The article further discusses a new marketing campaign they will be starting in 2011. This article is important to management because Miller Coors LLC revenue has been declining and the Chief Marketing officer has recognized this and is attempting to increase future income by capitalizing at the time when beer sales are at its highest. This is also important for management because they have recognized they need new product development strategies as well as diversification. General Analysis The current management trend is that management recognizes that they still have a high market standing, however their sales are down, and they must be innovative, to be a leader in introducing new products. Peter and Donnelly (2009), state” some of the most successful business organizations are here today because many years ago they offered the right product at the right time to a rapidly growing market (p.6)”.
Examination of PowerMaster case support the idea that any philosophy or course of action that does not consider the public interest is vulnerable in today’s business environment. The more enlightened business climate creates the need for a trusting relationship between a firm and its various publics. It is called “business ethics” – “and is supposed to analyze moral and ethical rules in the economic world”. When the G. Heileman Brewing Company decided to market their product, Colt 45 PowerMaster, there were no ethical views considered. Foremost, the newer PowerMaster brand had higher alcohol content than the previous malt brand by the name Colt 45.
Case Study New Belgium Brewery Social Responsibility and Ethics Management MGMT 325 Activity 1.3 Case Study New Belgium Brewery 1. What are the ethical issues in this case? The ethical issues in this case revolve around the core values of New Belgium Brewing Company. NBB is promoting a beer culture with responsibility, and enjoyment for beer in a kindling, cultivating, balancing and trusting environment. New Belgium Brewing Company was founded on the ethics of sustainability and social responsibility.
One of the biggest mistakes was that they changed the way the Schlitz beer was brewed, trying to do it cheaper. This changed its flavour and the customers noticed it. The cheaper version was put in cans. Nowadays they use bottles and the old recipe of Schlitz beer. They tried to recreate the old formula, using notes and interviews with old brew masters to concoct the beer again.
Two potential methods can be used to value the possible IPO price of Boston Beer Company; namely the Discounted Cash Flow (DCF) method and the Relative Valuation method. Both will be considered in this paper. Discounted Cash Flow When all the values for a DCF valuation can be accurately obtained, the exact intrinsic value of a stock’s price can be found. However, finding accurate values for all DCF inputs is no easy task, often requiring assumptions and educated guesswork. Hence, if inputs are inaccurate, the result of a DCF valuation will not be reliable.
Asahi’s other option was to remain at the current level of production. The Super Dry Beer had been a successful product for them but because of the success they have only been able to keep up with 70% of demand due to their present brewing and capacity level, therefore losing out on sales. There are some financial conditions to take into account in making the decision. The cost of the debt that will be incurred if they were to proceed with an expansion decision would mean large payments on debt which would strain the cash flow. Also, the increase of the debt will reduce the debt to capital ratio which could affect the company’s credit ratings.
Spirits on the other hand are put in multiple different kinds of drinks whether sold in restaurants or bars. They also have a long shelf life. “The factors to consider when choosing a purveyor is price, products available, delivery schedules, bulk buying discounts, payment policies, and minimum order requirements.” (Schmid, 2004) If there has to be a minimum drink order of six cases a month and only use two and deliveries do not coincide with what you use than they would not be the best choice to make. There is no need to over pay or not get the product that you need for the business. Finding one that can offer everything that is needed in that establishment would be the best and all factors need to be put into an account.
When Electrolux faced rising costs and was losing the battle of middle-market products to competitors from Asia and Eastern Europe, Electrolux’s Chief Executive Straberg had to give the company a makeover to increase communication between departments. Straberg’s strategy was to ramp up Research and Development (R&D) and ensure a single cohesive effort was being put forth amongst all the departments to collectively create innovative products. This focus to break down communication barriers between departments would influence his designers, engineers, and marketers to synergistically develop new products. Straberg also hired executives from Procter & Gamble and Pepsi who have had reputable histories of innovative ideas at their respective companies. Furthermore, Straberg wanted to battle groupthink across Electrolux’s departments.
Case Report: “WESCO Distribution, Inc.” < Case Facts> WESCO’s customers have made significant changes to their business processes ( how and why?) Why: bridge the quality gap with international competition / improve their overall competitive stance by building integrated system and integrated supply chain How: implementation of stringent supplier / distributor quality program * To examine procurement cost and supply chain / sign long-term contract with less suppliers Sales reps need to change their approaches depended on types of customer; need to shift from hunter, for contractors, to farmer, for industrial customer. But customer locals were reluctant to change conventional systems because of good relationship with local distributors. [Company] Third largest full-line wholesale EES distributor; $2.2 billion in sales globally of which US sales were $1.6 billion Target: $3 billion sales and EBIT of over 5% by the year 2000; 6-8% up in sales and 12-16% up in profit Sales reps: receive same commission and salary in each branch. Each 18 NAMs serve 10-15 industrial customers and 15-20 potential customers.
Milton Hershey successfully integrated the business with the community and the relationship was one of mutual beneficence. The current leadership was mainly concerned about money and not leadership. Not to say that money is not an important factor, but the special relationship between the survival of the town and Hershey Foods required strong consideration. The Attorney General had it right in declaring that HTC needed to make changes. Still, selling Hershey foods was not the answer.