Essay on Hudepohl Case Study Final

2630 Words Mar 31st, 2015 11 Pages
Elisa Soulier - Jillana Ahloe - Michael Daily - Patrick Cannon - Whitney Dewey

1

Hudepohl Brewing Company
Industry Analysis: Economic Trends
At the time Bob Pohl was appointed general manager of the Hudepohl Brewing Company in 1980, there were six big firms within the brewing industry selling 82% of the beer. These leaders shared common characteristics of being vertically integrated, operating large scale plants, advertising heavily, mostly distributing through independent wholesalers, and possessing sufficient funds for more aggressive future growth plans. However, there were varying degrees of firm capabilities found within five cost components: raw materials purchasing, production, labor, packaging, general and administrative
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However, the message was targeted in being mostly sportsrelated and aimed at urban blue collar workers. The new plan as outlined by Pohl would be to try and capture the premium beer market. It would appear that Hudepohl will forfeit any potential competitive advantage if they do not more effectively analyze and define the scope of their consumer, products, and geographic market.
Hudepohl has also just experienced disappointing performance results in operating and net income.
A less than healthy financial position was a problem for future growth plans, but it is their organization that

Elisa Soulier - Jillana Ahloe - Michael Daily - Patrick Cannon - Whitney Dewey

3

posed the most significant hindrance. Pohl was just appointed general manager after only five years experience in marketing. Also, nepotism was part of the company culture. For example, all the board members were descendants of the founder. They made final decisions on major expenditures, but did not take an active role in the day-to-day business operations. It was perceived the board was too conservative, but Pohl was seen by some as too aggressive in changes he was implementing in decentralizing the way managers and functional areas reported. This inconsistency in goals and mission bred low morale amongst some employees. It might be said it was also making Pohl blind to the company’s

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