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Id like to suggest adding a breakdown of free cash flow forecasts. I would expect to see the forecast (2021-2025/2030) revenues, costs, other expenses, EBITDA, CAPEX, tax, change in working capital. Please take a look at the sample paper. On line Assignment Submission Student ID Number: Name and Surname: MSc. Program: Title: Name of Supervisor: Deleting as appropriate: I do agree to allow my dissertation to be seen by future students Contents BUSINESS ANALYSIS AND VALUATION OF HEINEKEN, INC. 3 Abstract 3 Introduction 4 Business Description 5 Literature Review 5 The Data 7 The Free Cash Flow of the company 8 The Capital Expenditures 8 The Valuation 9 The stock multiples valuation analysis 11 The Price/Earnings (PE) ratio 12 The enterprise value (EV) 12 The Methodology 12 The Discounted Cash Flow model 13 Prediction of Cash Flows 16 The Trends in sales revenue growth 17 The Gross Profit Margin 17 The Discounted cash flows 18 The Sensitivity Analysis 18 The Justification done internally 19 The Justification done Externally 20 The dividend volatility 20 Results and Findings 22 Conclusions & Recommendations 23 References 24 BUSINESS ANALYSIS AND VALUATION OF HEINEKEN, INC. M.SC. Dissertation AUGUST 01, 2021 Abstract In this research paper, the price that results in shares that is the major concern for the Heineken company has been estimated and achieved by involving the use of discounted cash flow model which in many cases is the most used technique of conducting out the valuation activities and hence this becomes an indicator to show that, our investigation done in this research paper is after the provision of a recommendation of the investment for the Heineken company. However, in this case, majorly we are focusing on making comparison between the price being targeted which is the estimated price and the price made on the market for the Heineken company. The foundation of the start of the valuation is to mainly conduct a prediction of the next 10 years coming that is based on the cash flows on the trends of historical growth for Heineken company so that to enable the approximation of the free cash flow for the annually. Furthermore, the cash flow is passed through calculations back to 2020 including the total mean cost of the capital so that we can find the latest value of Heineken company. During this process of investigation, we are basically carrying out the activities but following guidelines of pricing model that are related to the capital which is the asset of the Heineken company. However, the rate of discount to be given is being estimated at 7.45\%. This research paper however, concludes that when we set the target price of $278.65 which is equivalent to +12.44\% above the price that is set on the market as of 01/08/2021 and at the same time, we provide the analysis in-debt that is related to the price that is considered to be sensitive to the assumptions made according to model which in this case impacts the Heineken company of their economy plus the price which was made on target just as before. Thus, according to this research paper, investors are recommended to fight for having the strong power of persuading. Introduction The Heineken N.V company is a Dutch brewer that owns a portfolio for the whole world that has over 170 brands of beer but mainly of pale lager. However, some styles of the beer are still being produced just as of 2006. In addition, Heineken N.V company in more than 70 countries now owns over 125 breweries at the same time having a large number of employees of up to 57,557 in numbers. The Heineken N.V company price of trading in the market today, 01/08/2021 is at $ 180.24 in each and every share made in the security market still under the Nasdaq exchange stock (Yahoo Finance, 2020). This the type of task which is targeting to decide of a share price which aims for the Heineken N.V company. This ends in the year 2020 while still involving the model of discounted flow of cash. The discounted cash flow model is performed by doing a future estimation and expectation of the free flow of cash for Heineken N.V company when To perform the valuation of the finance in this research paper, we have used the discounted cash flow technique as one of the most used methodology and preferred for the valuation. At first, how free the cash flows in the Heineken company is expected for the next 10 years coming including the terminal value that is the last value. This is an indicator that the free cash flow in the Heineken company is will be calculated for the recent years using the capital cost which is used in determination of the recent value for the following cash flows. This is a long-term form of prediction which in general is based on the trends of the historical growth of the Heineken company sales and the ratio of which they have to the other variables and elements in the company. To add on, through the application of the of the trends in the historical growth of Heineken company to the cash flows to be made in future when making assumptions in which the investment policy and the Heineken company structure remains same, the approximation of cash flows is made. Business Description The Heineken N.V is a brewing company based in Amsterdam located in Dutch. This is the second largest producer of beer in the whole world. It is an international beer company that owns the world portfolio of over 170 beer brands like Heineken, Amstel, Strongbow, Tiger Beer and others. Furthermore, The Heineken N.V company has a track of record of all the unethical practices of business for its own business (Oliver V.B , et al, 2018). From the book, it’s clear that, Heineken in Africa uses promotional girls to stimulate its sales. Most of the girls are found to be harassed while performing their duties, they are forced to sleep with their managers and to make it worse perform prostitution to the customers. Despite the fact that Heineken has been aware for the past fifteen years, a little has been done over the same. Literature Review Heineken is one of the biggest brewing company which is located in Dutch. In word the Heineken company has been ranked to be the second largest beer producer company. According to BBC the Heineken have over 170 brands which are being sold worldwide. The company has more than 170 branches in more than 70 countries. The annual production of beer was estimated to be more than 188,300,00 hectoliters. According to Oliver van in his book the Heineken have a truck record of conducting unethical business Oliver van (2010). . In the recent years business has become very competitive, every organization is doing their best to make sure they have gotten their share. This has prompted adoption of different marketing strategies. For one to understand the market well one should be in a position of understanding two main theories. According to the view of the Wernerfelt (1984) has suggested that in order for one to compete effectively one should be in position of producing superior product in the market. The Resource based view theory says that the firm which has unique and quality product have highly chances of dominating the market comparing to the firm which have common products (Barney,1991). The RBV theory says that the primary thing to do in order to penetrate in the market is ensuring that one has identified all the loophole in market. Marketing Department is the one which is fully charged with the responsivity of ensuring that well developed strategies are implemented. Another theory which is very important is the planned Behavior which was developed by Arjen and Fishbein (1981). This theory assume that the intention behavior is one of the key determinates of behavior. One of the factors which influence behavioral intention is the attitude of the person toward performing certain task Fishbein (1980). Majorly this theory gives a well-defined way of investigating the effect of one’s attitude toward buying and selling of products. This chapter has previewed literature works which has been done by other researchers. These researches that I will have for the support of my research study are related to my works. The researches after they are analyzed are found not to have fully documented or rather given data on the Heineken company which could have made the best conclusion and therefore my research will try to fill in the pay gaps that the past studies left (Melewar et al,2020). According to researches, Heineken Company is most known for brewery and its known world widely. It is known for its brand and quality brew product and in fact, the past research explains that, all users of Heineken Bear always know its taste and once a person opens a bottle of Heineken bear, they always identify that truly it is Heinekens’ brand (Sluyterman et al,2015). This is a pride to the company and it is all what most manufacturing company would wish to have and in fact, it is referred by most people internationally as a company of proud to many for its presence. Others believes that it is individually special to many and also universally loved. As reviewed by many researchers, the results show that it is mostly used by families and friends especially for memorable reasons. For this reason, Heineken consumers has these brands of Heineken in their minds. The diverse range of Heineken brands of beer allows the Company to have the capability to reach most of its users. This is because, the brands are different with different tastes for different customer. This means that, there are those customers who will not wish to take alcoholic staffs and therefore, they would prefer to take a soft drink from Heineken. The good thing with Heineken company is that, it has the non-alcoholic brand and therefore, this customer will enjoy what she wants wherever he or she is and at an affordable price (Ganton et al, 2012). Heineken brewers have over 300 brands available and they are connected to over a hundred and ninety countries world widely. It owns over a hundred and fifty breweries outside its mother country Dutch. This makes the Company most known and valued all over the world. The brands are divided into almost four commonly used types i.e. International brands, Cider brands, Regional and local brands. The international brands are the most expensive while the local brands are the less expensive. Its two main brands include the Heineken and the Tecate (Smit et al,2014). Although these are the main known brands, there are other several brands as explained by researcher Mondo Birra in the year 2012 and these includes Amstel, Sagres, Starobrno, Zagorka, Cruzcampo among others. The Data In this research paper, several approaches have been used in the valuation in order to enable the performance of calculations for the Heineken N.V company in terms of fair value. However, according to our data set for the Heineken N.V, we have much focused on using the discount cash flow which is the most used technique in doing this kind of calculations on any organization in terms of business economics. Using this method however, we are to calculate the cash flows for the next ten years so that we can find the total gross value for the present state of Heineken N.V company (Ganton, K. , et al, 2011). However, while doing this research paper, we have used a methodology basing on the ten-year technique of valuation that is starting from the 21/08/2010 until 01/08/2021. The statements made based from the historical data of finance for the Heineken N.V company are passed through analysis so as to create the foundation that is strong for the prediction of the next 10 years to be made. In this section therefore, we briefly explain the initial background of finance variables and thereafter address on how these variables can be located from their own position. The Free Cash Flow of the company The methodology of carrying out valuation hereby is simply attached on the gross total cash which is available in Heineken N.V company and again this is obtained from the activities if the company and its operations. Further, at the same time the Heineken N.V company itself is ready in carrying out the distribution for the purposes based internally. These internal purposes include, returning back to the shareholders, paying off debt ( Crispim, et al, 2018). However, it is evidence that this is considered as the freely cash flow as it is from the business operations. This operations and events are available for both holders that is the debit and the credit provided, all the investments considered to be fixed assets, the total net capital which is working and the rest of all obligations of the tax have been paid for ( Rose, et al, p. 31). The Capital Expenditures We consider capital expenditures as payments we use in making purchases for the fixed assets, the equipment and tools that are in need for improvement of operations and also the machines needed in order to speed up the operations in the business. This is clearly defined in the statements of cash flow but still under the “Payments of acquisition of property, plant and equipment”. A significant correlation is seen to be generated from the inflation and the market stock since the latter is a subject to the former which makes their relation be a critical concern for the economists, households and businesses. This research paper provides an analysis of how the inflation and the stock on the market have a relation to each other. Again, also assessing the capital that is achieved on Dutch market. Apart from that, analysis provides an evidence which states that the rate of inflation coming is seen to be equal nominal rate of return minus the actual rate of return. This paper focuses majorly on some of the various indices of the economy which have been found to be available on the Dutch market and that they can be used when one is measuring the inflation. However, the indices are considered because of their roles. Indices are essential in doing the detection and verification of the effect of this inflation on the stock prices that are found on the market. This research paper also has incorporated some of the various trends that are found in the economy. Excel, correlations, VAR models, the impulse responses and the decompositions of variance, the methodologies of econometrics helps in the provision of in-depth research which in this study enhances the credibility if the findings and results form our own chosen dataset. Furthermore, through the reviews of the previous scholarly materials of the topic and combination of the real-life situation of Heineken N.V company progress, this paper strives to provide accurate results which can be utilized in various contexts of the economy. The Valuation During the valuation, we are based on the DCF model which is used as the main technique in performing the analysis on our own data set. Following the view point of the discounted cash flow, we have found a value of $27.87 by making assumption on the rate of discount of 5\% and the perpetual rate of growth of 2.0\%. Therefore, we are able to see Heineken N.V company as overvalued. From the valuation measures made, it is clear that according to the quick ratio and the way finance has been levelized, Heineken N.V company has got a stable heath in finance matters considering that their margins are also still in good point since the company is improving at a good rate when we keenly look the rate of the ten-year revenue plus the net growth in their income. To add on that, the asset which the company uses to make its turns has been seen to be high at the same time the company is making large number of sales in each year meaning that the growth rate of the company is considered fine. When we consider the P/B and the P/E, we can easily make comparison from its mean achieved that is (4.5 and 32.2) in that order. From the values stated, we can define that Heineken N.V company on the basis relative rate and the EV/EBITDA of 10.2 against an 9.23 mean of its peers. On top of that, the Heineken N.V company keeps on showing improvement even on its dividends during the last ten years of their economy. Heineken N.V company should take the advantage on their own brand since when compared to the companies that are producing products similar to theirs. This can be achieved by them maintaining their price to remain and on the other hand producing the very high-quality drinks to the customers. Some of the strategic which the SG might use include, increasing brand equity, entering the smartwatches and reinforcing its presence in US and ensuring that they produce more product with increased technology. To ensure that they have first mover compared to their competitor who have started producing the similar products. It is important for the SG to focus more on the production of high-quality drinks because with the move of technology many people are shifting to good and quality drinks because of their health issues. This will ensure that the company has moved with technology to avoid being left behind. In order to ensure that brand equity customization is suggested to ensure that customer can differentiate between the counterfeit product and original product from SG. This recommendation is important because the counterfeit products are becoming a real threat in the products. In most cases, the multiple stock used in the valuation of stocks is the P/Earnings NTM multiple which is the earnings from that price. This price earnings have got a relationship to the prices share for the current with the combination of the targets of the market which in this case is in terms of the earnings made as per the share calculated from the price margins. The market value of the Heineken N.V company can be compared to the its own earning when the multiple is used in that case. Thus, the price earning of the NTM ration of Heineken N.V company has been found to be lower than the price of the median of the peer’s group that belongs to it. Therefore, during the Heineken N.V company valuation, following the flow of the metrics, it is found to be below the valuation of the market to the group of peers of its own. The company valuation of the Heineken N.V company according to this metrics is seen to be above the market valuation of its peer group. The stock multiples valuation analysis The analysis of multiple stock involves using a company’s financial metrics so as to determine the value of the stock. In reality, its sis clear that professional investors and institutions tend to employ a variety of valuation multiples. Below are some of them analyzed; The Price/Earnings (PE) ratio The ratio of PE considers the profitability of a company so as to determine the value of the stock. The calculation is done by dividing the current price of the stock by the earnings of the company per the share. The enterprise value (EV) In this research paper and the technique used, we focus on the EBITDA of the Heineken N.V company that is earnings before interest, tax, depreciation and the amortization which estimates the firm’s cash flows, thus to determine the stock value. It is obtained by performing calculation of dividing the firm’s enterprise value that is the market value plus the net debt by the total value. The multiples of a particular firm are influenced by the firm’s growth revenue and the growth earnings. This means that a company with high growth in revenue plus earnings will trade at higher multiples than a company with its revenue and margin decreasing and contracting respectively. To add on the financial state of a particular company, the industry and the sector play part in the valuation. Those companies in fast growing industries such as technology will have to trade at much higher multiples compared to those companies in declining industries such as department retail. The Methodology In this section, we introduce the techniques and tools used when undergoing the performance of the valuation of the Heineken N.V company. However, in this case, we are concerned with two indicated parts which are to be explained in detail as outlined below; In this first part, the illustration is focused on the process used to acquire the prices set for the Heineken N.V company and the different techniques used to perform valuation as it is involved in the background level of the Heineken N.V company. The following part operates on assumptions and how those made assumptions made are being justified and thus helps in the evaluation of the sensitivity of the prices set to be obtained for both the external and the internal assumptions. However, we are also using the two model of growth in both the stages, the two models in short form shows that we have to consider both stages for the Heineken N.V company’s change. During the opening times and period of the Heineken N.V company, we may have a high rate of growth and during the second stage, this is where we usually assume to have a stable growth rate. To start with, it is clear that we have to get the estimates of the next ten years for the cash flows. In this case, where possible, we use the analyst estimates but when the analysts are not available we do extract the previous freely flow of cash form the last estimate value. Heineken N.V company should always keep pursuing the advantage which they have compared to other companies producing some product they are producing. They can achieve this by ensuring that the price is low and producing the mid-range products. Some of the strategic which the SG might use include, increasing brand equity, entering the quality products and reinforcing its presence in US and ensuring that they produce more product with increased technology. To ensure that they have first mover compared to their competitor who have started producing the similar products. It is important for the SG to focus more on the production of the quality beers because with the move of technology many people are shifting to quality beers. This will ensure that the company has moved with technology to avoid being left behind. In order to ensure that brand equity customization is suggested to ensure that customer can differentiate between the counterfeit product and original product from SG. This recommendation is important because the counterfeit products are becoming a real threat in the products. In this way, it is assumed that firms at this point with freely cash flows of shrinking will slow their shrinkage rate while those firms with the free cash flow growing will have to see their growth rate slow over this kind period. This is hereby done to reflect that the change remains to slow more in the past years than when it is doing in the recent years. The Discounted Cash Flow model This is one of the most technique used and preferred in performing the analyses provided the historical data of a given company which in this case is the Heineken N.V company and the predicting them focused on their change in trends and their division to the sales made for the revenue. The following step is in performing calculations on the freely cash flow to the business company that is (FCFF). Lastly, to finalize is step in discounting the FCFF to the recent year which allows you to have access to the new value of the company. Below is the general appearance of performing the discounting steps. The three steps involved in the model are; making predictions on the cash flows, secondly making calculations of the free flow of cash in the Heineken N.V company. Lastly, making the determination of finding out the discounted cash flow. Following all this step, then the model of discounted cash flow is achieved and thus the results expected from the data set which is used in our own research paper are met. Below is a table indicating how alcoholic beverages are performing on the cap of the market and also showing the revenue that is obtained after the sales of the alcoholic beverages have been made. Thus, from the table the Heineken N.V company business of alcoholic beverages is well growing and performing. The Heineken N.V company is involved in the production and distribution of beverages. The Heineken N.V company offers drinks like beers, soft drinks, cider and the other beverages. The global principal brand of the company is Heineken N.V company. Heineken N.V is the headquartered in Amsterdam, Netherlands. Discounted cash flow can be described in simple terms as a valuation method for working out the value of an investment which is based on future cash flows. Heineken N.V company, a company that deals with manufacturing and sale of finished quality beers and other soft drinks . The cash flow of this company is quite interesting although from the look of things, one might see the future of the company not very promising. This is because, the liabilities of the company seem to be equal to the liquid assets of the company. In other words, the balance sheet of Heineken N.V company looks solid. The company is short on cash but the interesting thing is that, it has the capability to keep an eye on the balance sheet. The Company is also able to make boasts on net cash therefore, it’s fair to say that its debts are not very heavy to result to its instability. Heineken N.V company should always keep pursuing the advantage which they have compared to other companies producing some product they are producing. They can achieve this by ensuring that the price is low and producing the mid-range quality beers and soft drinks. Some of the strategic which the SG might use include, increasing brand equity, entering the soft drinks and reinforcing its presence in US and ensuring that they produce more product with increased technology. To ensure that they have first mover compared to their competitor who have started producing the similar products. It is important for the SG to focus more on the production of the soft drinks and quality drinks because with the move of technology many people are shifting to smartwatches. This will ensure that the company has moved with technology to avoid being left behind. In order to ensure that brand equity customization is suggested to ensure that customer can differentiate between the counterfeit product and original product from SG. This recommendation is important because the counterfeit products are becoming a real threat in the products. From the recent balance sheet, it is observed that the company had liabilities of about 2.20 billion falling due within a particular year and liabilities of about seven hundred and sixty-six (CHF776m) million due beyond that. Similarly, it had a cash of about 1.13 billion and a total receivable amount worth six hundred and nine(878m) million within a year. Therefore, the liabilities after totaling was adding up to an amount close to two hundred and thirty million more as compared to the cash and the receivables of the company which does not look very pleasing. The company has also tried generating free cash flows which has been used to settle debts. It is an obvious thing for businesses that, the debts are not settled with the paper profits but rather with the free cash flows and therefore when a company with likes of Swatch group company can be able to generate more free cash flow, then it’s also easy to settle its debts. During the last four years, the company produced a steady cash flow of about 80\% of its Earning Before Interests and Taxes. This is a perfect indication of company’s profitability and as expected, this is a presentable figure when it comes to businesses. Swatch group company has a net worth of not less than nine hundred and fifty million (750m) and a free cash flow of about 800 million. The fact is that, despite of the company having more liabilities, it also generates more free cash flow which in a way, supports in stabilizing the liabilities which are inclusive of debts. The inventors have had interests in the trends of the balance sheet of the company which shows its trends on liabilities. In one way or another, the company clarifies things that the key areas in business is consistently analyzing and stabilizing debts. Focusing on how to settle debts could be the best way to brighten the future operation of every existing business and this is all what the Swatch Group Company is working hard to ensure that their future is bright. Prediction of Cash Flows The predicting cash flows starts with analyzing the historical statements of finance. The target in this case is to seek the trends and the ratios that are consistent in the estimation of the next cash flows by focusing on that particular conclusion. The following sections are the predicting techniques applied so as to have access to all the required variables to the freely flow of cash when calculation is done. The Trends in sales revenue growth Real building block of the predicting flows of cash is the revenues found from the sales. To start, the 10-year historical data trends in the growth is analyzed by being concerned with the processes of the business, the growth in the economy of Dutch and the strategies that are of the recent put in control by the Heineken N.V company. Secondly, the trends have been expanded further for the next years about 10 and in addition the growth rate of the final year is targeted to be equivalence as the Dutch growth of economy predicts. The Gross Profit Margin The Gross profit margin is the amount resulted after the cost of goods sold has been subtracted from the revenues and the result divide by the revenues itself. However, the same margin in the gross range of the last 10 years has been preserved as the projection of the next predictions. To add, the remaining expenses that are in operation like sold goods, buying, the research and the expenses of development are later joined together to compute the ratio to the cost of products to be sold. To find the cost of goods sold; Gross profit margin = As a result of gross profit margin, we can now find the EBIT by using the following formula; EBIT = Gross profit – Other operating expenses The Discounted cash flows It aims at estimating the present value (PV) of all cash flows that a Heineken company is targeting to generate in the next ten years. This can be obtained using the following formula; PV = The Sensitivity Analysis When the target price has been obtained, the sensitive made on the assumptions has been considered as measurement that is important. This particular part tests the analysis in sensitivity into equal different parts. The justification based on internal, is the sensitive of the price targeted to the performance that have got relationship that is assumed and made “internally” and thereafter the justification done in the external, is sensitive of the price targeted to the wide market that is “external” results. Target price in USD COGS growth (\% YoY) Revenue growth (\% YoY) 1.00\% 0.00\% -1.00\% 1.00\% 267.77 320.04 400.88 0.00\% 170.31 250.64 280.34 -1.00\% 90.89 156.98 198.98 The table below shows the regression analysis variables (Bloomberg, 2020) Covariance-Variance Matrix Heineken N.V (y-Axis) Nasdaq (x-Axis) Heineken N.V 288 1.20 Nasdaq Regression Analysis 1.20 1.2 Mean Beta Alpha R square Number of observations R square adjusted 0.44 0.99 0.08 0.75 300 0.75 0.09 The Justification done internally Inclusion of the variables through forecasting is done by considering ratios of which have a relationship to the income and the cost found out of the goods sold. Hence, the very paramount part of it is to confirm the sensitive to the price targeted in the growth assumed for the variables used. This kind of talk shows both the best and worst scenarios considered for the two core variables. During the best scenario, in this it is where the sales income changes in the annual is at +1.00\% and also the change of annual costs is lower at -1.00\% than an expected in a year. Here comes the scenario of the worst case in which the growth of revenues annually is slower by -1.00\% and the increase in costs is +1.00\% high to the expectations. Being here, it is clear that the price targeted is operated on as possible through application of all this stage which involves the discounted cash flow and thus the price is indicated in a form of matrix. The Justification done Externally This section justifies the factors that are externally in the wide market are looked into which affects the pricing effect on the goods according to the demand made from the market itself. The core factors have a crucial Impact on the price being target that is the rate of growth in perpetuity (g) and the average cost of the weighted to the capital. The increase for the change in the rate concerning the perpetuity is computed and the result on the set price therefore is computed. Also, the same case applies to the weighted mean cost where the increase in change for the mean cost of weighted for the capital is applied and the discounted cost of flow model is created many times so as to access the price set. In nutshell, the impacts of the variable used in obtaining the set price is therefore illustrated in a form of matrix. The dividend volatility From the data set analyzed in the research study it’s clear that Heineken N.V company has been in the payment of the dividends for a such long period since before, however, in this paper, the analysts were focused on the last 10 years only of its payment. During the past last 10 years length, the initial done payment in a year was CHF5.0 that is during the 2011 which is now compared to the CHF3.5 last year that is 2020. Heineken N.V company dividend was cut sharply once, hence it has not fallen by 3.5\% every year but this approximates a long change of term. Over the last 5 years, it seems as though Heineken N.V company EPS had a decline at around 19\% a year. Thus, investors that majorly are on process of dividends should always want to be aware about the company’s dividend that are affordable in which they want to put their investment, if the company has got records tracked already then, the payments that are consistent and finalize if the dividends have got the capability of growing. Heineken N.V company should always keep pursuing the advantage which they have compared to other companies producing some product they are producing. They can achieve this by ensuring that the price is low and producing the mid-range different quality beers. Some of the strategic which the SG might use include, increasing brand equity, entering the quality beers and reinforcing its presence in US and ensuring that they produce more product with increased technology. To ensure that they have first mover compared to their competitor who have started producing the similar products. It is important for the SG to focus more on the production of the different quality beers because with the move of technology many people are shifting to different quality beers. This will ensure that the company has moved with technology to avoid being left behind. In order to ensure that brand equity customization is suggested to ensure that customer can differentiate between the counterfeit product and original product from SG. This recommendation is important because the counterfeit products are becoming a real threat in the products. Results and Findings According to the data set collected and used in our study research paper, the following findings and conclusions have been made. Even though the Dutch drinks are of quality they should work very hard to ensure that they have maintained their brand. In order to address the issue of riding for the brand of the switch brand, the company should highly invest in innovation, design and marketing. The company should invest more on the branding, marketing and finally on design by application of tax breaks to the limits, also the FH should take a center role in marketing of the brand. This is because the basic completion gas moved to the technology. In order to solve the problem of monopoly in the organization, the structure of the firm should ensure that they have monitored ETA very closely and act on any action that have explorative addition to this the government should lower all the barrier that are  hindering the movement of the good inside and outside the county. By doing this will encourage both the trader to be innovative and manufacture more goods. With increase of potential of migration of value-added activities which are coming from outside the Switzerland. The Sweitzer land should work closely with other governments in order to introduce an open world-class education program in marketing and designing of watches. Since some of university have existing courses on design of watches, now their main target should on how to attract designing of the best and quality drinks across the globe and attract all types of talents from all nations. It is also very important for the cluster to ensure that it has increased and strengthen the effort in Asia. This because is one of the anticipating competitors in this sector. By doing this it will ensure that the market has not been taken by Indian. This can be boosted by ensuring that FH has extended its offices in India and mainland china. The cluster should also ensure that they have complimented their product by manufacturing good that are purposely targeting the population in India, they should ensure that they have narrowed down exporting goods targeted for European. Heineken N.V company should always keep taking the advantage which they have compared to other companies producing some product they are producing. They can achieve this by ensuring that the price is low and producing the mid-range watches. Some of the strategic which the SG might use include, increasing brand equity, entering the quality beers and soft drinks and reinforcing its presence in US and ensuring that they produce more product with increased technology. To ensure that they have first mover compared to their competitor who have started producing the similar products. It is important for the SG to focus more on the production of the smartwatches because with the move of technology many people are shifting to quality beers and soft drinks. This will ensure that the company has moved with technology to avoid being left behind. In order to ensure that brand equity customization is suggested to ensure that customer can differentiate between the counterfeit product and original product from SG. This recommendation is important because the counterfeit products are becoming a real threat in the products in the market which is becoming wide and wide as the Heineken N.V company is an international company thus competition is stiff from its competitors. Conclusions & Recommendations From the analysis and findings done in the above sections, the growth of revenue of Heineken NV company shows an increase. Apart from the growth revenue, Heineken N.V past ten years margin gross mean is at 45.20\% plus having the net margin income of 24.05\%. When we look on the other side of liquidity, Heineken N.V has been found to have ratio of 1.85. Heineken N.V stocks are currently trading at $199.78 and the target price which is expected by the end of 30/08/2020 is estimated at $224.67 that is 15.32\% as per according to the DCF model used in performing the calculations. Despite all the concerns, it is recommended that, Heineken N.V should maintain its focus on the in their service area so as they can boost their growth in the company revenue, through this, Heineken N.V will relief from the trade tariffs and thus be able to expands business. However, when we do consider the position of Heineken N.V in the market and the current state of economy, we can conclude that Heineken N.V is currently overpriced by 15.23\%. Thus, investors are recommended to strongly buy the stock in the company. References Ganton, K. (2011). Heineken NV: Strategic Global Brand Management as. Note from the Editor 4, 26. Ganton, K. (2012). Heineken NV. BCOM BEST BUSINESS RESEARCH PAPERS, 5, 26-36. Crispim, S. M. D. S. 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