Gordon Biersch Case Questions: 1. Identify the key factors responsible for the success of Gordon Biersch to date. What concerns, if any, do you have as the company looks ahead? 2. Evaluate Gordon Biersch's organizational alternatives to realize its growth ambitions. Recommend a course to follow? 3. Evaluate Gordon Biersch's efforts to raise outside capital. What would you have done differently? 4. Which offer, if any, should Gordon Biersch accept? Why? How should they proceed? 5. Assume for discussion purposes that Lorenzo Fertitta's proposal is the preferred option. What are the key issues for Gordon and Biersch to negotiate? What positions should they take on each one? Table Of Content: Case Summary …show more content…
The fourth site was Pasadena in 1993 which was more challenging due to its further location and was not an immediate success. Gordon Biersch attributed the sluggish start of this site to the low visibility of the location. However, this did not stop them from moving forward and in November 1994 Gordon Biersch opened in Honolulu which quickly became the top-grossing restaurant in Hawaii. The next project was bottling Gordon Biersch signature beer and retailing it. This had three biggest challenges: this project was entirely Gordon’s baby and demanded time and attention; secondly the freshness of the bottled beer versus the freshly brewed was an issue for which they decided the beer would have a shelf life no longer than three months. Thirdly and the most exciting challenge was the head-to-head competition with other microbreweries and premium beers. Despite the tough competitive environment, Gordon Biersch aimed to achieve 11% of the market in three years (by 1996). This retail venture required huge investment, thus they decided to start small to prove to the investors that they could pull it off. Gordon Biersch had extensive growth plans of opening over 100 restaurants across the nation with in 8 to 10 years. However, the growth they envisioned demanded a lot of time, dedication and expertise. They debated upon three different organizational approaches (1)
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Purchased plant for good price…with new equipment and deleted marginal product lines as they expanded nationally
Gordon Biersch has done very well in terms of year-on-year business growth and the strategic choices they made have served them well. Their emphasis on high quality, moderately priced food along with the choice of serving only in-house brewed premium German beer was instrumental in distinguishing them from their competition and making them successful. The location of their first restaurant was critical in attracting a large number of customers and helped them gain instant traction in an otherwise crowded market. Their target market was open to new concepts and hence the design of the restaurant was well received. The ambience of the restaurants provided a trendy and upscale dining experience which appealed to both younger and older generations. The Gordon Biersch team was customer focused and worked towards retaining their consumer by offering their regular customers with a beer stein with their names on it and a polished locker to keep the beer stein. This helped them develop brand loyalty amongst their customers. Their in house brewed German beer was flavorful and well-liked and the choice to sell only their in-house brewed beer helped them develop brand image and get their name out within the community and their target segment.
The case study titled “Holt Lunsford Commercial” explains how Holt Lunsford is debating how to grow his Dallas-based commercial real estate services firm and how to advise a long-time client who is wondering whether to lease or buy an industrial warehouse. The case focuses on the highly competitive and increasingly institutionalized $50 billion real estate services industry, which encompasses property management, leasing, tenant representation, and other activities. What makes Lunsford's firm, The Holt Companies, special? The article explores what corporate strategy Lunsford should choose for his firm, and what recommendation he should make to his client.
4. Should Lincoln go ahead with its investment in Indonesia? If so, what should be its entry strategy with respect to partnerships? Which compensation option would you recommend to Mike Gillespie as he considers the advisability of implementing the company’s incentive management system?
It is this mix of key factors that has empowered Boston Pizza to serve a bigger number of clients in a greater number of areas than many other full-service restaurants in Canada (BP International Inc., 2014).
6. What actions do you think management at BJ’s Wholesale should take to boost revenue growth and overall financial performance? (10 points)
In business, a company’s primary objective is the maximization of profit by making strategic business decisions altering market conditions and behavior while at the same time increasing and protecting outcomes. The ability to make production decisions, knowing what to, how to, how much and for whom to produce a product, good or service are key elements of a company’s growth. In 1993, Steve Ells, a young, ambitious sous chef with dreams of opening up a fine dining restaurant, epitomized that concept by investing 85,000 dollars of his parent’s money and founding Chipotle Mexican Grill, Inc. A small fledging burrito stand located in the heart of Denver,
The applicants are morally correct as long as their action promotes their long term interest. If their action produces or will produce for them a greater outcome of good, versus evil in the long hall than any other alternative, than that action is the right one to act on, and the individual should take that to be a moral act. An Assessment of Morality by Ethicsinbusiness.net
3. What is your evaluation of Iridium 's organizational design? What changes could you have made to increase the probability of Iridium 's success?
1) What are the challenges that Ivan Guillen faces in his role as marketing manager of the RBG business?
20 5. Corporate-level strategy 25 6. How is the effectiveness of the company’s strategies? (ROIC) 26 7. What strategic problems does the company have?
7. What recommendations would you make to John Mackey regarding the actions that Whole Foods’ management needs to take to sustain the company’s growth and financial performance? (points
4. In terms of challenges facing Harley-Davidson as it enters the 21st Century, explain your evaluation of the Company’s strategy as described in the case?
Q&A: Based on the material covered in this chapter what questions would you ask the firm’s founders before making your funding decision? What answers would satisfy you?