For this D2 I will be evaluating when Heineken should stop cooperating with its suppliers. I will also
give the specific reasons that will result in the cooperating with its suppliers.
There is a chance that factory in Poland has worst working conditions than over here in the
Netherlands. When Heineken finds out that the factory in Poland for example uses child labour and
bad working conditions there are a few possible things that Heineken can do. Heineken can confront
the factory and say that they need to change the way they work, Heineken can also immediately
decide to not work with this factory, Heineken can also decide to ignore the problem because it’s
cheaper that way.
If Heineken decides to confront the factory to change to working conditions. when Heineken does
this they will make a statement that they don’t approve child labour and working conditions. This will
result in Heineken making a statement and having therefor good publicity. The second scenario is
that Heineken decides to immediately not work with that certain factory, when Heineken does this
they will also make that statement of not approving child labour. But there is one downside to that
solution and that is that the factory will still use the children to do the work and still having bad
working conditions for the employees, so the problem won’t be solved. The third thing Heineken can
do is to ignore the problem and continue working with that particular Polish factory. This will result
in cheaper products for Heineken because the factories use child labour. But if the media finds out
that Heineken doesn’t care about child labour customers don’t want Heineken beer so the sales will
take a massive fall, and can even result in Heineken going bankrupt.
As a final conclusion I think that I have clearly explained under what reason Heineken will abandon its
supply chain, I did this with the case study about the factory in Poland. I also gave two more options
Heineken can do when it for example finds out about the poor working conditions in the factory in
Poland.
give the specific reasons that will result in the cooperating with its suppliers.
There is a chance that factory in Poland has worst working conditions than over here in the
Netherlands. When Heineken finds out that the factory in Poland for example uses child labour and
bad working conditions there are a few possible things that Heineken can do. Heineken can confront
the factory and say that they need to change the way they work, Heineken can also immediately
decide to not work with this factory, Heineken can also decide to ignore the problem because it’s
cheaper that way.
If Heineken decides to confront the factory to change to working conditions. when Heineken does
this they will make a statement that they don’t approve child labour and working conditions. This will
result in Heineken making a statement and having therefor good publicity. The second scenario is
that Heineken decides to immediately not work with that certain factory, when Heineken does this
they will also make that statement of not approving child labour. But there is one downside to that
solution and that is that the factory will still use the children to do the work and still having bad
working conditions for the employees, so the problem won’t be solved. The third thing Heineken can
do is to ignore the problem and continue working with that particular Polish factory. This will result
in cheaper products for Heineken because the factories use child labour. But if the media finds out
that Heineken doesn’t care about child labour customers don’t want Heineken beer so the sales will
take a massive fall, and can even result in Heineken going bankrupt.
As a final conclusion I think that I have clearly explained under what reason Heineken will abandon its
supply chain, I did this with the case study about the factory in Poland. I also gave two more options
Heineken can do when it for example finds out about the poor working conditions in the factory in
Poland.
