Brewing Change at Breckenridge Brewery INTRODUCTION Breckenridge Brewery is a craft brewer which was established by Richard Squire. Richard turned his passion for brewing good home made beer into a lucrative business. In 1989, he started his first Breckenridge Brewery and Pub at Breckenridge which has a production capacity of 3,000 barrels per year. During his first two years in business, he sold out the brewery's annual maximum capacity. He opened a second brewery and brew pub in Denver in November 1992. By the end of 1994, even this brewery failed to satisfy the increased demand and plans were made for a new brewery which opened in May 1996 in Denver. This brewery had a maximum output of 60,000 barrels per year after expansion. In the mid 1990s, Breckenridge Brewery started expanding eastwards and their first brewpub outside Colorado opened in Buffalo, New York in December 1995. Five other brewpubs were subsequently opened in other states. However, from its opening till 1997, the brewpubs have not turned in a profit although the main brewery was making money. Richard believes that his vision for the company, a two-tiered concept with a top microbrewery producing fresh, quality beer and a chain of brewpubs, has potential. However, due to the more complex nature of running a restaurant, he believes that the company has yet to figure out how to run its restaurant business profitably. The company is now at the crossroads. Richard is in a dilemma as to whether to continue the brewpub business or to give it up and just concentrate just on brewing beer. He is also unsure about bringing in new leadership to help solve the company?s performance problems. THE EXTERNAL ENVIRONMENT A firm?s external environment is divided into three major areas : the general, industry and competitor environments. Below is an elaboration in further detail regarding the firm?s opportunities and threats in these three environments. Opportunities in the General Environment The United States of America has a population of 260 million people. This is a big market with substantial purchasing power. As of 1997, Breckenridge Brewery has only expanded eastwards and the west side of the country is relatively untouched. According to Exhibit 2 in the case study, there were only distributors in 32 states and that leaves a potential to sell to the other 19 states as w... ... middle of paper ... ... a year. To cater to increased demand, the company can consider acquiring other breweries that are going out of business and that will see substantial savings on capital investments. It will be advantageous for the company if they can project themselves as responsible corporate citizen and an environment friendly company. Social enrichment schemes, recycling schemes and educational funds can be initiated to cater to this cause and long term goal. CONCLUSION Breckenridge Brewery has a strong business in brewing beer. Due to the lack of professional management expertise and venturing into the wrong business, the company has not been able to turn in a profit. It is important that the company try to resolve these problems as soon as possible. Only then, will the company get out of the red and hopefully, move on to a higher level. Works Cited: 1. Hitt, Ireland and Hoskisson (2005), Strategic Management : Competitiveness and Globalisation, 6th Edition, Thompson & South-Western. 2. Thompson and Strickland (2002), Strategic Management: Concepts and Cases, 13th Edition, Chicago Irwin Publications. 3. Yip, G.S (2003), Total Global Strategy, Prentice Hall.
The two organizations explained in this assignment are “Anheuser Busch” and “MOLSON Coors”. Anheuser Busch is a multinational company brewing more than 100 brands in the United States and holds a 45.8 percent of the beer market share1. The company is recognized as the No. 1 brewing company by Fortune magazine – “World’s Most Admired Company”2. Dreaming Big, Unity and Culture are the three main driving values and guiding principles which account for the success the company has achieved during the years1. All these combined with the dedication and motivation
From our research, Anheuser-Busch is content with being the number one beer company in the world, increasing sales each year in operation. We found that Anheuser-Busch met many views associated with the world, business, and behavioral dimensions. The company also displayed its stability as we reviewed one of its most successful products Budweiser, owned by Anheuser-Busch, under the marketing view and the financial view. Not only do they hold almost half of the market share in the industry but their stock prices, sales volume, and net sales have all increased from 2002 to 2003. We also looked at Budweiser in terms of geography and culture. We found due to the fact that the "western" countries consume the majority of beer, it only makes sense that Anheuser-Busch concentrates on that market. Along these lines, another key goal that is also important to Anheuser-Busch is to boost other beer markets that are located in other cultures, where at the time beer is not a major consumption.
Ferrell, O. C. (2008). “New Belgium Brewing Company(A)” in Ferrell, O. C., and Hartline, Michael D., Marketing Strategy, Fourth Edition, Mason, Ohio: Thompson Southwestern Publishing, pp. 463-470.
5.6% short of EBITA goal (9.4% out of goal of 15%). This comes from capital spent on relocation and the opening of the Brewhouse in 2013 (Furgiuele, 2015, p. 15). This is also linked to the second issue of not meeting market demand, which is affecting their profitability.
Intrigued by the opportunity of owning his business, Larry Brownlow must decide whether a distributorship opportunity with Coors is a worthy venture. To aid Larry with his decision, the following pages provide an assessment of this business opportunity. With a limited research budget of $9,500 (p.143), careful selection of reports was essential to obtain both the necessary data to project profitability (e.g., revenues, cost of sales, other expenses, Coors projected market share, retail pricing data) and to provide a qualitative, consumer-focused perspective that would give these quantitative projections a solid foundation. Considering the given financial background, if Larry does not go forward with this investment, we assume he will choose to continue earning annual income from his trust at $40,000 per year (p.143). However, if he goes forward with the investment, he will cash in entire trust and take a significant financial risk. Therefore, we can reasonably assume that Larry will go forward with this investment as long as he can recover his initial investment and earn a salary that exceeds his current annual income. After calculating the possible financial income and analyzing sensitive variables, we suggest Larry takes this opportunity.
Pedersen, B. (2013, July 8). ONE-ON-ONE WITH DICK YUENGLING Billionaire brewer plans to keep company lean, nimble and growing in existing markets | Lehigh Valley Business. Lehigh Valley Business. Retrieved March 13, 2014, from http://www.lvb.com/article/20130708/LVB01/307039999/ONE-ON-ONE-WITH-DICK-YUENGLING-Billionaire-brewer-plans-to-keep-company-lean-nimble-and-growing-in-existing-markets. This article goes in depth about how Yuengling managers its debt and expansion plans for a long-term gain.
Sir Gawain and the Green Knight is the story of a knight of Arthur’s round table who unbeknownst to him begins a supernatural game that will test his commitment to the chivalric code. The story written sometime around 1400 is an example of a medieval romance with a noble knight venturing forth to maintain the honor of himself and his court. Knights are supposed to be examples of chivalry and since chivalry is largely based upon the church, these same men must be examples for other Christians. Sir Gawain and the Green Knight, while entertaining, also teaches readers one of the hardest lessons of Christianity, that to give into the temptations of this world is the one of the shortest ways to death.
Deutsche Brauerei has been a family owned and operated corporation for 12 generations, which has created a high level of focus and control. Each generation has kept the management and operations processes relatively simple, centered on brewing practices and quality. Deutsche Brauerei’s rapid growth in recent years can be attributed to several factors. First and foremost, the company’s success is centered on the product itself, which has won numerous quality awards and is quite popular in Germany. Another contributing factor to the recent growth may have been a bit inadvertent. The purchase of new equipment in 1994, which was necessary as a result of a fire that destroyed the old equipment, allowed the company to increase brewing capacity and efficiency. Finally, Deutsche Brauerei’s decision to enter the Ukranian market in 1998 contributed significantly to the rapid growth. The collapse of the U.S.S.R. brought market reforms, and Deutsche Brauerei jumped on the opportunity to enter the fragmented beer industry, capture the large population and capitalize on the prime location in Europe. Lukas Schweitzer was savvy enough to hire local expert Oleg Pinchuk away from a competitor as the marketing manager, and Oleg was instrumental in building the business in Ukraine by securing accounts and implementing the field warehousing to support distributors. Deutsche’s beer was hugely popular in the Ukraine almost immediately, and volume sales more than offset the depreciation of the Ukrainian currency. Sales in Ukraine accounted for 28% of Deutsche’s total sales, and skyrocketed from 4,262 euros in 1998 to 25,847 euros in 2001.
During the medieval time period, knighthood and chivalry were key concepts in literature. People considered knights the epitome of mankind, and everyone attempted to model his behavior after the knight code of chivalry. This led to the concepts of chivalry, such as honor, bravery, and acceptance of fate, becoming driving forces in many literary works. Sir Gawain and the Green Knight uses these chivalrous concepts to illustrate the main message of the poem. In Sir Gawain and the Green Knight, the writer uses the green knight’s challenge, the green knight’s first attempt to ax Sir Gawain, and the green girdle to demonstrate that when times are tough, even the best people fail to do the right thing, but admitting these mistakes gives one integrity.
Heineken was established in the United States in 1863 and in a short time it became the world’s largest brewer with 116.8 million barrels of beer sold.
The Boston Beer Company is able to obtain relatively low-cost funds for their working capital and expenditures. The company is constantly in search of the lowest cost items without suffering the quality of their products. The company has thrived and has been able to expand to become successful due to their ability to achieve this.
Chivalry, the medieval knightly system with its religious, moral, and social code, is the main theme throughout the poem, Sir Gawain and the Green Knight. The first hint comes of chivalry or “code” presents itself in the passage, “A warm welcome.../My name is Arthur…/Won’t you slide from that saddle…/and the business which brings…” (252-255). In this passage, King Arthur is offering provide the Green Knight a warm and safe place to sleep for the night. The moral and social code of a Knight strictly enforces this type of behavior to be courteous and respect others. A major portion of the code comes forth when Sir Gawain has an internal struggle against an ideal. The question arises of what he should do, between offending the Lord or offending
s New Belgium’s distribution continues to expand, their branding needs to continue to expand also. Their ability to sustain is partially due to good advertising and branding. Whimsy and fun are good focuses when it comes to beer. When one thinks of beer you think of having a good time. Good times, laughter, and entertainment all come to mind when thinking about advertising or branding of beer. Instead of focusing on their Colorado based culture, they should make this message of sustainability, whimsy, and fun a more universal one. Their advertising and branding setting should be based in a common place that can be Anywhere, USA.
In Sir Gawain and the Green Knight, the Pearl Poet chronicles the journey of Sir Gawain, who sets off from Camelot in the search for the elusive Green Chapel. As a morally upright knight in King Arthur’s court, Gawain is sworn to uphold the ideals and basic tenets of chivalry, and is even depicted as the physical embodiment of chivalry by the author. However, the double-edged nature of chivalry is revealed through such incidents as repeated encounters with a married woman, tying Gawain’s hands and forcing him to choose the lesser of two evils. The Pearl Poet’s disparaging view of the chivalric code seeps through in his portrayal of Sir Gawain’s journey to the Green Chapel with an emphasis on the Lady Bertilak’s pursuit of Gawain, serving only to buttress the
Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).