Brewing Change at Breckenridge Brewery Essay -- Case Study, Business M

Brewing Change at Breckenridge BreweryINTRODUCTIONBreckenridge Brewery is a art brewer which was established by Richard Squire. Richard turned his passion for create from raw stuff easily home made beer into a lucrative business. In 1989, he started his beginning Breckenridge Brewery and Pub at Breckenridge which has a production capacity of 3,000 barrels per twelvemonth. During his low gear two years in business, he sold out the brewerys annual maximum capacity. He opened a second brewery and brew bar in Denver in November 1992.By the end of 1994, even this brewery failed to satiate the increase demand and plans were made for a new brewery which opened in May 1996 in Denver. This brewery had a maximum output of 60,000 barrels per year after expansion.In the mid 1990s, Breckenridge Brewery started expanding eastwards and their first brewpub outside conscientious objector opened in Buffalo, New York in December 1995. Five new(prenominal) brewpubs were subsequently opened in o ther states. However, from its opening till 1997, the brewpubs ready not turned in a profit although the main brewery was do money. Richard believes that his vision for the lodge, a two-tiered concept with a top microbrewery producing fresh, quality beer and a chain of brewpubs, has latent. However, due to the more complex nature of running a eating house, he believes that the connection has yet to figure out how to run its restaurant business profitably.The company is now at the crossroads. Richard is in a dilemma as to whether to continue the brewpub business or to give it up and moreover concentrate just on brewing beer. He is also unsettled about bringing in new leadership to help break up the company?s performance problems.THE EXTERNAL ENVIRONMENTA degraded?s external environment is divided into three major areas the general, fabrication and competitor environments. Below is an elaboration in further detail regarding the business firm?s opportunities and threats i n these three environments. Opportunities in the General EnvironmentThe coupled States of America has a population of 260 million people. This is a big grocery store with substantial purchasing power. As of 1997, Breckenridge Brewery has only expanded eastwards and the due west side of the country is relatively untouched. According to Exhibit 2 in the case study, there were only distributors in 32 states and that leaves a potential to sell to the other 19 states as w... ... a year. To cater to increased demand, the company can consider acquiring other breweries that are red ink out of business and that allow see substantial savings on capital investments.It will be advantageous for the company if they can be after themselves as responsible corporate citizen and an environment friendly company. Social enrichment schemes, cycle schemes and educational funds can be initiated to cater to this cause and considerable term goal.CONCLUSIONBreckenridge Brewery has a strong business in brewing beer. Due to the lack of professional management expertise and venturing into the wrong business, the company has not been able to turn in a profit. It is important that the company try to resolve these problems as soon as possible. Only then, will the company get out of the red and hopefully, move on to a higher level.Works Cited1.Hitt, Ireland and Hoskisson (2005), strategical Management Competitiveness and Globalisation, 6th Edition, Thompson & South-Western.2.Thompson and Strickland (2002), Strategic Management Concepts and Cases, 13th Edition, Chicago Irwin Publications.3.Yip, G.S (2003), Total Global Strategy, Prentice Hall.