BUS5117 Written Assignment #4 - WELLINGTON BREWERIES PDF

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Case Study: Wellington Brewery

Written Assignment Unit 4: Case Study: Wellington Brewery Anonymous University of the People BUS 5117: Strategic Decision Making and Management Professor Marc Scavuzzo December 02, 2021

Case Study: Wellington Brewery

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Introduction Most markets today are characterized by immense competition and rapid change, which has increased the importance of strategic management. According to Musa (2015) strategic management consists of the analysis, decisions, and actions undertaken by a firm in order to gain a competitive advantage. SWOT analysis is a popular and effective strategic management tool used to identify the strengths, weaknesses, opportunities, and threats faced by an organization. This paper focuses on an analysis of the Wellington Brewery firm. A SWOT analysis of the firm will be performed, along with outlining the value chain in its activities. Finally, based on the findings from the SWOT analysis, the key challenges or opportunities will be examined. Description of Case/Identification of Issues Wellington Brewery is a Canadian brewery firm, established since 1985, making it the oldest microbrewery in Canada. They are one of the first companies in North America to produce traditional cask-conditioned beers. The company has experienced steady growth throughout the nineties and early 2000s under the leadership of Doug Dawkins and Michael Stirrup. After the death of Doug Dawkins and the retirement of Michael Stirrup, Brent Davies was given the leadership position. The company continues to do well, expanding their range of brewery products and ventured into the online platform, offering some of their iconic products to reach a larger group of customers (Tucker, 2021). The main issue identified in the case is the unpredictability of the brewery market. Although the company is in a good position, Canada’s brewery industry has seen fluctuating growth, shifting consumer preferences, and immense competition (Levallet et al., 2021).

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Case Study: Wellington Brewery Value Chain Analysisof Wellington Brewery

Michael Porter developed the value chain analysis which separates a firm’s operations into primary and support activities (Hart, 2021). The value chain analysis can be used to assess the efficiency of Wellington Brewery. Primary Activities Inbound Logistics – Refers to the receiving and storage of goods of a company. Raw materials such as yeast, barley, hops, and oats are used in the beer production (Tucker, 2021). Operations – Relates to the process of converting raw materials to finished products. The firm utilizes machinery to aid production Outbound Logistics – Relates to order delivery to customers(Tucker, 2021). Retail stores, ecommerce, and an efficient delivery system ensure products are delivered to customers. Marketing and Sales – An effective and experienced sales team is utilized to market the company’s products. The company also provide discounts when purchasing in bulk (Tucker, 2021). Services – The company engages in charity events and even offers tour of the factory for beer sampling. Collaboration with other breweries are also part of community efforts (Tucker, 2021). Secondary Activities

Firm’s Infrastructure – The firmutilizes a range of functional department that are interrelated and rely on each other to meet organizational objectives (Tucker, 2021). Human Resource Management – A human resources department is not present but a human resource representative is utilized to manage the human resources of the firm (Tucker, 2021).

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Case Study: Wellington Brewery

Technology Development – The companyutilizes updated capital machinery to increase production levels. Increased investment in research and development to achieve product differentiation. Strongest and Weakest Link The strongest link for Wellington Brewery is the established reputation it has built over time and the significant share in the brewery market it hold. The weakest link of the company is a lack of effective strategic plan to maintain the company’s position in the market. SWOT Analysis of Wellington Brewery

STRENGTHS

WEAKNESSES

• The company is able to achieve product differentiation

• Lack of HR department to mange staff

• Established reputation

• The infrastructure of the organization is not sufficient to manage multiple operations simultaneously

• Multiple product lines

effectively

• Lack of clear cut channels of distribtion

OPPORTUNITIES • Improvements in operations could boost the value of primary activities • Implementing advanced technology will enable the company to effectively manage operations

THREATS • Large companies are competiting in multiple regions • Fluctuation in consumer demand • Scarcity of raw materials

• Ability to expand operations to international markets

(Tucker, 2021)

Case Study: Wellington Brewery

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Most Important Strategic Challenge or Opportunity Based on the value chain and SWOT analysis, I believe that Wellington Brewery has a significant opportunity to implement technology across different aspects of business operations, enabling the firm to maximize efficiency, and increase profitability.Utilizing technology to aid automation in brewery production will help to cut labour cost whilst increasing production and maximizing efficiency. In addition, the company has a major opportunity to expand its operations to overseas markets. This will help the firm reach a larger number of customers, build the company’s brand at an international level, and the increased sales will help to increase the financial position of the company. There are some challenges for the firm to address including lack of clear cut channels of distribution and an infrastructure level that fails to meets the company’s required operational output. However, these measures can be addressed though effective strategic management. For the firm to maintain its dominant position in the market, it needs to continue providing quality products to customers through increase investment in research and technology to achieve a competitive advantage. Conclusion The value chain and SWOT analysis revealed that the company, Wellington Brewery is in a position which presents significant opportunities for the firm to expand its customer base and increase its revenue. Investment in technology and research, whilst addressing some of the operational issues will ensure the firm maintain its dominant position in the brewery market. Breweries industries around the world are characterized by immense competition and volatility in the market. However, Wellington Brewery’s future can be positive due to their established reputation and knowledge of the market. Therefore, it is vital for the firm to utilize strategic management in order to maintain its success, whilst seeking opportunities to expand.

Case Study: Wellington Brewery

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References Hart, M. (2021, April 14). The straightforward guide to value chain analysis. Blog Hubpost. https://blog.hubspot.com/sales/value-chain-analysis Levallet, N., Wood, C., & Ahuja, S. (2021, April 26). Wellington brewery: growth decision in a crowded beer market. Harvard Business Review. Retrieved from https://store.hbr.org/product/wellington-brewery-growth-decision-in-a-crowded-beermarket/W21188 Musa, Y. (2015). SWOT analysis in strategıc management and a sample applicatıon in public. Munich Personal RePEc Archive. Universidad Azteca Tucker, T. (2018). Cases and Tools in Biotechnology Management. Pressbooks. Retrieved from https://ecampusontario.pressbooks.pub/bio16610w18/chapter/staying-one-step-ahead-of-thecompetition-with-porters-value-chain-analysis/....