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Group Project Phase FOur
The Beer Store
Submitted By: Brandon Borrelli
Submitted On: Jan 1st, 2012
Table of Contents THE BEER STORE CORPORATE OVERVIEW 1 The Beer Store History and Corporate Structure: 1 Industry and Regulations: 1 Company Mission and Values: 1 RETAIL STORE OVERVIEW 1 How the Retail Stores Function: 1 How 3260 is Operated: 1 Hiring and Work Culture: 1 Training: 1 Safety procedures: 1 Tasks of all Employees: 1 Management Specific Tasks: 1 Compensation and Benefits: 1 Evaluation and Incentives for Employees and Managers: 8 Exhibit 1 The Beer Store organization chart 1 Exhibit 2 Beverage Retail Outlets 1 Exhibit 3 Flow of Goods 1
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The current system of the LCBO, the Beer Store and the off-site winery stores perform nearly identical functions in providing alcoholic beverages and products to consumers. In fact, their retail stores are sometimes located across the street from one another. But limited competition and separate business objectives prevent these companies from capitalizing on each other’s profits and market shares.
The LCBO and the Beer Store also act as wholesalers to each other and to agency stores, licensed establishments and duty-free stores, depending on the type of product(Exhibit 3 and 4). Unlike the wholesale of domestic wines, spirits and foreign imports, the domestic beer manufactures deliver their products to the Beer Store wholesale system. It has seven regional depots and ships the products with its own truck fleet (291 distribution fleet vehicles) to the Beer Store stores, LCBO retail store, licensee depots and agency stores across the province. However, the domestic beer manufacturers could deliver their products directly to the LCBO retail store, licensee depots and duty free stores.
Company Mission and Values:
The Beer Store’s mission statement and statement of values are shown in (Exhibit 12) .As part of the Beer Store’s social responsibility with respect to the sale of alcohol the “We ID 25” program was adapted. The “We ID 25” program has
Bonny Doon Vineyards, a successful winery business based in Santa Cruz, California, has grown from selling 5,000 cases of wine a year in 1981 to 200,000 cases a year in 1999. To keep growing and be more profitable, the business must choose amongst three possible strategic directions. The first strategy is to start importing wines from Europe into the United States. The second alternative is branching into a retail outlet for unusual wines of great value, accompanied by a high level of service. Lastly, the business’ D.E.W.N could be expanded to include wines not made by the company itself but by other wineries that follow the same values and philosophy.
To further decrease the likelihood of cannibalization and to diversify its location offerings and customer base, the memorandum recommends that MMBC launch MMLight into on-premise locations (such as bars and restaurants). Industry observers remark that the crucial consumer segment for beer companies are younger drinkers ages 21-27 years who are not yet loyal to a brand of beer. Women and younger drinkers typically prefer light beer. These groups frequently visit on-premise locations and represent an exciting market for MMBC. For questions or concerns, please feel free to e-mail mducker2@illinois.edu or call 217.381.9578.
Several attempts have been made by Boston Beer Company to continue on a growth streak but not all attempts have been successful. The main goals for Boston Beer Company are to increase revenue and continue growing in the industry. Boston Beer Company has had trouble growing as barriers of entry are low and competition is high. Even though the market has seen a slight upturn, however Boston Beer’s founder Jim Koch elaborates on the company’s dissatisfaction, “We are disappointed with our depletion trends in 2016, which have remained weak so far in 2017. These trends are affected by the general softening of the craft-beer category and cider category and a more challenging retail environment with a lot of new options for our drinkers”. (https://www.fool.com/investing/2017/02/22/boston-beer-finds-growth-the-hard-way.aspx)
New Belgium brewery has increasingly grew throughout the years since their development in 1991. Despite the dominance of the “Big Three” (Budweiser, Miller, and Coors), NBB needs to be aggressive and strive to invest in the attractive beer industry in able to grow more. If positioned correctly, NBB and its main brand, Fat Tire, can continually grow. An evaluation of the industry, the business itself, its brands, and the customers and competitors is needed in order to be continuously successful.
The Company must revisit objectives and goals and look into available resources (partnerships). At an external level, facing competition from other types of craft brew products. The Company needs to assess competitor’s strength and weaknesses, gathering data which in turn may provide a “loophole” for New Belgium to target the competitor’s market share. The Company will gather information of potential new customers. Figuring out why do customers select competitor’s product over theirs or what customers want, as tastes and trends are always changing. There will always be regulatory laws and social propaganda of “drink responsibility.”
As American philosopher George Herbert Mead once said, “Imagery is not past but present. It rests with what we call our mental processes to place these images in a temporal order.” The usefulness of imagery is not lost on one of the pioneers of gothic literature, Edgar Allen Poe; in his 1842 short story, “The Masque of the Red Death.” Based on the real-life setting of the black plague, Poe tells the events of a party, held by the most noble man in fictional domain, Prince Prospero. Poe tells of the party as a sanctuary from the diseased kingdom, a merry masquerade of nobles, and a deathly visitor ready to set it in decay.
The Robert Mondavi Winery became one of America’s most innovative, high-quality winemakers in the late 1960s and early 1970s. There are over 1 million wine producers worldwide and no winery accounted for more than 1% of global retail sales. Because of this and the fact that there are many substitutes, there is an issue to try to gain economies of scale and become a leader in the wine market. Wine tends to stay it its local region, which makes it harder to compete with its substitutes. In the strategic analysis portion of this case analysis, we discuss Porter’s Five Forces and how they affect the Robert Mondavi Winery. We conclude that in order for the winery to stay
The same concentration is happening in the “on-premises” buyers, where many large hotels and restaurants chains are purchasing wine centrally rather at locally, increasing their buyer power.
Animal Farm by George Orwell is a novel based on the lives of a society of animals. Animal Farm goes deeper than just talking about animals, it symbolizes the corruption of Communist Russia. During the story, most animals are manipulated into believing the exact opposite of what is true. Animal Farm Although the title of the book suggests the book is merely about animals, the story is a much more in depth analysis of the workings of society in Communist Russia.
The brewing industry was once held to competition among many breweries in small geographic areas. That was almost a century ago. The U.S. brewing industry today is characterized by the dominance of three brewers, which I will talk about in this paper. There are many factors today that make the beer industry an oligopoly. Such factors include various advancements in technology (packaging, shipping and production), takeovers and mergers, economies of scale, barriers to entry, high concentration, and many other factors that I will cover in this paper. Over the course of the paper I will try to define an oligopoly, give a brief history of the brewing industry, and finally to show how the brewing industry today is an
The Coffee Clubs first cafe opened in 1989, since then more and more stores have been opened worldwide. The Coffee Club has two different styles of stores those being either a small cafe or a restaurant. There are many stores scattered around New Zealand from Otago to Auckland with 55 outlets being in New Zealand and 350 plus worldwide.(Franchise New Zealand Limited, 2015) As an organisation their vision is to be a global leader in retail food, coffee and franchising. This means they want to lead by example to other companies in the same industry. Their mission is to provide good food, great service and excellent coffee and a welcoming meeting place with an inspiring contemporary lifestyle to its
In the United States the beer industries are regulated by the state and the federal governments. The state and the federal government pass their opinions in term of production, advertisement, distribution,
|What do you see as the key success factors for firms in the global beer industry? |
7 What role have the wine buyers (end users and others in the supply chain) played in contributing to the fall in demand for cork as a closure?
changed to off-premise because people started buying wine from supermarkets and wholesaler clubs (Roberto, exhibit 11). This change leads to the more price sensitivity because the consumers had more chance to compare a price before making a decision to buy bottles of wine. Therefore, the bargaining power’s customer is dramatically increased.