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Boston

Strategic Management Model – Boston Beer Company

The aim of this report is to identify some of the possible strategies that Boston Beer Company could adopt. In order to do so, it is not only necessary to have an understanding of the company itself, but also of the industry in which it operates.

With nearly 80 million American beer drinkers, beer has become one of the most popular beverages, second only to water and tea. Each year, the U.S. beverage industry produces and sells more than 2.6 billion cases of beer, or about 193.3 million barrels. Although light beer continued to dominate the market with a 37 percent share, the consumption rate of micro brews or specialty beer also continued to grow in popularity.

Standard & Poor’s believes that the U.S. brewing industry in particular will benefit from a favorable pricing environment for beer, improving demographic trends, and rising consumption of premium products. In addition, continued productivity improvements and high industry wide capacity utilization rates should aid profits. Given these factors, we project that operating profits for the domestic brewing industry will advance between 6% and 8% in 2003. This follows a strong performance


The Boston Beer Company, a U.S. craft brewer, has streamlined its budgeting process through the acquisition of Hyperion planning, distributed locally by Global Technology Business Intelligence (GBI), a division of JSE Securities Exchange-listed Global Technology. The solution reduces the time it takes salespeople to project data and the finance department to validate it, and keeps the process in line with the calendar code stamped on every bottle of Samuel Adams beer. In addition to ending manual data input, Boston Beer required a new planning solution that would shorten the planning cycle - including budget collection, consolidation and finance review - from five weeks to three. The system would have to enable the sales force to enter data into a system that would provide an instant profit and loss statement, provide faster contribution margin feedback to sales managers and deliver better pricing and revenue information.

The company’s product strategy is to create and offer world-class variety of traditional beers and other alcoholic beverages with a focus on promoting its Samuel Adams product line.

The craft-brewed beer industry has achieved tremendous growth over the past 5 years, particularly during the last 2 years, and even the more pessimistic industry expe

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Samuel Adams, Boston Beer, Standard Poor’s, Brewing Industry, Beer Company, Market Segment, Koch Company, Boston Lager, Global Technology, Inc SAM, boston beer, boston beer company, beer industry, beer company, craft-brewed beer, brewing industry, samuel adams, craft-brewed beer industry, craft brewer, company name, cider products, domestic brewing industry, beer continued, operating profits domestic, profits domestic brewing,

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Approximate Word count = 863
Approximate Pages = 3 (250 words per page double spaced)


  

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