The Structure Behind ABSOLUT

Following the Swedish way and being highly efficient, ABSOLUT runs 24/7 with five shifts of 45 employees... and everything else automated.  Their key element of being all from "One Source" leaves most of their facilities and practices in house.  All ingredients are, for all logical purposes, in their back yard, and all the employees are on site.  Although they import a few ingredients for their flavored specialties, nothing else is outsourced.

This type of structure leads the outsider to view the company a functional design.  As a large company producing 600,000 liters of vodka a day, they go beyond the simple organizational structure.  Each department can work on its own specialty while all working towards the same goal of their final pure product.

Looking further, what is interesting about ABSOLUT is their foreign market presence, with their tops being the United States, Canada, Germany, Brazil, Spain, United Kingdom, and France, their home country Sweden isn't even on the list! With a large portion of their sales dependent on foreign markets, ABSOLUT needs to make sure and not focus too much on their homeland base in Ahus, Sweden and pay enough attention to the rest of the world. 

The Absolut Factory- Ahus, Sweden

 (www.theabsolutcompany.com)

Organizational Culture

As a company whose sole business purpose is to sell alcohol, ABSOLUT needs to take extra caution in their culture.  When visiting their website "The Aboslut Company" you see their slogan "Doing the Right Thing is Better for Business".  After taking this stand they go further into their leadership practices and the core of their "One Source" location.


ABSOLUT's expectations of their employees in relation to the use of alcohol can be summed up in their published work "The Book of Small Sensible Choices".


Within are questions such as "Is it okay to drink at a work lunch?  What should I do if a colleague is intoxicated at work? When is the right time to schedule a tasting?"  By addressing
these types of questions openly, employees understand where ABSOLUT stands.  These boundaries set the standard.  After reading the short book, you realize that over-drinking is highly frowned upon and each employee can easily find the lines of appropriateness.


This type of culture is a strong factor in ABSOLUT's success.  Their product demands excellence and the people who are apart of that process are proud of that fact.  Proof of employee dedication can be seen in quality control: each person spends half an hour of their shift inspecting bottles for impurities.  This all takes place in-house as ABSOLUT proudly produces every bottle out of their hometown, Ahus.  By having "One Source" the employees know that they are a crucial part of delivering a high quality product.

Overall, ABSOLUT portrays a positive, comfortable corporate culture.  Being an innovative company, they need workers who feel energy.  Furthermore, as an organization that needs special focus on their responsible actions, they take care to make sure everything is up to their standards.

International Strategy

In a world that is becoming more global every year, it is crucial for a company that wishes to perform on an international level to develop specific strategies.  The key components of international strategy include diffusion and adaptation.  ABSOLUT can utilize this type because there is very low pressure for them to adapt to local taste.  Their product does not change design for specific countries, therefore they can focus energy on product quality.  Furthermore, as a superior quality product comparatively within the market, low-costs are not their primary concern. ABSOLUT's process of producing their product exclusively in Ahus, Sweden puts them on a slightly different level than other spirit brands.  People who purchase ABSOLUT are looking for the flavor it offers.  By using an international strategy, ABSOLUT has focused on designing new exotic flavors and combinations.  If it ever arises that local markets require a distinctive taste, ABSOLUT may have to consider changing courses, but as of their current position they are doing great.