New Belgium Brewing Company Growth - Case Study Example

Belgium Case Study: of Summary of case New Belgium Brewing Company located in Fort Collins, Colorado, aims at achieving all its goals and missions rather than achieving profits. The company aims at becoming the ninth best in the world in providing best customer services through a steadfast branding strategy that ensures customer’s satisfaction and social responsibility. New Belgium Brewing Company’s products are greatly accepted in the market and regarded appealing since they exceed all the present excellent brews. An example of their products includes the Fat Tire Amber Ale (Shaw, 2009). The company satisfies all the needs of the customers ensuring that there is sustainability and responsibility despite their goals and targets to achieve success. New Belgium Brewing Company has attracted many of its customers through their high quality Belgian beer and their obligation to providing best services to its customers. New Belgium Brewing Company started in the year 1991 (Stringer, 2007). The idea began after a bicycle ride by Jeff Lebesch through the homes of many types of ale within Belgium. Jeff Lebesch wondered if he was able to provide the high quality kind of beer he saw in Belgium at his home in Colorado. Consequently, he tried to experiment the beers after returning home from Belgium. Many people purchased his beers since they claimed that it was of high quality consequently motivating Jeff to advertise it in the market. The company started as a small operation whereby Kim Jordan, who is Jeff’s wife acted as the marketing director. They were able to produce and deliver quality beer to many of the stores in the market before they opened their own stores. In the year 1995, the company settled in a railway deport where it performed most of its operations (Stringer, 2007). The company had a bottling and canning line, treatment for sewage facilities, many labs used to test the brews, brew houses, among other features. While starting the company, various themes were addressed including sustainability, marketing performance, customer relationship, among others. The company ensures that it addresses the fundamental issues ensuring that the business practices adhere to the set goals of the company. Jeff ensured that all the company’s activities were environmental friendly and incorporated perfect social and economic factors while running the business activities. However, the company was very vigilant in ensuring that it fulfilled its customer’s demands and maintained a good relationship with the social world, rather than gearing its efforts on making profits. Mission of Belgium Brewing Company It was, and still is the mission of the company to ensure that it sustained all the needs of the customers’ through providing an excellent beer that exceeded all the expectations of the customers. Consequently, the company focused on steering people’s life positively by actively taking part in community activities and promoting a positive beer culture among the people (Stacey 2013). It also focused on ensuring a positive life of its staff by ensuring that it uplifted their family status. Commitments and enduring hardship was also a chief strategy that the company valued greatly as it would help them achieve their set goals and targets. Belgium Brewing Company responsibilities The company ensured that it fulfilled all its responsibilities to the society, environment, and its employees. All the employees received numerous benefits from the company to ensure that they lived a happy and cheerful life while working for the company. Employees of the company were glad since they received family benefits such as insurances, retirement benefits, and countless holidays together. Consequently, they were also allowed to bring their children and pets such as dogs and sparrows to their place of work, whereas the company provides all of them with lunch (Duffy, 2011). Employees also attended many trips whereby they were taught on how to make perfect brews and how to maintain the quality of the beer, consequently; they were also allowed to own a certain percentage of the company’s stock, which was estimated to be around 43%. The company provided financial education and training to its employees so that they could perform their duties perfectly (Duffy, 2011). The company also ensured that it took care of the environment through a production process that is environmentally friendly. It valued the health of most employees since they assisted it in reaching its target. Additionally, the community’s environment was protected since the company did not release dangerous gasses into the atmosphere. It majored on the cost effective measures that did not release harmful gasses into the atmosphere since releasing these harmful gases into would affect the health of many people negatively. Belgium Brewing Company used wind-powered energy since it was cost effective and reduced environmental destruction. To avoid environmental degradation, the company used the 3Rs, which included recycling its products, reusing some of the waste products, and reducing on the use of products that would affect the environment negatively (Stringer, 2007). The company took a step ahead by buying all the used products from the community members and reusing them with the aim of reducing environmental degradation. Belgium Brewing Company ensured that it participated in communal actions that would enhance a pleasant environment between the community members and the company. It also provided sponsorships and actively involved in philanthropic issues in the community. Consequently, it was successful in all its issues since it was able to maintain a good relationship with the community members. However, the company also faced many challenges such as stiff competition. Consequently, many other people viewed the company negatively due to alcohol overconsumption by most of its customers. Case Update Belgium Brewing Company has been able to achieve great success during its operation period. Consequently, the company has received many awards due to its hard work, determination, and focus to ensuring sustainability of their services to the customers. This company has been able to receive awards such as the Business Ethics Magazine’s Business Ethics since it always ensure that it carries out its activities in an environmental friendly manner. Additionally, it has received many medals due to its persistent hard work in providing the best brews. Among the awards that the company has received, include the La Folie specialty ale, the Abbey Belgian Style Ale among many other (Anon, 2014). David Edgar, the Institute of brewing Studies boasts about their long journey to success outlining that they have been able to create a good positive image to the public. Many people have praised the company for their positive relations with the public since most of them disagree that a beer company can create a good positive image. The company actively participates in the community activities and advice people on drinking responsibly and ensuring that they work in accomplishing their visions for a better society in the future. The company must also be consistent in ensuring that it is socially responsible and maintains its ethics and preventing environment degradation under all conditions. In the year 2004, Belgium Brewing Company was lucky to receive an award as the Environmental Achievement Award in order to put more effort in achieving their goals (Anon, 2014). Belgium Brewing Company is very careful while choosing the people it associates with, for example, it ensures that it operates with the non-profitable organizations in providing the society with the best services. Additionally, it also ensures that it checks on the groups that assist it in reaching its goals. The employees are the decision makers in this company through the committee called Belgium Philanthropy Committee. The company also ensures that it actively support community development programs and sporting activities, for example, in the year 2014, the company participated in ensuring that is promoted good driving and sustainable transportation (Stringer, 2007). The company is also very careful in maintaining its ethics and ensuring that the company maintains a good environmental condition in the society. Recently, the company has expanded almost six times. However, it has ensured that it reduces the amount of carbon dioxide emissions in the atmosphere. The company has initiated a method whereby it improves the quality of the company’s product and its marketing skills to ensuring that it adheres to its environmental friendly philosophy. The company aims at being the first in providing efficient services to all its customers through maintaining a perfect public relationship. Consequently, it also ensures that it uses environmentally friendly gadgets while producing the brews so that they conserve the atmosphere. The company has participated maximally in green building techniques and has participated much in United States Greens Building Council Leadership in Energy and Environment Design for Existing Buildings. The company has been very famous lately since it reuses most of its energies as a way to reduce on the cost of production and utilization of available resources. Through research, it has been identified that the company uses all renewable sources of energy to produce their brews, which is a great achievement. The company estimates that by the year 2015, it will be able to reduce the amount of water used while producing beer by 10% (Stringer, 2007). This company is active in the social media promoting its products through various marketing skills. It joined face book recently in the year 2007 and consequently started marketing through the social media in the year 2009 (Duffy, 2011). It also advertises for its products in other social medias such as the radio programs and television. As per now, most of the brews by this company are distributed to approximately twenty-eight states including Columbia as the product has been widely accepted due to their high quality (Duffy, 2011). SWOT analysis Strengths Social conscientiousness Distribution strategy Environmental friendly Product strategies Customers relationship Weaknesses Marketing performance Limited share of market Limited advertisements Opportunities Expansion of the company marketing and advertisement Threats Competition Updated technology in production Improved equipment Strengths Belgium Brewing Company strengths assist it in achieving greater goals hence outweighing all the other companies in the market. The company has a well-established brand name, which makes it famous among other companies. Its brews are of high quality since they are well prepared during the production process to ensure that the customers are satisfied with their products. The company has emerged being among the best in producing quality services hence attracting more customers. Belgium Brewing Company ensures that it is socially responsible by providing the best services to the customers and ensuring that it adheres to all social ethics in the community. Customers get attracted to the company due to its care and responsibility (Fraedrich, 2012). The company’s main obligation was to produce perfect beer ensuring that all its services are environmental friendly. Additionally, it ensures that it educates the public on how to maintain a good environment in order to live a healthy life. This company takes lead in ensuring that it uses the 3Rs in maintaining a good environmental condition. The 3Rs include Reduce, Reuse, and Recycle (Duffy, 2011). Belgium Brewing Company takes it as their responsibility to treat their customers uniquely by ensuring that they meet all their needs, solving all their solutions, and fulfilling all their promises promptly. Due to this, the customers are able to gain more trust in the company, increasing the customer-company relationship, which later leads to the success of the company. It has also received numerous awards and prices due to environmental care and protection. The company has led the others in ensuring that every activity undertaken in each of the companies does not lead to environmental degradation should always be prevented maximally. The company has established reliable and convenient stores where all the customers can easily access the product in the market. The stores are always stocked with Belgium Brewing Company’s brews and ensure that they transport them to the retailers and other customers. due to these efforts, customers maintain their trust in the company. Many people have appreciated the company’s business model since all its products can be accessed from all over the world at ease. Consequently, it has been rated as the seventh best company all over the nations and the third largest company in Craft beer segment. The company’s customer relationship is its backbone to achieving great success since more customers are attracted to its services hence purchasing more of its products. Consequently, due to continuous efforts, the company has received numerous awards due to its consistence efforts as they have been working hard to ensure that their customers are well satisfied. Highly skilled workers who provide the best quality to the customers prepare the company’s brews making its product very marketable. The low cost of production is also a great advantage to the company since it is able to direct its funds to other areas, ensuring that all the customers are satisfied with the activities of the company. Consequently, the low cost of production in the end leads to lower prices of the products by the company, increasing their demand in the market (Anon, 2014). Weaknesses Weaknesses of a company deter it from achieving maximum success as planned, however, through determination and setting up proper strategies, the company is able to overcome its weaknesses. Belgium Brewing Company has one main weakness, which is a difficulty in their marketing skills. Consequently, the company finds it difficult to market its products since it majors only on social sites. Other companies ensure that they actively advertise their products in blogs, magazines, posters, and billboards so that the message can reach too many customers. However, Greg Owsley, the Marketing Director to the company ensures that the company is determined to advertise the products outlining the perfect attributes of the brand. A proper advertising strategy increases the competiveness of the company into the market, depending on the quality and the features of its products. The company also is challenged by the fact that it has limited share of the market given its weak advertising strategies. Consequently, this company should ensure that it access its marketing strategies and improve them so that it can increase its market share. A limited market is a disadvantage to the company since it reduces the amount of profits that could be attained by the company. The company is also challenged by the fact that there are limited advertisements that assists in increasing the market share. Consequently, it should also set strategies that assist in increasing the number of advertisements to increase its market share. Opportunities Greater opportunities that would assist the company grow to an international and large company include spreading out to other parts of the country through its expansion and initiating a program whereby the company is able to expand globally. Establishing its stores in another country would greatly influence the profitability of the company since more customers would be attracted to purchasing its products. The company has succeeded in establishing its outlets in other different countries through maintaining a good positive image to the citizens of the country. Focusing on sustainability and maintaining its ethical natures, the company is able to win many customers. Consequently, increasing the number of outlets and increasing the amount of the brew produced by the company will also be benefactions since most of the products will be purchased leading to the success of the organization. Additionally, the company should focus much on marketing and advertising to increase their opportunities for gaining new markets in the economy. Through this, the company will be able to cross great boundaries and in the end increase the market share Threats The main threats to Belgium Brewing Company are the stiff competitors in the market. The company has spent dearly, ensuring that it initiates strategies that eliminate most of its competitors in the market. Belgium Brewing Company is challenged since it is a small company hence its activities are limited compared to the bigger companies. However, the company has laid strategies whereby it is able to advertise its products through the social media and other social sites for people to be informed on its products. The strategies have benefited the company much; however, more still needs to be done to make sure that the company outdoes all its competitors in the market. Upgraded technologies and improved equipments in the production process is also a major threat to the company since most of the company is faced with touch financial times making it very hard to keep up to the developmental strategies. Technological upgrading requires that every individual company to be upgraded on the technological equipments, which in most cases are very costly to purchase and maintain. Challenges Challenges affect the company negatively since they are not able to achieve great success as they wish. Consequently, the challenges have a negative outcome towards the profits, sales, and relationships of the company (Ferrell, 2011). Stiff competition and marketing performances are the main challenges deterring Belgium Brewing Company from achieving its full potential. The company receives high competition from other big firms since they are also able to serve a large market. There is a high competition in the market making the profit margin for Belgium Brewing Company decrease greatly with time. The marketing skills used by this company area also fewer, giving other companies a chance to succeed in the market. The marketing plans are also very costly as the company suggest. Additionally, since the company is small, it is hard for it to achieve large some amounts of money for advertisements, compared to the bigger companies that find advertizing very easy since they are able to gather enough amount of money that would provide an effective advertisement (Anon, 2014). Due to this struggle, the company needs to come up with ways, which they can expand their company to increase their profits, and in the end be competitive in the market through increasing their advertisements. Alternatives Alternative 1. The company should use available finances in advertisements to focus on local domestic customers and increase the customer responsiveness and satisfaction. It should also spend a large some amount of its profits in these advertisement to attract more customers. The method is effective since it will increase its size and produce more high quality products in the market hence increasing customer’s satisfaction and eliminating the two main challenges affecting it. Pros The company is able to increase the size of the market greatly and faster. Employees will be very committed in their work hence prevent the down-fall of the company. The company is able to cope up with other bigger companies after a short while. Cons The process is very risky since a positive outcome is not guaranteed. The company will spend so much money on the process. Alternative 2 The company should focus on global expansion like export or joint ventures. The method is a bit risky to the company since it is not guaranteed of a positive result towards achieving success and it decreases the amount of profit gained at the time (Ferrell, 2011). This move however requires much capital to initiate it maximally. Pros The company is able to expand greatly and faster. Reduces the risks involved in the organization. The company is able to achieve success if the process is successful The company is able to cope up with the competition level since it will still have the larger share of the market due to the  global expansion as increased export or a joint venture. Cons The company may fail to succeed through this method. The company is not assured of the results, considering the risks involved. Alternative 3 The company should decide to quit the market since it seems that it is unfavorable for it to continue competing. The new large brewing companies that are coming up are making the market very competitive since their products are of high quality and still being sold at a cheaper price (Ferrell, 2011). It is also very easy for the companies to advertise their products. Belgium Brewing Company should quit the market since the level of competition is very high. Pros This alternative will reduce the loses that may be incurred by the company Reduce the levels of struggle made by the company Cons Ineffective since all the efforts done by the company will be fully wasted leading to greater losses in the end Selected alternative The alternative that will be best for the company is alternative 1. The company should make sure that it minimizes the risks that it will undertake while improving their status. Consequently, hard work and determination will assist the company in achieving great heights in the end. The company should ensure that it utilizes its available finances to expand and increase its size countrywide and globally. It should also spend a large some amount of its profits in full advertisement to attract more customers to the company (Ferrell, 2011). All the finances should come from the company’s savings and profits. The company is also able to gain more local customers by ensuring that they maximally satisfy their need, which in the end leads to great success. The method is applicable since the company will increase in size and produce more quality products in the market and be able to eliminate two main challenges affecting it hence leading to success in the end. Reference list Anon, T. J. (2014). Environment: Motivations for k-12 teachers. Journal of Personality and enviromental studies, 66, 1034-1048. Duffy, D. K. (2012). Collaboration in action: How companies are able to succeed by maintain a positive relationship with its customers. Compact National Center for Community colleges, 12(2), 9-14. Ferrell, L. (2011). Business ethics: Ethical decision making and cases. Mason, OH: South- Western Cengage Learning. Fraedrich, L. (2012). Business ethics (2st ed.). Mason, OH: South-Western Cengage Learning. Shaw, M. E. (2009). Belgium Brewing Company: The psychology of small growing companies. NY: McGraw- Hill. Stacey K. (2013). Small Group Dynamics as a Catalyst for Change: A Faculty Development Model for running companies. Michigan Journal of Community Service Learning, 57(4), 64-71. Stringer, E. T. (2007). Action Research (3rd ed.). Thousand Oaks, California: Sage Publications, Inc. Read More