Pump House Brewery

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1. External Environment Many aspects of the external environment affect organizations either directly or indirectly and it is up to managers to be able to anticipate and manage these environmental factors effectively and efficiently. Having a brewery is a core competency of Pump House and brewing its own beer differentiates its business from other competitors in the industry. Pump House is resilient to its environment and adapts and innovates as a business to please its customers and stay ahead of competitors, but like all businesses, Pump House faces threats. New brewing companies coming into Moncton and locating themselves near Pump House is a potential threat. A similar brewery so close to Pump House could cause buyers to become curious in other products, redirecting business away from Pump House. In addition if suppliers ad licensees decide they would like a higher commission of Pump House sales it would force Pump House to rethink its strategy to keep its suppliers from straying from its products. A large part of Pump House is its specialty beers. Beer is comprised of four main ingredients: malt, water, yeast, and hops. A shortage of any of these ingredients as well as ones used for the menu at the Pump House restaurant could mean higher prices for beer or food. In January of this year Pump House encountered a shortage of hops, which are flowers used in the production of beer that provide bitterness to counter the sweetness of malt. This shortage will not affect the quality or quantity of the beer, but the price may increase. Pump House needed to figure out a way to brew its beer with the limited supply of hops available and it did so by changing the brewing process slightly. Pump House needs to maintain most of its focus on buyers; it is currently gaining recognition as a top notch company in its industry by winning awards for its beer. Competitors are

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