...ALRIDGE BREWING COMPANY Craft Brewing Goes Public In August 1995, Paul Shipman, the CEO of Alridge Brewing (AB) prepared himself to enter uncharted territory. A craft brewing operation had never before been taken public in the United States, and he and his management team were about to do just that. Sure, there were massive large-batch breweries like Anheuser-Busch and Miller Brewing Company that were profitable, publicly traded firms—but there was something different about Alridge: it embodied the ethos and grassroots beginnings of the microbrew movement, and Shipman was confident that widespread market demand for craft beer was set to explode. He and the team had steadily developed their premium-quality handmade ales for nearly fifteen years, and their loyal customer base was strong. In the last year alone, he’d forged alliances with both Starbucks (for the purposes of co- branding a coffee- flavored brew) and A-B that had purchased a capped 25% interest in AB in exchange for access to its national distribution networks and accounting systems. Shipman had overseen significant capacity increases, with plans on the horizon for yet another brewery in Portsmouth, New Hampshire. He had worked hard to position AB favorably for expansion, and the public offering would provide the necessary capital. But how would the “microbrew” feel of AB translate to the largescale commercialization and growth pressures of the open market? Producing and distributing microbrews on a large scale...
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...Cited: Page 89 Introduction Boston Beer Company (SAM) is one of the fastest growing breweries in the United States of America currently holding the largest market share of craft brewers in the country, and 6th largest of all brewers. Founded in 1984 in Boston, Massachusetts and staying true to both its local and family roots, this high quality beer has become an icon throughout the nation. Another extremely successful and predominant corporation in the beverage-alcohol industry is that of Anheuser-Busch Inbev SA (BUD) which will serve for the purposes of this paper as a benchmark for how a firm should be performing and operating in this field. Being that Anheuser-Busch has been operating since 1852, has 13 breweries nation-wide, and is one of the most iconic breweries in the world, it truly is a unique comparison of “David vs. Goliath” for these two companies. The History of the Boston Beer Company Jim Koch, founding member of The Boston Beer Company, has a long proud history of brewing a robust, full flavored beer in his family. In fact, it was his great-great grandfather Louise Koch, who concocted the original recipe for the brands metaphorical bread and butter “Samuel Adams Boston Lager” which is by far the bestselling brand in the portfolio of beers the company holds and distributes. The “Sam Adams” name (also the inspiration for the NYSE ticker the company holds “SAM”) was dubbed after the American patriot from Boston of the same name because of...
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...Introduction Deutsche Brauerei (DB) is a German company owned by 16 Schweitzer family members. It was founded in 1737, and has been in the family for 12 generations. DB manufactures two types of beer; light and dark. Both are well known and have won quality awards. The case centers around the financing of the company’s expansion into the Ukrainian market (and possibly further into Eastern Europe) and its impact on financial planning, future dividends and employee compensation. Background Facts A fire destroyed the manufacturing plant in 1994. New equipment was purchased. The new equipment was more efficient and was capable of increasing the capacity. Once DB expanded into the Ukraine (1998), the additional capacity became necessary. The move into the Ukrainian market was very risky because in 1995 and 1996, their government was privatizing a lot of the free market. This did not impact DB. For the Ukrainian market, Oleg Pinchuk was hired to market the beer very aggressively. He was stolen from a major Ukrainian rival. He had instant success because the beer was considered to be richer than the domestic competition. Also, the market was very fragmented which is easier for a newcomer to have instant success. The DB beer in Germany served its markets through a network of independent distributors. The distributors purchased the beer, stored the beer in their refrigerated warehouses and then sold the beer to their customers. Since the Ukrainian market...
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...Analysis of the Anheuser-Busch Company Report by Valanium Analysts: Chris Rigopulos, John Schneider, Jayne Tan Investment Recommendation: MARKET PERFORM December 5, 2001 BUD – NYSE (11/30/01) 52 week range Revenue (2001E) Market Capitalization Share Outstanding $43.10 $36.75 – $49.00 $14.9B $38.2 B 884.3M EPS Forecast (FYE 12/30) EPS Ratios Trailing P/E Forward P/E Leading PEG M/B Price/Sales 1999A 2000A 2001E 2002E $1.49 $1.71 $1.89 $2.09 Dividend Yield 1.67% Avg. Daily Trading Volume (3mo) 2.13M Book Value per Share (mrq) Return of Equity (ttm) Return on Assets (ttm) Est. 5 Years EPS Growth Rate Sector: Consumer/Non-Cyclical Industry: Beverages (Alcoholic) $4.83 40.39% 10.71% 11.0% BUD 23.2 20.6 1.87 8.93 3.11 Competitors Avg. 17.4 15.9 1.37 3.10 1.21 Valuation Predictions Actual Current Price Trailing P/E Valuation Leading P/E Valuation PEG Valuation M/B Valuation Price/Sales Valuation EBO (Abnormal Earnings) Valuation DCF Valuation Performance (Trailing, Annualized) Return on BUD Return on S&P 500 Return on Competitors $43.10 $32.38 $33.24 $31.48 $14.95 $16.73 $19.25 $46.87 6 mo -2.1% 18.3% - 2.9% 12 mo 24 mo -7.4% 9.9% -13.4% -10.3% 2.1% 8.9% Source: finance.yahoo.com, Valanium analysis • • Our valuations reflect a range of predictions, all falling below the current price point with the exception of the DCF estimate. However, we believe that A-B’s brand value and domestic presence are not captured within the accounting numbers...
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...BSBA - MIS & Finance Business Systems Assistant Business Systems Team – HR Systems Global Services Office, Boston, MA Systems Analyst, Merrill Lynch Helpdesk Technician, The Boston Beer Company Matt Foxman, Class of 2011 Previous Positions: OVERVIEW The Boston Consulting Group (BCG) is a leading international strategy and general management consulting firm operating across 40 countries in a complex and fast-changing business environment. The firm has built its worldwide practice on intellectual leadership and has helped change the way many corporations approach, and engage in, competition. Many of BCG’s strategic concepts are taught at leading business schools and executive education programs around the world. Reporting Gather data and publish in monthly updates. Projects Assist Business Systems Team and IT Project leaders on various projects. Transfer Knowledge Create accompanying end user documentation and guides for use of system. JOB RESPONSIBILITIES This position plays a key role within the BCG Human Resources Systems group working on various projects and application support activities. BCG’s HR systems group supports these primary areas: Core HRIS, Career Development/ Performance Management, Training, Career Services, and Recruiting. Key responsibilities will include: Test SKILLS NEEDED Highly developed sense of discretion due to . confidential nature of material. Strong organization skills and attention to detail. Good...
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...University of New Hampshire University of New Hampshire Scholars' Repository Honors Theses Student Scholarship Spring 2012 Microbrewing in the US: An overview of the microbrewery industry and a business plan for future success Kevin Lapoint University of New Hampshire - Main Campus Follow this and additional works at: http://scholars.unh.edu/honors Part of the Entrepreneurial and Small Business Operations Commons Recommended Citation Lapoint, Kevin, "Microbrewing in the US: An overview of the microbrewery industry and a business plan for future success" (2012). Honors Theses. Paper 9. This Senior Honors Thesis is brought to you for free and open access by the Student Scholarship at University of New Hampshire Scholars' Repository. It has been accepted for inclusion in Honors Theses by an authorized administrator of University of New Hampshire Scholars' Repository. For more information, please contact scholarly.communication@unh.edu. Microbrewing in the US An Overview of the Microbrewery Industry and a Business Plan for Future Success Kevin Lapoint Business Administration, Finance and Management Whittemore School of Business & Economics Kpe8@unh.edu (603) 988-3438 Advisor: Prof. Fiona Wilson Whittemore School of Business & Economics 5/5/2012 Kevin Lapoint Microbrewing in the US Acknowledgements I would like to thank my brother Douglas, my mother and father, and especially my brother Richard. Without their support, edits, and...
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...MillerCoors vs. Anheuser-Busch Salman Boer Carly Gorka Stephanie Kalin Kenny Koelling Felipe Naranjo Nizam Qutubuddin Executive Summary The beer industry in the United States is an extremely competitive one. For years, the industry has been solely dominated by one contender, Anheuser Busch. However, large brewers have always been looking for opportunities to extend their reach in the industry and gain more market share. Miller Brewing Company and Coors Brewing Company have been historical staples of the American beer industry since the nineteenth century. These companies merged with international giants South African Breweries and Molson, respectively, in efforts to better compete in the United States brewing industry. However, they still could not manage to take a share of the Anheuser Busch Empire. SABMiller and Molson Coors saw an opportunity in forming a joint venture that would be able to successfully compete with Anheuser Busch in the beer industry, and in 2008, created a third company called MillerCoors. The creation of MillerCoors was a success. Since the creation of the company, in June 2008, MillerCoors has been very profitable and has enjoyed steady growth in their market share. They have done this by integrating innovation as a major goal in their products, providing them with a certain level of differentiation, while reducing costs through the exploitation of synergies that exist in their different processes. MillerCoors was one of the very...
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...discern a trend in the investment decisions of Mr. Buffett and are his decisions consistent with the principals learned from his mentor Dr. Graham? Based on the types of company’s that BK now owns, have the Acquisition Criteria been held to, modified, expanded upon? Is there something more to his theories? Comment on the quote “all you need to know to become a successful investor is two courses, (1) A course on how to value companies and (2) a course on human behavior”. How does Buffet’s philosophy statements on page 19 and 20 compare to what you have learned so far in your other management classes or personal experiences? What does the advice that Buffet gave the University of Florida students mean to you? Select 2 quotes on page 22 and comment on why they are meaningful to you. How has Mr. Buffet taken advantage of the recession of the past 4 years? Comment on Mr. Buffet’s quote “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful”. By use of research, how has Buffet and his company applied this statement with their current actions? Case 2 INTUIT Your textbook on page 19 makes reference to the fact that most entrepreneurs learn about cash flow, marketing and human resources after they have those problems. Comment on how Scott Cook seemed to address these issues? How important are ethics to the entrepreneur for your reading of this case and the text (page 26)? Discuss any experience you...
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...I., & Sanz-Valle, R. 2003. Effects of Training on Business results. International Journal of Human Resource Management, 14: 956-980. * Armstrong, M. and Baron, A. (1998) Performance Management: The New Realities. London: Institute of Personnel and Development. * Arthur, W. A., Jr.,Bennett, W., Jr., Edens, P. S., & Bell, S. T. 2003. Effectiveness of Training in Organizations: A Meta-Analysis of Design and Evaluation Features. Journal of Applied Psychology, 88: 234-245. * Bartel, A. P. 1994. Productivity Gains from the Implementation of Employee Training Programs. Industrial Relations, 33: 411–425. * Beer, M., Spector, B., Lawrence, P. R., Mills, D.Q., Walton, R. E. (1984), A Conceptual View of HRM. in Managing Human Assets. Free Press, New York Chap.2 * Bernolak, I. (1997), Effective Measurement and Successful Elements of Company Productivity: The Basis of Competitiveness and World Prosperity, International Journal of Production Economics, 52, 1 - 2, pp. 203-213. * Bishop, J. 1991. On-the-job Training of New Hires, in Market Failure in Training? ed. David Stern and Jozef M. M. Ritzen, New York: Springer-Verlag, pp. 61–98. * Borman, WC (1991) Job Behavior, Performance, and Effectiveness, In M. D. Dunnette & L. M. Hough (Eds.), Handbook of Industrial and Organizational Psychology (2nd ed., Vol. 2, pp. 271-326), Palo Alto, CA, Consulting Psychologists Press * Brewster, C., & Bournois, E. 1991. Human Resource Management: a European...
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...LONDON SCHOOL OF COMMERCE Information Systems Technology BA (Hons) Semester 2 – Re-Submission 20th of August 2010 Rafael Garcia 0770PRPR0209 Lecturer: Carolina Gomez BA – IST – Information Systems Technology LSC June 10 – September 10 Contents Page 1. Introduction ------------------------------------------------------------------------- 3 2. Business Planning ----------------------------------------------------------------- 4 3. NocturneBooze ---------------------------------------------------------------- 5 3.1.www.nocturneboozeonline.co.uk ----------------------------------------------- 5 4. Day to Day Operations ------------------------------------------------------- 6 5. Financing the Business ------------------------------------------------------- 6 6. Suppliers ------------------------------------------------------------------------- 6 7. Equipment ------------------------------------------------------------------------- 7 8. Employees ------------------------------------------------------------------------- 9 9. NocturneBooze Menu ---------------------------------------------------------------- 10 10. Potential Customers ---------------------------------------------------------------- 11 11. Location ------------------------------------------------------------------------- 12 12. References ------------------------------------------------------------------------- 13 Rafael Garcia - Page 2 of 13 BA – IST – Information Systems Technology LSC June 10 – September...
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...sloanreview.mit.edu), call or e-mail: Toll-free in U.S. and Canada: 877-727-7170 International: 617-253-7170 e-mail: smrpermissions@mit.edu To request a free copy of our article catalog, please contact: MIT Sloan Management Review 77 Massachusetts Ave., E60-100 Cambridge, MA 02139-4307 Toll-free in U.S. and Canada: 877-727-7170 International: 617-253-7170 Fax: 617-258-9739 e-mail: smr-orders@mit.edu How Social-Cause Marketing Affects Consumer Perceptions A market research technique called conjoint analysis can help managers predict what kind of affinity marketing program is likely to offer the best return on investment for their brand. Paul N. Bloom, Steve Hoeffler, Kevin Lane Keller and Carlos E. Basurto Meza H ow should companies determine the best way to allocate marketing dollars between conventional promotional programs and affinity marketing programs? The former simply stress the benefits of buying a specific brand, while the...
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...Agenda: 1. Introduction * What is the CSR (CSR definition)? 2. Why CSR (Importance of CSR)? 3. Approaches of CSR 4. Critics of CSR 5. Real Cases for CSR 6. Ref. 1. Introduction a. What is the CSR (CSR definition)? CSR is about how companies manage the business processes to produce an overall positive impact on society. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large (The World Business Council for Sustainable Development http://www.mallenbaker.net/csr/definition.php) The way in which firms seek to voluntarily align the interests of owners and other stakeholders with the long-term best interests of the society (Thomsen, S.Conyon) The stakeholders include Stakeholders include customers, employees, suppliers, government, the environment and the wider society 1. Why CSR (Importance of CSR)? Companies promote CSR for a variety of reasons It’s good for business Customer demand Improves corporate reputation Increases financial performance 2. Approaches of CSR The CSR have 3 approaches: - Win-win: engaging in CSR leads to higher profits - Delegated philanthropy: stakeholders prefer firms that engage in philanthropic activities on their behalf - Insider-initiated corporate philanthropy: CSR...
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...Unpopular Pay Plan” “The Case of the Unpopular Pay Plan” discusses how the company Top Chemical decides that they need to change their current pay plan to more closely resemble their quality control program. Currently their pay plan is set up where employees receive raises based on seniority. The senior management would like to change the pay plan to complement the quality program. In the quality program employees are on teams. The proposed pay plan would reward employees whose teams were making beneficial contributions towards quality, profitability, and new ideas to increase speed, unit cost, and improvements. Some of the top management disagrees with the new pay plan claiming that having to rely on other groups within the company to get a pay raise is unfair and beyond their control. While others agree that each employee’s pay should be a reflection of how well the company is doing as a whole. Some commentators had the following perspectives about this pay plan: Maggie Coil, vice president of compensation of Motorola, thinks that the employees of Top Chemical should have some input on if and how to change the pay plan since they are the majority that will be affected and by allowing them to be part of the process of designing and implementing the pay plan, it will make it more accepted. Donald Berwick, associate professor at the Harvard Medical School and Harvard School of Public Health in Boston, thought the new pay plan is moving in the right direction, but still needs...
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...and integrating elements of both into any change initiative has been proposed. The dichotomy in a Theory E approach, incorporating practices driven by an economic imperative and a Theory O approach, incorporating practices for improving organizational capability are questioned by this research. By comparing the integrated model identified by Beer and Nohria (2000) with 18 other change management approaches, the limitations of their model are exposed. Considerable similarities are observed between change management models and this leads to the conclusion that a more comprehensive integrated model should be developed and tested. This includes the importance of identifying the context for change as a prerequisite to change design. Initial research validated the use of an extended list of critical success factors, the utility of a new model for initiating change and reinforced the importance of a contingency paradigm. KEY WORDS : Change, change management, integrated change, business transformation Introduction In the first part of this research ‘Challenging the Code of Change: Part 1. Praxis does not make Perfect’, a comparative review of Beer and Nohria’s (2000) Theory E and Theory O integration thesis led to the conclusion that their model required further development with the following rationale. 1. The limitations identified in the integrated Theory E/Theory O model. Correspondence Address: Nigel Leppitt, Director-Haldane Associates, 14 Carlisle Road, Hampton, Middlesex, TW12...
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...examine strategic innovation and corporate entrepreneurship. Strategic change is about ensuring that the organization is consistently relevant in its market arenas and, as the opening quote from Darwin illustrates, about the need to be responsive to change. Back in 1865, the seeds of the company that we know today as Nokia were sown when Frederik Ideastam set up a paper mill on the banks of the Nokianvirta river in Finland. From this base, over the next hundred years, the company evolved to become a Nordic industrial conglomerate operating in paper, rubber, and cables, and from there to a European player in consumer electronics in the 1970s and 1980s. In 1996, a decision was made to divest all of its other businesses in order to concentrate on becoming a global giant in telecommunications. This is the position that Nokia is attempting to retain as it continues to ride the technological wave of change, focusing on technological convergence in mobile phones, multimedia, and enterprise solutions. Although the reorientation of Nokia over time did not come without its difficulties in integrating acquisitions and developing a strong corporate culture to unite objectives, and the company acknowledges that significant challenges lie ahead, it is clearly the story of a dramatic and successful corporate evolution. Corporate pressure is relentless, however, and in February 2011 Nokia announced a change in strategy, a new leadership team, and a renewed organizational and operational ...
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