Blackrocks Case Assignment
1. What were the primary problems facing Andy and David (Blackrocks) as of February 2013 from a strategic management perspective? Mention at least three.
i).demand for craft beer will decrease
ii).competition would increase
iii).tax increases and the additional costs of doing business
2. What are (describe) Blackrocks’ strengths, weaknesses, opportunities, and threats? Identify the three most important of each.
Strengths:
i).strong managerial relationship
ii). customer association the beer with a good time
iii).prior experience in the market
Weaknesses:
i).increased expenses
ii).increased competition
iii). lack of formal organizational structure
Opportunities:
i).the growing number of people interested in craft beers
ii).many young people enjoy the craft beer in community events for fun
iii).since younger people use social media the beer can be promoted additionally on these sites.
Threats:
i).competition from Vieerling and Ore Dock other craft beers
ii).demand for craft beer has increased and the process that was used in the past may not be able to handle the increased demand
iii). The increased taxes and operating expenses might cause a price increase
3. What is their organizational strategy and business model?
Strategy: To offer a craft beer to the younger palate while encouraging a fun experience while drinking it.
Business Model. In the past the model was very unstructured. With the increased number of people the roles need to be more defined. This definition should be based on the strengths each of the founding partners and then add to the model the role of sales and productions managers to oversee the roles that the owners do not possess or have time to complete.
4. Identify the key issue facing Blackrocks and develop at least three alternative courses of action consistent with the SWOT assessment, case facts to address the key issue. Argue for one.
key issue (problem): The increase in costs will require an increased price. With competitors will have to also increase their prices also.
Alt 1: Use a different approach to sales including social media to increase sales. The audience is a relatively young group and they use mobile technology and social media.
Alt 2: Some new recipes can be used to increase the types of beers and allow for different tastes to be included in the selections.
Alt 3: Suppliers of the raw materials have increased and new suppliers can be sought out to decrease the costs of production.
Recommend: With a well designed social media campaign, the millennial customers will be exposed to the beer. Offering the information concerning the fun times that are associated with the beer creates. By creating a social atmosphere around the beer, the excitement and will lend to increased desire and sales of the craft beer. Since the beer is more expensive and the younger people normally are on budgets, the added experiential programs helps to justify the added costs.
