New Belgium Brewery Case Study

In 1844, the Empire Brewery was founded by Jacob Best and his sons in Milwaukee, WI. In 1860, Jacob’s son Phillip took over and renamed the brewery the Phillip Best Company. Phillip’s daughter, Maria married a steamship captain, Frederick Pabst. Captain Pabst sold his shipping interest and bought a partnership stake in the brewery. In 1872, Captain Pabst became President of the company. In 1889, he renamed the business the Pabst Brewing Company.

If invested in and developed, employees are more likely to feel their social needs are met by being part of a team are well regarded and appreciated for their skill set and therefore motivated to work harder to reciprocate which leads to higher production and efficiency. People are able to realise their abilities and potential, take on more responsibility or variety of tasks which improves versatility and prevents boredom leading to demotivation. Staff feel happier if they feel valued and are likely to stay within the organisation.

Boston Beer’s strategy is primarily focused on growth through differentiation. The sources of its competitive advantage can be classified as a company that provides high quality beer with unique flavors, a market driven approach, and a very efficient contract brewing strategy.

A visit to the brewery site or even a quick search on Google Maps shows a developing problem for Lazy Magnolia. The facility currently rests in an area that does not allow for much expansion. Though the company did add 1700 square feet to the existing structure in 2013, another increase in size is not possible at the current location (Lazy Magnolia, 2015). Lazy Magnolia owners would have to look at off-site storage options or would need to consider investing in an entirely new location where building growth could keep up with the increase in demand.

| 1) Reduced personnel costs2) Access to better and more specialized talent3) Allows for better growth potential, particularly concerning shared services

There are many options to consider when opening and operating a third brewery company for New Belgium. The most important thing for this new company would be that the company remains environmental conscious. I would have policies and procedures that would specifically deal with the waste of the company. The shipping process would also be of great importance, minimizing the environmental impact also on the shipping of the beer. We would then turn out attention on how power is generated while making the beer, reducing coal use would be of the upmost importance for the company. After all these policy and procedures have been followed, a strategic plan would be put in place that underlined the profit margin for the company to be re-evaluated

This would include human abilities, process capabilities, financial resources, products and services, customer goodwill and brand loyalty.

3. Allow all employees to participate in decision-making processes and to understand their jobs better

New Belgium should also open a second brewery in the eastern half of the United States to accommodate more growth into uncharted territories. Putting the new brewery in an already established eastern market like Indiana would allow New Belgium to solidify their hold on current markets while giving them the potential to grow into neighboring territories. Introduction to the Northeast is critically important because as of now they are ceding the whole region to rival competitors like Samuel Adams. The pluses to this second brewery include additional capacity for production of beers, wider reach of distribution, and ultimately higher sales due the territorial growth. The minuses include a possible loss of company culture at the new brewery due to its distance from Fort Collins. Another minus would be the loyalty current consumers have for regional craft beers already in the market.

Belgium is known for a culture of high-quality beer and this concept was formulated by an electrical engineer from Fort Collins, Colorado. The electrical engineer, Jeff Lebesch, was traveling through Belgium on his fat-tired mountain bike when he envisioned the same high-quality beer in Colorado. Lebesch acquired the special strain of yeast used in Belgium and took it back to his basement in Colorado and the experimentation process was initiated. His friends were the samplers and when they approved the beer it was marketed. In 1991, Lebesch opened the New Belgium Brewing Company (NBB) with his wife, Kim Jordan, as the marketing director. The first beer and continued bestseller, Fat Tire Amber Ale, was named after the bike ride in

Competitive advantage is important in any company’s market structure. A good example of competitive advantage is when a customer asks why he or she should purchase this product over the company’s competitor’s product (Lambardo, 2017). For a company to obtain a substantial competitive advantage, a company has to gain a customer base that trusts their products over their competition’s product. For example, in the beer industry, Anheuser- Busch has created beer products that obtain a strong competitive advantage over their competitors. Budweiser was able to create this competitive advantage because they obtained a strong market structure. Also, there is a huge relation between company brand and competitive advantage (Abbas & Kraidy, 2017). For New Belgium brewing company, the brand and social responsibility are they key competitive advantages.

The best option for Amsterdam Brewery is to open the brewhouse in downtown area first and introduce new product for winter months few years late.

With the hiring of Marketing Director Greg Owsley in 1996, New Belgium Brewing developed engaging marketing campaigns that involved the company’s customers. NBB invited their customers to follow along with other customers while they pitched their adventures through the “What’s Your Folly?” campaign. For NBB Management, the campaign was well received except for the word folly in the tagline. If you look up the definition of the word folly, you can understand why they were slightly concerned with using it. Folly means to act foolishly or without being sensible. Just the definition of folly could make the consumer question if the company should be taken seriously. It could even reflect a negative connotation on the beer that they produced

Belgium is home of the finest ales and have been known to brew for centuries. So when Jeff Lebesch, an electrical engineer from Fort Collins, Colorado took a bicycle trip through Belgium it made him realize there may be a market back home to sell Belgian-style ale. Jeff returned home with hopes to experiment and brew his own beer in his basement from the various ingredients he received on his trip. When his friends approved of the ales he started marketing them to the local town. He later opened New Belgium Brewing Company in 1991. His wife, Kim Jordan was the company’s marketing director. They named their first brew “Fat Tire Amber Ale” after Jeff’s

Pay and rewards attract and retain employees. Having the right pay and benefit for employees motivate them. This helps employees feel valued and can remove animosity between employee and employer. Training and development has a positive impact on employees, this shows investment from the employer and enhances career progression.