...Case Study: New Belgium Brewing: Ethical and Environmental Responsibility Globe University Business Ethics Professor E. Craig Morris May 12, 2012 Case Study: New Belgium Brewing: Ethical and Environmental Responsibility What environmental issue does the New Belgium Brewing Company work to address? How has NBB taken a strategic approach to addressing these issues? Why do you think the company has chosen to focus on environmental issues? Probably, the environmental issues need to be addressed by the New Belgium Brewing (NBB) is cost-efficient energy-saving alternatives. ‘In 1998, the NBB commissioned study found that the largest amount of CO2 actually came from the coal-fuelled power plant that supplied the brewery with electricity’ (Melanie Drever, 2006). As a result, the company’s employees entirely agreed to invest in a wind turbine, making the company 100% wind energy brewery because CO2 emissions have bought to serious global warming, and air pollution, affecting the normal lifestyle of people throughout the world. At the same time, the disposal of hot water or polluted water from the process of brewery will create thermal pollution, and water pollution respectively. Those problems will impact the ecosystem composition of aquatic animals or organisms by decreasing the oxygen supply in the river. Therefore, NBB also purchased and developed...
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...Case New Belgium Brewing (B) New Belgium Brewing: Developing a Brand Personality * Background NEW BELGIUM’S INITIAL MARKETING STRATEGY The idea for the New Belgium Brewing Company began with a bicycling trip through Belgium. Belgium is arguably the home of some of the world’s finest ales, some of which have been brewed for centuries in that country’s monasteries. As Jeff Lebesch, an American electrical engineer, cruised around that country on his fat-tired mountain bike, he wondered if he could produce such high-quality beers back home in Colorado. After acquiring the special strain of yeast used to brew Belgian-style ales, Lebesch returned home and began to experiment in his Colorado basement. When his beers earned thumbs up from friends, Lebesch decided to market them. The New Belgium Brewing Company opened for business in 1991 as a tiny basement operation in Lebesch home in Fort Collins. Lebesch wife, Kim Jordan, became the firm’s marketing director. New Belgium beers quickly developed a small but devoted customer base, first in Fort Collins and then throughout Colorado. The brewery soon outgrew the couple’s basement and moved into an old railroad depot before settling into its present custom-built facility in 1995. The company’s standard line has grown to include Sunshine Wheat, Blue Paddle Pilsner, Abbey Ale, Trippel Ale, 1554 Black Ale, and the original Fat Tire Amber Ale, still the firm’s bestseller. Today, New Belgium Brewing is America’s third largest...
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...New Belgium Brewing: Ethical and Environmental Responsibility1 Although most of the companies frequently cited as examples of ethical and socially responsible firms are large corporations, it is the social responsibility initiatives of small businesses that often have the greatest impact on local communities and neighborhoods. These businesses create jobs and provide goods and services for customers in smaller markets that larger corporations often are not interested in serving. Moreover, they also contribute money, resources, and volunteer time to local causes. Their owners often serve as community and neighborhood leaders, and many choose to apply their skills and some of the fruits of their success to tackling local problems and issues that benefit everyone in the community. Managers and employees become role models for ethical and socially responsible actions. One such small business is the New Belgium Brewing Company, Inc., based in Fort Collins, Colorado. History of the New Belgium Brewing Company The idea for the New Belgium Brewing Company began with a bicycling trip through Belgium. Belgium is arguably the home of some of the world’s finest ales, some of which have been brewed for centuries in that country’s monasteries. As Jeff Lebesch, an American electrical engineer, cruised around that country on his fat-tired mountain bike, he wondered if he could produce such high-quality beers back home in Colorado. After acquiring the special strain of yeast used to brew Belgian-style...
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...Clayton Fowler 10/23/14 MKTG 4340 Dr. Blodgett New Belgium Case 1) Rather than use focus groups to test its branding and messaging, New Belgium used insiders in the bike community and brewery friends who had a personal history and knowledge of the brand. Evaluate this decision. Should New Belgium have used the more traditional approach to ensure the widest possible input to its marketing strategy? Discuss. Jeff Lebesch came back to Colorado with the idea to produce high quality beer and began experimenting in the basement of his home, he never anticipated owning the seventh largest brewery in the nation with sales of over 700,000 barrels of beer per year. With this being said, I highly doubt that Jeff and his wife Kim had the financial stability allowing them to spend money to market a home brewed beer that could have potentially failed. Jeff may have faced a little biased reaction from brewery friends and insiders in the biking community who knew what the brand stood for, but in the long run the “word of mouth” method works to their benefit and saved them countless amount of money. Some might say that people who already know the business can only help elaborate it, where people who are unaware of the business can bring new ideas to the table, but I believe that Jeff and his wife executed their marketing strategy the best to their ability. 2) New Belgium’s focus on sustainability, whimsy, and fun is clearly rooted in its Colorado-based culture and the ethos of its founders...
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...BUSINESS STUDIES UNIVERSITY OF GREENWICH NAME : STEPHANIE ROBERTS COURSE NAME: MANAGING STRATEGY COURSE CODE: BUSI1484 PORTFOLIO ASSIGNMENTS: PORTFOLIO ASSIGNMENT 1; GLOBAL FORCES AND THE WESTERN EUROPEAN BREWING INDUSTRY DATE OF SUBMISSION: 09/02/2012 1. (i) PESTEL ANALYSIS OF THE WESTERN EUROPEAN BREWING INDUSTRY The PESTEL framework provides a comprehensive list of influences on the possible success or failure of particular strategies (Johnson et al, 2008, p55). PESTEL stands for Political, Social, Technological, Environmental and Legal. Political- Governments in Europe were campaigning strongly against drunken driving. This affected the propensity to drink beer in pubs and restaurants. Economic- Some low consumption European markets have been showing good growth. Pubs have suffered as a result of large supermarket chains such as Tesco and Carrefour who often use cut price on beer to lure people into their shops. The result was that an average of about 50 pubs closed per week during the recessionary year 2009. Social- There was increasing awareness of the effects of alcohol on health particularly in the UK. This led to a growing hostility to excessive alcohol consumption in pubs. Beer consumption in the UK as well as in Germany began to fall as a result of this. Wines were becoming increasingly popular as Europe was turning off beer. There was an increasing demand for Exotic imported beer more especially in Belgium, Denmark...
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...Case 27: New Belgium Brewing 1) What are the ethical issues in this case? - Ethics is a commonly used term that refers to the ideas and issues of right, wrong, fairness and justice. In regards to business, the concept of ethics refers to the ideas and issues in the commercial industry. In the New Belgium Brewing case study, there are many ethical concepts displayed. A positive ethic in regards to doing right is the company’s mindset that profitability comes second and their commitment to providing a quality product and business for consumers. In addition, all the companies’ decisions are based on a strong set of core values and beliefs that have made them shine in society. Furthermore, New Belgium Brewing (NBB), is ethically sound because they have developed their business around being environmentally friendly. NBB has developed an industry leading process to minimize their environmental footprint from recycling, clean energy sources and cutting back on their CO2 emissions. This is a very ethically sound company and continues to be successful as they continue to grow. 2) What keeps other companies from having the commitment to environmental sustainability that NBB has evidenced? - One piece of evidence that NBB has observed that is keeping other companies in the industry from a commitment to environmental sustainability has to do with the recycling of glass bottles. NBB has attempted to develop an idea for a bill known as the “bottle bill” that would promote...
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...Western European Brewing Industry Case Study Question: 2. For the breweries outlined above explain: (a) How these trends will impact differently on these different companies; and (b) The relative strengths and weaknesses of each company. (A) Impact of these trends. 1. InBev (Belgium/brazil) • INBev is a merger of two companies Anheuser and Busch and hold the top spot in the world’s top 10 breweries. • INBev is known for being the world’s largest brewing company through mergers and acquisitions and has a 25 percent global market share • By diversifying its enterprise into many countries outside of Europe (where the consumption of beer was increasing), has helped the companies continued success. • INBev are geographically diversified with a balanced exposure to developed and developing markets and leverages the collective strengths of its approximately 155,000 employees based in 25 countries worldwide. • The corporation has a significant position in the Latin American market. • INBev occupies 50% of the US market and 50% of the Mexican market. • The company is established in countries where the consumption of beer is rising. • Revenue of 47 billion US dollars in 2014 • INBev has around 200 beer brands and continues to forge strong connections with consumers. The global brands included are Budweiser, Corona, Stella Artois, Beck’s, Leffe, Hoegaarden, Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye...
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...Introduction The purpose of this briefing paper is to analyse the data given from the case study to determine the impact and consequences global forces have, by using the PESTEL framework. This framework is used to help form a strategic analysis of the macro-environment; the outside factors beyond the control of a company. It categorises the environmental influences into six groups: political, economical, socio-cultural, technological, environmental and legal; making up the acronym PESTEL. Analysis Political factors Europe has traditionally been seen as the centre of the beer brewing industry. However, the level of alcohol consumption is gradually declining. This is because many of the key markets within Europe are increasingly more aware of the social and health issues caused by excessive alcohol consumption. Governments are actively campaigning against the abuse of alcohol and the possible consequences of drunk driving, ‘binge drinking’, and the long-term effects related to health. These key factors relate directly to government policies and their decisions towards the European beer market. Economic factors As a result of government intervention, there has been a marked decrease in product sales in public premises. As people are more and more likely to drink at home rather than out to bars, the alcohol sales has shifted from ‘on-trade’, where beer is consumed on public premises, to ‘off-trade’, where beer is purchased by retail and consumed on private property...
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...New Belgium Brewing A paper submitted in partial fulfillment for the Bachelor of Science degree in Business Administration and Finance Table of Contents Page No. Introduction…………………………………………………….3 Environmental Issues…………………………………………..3, 4, 5 Strategic Philanthropy………………………………………….5, 6 Ethical and Social Responsible………………………………...6, 7, 8 Areas of Development………………………………………….8, 9 Conclusion………………………………………………………9, 10 Resources………………………………………………………. 11 Introduction: New Belgium Brewing Company started out with a simple bicycling through Belgium which also happens to be the home of some of the world’s finest ales. An American electrical engineer named Jeff Lebesch cruised around Belgium on in his fat-tired mountain bike pondering the thought whether or not he could produce the same high-quality beers back home in Colorado. Lebesch went back to his home in Colorado and started experimenting until his beers attained good recognition from some friends and so Lebesch decided to market them. New Belgium Brewing Company opened for business in 1991 as a small basement operation in Lesbesch’s home in Fort Collins but soon out grew that and now has its own custom-built facility. (Drever; Haiar, 2006) New Belgium started out as a small business with concrete core values and beliefs and as it grew bigger, it retained its business values. New Belgium’s most recognized characteristic is its image. New Belgium bases its company...
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...Question 1 (i): Using the data from the case (and any other source available), carry out for the European brewing industry a PESTEL analysis. What do you conclude? Beer has been a part of the social fabric of cultures around the world for thousands of years. Even today beer ranks as the third most popular beverage in the world next to water and tea. Considered one of the oldest drinks, the origin of beer dates back to 6000 B.C. With low-cost strategies and lack of marketing and product innovations all created a very stable situation guaranteeing high returns on investments for most breweries in Europe. However, this situation has been changing dramatically and the industry has witnessed different brewing styles over the last decade. The market entry of large multinational breweries resulted in shrinking demand due to changing consumer preferences, the emergence of more aggressive competitive strategies and rapid changes in important distribution channels have created growing competitive pressures for European breweries. An industry that was used to stability must now find its way in an increasingly turbulent market environment. First of all, I need to evaluate the macro environment of the industry. The most suitable tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysis environmental influences are categorized into political, economical, social, technological, environmental/ecological and legal aspects. It helps to identify how future trends...
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...route to market but where the premium beer business is still in its infancy.”2 Grolsch had hitherto focused on developed markets, particularly the UK, US, Canada, Australia, New Zealand and France, in pursuit of its goal of becoming one of the world’s top 10 global beer brands. Groslch was already the world’s 21st largest global brand, measured by international (nondomestic) volume (see Exhibit 1). International volume had grown to account for slightly over onehalf of total volume and, going forward, seemed to offer much more potential. Drinkers often rated Grolsch higher than larger brands, including Heineken, the top global brand as well as the leader in Grolsch’s home market (see Exhibit 2). And Grolsch had started up a state-of-the art brewery in 2004 that could be expanded at little incremental cost. The acquisition closed and in February 2008, Grolsch became an independent subsidiary of SABMiller. Rob Snel, head of Grolsch International since 1999 and an employee since 1984, was named Grolsch’s new CEO shortly thereafter. He...
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...route to market but where the premium beer business is still in its infancy.”2 Grolsch had hitherto focused on developed markets, particularly the UK, US, Canada, Australia, New Zealand and France, in pursuit of its goal of becoming one of the world’s top 10 global beer brands. Groslch was already the world’s 21st largest global brand, measured by international (nondomestic) volume (see Exhibit 1). International volume had grown to account for slightly over onehalf of total volume and, going forward, seemed to offer much more potential. Drinkers often rated Grolsch higher than larger brands, including Heineken, the top global brand as well as the leader in Grolsch’s home market (see Exhibit 2). And Grolsch had started up a state-of-the art brewery in 2004 that could be expanded at little incremental cost. The acquisition closed and in February 2008, Grolsch became an independent subsidiary of SABMiller. Rob Snel, head of Grolsch International since 1999 and an employee since 1984, was named Grolsch’s new CEO shortly thereafter. He...
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...Reflective Journal for Week 8 HRM Strategy and Corporate Social Responsibility Explain: In the 1970’s, Friedman (1970) stated that the only social responsibility of an organisation is the profit maximization. However, the definition of Corporate Social Responsibility (CSR) has changed over time. The current definition of CSR is a process with the aim to embrace responsibilities for the company’s actions and encourage positive impacts through its activities on the environment and all stakeholders (Crane, Matten, & Spence, 2014; Lis, 2012; Mallin, 2009). As a company which presents a good CSR, The New Belgium Beer Brewery was introduced in the lecture. They are making great efforts to minimize their impact on the environment, such as utilizing renewable energy, innovating a smart grid and reducing waste. In the prescribed reading, Glavas and Piderit (2009) provides strong evidences that corporate citizenship positively influences employee behaviour. Their survey revealed that an employees’ perception of their company’s corporate citizenship influences their engagement, and can provide high-quality connections and creative involvement. Expand: Companies with a reputation for high quality CSR may be more attractive to job applicants (Backhaus, Stone, & Heiner, 2002; Lis, 2012). Lis (2012) revealed that the effect of four different CSR-dimension (product, environment, diversity and employee relation) were significantly correlated with perception of organizational...
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...An institutional analysis of the beer market | Written by: Frank Bloemhof Student number: 294673 International Business School, Hanze University of Applied Sciences, Groningen Lecturer: Arnd Mehrtens Written by: Frank Bloemhof Student number: 294673 International Business School, Hanze University of Applied Sciences, Groningen Lecturer: Arnd Mehrtens | | | Date: 29 January 2015 Word count: 8,925 Abstract The global beer industry - An Analysis of opportunities and risks in light of its institutional characteristics, as exemplified in part by Heineken. In this report you will read about a novel concept in economics called the Three Pillar Model, with a particular focus on the pillar of entities. After a general introduction, specific information about the beer market will be given. This is followed by a short analysis of the company Heineken NV, a Dutch beer brewer operating in over 170 countries worldwide. To end the report a conclusion will be given. This is followed by, which will include among other things the recommendation to create a strong bond with the consumer. In the very end you will find a list of all the sources that were used to write this report. Contents Abstract 1 Introduction 3 1. Literature review 4 1.1 Three pillar model 4 1.2 Theories 4 1.2.1 Neoclassical economics 5 1.2.2 Institutional economics 6 1.2.3 Behavioural economics 8 1.3 Entities 10 1.3.1 Institutions 10 1.3.2 Organizations 10 1.3.3 Individual...
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...Universidad de Guadalajara. Periférico Norte 799 Edificio G-306 Zapopan, Jalisco C.P. 45100; México Tel y fax: +52(33) 3770 3343 Ext 5097 josevargas@cucea.udg.mx,jgvh0811@yahoo.com,jvargas2006@gmail.com Mohammad Reza Noruzi, EMBA, PhD Candidate Policy Making in Public Sector Islamic Azad University, Bonab Branch, Iran Young Researchers Club Member, IAU Bonab, Iran Tell: +98- 412-7238893-5 mr.noruzi@modares.ac.ir mr_norouzi@pnu.ac.ir mr.noruzi.pnu@gmail.com Abstract The opening of the Mexican economy and globalization bring new opportunities for Mexican companies to expand their markets and get their products around the world. The internationalization process requires a sound strategy for the consolidation in foreign markets. The aim of this study is to analyze the different internationalization strategies followed by three Mexican companies with a global presence: Grupo Modelo, Grupo Bimbo and Cemex. We conclude that the differences in their strategies arise from the characteristics of each of these companies. Keywords: Mexican companies, strategy, expansion, internationalization. 1 INTRODUCTION The landscape of this century requires companies to be increasingly competitive, and that not only have to compete with domestic rivals but new players come in search of a single market. Today's competitive advantages and are no guarantee of success without a solid strategy that will ward. The decision made at the time a local company to expand its market to new countries, must be supported...
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