something that was a cross between a beer and a soft drink (Federally, 2015).
The company rolled out a line of Raddled drinks, a blend of lemon soda and lager that they released in 23 markets making it the biggest product launch ever (Fletcher, 2013). Raddled is just one of the other innovative ideas that came from the above priorities formulated by Heinlein. In return they were able to be ore aggressive in terms of their approach into entering emerging markets, for example, when they rolled out Raddled into Europe and the Democratic Republic of Congo, they did it in such an aggressive way that Heinlein is now leading the pack in new Raddled drinks and are outperforming traditional beer mixes and lagers (Fletcher, 2015).
Another benefit is the fact that by creating this new product the company is fulfilling its priority to grow the Heinlein brand. By deciding to dilute beer with lemonade, Heinlein has succeeded in their attempt to bolster sales in Europe and also gained the attention of women who prefer the sweet citrus taste. François-Xavier Mahout, senior director for global innovation at Amsterdam-based Heinlein said that Cutting beer with lemon reduces the strength of the drink the Fosters-branded raddled produced by Heinlein in the U. K. Notations just 2 percent alcohol by volume and may appeal as a drink for consumption after sporting activities. That sets Readers aside from other citrus- flavored beer drinks (Fletcher, 2015). This can be seen as a benefit because it allows Heinlein to enter into a new market where they can begin to compete. 5. Risks that Heinlein could face The six priorities placed by Heinlein, face potential risks if they are not engaged correctly because Heinlein is a single-product company, with a high level of commonality in its worldwide business operations spread over many mature and emerging markets.
The worldwide activities are exposed to varying degrees of risk and uncertainty, some of which may result in a material impact on a particular operating company, but may not materially affect the group as a whole (Oversimplifications. Com, 2015). One of the risks is the operational risks. For example, in Whininess’s pursuit for further expansion, they seek to strike a balance between organic and acquired growth within the limit of a noncreative financing structure. In acquisitions, specifically in emerging markets, Heinlein will be faced with different cultures, business principles and political, economic and social environments.
This may affect corporate values, image and quality standards. It may also impact the realization of long-term business plans including synergy objectives, underlying the valuation of newly acquired companies (Oversimplifications. Com, 2015). Take for example, the above mentioned example where it was said that Heinlein would benefit from entering into a new market of ‘consumption after sporting activities’ with Raddled, where hey can compete can be risky because their brand is not that strong in the market and consumer preferences may differ which may make it hard for them to generate a large market share of that market.
Another risk potentially faced is currency risks. Heinlein operates internationally and reports in Euros. Currency fluctuations, especially relating to the US dollar, could materially affect overall company results. Heinlein has a clear policy on hedging transactional exchange risks, which postpones the impact on financial results. Translation exchange risks are not hedged (Oversimplifications. Com, 2015). Conclusion After compiling numerous data from different sources it can be observed that creativity and innovation is very important to large modern organizations.
Their survival depends on how good they can be creative and innovative. This is way the leadership of Heinlein shows that they are both highly valued and stresses in their goals how important they are to the organization. The leaders of Heinlein have to be very less judgmental and open-minded to employees, so as to motivate them to participate in team work and not be afraid of making mistakes and in return if the job is well done , reward employees for thinking outside the box. It is the vision of these leaders that creates the culture of creativity and innovation within the company making it enjoyable for employees to work there.
Leaders also know that it is healthy to have a diversified workforce that helps to gain new ideas to keep the company going forward. Heinlein supports the idea of creativity and innovation that is why they hire staff from different knowledge and background and tries to get them to mingle with each other in groups and projects. The six priorities introduced by Heinlein shows how important creativity and innovation are to an organization because if they id not invent or formulate these ideas then probably the company would not be ranked as the world’s third largest brewer and they would not be as sustainable in the market.
Heinlein has to be especially innovative in risk management because they operate within a market that can lose value at any given time so in this sense it is very necessary for them to be innovative and creative to ensure long term sustainability. Recommendation Heinlein can continue its success by searching for profitable breweries to acquire and continuing their research on development of better advertisements and non-alcoholic beverages. For example, Long Trail Brewing acquired Otter Creek (which includes Walkover’s and The Shed Brewery) in 2010 (Broadcaster, 2015).
Cite this Importance and Necessity of Creativity and Innovation in Organizations
Importance and Necessity of Creativity and Innovation in Organizations. (2018, Jun 09). Retrieved from https://graduateway.com/heineken-brands/