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Stack brewing: a little brewery in the big nickel description.

Stack Brewing, a start-up craft brewery, has a capacity of approximately 5,600 litres per month based on twelve 117-litre batches per week. A government grant based on growth and job creation potential will help boost production capacity by five times, necessitating the development of additional distribution and marketing communication strategies. The owner cannot afford a listing in the Beer Store, the distribution monopoly owned by Labatt Breweries of Canada and Molson-Coors Canada Inc., and his budget for communications is small. While this case provides an opportunity for students to perform quantitative analysis based on revenues and market size, the focus of the case, however, is on an improved distribution and communication plan. Ron Mulholland is affiliated with Laurentian University.

Case Description Stack Brewing: A Little Brewery in the Big Nickel

Strategic managment tools used in case study analysis of stack brewing: a little brewery in the big nickel, step 1. problem identification in stack brewing: a little brewery in the big nickel case study, step 2. external environment analysis - pestel / pest / step analysis of stack brewing: a little brewery in the big nickel case study, step 3. industry specific / porter five forces analysis of stack brewing: a little brewery in the big nickel case study, step 4. evaluating alternatives / swot analysis of stack brewing: a little brewery in the big nickel case study, step 5. porter value chain analysis / vrio / vrin analysis stack brewing: a little brewery in the big nickel case study, step 6. recommendations stack brewing: a little brewery in the big nickel case study, step 7. basis of recommendations for stack brewing: a little brewery in the big nickel case study, quality & on time delivery.

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Case Analysis of Stack Brewing: A Little Brewery in the Big Nickel

Stack Brewing: A Little Brewery in the Big Nickel is a Harvard Business (HBR) Case Study on Sales & Marketing , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Stack Brewing: A Little Brewery in the Big Nickel is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Stack Brewing: A Little Brewery in the Big Nickel case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Stack Brewing: A Little Brewery in the Big Nickel will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Stack Brewing: A Little Brewery in the Big Nickel case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Sales & Marketing, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Stack Brewing: A Little Brewery in the Big Nickel, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Stack Brewing: A Little Brewery in the Big Nickel case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Sales & Marketing Solutions

In the Texas Business School, Stack Brewing: A Little Brewery in the Big Nickel case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Stack Brewing: A Little Brewery in the Big Nickel

Step 1 – Problem Identification of Stack Brewing: A Little Brewery in the Big Nickel - Harvard Business School Case Study

The first step to solve HBR Stack Brewing: A Little Brewery in the Big Nickel case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Stack Brewery is facing right now. Even though the problem statement is essentially – “Sales & Marketing” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Stack Brewery, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Stack Brewing: A Little Brewery in the Big Nickel. The external environment analysis of Stack Brewing: A Little Brewery in the Big Nickel will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Stack Brewing: A Little Brewery in the Big Nickel case study. PESTEL analysis of " Stack Brewing: A Little Brewery in the Big Nickel" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Stack Brewing: A Little Brewery in the Big Nickel macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Stack Brewing: A Little Brewery in the Big Nickel

To do comprehensive PESTEL analysis of case study – Stack Brewing: A Little Brewery in the Big Nickel , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Stack Brewing: A Little Brewery in the Big Nickel

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Stack Brewing: A Little Brewery in the Big Nickel ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Stack Brewery is operating, firms are required to store customer data within the premises of the country. Stack Brewery needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Stack Brewing: A Little Brewery in the Big Nickel has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Stack Brewery in case study Stack Brewing: A Little Brewery in the Big Nickel" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Stack Brewery in case study “ Stack Brewing: A Little Brewery in the Big Nickel ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Stack Brewery in case study “ Stack Brewing: A Little Brewery in the Big Nickel ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Stack Brewing: A Little Brewery in the Big Nickel ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Stack Brewery can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Stack Brewing: A Little Brewery in the Big Nickel case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Stack Brewery needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Stack Brewing: A Little Brewery in the Big Nickel

Social factors that impact stack brewing: a little brewery in the big nickel, technological factors that impact stack brewing: a little brewery in the big nickel, environmental factors that impact stack brewing: a little brewery in the big nickel, legal factors that impact stack brewing: a little brewery in the big nickel, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: stack brewing: a little brewery in the big nickel case study solution.

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Stack Brewing A Little Brewery in the Big Nickel Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Stack Brewing A Little Brewery in the Big Nickel Case Solution

The Stack Brewing A Little Brewery in the Big Nickel case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Stack Brewing A Little Brewery in the Big Nickel case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Stack Brewing A Little Brewery in the Big Nickel case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Stack Brewing A Little Brewery in the Big Nickel case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Stack Brewing A Little Brewery in the Big Nickel Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Stack Brewing A Little Brewery in the Big Nickel is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Stack Brewing A Little Brewery in the Big Nickel HBR Case Study

The objective of the case should be focused on. This is doing the Stack Brewing A Little Brewery in the Big Nickel Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

  • In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
  • The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
  • Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Stack Brewing A Little Brewery in the Big Nickel

An important tool that helps in addressing the central issue of the case and coming up with Stack Brewing A Little Brewery in the Big Nickel HBR case solution is the SWOT analysis.

  • The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Stack Brewing A Little Brewery in the Big Nickel.
  • Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Stack Brewing A Little Brewery in the Big Nickel Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Stack Brewing A Little Brewery in the Big Nickel

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Stack Brewing A Little Brewery in the Big Nickel operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

  • These are the threats that the industry faces due to new entrants.
  • It includes the threat of substitute products.
  • It includes the bargaining power of buyers in the industry.
  • It includes the bargaining power of suppliers in an industry.
  • Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Stack Brewing A Little Brewery in the Big Nickel

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

  • The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
  • Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
  • These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Stack Brewing A Little Brewery in the Big Nickel case solution.

VRIO Analysis of Stack Brewing A Little Brewery in the Big Nickel

This is an analysis carried out to know about the internal strengths and capabilities of Stack Brewing A Little Brewery in the Big Nickel. Under the VRIO analysis, the following steps are carried out:

  • The internal resources of Stack Brewing A Little Brewery in the Big Nickel are listed down.
  • Each of these resources are assessed in terms of the value it brings to the organization.
  • Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
  • Each resource is assessed whether it could be imitated by competition easily or not.
  • Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Stack Brewing A Little Brewery in the Big Nickel

The Value chain analysis of Stack Brewing A Little Brewery in the Big Nickel helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

  • The firm’s primary and support activities are listed down.
  • Identifying the importance of these activities in the cost of the product and the differentiation they produce.
  • Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Stack Brewing A Little Brewery in the Big Nickel to increase its competitive advantage.

BCG Matrix of Stack Brewing A Little Brewery in the Big Nickel

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

  • Identify the relative market share of each strategic business unit.
  • Identify the market growth of each strategic business unit.
  • Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
  • Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Stack Brewing A Little Brewery in the Big Nickel BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Stack Brewing A Little Brewery in the Big Nickel

Ansoff Matrix is an important strategic tool to come up with future strategies for Stack Brewing A Little Brewery in the Big Nickel in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

  • The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
  • The organization can develop new products for the existing market. This is known as product development strategy.
  • The organization can enter new markets with its existing products. This is known as market development strategy.
  • The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Stack Brewing A Little Brewery in the Big Nickel

Stack Brewing A Little Brewery in the Big Nickel needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

  • Analyse the company’s products and devise strategies to improve the product offering of the company.
  • Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
  • Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
  • Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Stack Brewing A Little Brewery in the Big Nickel Blue Ocean Strategy

The strategies devised and included in the Stack Brewing A Little Brewery in the Big Nickel case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Stack Brewing A Little Brewery in the Big Nickel

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Stack Brewing A Little Brewery in the Big Nickel looks at the direct and indirect competitors within the industry that it operates in.

  • This involves a detailed analysis of their actions and how these would affect the future strategies of Stack Brewing A Little Brewery in the Big Nickel.
  • It involves looking at the current market share of the company and its competitors.
  • It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
  • It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Stack Brewing A Little Brewery in the Big Nickel Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Stack Brewing A Little Brewery in the Big Nickel case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

  • The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
  • The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Stack Brewing A Little Brewery in the Big Nickel Case Study Solution that the business unit should focus on costs.
  • The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Stack Brewing A Little Brewery in the Big Nickel case answers should be written down in the Stack Brewing A Little Brewery in the Big Nickel case memo, clearly identifying which part shows what. The Stack Brewing A Little Brewery in the Big Nickel case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Stack Brewing A Little Brewery in the Big Nickel HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Stack Brewing A Little Brewery in the Big Nickel is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Stack Brewing A Little Brewery in the Big Nickel Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

  • A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
  • It shows that one has been clarified with the HBR fundamentals on the topic.
  • It shows that the details provided in the case have been properly analysed.
  • It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
  • The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Stack Brewing A Little Brewery in the Big Nickel Harvard case is complete and properly answered.

Recommendations and Action Plan for Stack Brewing A Little Brewery in the Big Nickel case analysis

For Stack Brewing A Little Brewery in the Big Nickel, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

  • Stack Brewing A Little Brewery in the Big Nickel should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
  • Stack Brewing A Little Brewery in the Big Nickel should enhance the value creating activities within its value chain.
  • Stack Brewing A Little Brewery in the Big Nickel should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
  • To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

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Stack Brewing: A little Brewing in the Big Nickel Case Solution & Answer

Home » Case Study Analysis Solutions » Stack Brewing: A little Brewing in the Big Nickel

Stack Brewing: A little Brewing in the Big Nickel Case Solution

SWOT Analysis

  • The company has strong brand awareness in the market, which allows it to develop strong market position in the mind of the customer.
  • The company has government support to aid its functions. This allows Stack Brewing to expand its business operations without any bottleneck.
  • The company has a viable relationship with the distributors and the hotel/restaurants which allows the company to expand its operations effectively into the market.
  • The company has strong communication strategy which includes social media.Since the company has already built the presence through the social media, this allows the company to sync with the market trends of moving towards technology and digitalization.
  • Since the quality of the Stack Brewing is highly regarded in the market, it has the ability to charge customers a premium price.
  • The company has a weak communication strategy, which makes it vulnerable in the market to tap the right customer segment.
  • The company has relatively weak position in terms of distributor relations in the market as compared to the competitors.
  • The company has limited market reach since the region it is operating is limited.
  • The company has high dependence on singular beer brand which is offered by other competitors as well, making it difficult for the company to sustain its competitive advantage in the market.

Opportunities

  • Since Stack Brewing has strong market awareness, it can expand into other parts of the Ontario, hence increasing the market share.
  • It can introduce sub brands under the same umbrella, which will generate additional sales and profits for the company and will capitalize more market opportunity.
  • The company has the opportunity to develop its value proposition in the basis of high premium beer in the market, which on one hand will create differentiating factor for the brand while on other hand will develop clear market positioning in the market and in the mind of the customer.
  • Stack Brewing faces intense rivalry from the existing players. Since these players have already captured the maximum market share and have developed the taste among the consumers.The company faces high threat of brand dilution and non-sustainability.
  • The company has limited resources,which makes it difficult to develop extensive marketing and communication strategies.
  • The barriers to enter the market and expand are high and limited respectively, making the company limit its distribution in the market.

Porter 5 forces Model

Bargaining power of the Buyer

The bargaining power of the buyer is high in the market. It is due to the availability of different alternatives and substitutes in the market.Also, since the switching cost is low, the buyer tends to pose high power on the company to maintain its pricing.

Bargaining power of the Supplier

The bargaining power of the supplier is high in the market.Since the company depends more on the distribution channels to reach to the end customer, the distributors/suppliers posit high pressure on the company.In addition, since the limited number of distributors can serve the business, the bargaining power of the supplier remain high in the market.

Threat of Rivalry

The threat of rivalry is also high for Stack Brewing.Since it is a new startup company, the existing giants posit high barriers to penetrate in to the market effectively.Also the high brand loyalty among customers intensifies the element of rivalry, since the competitors introduce new products at a competitive pricing in the market.

Threat of substitution

The threat of substitution is also high in the market. Sine Ontario has the culture of beer inculcated in the deep roots, many small businesses are offering beers and other alcoholic products in the market. Also, the soft drinks and the energy drinks offers the substitution for the beer in the market.

Threat of New Entrant

The threat of new entrant is medium to low in the market. It is due to the rising market potential and growth trend for beer consumption.However, the government has put strict trade policy barriers which makes the new entrant reluctant to enter into the region.

Customer Segmentation

Over the period of time, with the market evolution in Ontario, the beer consumption trend has been shifted towards more aggressive consumption. The young market segment has become more actively involved in consumption of the beer and has developed the taste for it. Keeping in mind the trend and shift in the market, Stack Brewing will target the young consumer segment in the market with the age bracket of 18-29 years.

Alternatives Generation

Alternative: 1- The company should develop extended distributor relations in the market.In doing so, it should extend the relationship terms to 5 years and should offer the market competitive advantages to the distributors as compared to the competitors.

  • This will allow the company to penetrate deeply into the market and increase the market accessibility for the beer.
  • It will increase market visibility of the beer since the distributors will prefer the Stack Brewing’s beer over the others.

This will also allow the company to increase its market share and move towards more sustainable operations……………..

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Stack Brewing A Little Brewery In The Big Nickel SWOT Analysis

Introduction.

SWOT Analysis

Business offered more than 200 activities in its theme parks along with seasonal activities based on the cultural environment of its parks in several countries and cities and the business was highly diversified. In addition, in order to ensure the optimum client fulfillment, the business had used commitment programs to increase sees of repeated consumers. In order to broaden into new cities and nations, business had actually embraced franchising model so that the business could safeguard its profits and benefit from the risk of decline of different currency.

Problem Statement

Business dealt with increased domestic and global competitors due to changing customer preferences, fluctuations in the entertainment industry trends as a result of growing demand of theme parks and increasing client's interest in customization and content due to high internet penetration and use of clever gadgets. In addition, the business suffered significant decrease in revenue as outcome of devaluation of local currency against the U.S dollars. In order to safeguard, itself from increased competition and keep its acknowledgment as a key player in the around the world entertainment industry, business proposed 4 methods, but was worried which of the strategic choice would provide high value to the company and lines up with its service design and core values.

Internal Analysis

Strengths SWOT Analysis

SWOT Framework:

  • The business has a big geographical reach, consumer base and keeps a strong brand name identity.
  • Business's emphasis on continuousproduct development, enabling business to maintaininga strong market position and to improve its consumer satisfaction.
  • The company had actually been rather effective in accomplishing moms and dad's preference and was highly trusted due to its business model of offering safe education and discovering environment to children by teaming up with schools, market networks and instructors.
  • Stack Brewing A Little Brewery In The Big Nickel case analysis parks are extremely preferred by kids, as it uses 200 plus activities, 90 various trades and professionals to be performed by each child and other advantages, such as: loyalty programs.

Weaknesses:

  • The business has actually experienced lack of financial and technical resources, which has actually restricted its capability to grow its service domestically and internationally.
  • Stack Brewing A Little Brewery In The Big Nickel case help is facing increasing devaluation of Mexican Peso, which has actually resulted in declining of the financial efficiency.
  • The business has absence of experience and understanding of operating in theme and theme park in industry, which has actually restricted its diversity in the extremely required and profitable amusement park market.
  • Stack Brewing A Little Brewery In The Big Nickel deals with severe competitors from domestic and international competitors along with rapidly changing patterns of entertainment industry and client preferences. This might lead to organisation losing its identity as a strong brand name and key player
  • Business struggles with an increased danger of replication of its organisation design by different rivals. The business design is the core strength of the company and the main factor of business's success.
  • The increasing decline of Mexican Peso against the U.S. dollars may decrease business's financial stability.

Opportunities:

  • Business can avail the opportunity of increasing demand of theme parks in U.S. by entering the U.S. entertainment industry.
  • Considering the high web penetration in Mexico, the business can benefit from this chance by establishing an interactive digital platform for marketing its business and drawing in optimum consumers.

SWOT Analysis

VRIO Analysis:

In order to evaluate the business's capabilities, resources and competitive advantage, VRIO framework is utilized.

VRIO Analysis

Yes No Yes Yes Competitive Advantage
Yes No Yes Yes Competitive Advantage
Yes No No Yes Competitive Advantage
Yes Yes Yes Yes Competitive Advantage

External Analysis

Weaknesses SWOT Analysis

Porter Five Forces Framework:

Bargaining power of supplier:.

The bargaining power of supplier appears to be low, considering the fact that Stack Brewing A Little Brewery In The Big Nickel is a prominent worldwide brand with a large customer base. The providers of business, which include: Sponsors, commercial partners and shopping center would wish to sustain their association with the brand due to the guaranteed revenues and favorable image.

Bargaining Power of Customer:

The bargaining power of Stack Brewing A Little Brewery In The Big Nickel case solution customers in Mexico appears to be low as there are few local parks found in Mexico, providing innovative and appealing services which Stack Brewing A Little Brewery In The Big Nickel, Mexico uses to its customers. Nevertheless, the bargaining power of clients of the general indoor entertainment industry appears to be high as there are numerous players in the global show business for that reason, the switching expense for clients will be lower.

Threats of New Entrants:

The risk of new entrant in the home entertainment appears to be high thinking about substantial growth potential customers in the show business and less financial investment requirement due to an increased market performance as a result of introduction of digital platforms. As establishing leisure and amusement parks need substantial capital, the threat of new entrants in total entertainment market appears to be lower.

Rivalries among Competitors:

There seems extreme competition in the worldwide and domestic market as a result of increased variety of amusement and theme parks in the U.S, that include: Walt Disney, Six Flags and Sea World. On the other hand, direct competition was also dealt with from LEGOLAND Discovery Centres (LDC) in Canada, Germany, the UK and China where Stack Brewing A Little Brewery In The Big Nickel's parks are positioned. Stack Brewing A Little Brewery In The Big Nickel case help, China dealt with competition fromBaby Manager City, Taiwan, Beyu World and EE City which were replicas of Stack Brewing A Little Brewery In The Big Nickel. Other competitors which presented a severe hazard to business's operations consisted of Kidzmondo, a Lebanese company and Divercity, a Latin American company. These service used the same services and employed the very same service design of Stack Brewing A Little Brewery In The Big Nickel.

Threats of Substitutes:

The risk of replacement in the general show business seems to be high considering numerous options are readily available for children that includes amusement parks, theme parks, mobile apps, TV shows, video game, increased usage of phones and gadgets and high web penetration.

Porter’s Five Forces Model

PESTLE Framework:

THREATS SWOT Analysis

Business's operations and tactical choices are impacted by various political elements, such as: undesirable laws and policies in relation to merchandise trade, defense or acquisition of intellectual property and high tax rates in particular cities. In addition, the foreign government may refuse to allow business to establish a park in the country impacting its tactical decisions. In addition, political instability in the countries where Stack Brewing A Little Brewery In The Big Nickel operates will impact its organisation and development substantially.

Economical:

Stack Brewing A Little Brewery In The Big Nickel, Kuwait creates Gross Domestic Product per Capital earnings of $48927, which is greater as compared to GDP per Capita income of other regions where Stack Brewing A Little Brewery In The Big Nickel runs. This suggest that business's decision to broaden its operations to Doha will be advantageous. On the other hand, the Currency of Mexico, which suggests that the currency of Stack Brewing A Little Brewery In The Big Nickel case solution is depreciating against the U.S dollars, affecting business's profitability and financial stability. Likewise, other financial aspects, such as: tax rates, work rates, and inflation rates also impact the company's growth and operations.

The social factors such as high web penetration, usage of social media, Mobile Apps and games have actually shifted the children's focus from going to regional parks to hanging around on their devices. This has actually affected the company's business domestically and internationally. In addition to which, the children's choices and needs have actually changed from going to local parks to visiting theme and theme park, such as: Disney.

Technological:

Promoting and incorporation innovation in its company design have been the essential success elements for the company. Business highly believes in bringing brand-new services and introducing brand-new activities in order to engage and bring in the kids. The organisation is thinking about to present an online platform to market its services to the consumer at lower expense.

Stack Brewing A Little Brewery In The Big Nickel case help is a highly varied service, for that reason, it is extremely subjected to discrimination laws relating to worker's recruitment, respecting the cultural differences and offering cultural related activities. Likewise, business is exposed to high compliance with healthy and safety laws in relation to supplying safe and secured environment to customers and manpower. In addition, the business has an obligation to abide by laws relating to establishment of park thinking about the psychological and physical safeguard.

Environment:

The business undergoes ecological laws as establishment of national forests, resulting in soil disintegration, triggering a disturbance to wild life in addition to an increased sound pollution. In addition, the national parks undergo other environmental concerns, such as water shortage, environment change and travelers attraction.

PESTEL Analysis

Laws and policies in relation to merchandise trade
Protection or acquisition of intellectual property.
High tax rates in certain cities.
Depreciation of Mexican Currency
GDP Per Capita.
High internet penetration.
Usage of social media, Mobile Apps and games
Shifting of children’s focus from visiting local parks to spending times on their devices
Promoting and incorporating innovation
Introducing online platform.
Exposure to environmental laws.
Concerns of environmental communities.
Subjected to discrimination laws
Exposed to high compliance with healthy and safety laws

Proposed Strategies:

OPPORTUNITIES SWOT Analysis

Alternative 1- Growth in Number of Parks:

Considering, higher growth prospects for entertainment industry in The United States and Canada, it was proposed to develop 6 to 8 parks in 15 cosmopolitan cities of America at an expense of 30 million for each park. From quality point of views, the strategy appears viable thinking about greater incomes will be produced as outcome of operating in large cities as compared to the smaller markets. Likewise, business has an extensive experience in structure larger parks in city cities.However, the business does not have any experience of operating in America, for that reason thisstrategy seems dangerous.

Alternative 2- New Formats (Entering into Small markets):

This method includes theconstruction of little parks in small cities with higher GDP development and population, such as: Doha. Although, this would result in smaller sized revenues as compared to operating in bigger cities and requires less investment.Growth will be accomplished as compared to other parks as restricted activities will be availed considering the small size of the park, which will make it possible for the consumers to visit again to obtain other services.

Alternative 3- Interactive Digital Platform:

The proposed technique involves the introduction of an interactive digital platform for the function of strengthening the relationship with children by offering physical experience of the park in a virtual world. Thinking about thefact of high penetrationofinternet and use of phones and electronic devices, the business will have the ability to bring in optimal variety of consumer through this technique.

Alternative 4- Content Development:

Considering higher development prospects in the movie industry, the method appears to be a viable option.However the preliminary financial investment required for the task needs to be kept under consideration. The method may not be acceptable by the service considering the truth that the global development and existence will not be accomplished by employing this strategy.

Alternative Solutions

Alternative Solutions

Financial Evaluation of Alternatives:

In order to evaluate the monetary practicality of each alternative, cash flow projection for a duration of ten years has been conducted.

Data and Assumptions

Discount Rate 10%
Tax Rate 15%
EBITDA Margin 2015 21.80%
Average Price Per adult and Children 42.37
Average Attendance per park 395933
Revenue Growth 3%
Depreciation and Amortization % 3.00%

It is approximated that the project will attain internal rate of return of -2% and 4% and NPV of -1725 million and $-65 millionin Mexican Peso and dollars. As the presentation currency of Stack Brewing A Little Brewery In The Big Nickel case analysis is Mexican Peso, the NPV in dollars was converted into Mexican Peso to evaluate the practicality of task. The IRR and NPV has actually been identified assuming 8 parks will be established in 15 American cities at an expense of $30 million and the project will last for a period of ten years. Likewise, it is projected that the profits will grow by three percent each year, which is based upon the actual revenue development attained in the year 2013-2014. A typical price of $42.37 is assumed, which is based on the average of the existing cost per children and adult given in Display 5 of the case. The average participation of customers in Park is estimated to be 0.39 million which is based on the average of the participation in the year 2015. Other general assumptions which has been utilized to examine the options, consisting of the discount rate of 10%, depreciation rate of 3%, EBITDA margin of 21.8% and tax rate of 15%.

Alternative-1 Valuation

-240000000
134205433 138734589 143416594 148256607 153259961 158432168 163778926 169306126 175019857 180926416
29256784 30244140 31264817 32319940 33410672 34538213 35703806 36908735 38154329 39441959
877704 907324 937945 969598 1002320 1036146 1071114 1107262 1144630 1183259
28379081 29336816 30326873 31350342 32408351 33502066 34632692 35801473 37009699 38258700
24122219 24936294 25777842 26647791 27547099 28476756 29437788 30431252 31458244 32519895
877704 907324 937945 969598 1002320 1036146 1071114 1107262 1144630 1183259
-240000000 24999922 25843618 26715787 27617389 28549419 29512903 30508902 31538514 32602874 33703154
-3840000000 377271358 367844006 358652228 349690136 340951991 332432196 324125297 316025973 308129036 300429430
16 15 14 13 13 12 11 11 10 9 9
-6%

Business will achieve IRR of -6% and -0.5% and NPV of -1074 million and -50 million in Mexican Peso and dollars. The unfavorable NPV and IRR of the job indicates that broadening business by targeting smaller sized markets is not a feasible option.

Alternative-2 Valuation

-120000000
53682173 55493835 57366638 59302643 61303984 63372867 65511570 67722450 70007943 72370566
11702714 12097656 12505927 12927976 13364269 13815285 14281522 14763494 15261732 15776783
351081 362930 375178 387839 400928 414459 428446 442905 457852 473304
11351632 11734726 12130749 12540137 12963341 13400826 13853077 14320589 14803880 15303480
9648887 9974517 10311137 10659116 11018839 11390703 11775115 12172501 12583298 13007958
351081 362930 375178 387839 400928 414459 428446 442905 457852 473304
-120000000 9999969 10337447 10686315 11046956 11419768 11805161 12203561 12615406 13041150 13481261
-1920000000 150908543 147137603 143460891 139876054 136380796 132972879 129650119 126410389 123251614 120171772
16 15 14 13 13 12 11 11 10 9 9
-6%

The business will accomplish IRR of 30% and 38% and NPV of 864 million, and 92.6 million in Mexican Peso and dollars. This suggests that from monetary perspectives, the method seems successful and has the potential to supply greater returns. Nevertheless, the technique will require a financial investment of $45 million, which is higher as compared to other alternatives.

Alternative-3 Valuation

-45000000
57389606 65998047 75897754 87282417 100374780 115430997 132745646 152657493 175556117 201889534 232172965
15% 15% 15% 15% 15% 15% 15% 15% 15% 15%
14387574 16545710 19027567 21881702 25163957 28938551 33279333 38271233 44011918 50613706
431627 496371 570827 656451 754919 868157 998380 1148137 1320358 1518411
13955947 16049339 18456740 21225251 24409039 28070394 32280953 37123096 42691561 49095295
11862555 13641938 15688229 18041463 20747683 23859835 27438810 31554632 36287827 41731001
431627 496371 570827 656451 754919 868157 998380 1148137 1320358 1518411
-45000000 12294182 14138310 16259056 18697914 21502601 24727992 28437190 32702769 37608184 43249412
-720000000 185530289 201237011 218273440 236752148 256795237 278535144 302115519 327692175 355434112 385524641
16 15 14 13 13 12 11 11 10 9 9
-6%

Business will accomplish IRR of 33% and 41% and NPV of 1105 million and 115 million in Mexican Peso and dollars. The job requires preliminary investment of 45 million in Mexican Peso therefore, it might be tough for the business to finance the project considering the declining profits due to an increased competition and currency decline.

Alternative-4 Valuation

-45000000
57389606 67719735 79909287 94292959 111265692 131293516 154926349 182813092 215719449 254548949 300367760
18% 18% 18% 18% 18% 18% 18% 18% 18% 18%
14762902 17420225 20555865 24255921 28621987 33773944 39853254 47026840 55491671 65480172
442887 522607 616676 727678 858660 1013218 1195598 1410805 1664750 1964405
14320015 16897618 19939189 23528243 27763327 32760726 38657656 45616035 53826921 63515767
12172013 14362975 16948311 19999007 23598828 27846617 32859008 38773629 45752883 53988402
442887 522607 616676 727678 858660 1013218 1195598 1410805 1664750 1964405
-45000000 12614900 14885582 17564987 20726684 24457488 28859835 34054606 40184435 47417633 55952807
-720000000 190370210 211873281 235805209 262440343 292084021 325076070 361794703 402660850 448142991 498762520
16 15 14 13 13 12 11 11 10 9 9
-6%

Quantitative Analysis Summary

Alternative valuation summary.

NPV Dollar -65403548 -50161419 92630330 115504131
NPV Mexican Peso -1725103946 -1074041578 864626961 1105291169
IRR Dollar 4% -0.5% 38% 41%
IRR Mexican Peso -2% -6% 30% 33%

Recommendations

Based on the analysis performed in the report, it will be advised to the business to utilize the fourth technique i.e. grow business by investing into content production in order to enhance customer experience. The method is financially feasible as it is estimated that maximum IRR and NPV will be created through this task as compared to other options. Due to an increased threat of brand-new entrants as well as an extreme competition among rivals, getting in into bigger cities will not be helpful for the company.

Action Plan:

In order to execute the strategy of building content creation, business would be needed tohave collaboration with distinguished organisations associated with content creation. These content creators will build the content on the websites considering, the educational requirement, altering preferences of kids and cultural elements and factors of regional consumers. The business can likewise buy recognized material from possible material providers, such as: Walt Disney, which will ensure functional efficiency is accomplished, operational expenses of the business is minimized and customer interesting content is created.

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Stack Brewing: A Little Brewery In The Big Nickel Case Study Examples

Type of paper: Case Study

Topic: Company , Customers , Stack , Brand , Beer , Similarity , Politics , President

Published: 02/20/2023

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Like any other company, Stack Brewers are faced with some major problems during their daily operations that in one way or the other have impacted the company. Similarly, the encountered problems have as well provided significant opportunities for the company to advance in a positive way. According to the Tasting (2016), one of the major problem faced by the corporation is the trading and naming disputes due to the similarity of names with a Canadian company; thus forcing the company to rebrand its products. The two brands, Friendly Moose India Pale Ale and Angry Moose Imperial IPA are the ones that the company is seeking to change their names as they are similar to those of unnamed company in Canada. As such, the company has asked its customers and fans to suggest the suitable name for these two brands via Facebook. In an attempt of solving this problem, the interaction between the company and its customers has increased with more suggestions on ways of bettering their services are being shared. According to the case study presented, the company has faced significant competition from various companies in the industry especially from Ontario. Most of these firms have ensured that their drinks are easily accessible to all their customers at their convenient price. The Stack Brewer’s president, Mailloux, however, has assured that the company still stands a better chance in the industry by providing locally brewed beers to their customers. Even though this is a working idea, the president should consider integrating factors such as price and accessibility of their drinks together with this one to ensure that the company has stood a better chance in this competition. Besides, the company works with the assumption that once an individual has purchased their drink, they will probably purchase again. They should work on improving their brands and going to international rather than operating local and expecting that their customers will come back to support their development since it is a local company. Failure to which, the company will be defeated by its competitors who are going to the international market.

McNeish, J (2016). Winter 2016 Integrated Case Analysis: Richard Ivey School of Business Foundation. Tasting, O. (2014). Name similarity forces rebranding of two Stack Brewing beers - Ontario Beverage Network. Ontario Beverage Network. Retrieved 21 March 2016, from http://www.momandhops.ca/name-similarity-forces-rebranding-of-two-stack-brewing-beers/

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Stack Brewing: A little Brewing in the Big Nickel Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> Stack Brewing: A little Brewing in the Big Nickel

Stack Brewing: A little Brewing in the Big Nickel Case Study Solution

The case illustrates the dilemma faced by the Stack Brewing Company, a new entrepreneurial business, that has started selling the craft beer in as mall town in Canada.Due to the quality, taste and high brand awareness of the product in the market, the company has received the government grant to expedite and expand the business operations.In such situation, the company despite of having the high brand awareness is facing the dead lock between choosing the right channel and player to expand the business. Since the business depends on distribution, the management is struck between choosing the bottled beer business or Kegs selling to the restaurants and hotels. Also, it faces the challenge of choosing the differentiation point and value proposition to develop distinct brand image in the market and also to compete with the existing computations so to sustain the operations. Lastly, the company faces the challenge of managing the overall marketing strategy, along with the communication plan and other components to position the brand in the market.

In such situation and under such challenges, it is recommended, that the company should adopt the communication strategy to develop market position and to capture additional new markets. Since the company has already strong presence on Social media, the company can channel that advantage to build a strong brand image and market position , leading to the development of sustainable operations.

Keywords :  Entrepreneurial Activities, Craft Beer, SWOT analysis.

Introduction

Stack Brewing started its operations after analyzing the growing success of crafted beer in South Ontario and Montreal.The company started its operation in 2012, by offering the crafted Beer to the two market segments namely stores through bottle beers and in restaurants and hotels through Kegs.The company entered the Sudbury’s market as the initial market for the business which have a limited number of residents and constitutes a small population of South Ontario. While entering into the market, the company utilized the social media digital medium to develop the brand awareness and also adapted the promotional strategies like discounts and free trails in the market to make a strong position and brand name in the market.

Since Stack Brewing is a new entrant in the market, it has faced certain disadvantages in terms of distribution cost and relationship with the hotels and restaurants which other existing players had developed strongly.In addition, since beer is a legacy or constitutes a part of culture in Ontario, the company faced the challenge of syncing and aligning with the taste and perception of the customers, due to strong adherence and brand loyalty of the consumer with the existing brands.

Stack Brewing A little Brewing in the Big Nickel Harvard Case Solution & Analysis

Though the company faced rigorous competition, operational hurdles and marketing plan inefficiency, however, it receives the government grant to expand and expedite its business operation.This has been due to the strong brand awareness that Stack Brewing has developed in the market. Now since the company has received the government grant and has also succeeded in penetrating into the market, the major challenge which Stack Brewing now faces is the adaption of right marketing and distribution strategy which would allow the company to flank the competition and would lead to strong brand recognition, trail and market penetration.

Problem Identification

1.      The major challenge the company faces is the selection of the right communication strategy which will allow Stack Brewing to reach out to the right customers while developing the product in the market.

2.      In addition, the company also faces the challenge of developing a right marketing plan including promotional strategies, competitive advantage, and value proposition to distinguish itself from the competitors.

3.      Lastly, since the company is new in the market, it faces the challenge of developing strong and extended distributor relationship in order to penetrate aggressively in the market. In addition, the company also faces the issue in choosing the right product to expand through the offered aid.

Opportunity

  • Since the market of Ontario has shown a positive sales margin in the initial half of the business’s initiation, the company has the opportunity to expand its business more aggressively in the market . The rising trend of crafted beer also depicts the changing behavior of the customer and shift towards the crafted beer.
  • Also, the company has strong brand awareness in the market, which offers the advantage to the company in expanding its product reach and portfolio more aggressively into the existing markets, adopting the market penetration strategy to achieve more market share....................

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COMMENTS

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    STACK BREWING Fundamentals of Marketing - Case Study by Wildcats Currently Current situation Market description Market description Geographical segmentation Demographical segmentation Psychographic segmentation Behavioral segmentation Stack currently serves 11,58% of Sudbury's Our

  2. Stack Brewing: A Little Brewery in the Big Nickel

    Stack Brewing, a start-up craft brewery, has a capacity of approximately 5,600 litres per month based on twelve 117-litre batches per week. A government grant based on growth and job creation potential will help boost production capacity by five times, necessitating the development of additional distribution and marketing communication strategies. The owner cannot afford a listing in the Beer ...

  3. Stack Brewing: A Little Brewery in the Big Nickel Case Study Solution

    Stack Brewing: A Little Brewery in the Big Nickel Description Stack Brewing, a start-up craft brewery, has a capacity of approximately 5,600 litres per month based on twelve 117-litre batches per week. A government grant based on growth and job creation potential will help boost production capacity by five times, necessitating the development of additional distribution and marketing ...

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  5. Stack brewing: a little brewery in the big Nickel Case Study Solution

    A start-up craft brewery Stack Brewing has the capacity of around 5,616 liters for each month, which  have been produced in 12 batches having approximately 117 stock kept units per batch. In the country, the distribution monopoly of the major brewers is owned by Labatt Breweries of Canada and Molson Coors Canada Inc.

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  8. Stack Brewing: A Little Brewery in the Big Nickel [8 Steps]Change

    Case Study Description. Stack Brewing, a start-up craft brewery, has a capacity of approximately 5,600 litres per month based on twelve 117-litre batches per week. A government grant based on growth and job creation potential will help boost production capacity by five times, necessitating the development of additional distribution and ...

  9. Stack Brewing: A Little Brewery in the Big Nickel Marketing Strategy

    Stack Brewing: A Little Brewery in the Big Nickel is a Harvard Business Review case study written by Ron Mulholland, Cameron Brooks, Benoit Roy, Katarina Schwabefor the students of Sales & Marketing. The case study also include other relevant topics and learning material on - Marketing. Strategic Marketing Analysis of Stack Brewing: A Little ...

  10. Stack Brewing: A Little Brewery in the Big Nickel

    Stack Brewing, a start-up craft brewery, has a capacity of approximately 5,600 litres per month based on twelve 117-litre batches per week. A government grant based on growth and job creation potential will help boost production capacity by five times, necessitating the development of additional distribution and marketing communication strategies.

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    Stack Brewing, a start up craft brewery, has a capacity of around 5,600 liters per month based on twelve 117-litre batches every week. A government permit predicated on growth and job creation potential will help foster output capacity by five times, necessitating the development of marketing communication strategies and additional distribution.

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    STACK BREWING: A LITTLE BREWERY IN THE BIG NICKEL Case Solution The main driver for attracting this segment of the customers in the market is through price and distribution strategies.This segment of the customers should be the new target market of the company and its prices should reflect the needs and perception of this target market after the planned expansion is done. Moreover, if the ...

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    Stack Brewing Company is one of the main start-up brewing companies which had initiated its operations in the year 2011. The current production capacity of the company is about 5656 liters per month. These are produced in 12 batches each week with about 117 stock keeping units per each batch. The distribution monopoly of all the major brewers in the country is owned by Labatt Breweries of ...

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    Stack Brewing faces intense rivalry from the existing players. Since these players have already captured the maximum market share and have developed the taste among the consumers.The company faces high threat of brand dilution and non-sustainability.

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    Introduction Stack Brewing A Little Brewery In The Big Nickel is a popular worldwide chain of indoor household home entertainment parks worldwide and was founded by Xavier LopezAncona in the year 1997 in the city of Mexico. The business design of Stack Brewing A Little Brewery In The Big Nickel case analysis comprised of offering safe academic place to kids, collaborating with schools and ...

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  17. Stack Brewing: A Little Brewery in the Big Nickel

    Product details Stack Brewing: A Little Brewery in the Big Nickel Teaching note - Reference no. 8B15A004 Subject category: Marketing Authors: Ron Mulholland (Laurentian University) Published by: Ivey Publishing Originally published in: 2015 Version: 2015-05-21 Length: 10 pages Data source: Field research You must be logged in to view this material Share a link: https://casecent.re/p/128406 ...

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  20. Stack Brewing: A little Brewing in the Big Nickel Case Solution And

    Stack Brewing: A little Brewing in the Big Nickel Case Study Solution The case illustrates the dilemma faced by the Stack Brewing Company, a new entrepreneurial business, that has started selling the craft beer in as mall town in Canada.Due to the quality, taste and high brand awareness of the product in the market, the company has received the government grant to expedite and expand the ...

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