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

Brewing Change at Breckenridge Brewery ledger entryBreckenridge Brewery is a craft brewer which was established by Richard Squire. Richard turned his heat for brewing good home made beer into a lucrative occupation. In 1989, he started his start-off Breckenridge Brewery and Pub at Breckenridge which has a production force of 3,000 barrels per year. During his first two years in business, he change bug out the brewerys annual maximum capacity. He opened a wink brewery and brew pub in Denver in November 1992.By the land up of 1994, even this brewery failed to satisfy the increased demand and plans were made for a modern brewery which opened in May 1996 in Denver. This brewery had a maximum railroad siding of 60,000 barrels per year after expansion.In the mid 1990s, Breckenridge Brewery started expanding eastwards and their first brewpub outside Colorado opened in Buffalo, New York in celestial latitude 1995. Five otherwise brewpubs were subsequently opened in other states. H owever, from its open up till 1997, the brewpubs have not turned in a dough although the main brewery was making money. Richard believes that his vision for the fraternity, a two-tiered concept with a height microbrewery producing fresh, quality beer and a chain of brewpubs, has potential. However, due to the more complex temper of running a restaurant, he believes that the company 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 flip over it up and just concentrate just on brewing beer. He is also unsure about bringing in new leading to help solve the company?s performance problems.THE EXTERNAL environsA firm?s external environment is divided into threesome major areas the general, industry and competitor environments. Below is an elaboration in advertise detail regarding the firm?s opportunities and threats in these three environments. Op portunities in the familiar EnvironmentThe United States of America has a population of 260 million people. This is a big market with satisfying purchasing power. As of 1997, Breckenridge Brewery has only spread out eastwards and the west side of the country is relatively untouched. According to gift 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 going out of business and that will see substantial savings on capital investments.It will be advantageous for the company if they can project themselves as responsible corporate citizen and an environment companionate company. Social enrichment schemes, recycling schemes and educational funds can be initiated to cater to this cause and long 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, regard on to a higher level.Works Cited1.Hitt, Ireland and Hoskisson (2005), Strategic Management competitiveness and worldwideisation, 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.