Elements of Business - Silver Eagles Distributors LP - Essay Example

Elements of Business al Affiliation Introduction Silver Eagles Distributors LP is a Texas based enterprise involved in widedistribution of beer. It primarily engages in the distribution of Grupo Modelo and Anheuser- Busch products. It also distributes imported and domestic beer, craft beers and flavor beverages. This is in addition to the various brands of energy drinks and bottled water that it sells. Initially, the company was known as the Southwest Distributing Inc. but later changed its name to the Silver Eagle Distributors LP in the year 1989 (Silver Eagle Distributors, 2015). It has branches in Houston, Conroe, Rosenberg, San Antonio and Cypress. It has also established depots in Del Rio and Carrizo Springs. L & F Distributors is one of Silver Eagle Distribution LP’s competitor in the Texas market. The company was founded in 1978 and is headquartered in McAllen Texas. By virtue of being one of the Anheuser- Busch wholesalers, L & L distributors focuses on mega brands like Bud Light, Budweiser and Michelob (L & F Distributors, 2015). Over the years, the company has grown and gone ahead to acquire rights in other cities like Laredo and Harlingen. Basic Legal, Social, and Economic Environment The American beer distribution industry where Silver Eagle Distributors LP operates in serves different social and economic functions by directly or indirectly employing people while at the same time contributing to economic growth by paying taxes. The players in the industry also discharge different corporate social responsibility initiatives that are meant to enhance the wellbeing of the general public. Since it is an industry which was started in the mid-17th Century, the beer distribution industry has been subject to various legal regulations as well as political mechanizations. Legislative amendments that have affected the beer brewing industry have directly impacted on the operations of the beer distributors in the market. The sector continues to face changing taxation, distribution and consumption policies. Political lobbying for market classification has also impacted on the operations of Silver Eagle Distributors in the market. Unlike other consumer goods that can be freely sold, advertised and consumed, beer consumption and selling is controlled and regulated by different laws (Croson & Donahue, 2002). Such laws and policies affect how the players operate in the market. Silver Eagles Distributors LP adheres to the existing beer advertising and selling policies that are intended to protect the public from the negative effects of unregulated and uncontrolled consumption. The three tier alcohol control systems being used in America affects how all distributors including Silver Eagle Distributors and L & F Distributors operate. The two companies are not allowed to directly sell to the public and have gone ahead to strike partnerships with retail outlets who buy from them. According to America Beer Distributors (2015), the beer industry is a very key tax contributor and has a very big revenue generating capacity. Beer distributors are expected to pay taxes according to the laid down classifications and taxation policies. The other critical issue that affects the operation of Silver Eagle Distributors in the American market is the political lobbying that takes place. The legislative policies regulating the brewing and distribution of beer in the United States affect how the various players operate. A very good example is the excise tax discount legislation that directly affected the amount of tax discount that Silver Eagle Distributor and other plates in the beer marker are entitled to. Managerial, Operational, and Financial Issues There are several operational, financial and managerial issues that affect the operation of Silver Eagles Distributors in the market. Being a company that operates in a very competitive market and sector, Silver Eagle Distributors has put in places strategic decision making and planning policies meant to enhance its performance in the market. Over the last couple of years, the enterprise has relied on its strategic planning that emphasizes on the organization’s goals and mission to enhance its performance in the market. The strategic planning process has allowed it to have a framework that embraces both its mission and objectives while also setting the areas of priority that need to be focused on (America Beer Distributors, 2015). The plans and frameworks are applied to various operations and procedures including the use of economic resources as well as the human resources. L & F Distributors has similarly placed a lot of emphasis on strategic planning. The staff and the top managers in the company have been able to determine the organization’s priorities and matched them with different operational issues and resources availability so as to ensure that there is efficiency and effectiveness in the market. Moreover, measures have been put in place to enhance financial oversight in all the distribution centers and depots that the enterprise runs. In terms of promotion and company culture, L & F Distributors and Silver Eagle Distribution LP have been putting mechanisms that encourage the employees to participate in the critical operations that will boost the performance of the organization. Silver Eagle Distributors uses participative management approach by encouraging teamwork in the various operations that it engages in .Employees are not only trained on effective operating mechanisms but also on ways through which they can enhance their won performance while also impacting positively on the performance of the other workers. According to Ruffini, Boer & Van Riemsdijk (2000), management of material is fast becoming a very critical operation in many organizations. Since the cost of material that is purchased by companies account for a big chunk of the operating costs, organizations have gone ahead to reduce such costs by having effective material management approaches in place (Dyson, 2009). Silver Eagle Distributors and L & F Distributors have continuously relied on different management and quality management tools such as SWOT to be able to enhance their performance. By linking the operations and the key operating strategies with the overall goal of the organization including the marketing, financial and information strategies, Silver Eagles Distributors has been able to enhance its operations. The operations have continued to have a positive impact not only on the business but also on the employees thus facilitating the achievement of the various set organizational goals. L & F Distributors on the other hand has relied on technology to be able to enhance its operations and processes. Technology has greatly changed its operations and supply chain approaches with the impact being heightened efficiency and effectiveness of the employees. All the other processes have also benefited from the use of technology at L & F Distributors. Impact of Potential Change Factors The beer distribution sector is very dynamic. Different political, social and economic issues that affect the operations of the various distributors keep changing from time to time. One of the key potential areas that need to be focused on by Silver Eagle Distributors and L & F Distributors to enhance their performance in the market is the increased public awareness and scrutiny. The general public has increased its scrutiny of the various beer brewers as well as the distributing companies to get the right information about the products in the market. As such, the two distributors must ensure that they avail any kind of information that may be required by the public so that they do not compromise the public trust. Failing to do so may negatively affect their operations. Technology has allowed for easy dissemination of information regarding the operation of businesses. This can be exploited by the distributors to enhance communication among the employees and also with the general public. Technology also affects the various financial management procedures. Silver Eagle Distributors can continue to integrate it into its systems so that it boost its efficiency and performance in the competitive beer distribution environment. References America Beer Distributors. (2015). America’s Beer Distributors: Fueling Jobs, Generating Economic Growth & Delivering Value to Local Communities. Retrieved from https://www.nbwa.org/sites/default/files/NBWA-Economic-Report-2013.pdf. Croson, R., &Donahue, K. (2002). Experimental economics and Supply-Chain management.  Interfaces, 32 (5), 74-82. Dyson, R. (2009). Strategy, performance and operational research. Journal of the Operational Research Society, 33(2), 10-15. L & F Distributors. (2015). L & F History. Retrieved from http://www.lnfdistributors.com/about- us. Ruffini, F., Boer, H., & Van Riemsdijk, M. (2000).Organization design in operations management. International Journal of Operations and Production Management, 45(5), 20-30. Silver Eagle Distributors. (2015). About Us. 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