ined independence. (Business Journals, Inc. 2/28/01)AB executives sent a letter to Czech officials offering to invest capital on the Budejovicky brewery, but the response that AB got back was not positive. One of the things that contributed to this response was that Czechs considered that the name Budweiser meant more than just a brand name or trademark, they believe that it denotes a geographic area and subsequently indicates were the products is from. Secondly, the simple fact of privatization concerned the Czechs that already had a bad experience with the German carmaker company Volkswagen. Where Volkswagen promised some amount of money to the Czechs, but Volkswagen executives fail to provide. Besides this issue, the wages paid to the Czechs factory were far below from the ones paid in the Germans factories.The third factor was, like I mentioned before, that the Czechs consider that the American Budweiser to be far inferior to Budvars Budweiser. AB has being trying to win over the Czechs in various ways. One of them is by spending over $1 million of dollars cultural centers, offering English classes, opened a caf and with a baseball team that is equipped with the Saint Luis Cardinals uniforms (The team that belongs to the same city where AB have its headquarter).After all this effort from Anheuser-Bush, the Czech government decided not to go on with the privatization of the Budvar brewery. More conversations followed these events, but AB and Budvar never agreed on the value of the Czechs brewery. After this last attempt, AB officials decided not to pursue the acquisition of Budvar and decided to file lawsuits against them on all the countries that they encounter the trademark conflict. Recommendations:1.Constantly make an offer for the stakes that the Czech government is offering to Budvars top management. This should be the priority of the AB executives, in doing so, if the offer is accepted, they will gain access to recipe...
