Achieving a Sustainable Competitive Advantage through People

AB InBev’s Performance Culture

Abstract

The rapid growth of globalization and the subsequent increase in international competition have resulted in a number of companies searching for new sources of competitive advantage. There is much research on how firms can utilize their human resources in differentiating themselves from their competition, yet many of these companies still see their employees as expendable resources. This research paper identifies several competitive strategies, competitive advantage models and human resource practices that can have a significant impact on employee and organizational performance. Specifically, I will look at why international conglomerates should use their organizational culture and human resource policies to achieve a sustainable competitive advantage through their employees. AB InBev, headquartered in Belgium and the largest beer company in the world, will be used to exemplify the benefits of utilizing a firm’s workforce in achieving organizational effectiveness. The company has been able to recruit, develop and train a highly competent workforce that is committed to the organization and its goals. They have also created a corporate culture that has catapulted them to the top of the industry; a performance that has not been matched by their major competitors. This paper will ultimately conclude that developing a sustainable competitive advantage through people is necessary for long term success and lists important criterion that managers should apply when developing their human resource strategy.