This case is about Amsterdam Brewery, which produced over 20 different craft brews, each with its own brand name. Jeff Carefoote was the owner and president of Amsterdam Brewery wanted to decide on promotional strategies that would increase its profitability and grow company’s brand. The company was also experiencing operational capacity issues due to continuously increasing demands. As a result, Carefoote had decided to invest in capital expansion to increase Amsterdam’s brewing capacity. Several problems were created like The Ontario Craft Brewers Organisation didn’t promote craft breweries because its laws were not supportive for craft breweries. After that, in order to increase brewing capacity, Amsterdam moved operations to midtown Toronto and the high capital costs for expansion made Carefoote hesitate. Moreover, the brewing time was also connected to the beer’s retail selling price because some beers required more complex processes that resulted in higher costs and higher selling prices.
This had an adverse affect on the Amsterdam Brewery and other stakeholders too because it had failed to translate into increased sales of the product offsite. The owner got confused to make decision that whether he should continue to focus on building the original products or should keep releasing and promoting new products.
IDENTIFICATION OF THE PROBLEMS
1 RELLOCATION OF BUILDING IN DOWNTOWN TORONTO: The Company was facing operational capacity issues due to continuously
Wise-Holland Corporation, an S corporation, is split evenly between Marianne and Dory, two women with limited business knowledge. Wise Holland’s previous accountant of ten years was fired after Marianne received a notice of deficiency on her 2012 tax return due to $20,000 of disallowed flow through loss from Lucky Partnership, a small partnership deemed to have no profit motive; interest and a 20% penalty for substantial underpayment was also required, all of which Marianne paid immediately. She also signed a waiver extending her 2012 individual return statute of limitations three more years.
The next project was bottling Gordon Biersch signature beer and retailing it. This had three biggest challenges: this project was entirely Gordon’s baby and demanded time and attention; secondly the freshness of the bottled beer versus the freshly brewed was an issue for which they decided the beer would have a shelf life no longer than three months. Thirdly and the most exciting challenge was the head-to-head competition with other microbreweries and premium beers. Despite the tough competitive environment, Gordon Biersch aimed to achieve 11% of the market in three years (by 1996). This retail venture required huge investment, thus they decided to start small to prove to the investors that they could pull it off.
The following is an analysis of the case, Greaves Brewery: Bottle Replenishment. It details the growing beer operation of Greaves Brewery located in the Caribbean island of Trinidad. The purchasing manager for the company, Alex Benson, is uncertain about how many bottles to order from the company’s German glass supplier. His decision is complicated by the possibility of a new bottle design being introduced that would compromise his existing inventory of bottles. Additionally, he is faced with storage limitations and erratic sales, all of which are impacting his decision. He is also concerned about over ordering to avoid issues from an
1. Should we be concerned that CitySoft is focusing on cost, operational control, systems, and quality at the expense of growth?
The following is an analysis of the case, Greaves Brewery: Bottle Replenishment. It details the growing beer operation of Greaves Brewery located in the Caribbean island of Trinidad. The purchasing manager for the company, Alex Benson, is uncertain about how many bottles to order from the company’s German glass supplier. His decision is complicated by the possibility of a new bottle design being introduced that would compromise his existing inventory of bottles. Additionally, he is faced with storage limitations and erratic sales, all of which are impacting his decision. He is also concerned about over ordering to avoid issues from an off year, impact from
Gera International is a well established international brand of beer that is ranked amongst the top three brands of beer in the world. With transportation prices rising, Gera International decided to purchase a plant in Antigua in 2005 and they renamed the subsidiary, Caribbean Brewers, Inc. (CBI). In 2008, the production facilities of CBI were expanded and their productive capacity doubled. Furthermore, we are then introduced to Jason Joseph a production manager who is unhappy and distressed because along with the production doubling, he lost ownership in the company, bonuses, and annual dividends. JJ comes to us (the financial advisor to the CFO) and informs us
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.
This case was prepared by Professor Stephen E. Barndt of Pacific Lutheran University. This case was edited for 5MBP 9th Edition. Copyright C 1998 and 2000 by Stephen E. Barndt. This case was published in the Business Case [ourn Summer 1998. Vol. 1. No. t. pp. 53-{}9. Reprinted hy permission,
1. What environmental issues does the new belgium brewing company work to address? How does NBB taken a strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability?
Belgium is home of the finest ales and have been known to brew for centuries. So when Jeff Lebesch, an electrical engineer from Fort Collins, Colorado took a bicycle trip through Belgium it made him realize there may be a market back home to sell Belgian-style ale. Jeff returned home with hopes to experiment and brew his own beer in his basement from the various ingredients he received on his trip. When his friends approved of the ales he started marketing them to the local town. He later opened New Belgium Brewing Company in 1991. His wife, Kim Jordan was the company’s marketing director. They named their first brew “Fat Tire Amber Ale” after Jeff’s
Therefore, it really needed a strong product that responded the market’s needs and wants so that the product could speak itself in order to survive the keen competition.
Boston Beer’s strategy is primarily focused on growth through differentiation. The sources of its competitive advantage can be classified as a company that provides high quality beer with unique flavors, a market driven approach, and a very efficient contract brewing strategy.
case was based on the fact that the industry was concentrated and highly profitable, and not on specific
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
Hirotaro Higuchi (the protagonist), and CEO of Asahi Breweries, Ltd. must decide if he should increase its production and packaging capacity to meet the supply demands of their distributors, due to the company’s recent developments in the beer industry. Asahi Breweries has launched and seized a huge section of the dry beer market, ensuing from sales growth of 71.9% in comparison to the industry’s growth of 7.6%. A proposal has been made for, increasing their production capacity to 2,100,000 kiloliters to accommodate the recent shortages to their distributors. He has suggested an investment proposal plan of 230 billion yen within two years (1989 to 1990), to increase their brewing and packaging capacity by 30%. Hirotaro Higuchi must decide if he will welcome or dismiss this proposal. “Guiding change may be the ultimate test of a leader- no business survives over the long term if it can’t reinvent itself” (Kotter, 2007).