Adventure Brewing Company is one of the corporations that are in the competitive beer market. The corporation is located in Fredericksburg, Virginia and it has played a key role in providing jobs for the people (Adventure brewing Co., 2013). Despite many competitive brands of beer in the market, Adventure Brewing Company markets itself in the country through good use of media services for advertisement. In addition, Adventure Brewing Company is known for hosting beer festivals and contributing in other event to enrich the culture of the state as a whole (Love on Tap, 2013). Through these activities, the company gains both the local and the national news coverage that aid in branding of the business. Adventure Beer Co. went public so as to improve their relations with their customers and the community at large (Adventure brewing Co., 2013). The company also serves as a role model to small businesses that want to enter the competitive market in that Adventure Beers is a tiny fraction compared to the large beer corporations in the US. It is important to point out that Adventure Brewers produces homemade beers making it a special brand in the beer market (Adventure brewing Co., 2013). This paper examine how stakeholders play a beneficial role to the Adventure Beer Co. and as a CEO I will explain why it is crucial for the company to open brewery plants in other states and also launch their product in the global market.
Stakeholders play a key role in improving and planning for the progression of a company. Adventure Brewaries is a special company in that it teaches its customers how to brew homemade beer (Love on Tap, 2013). Te company is known to sell its brewery kits to the customers so as take part in the production of beer. Unlike other brewaries, the company takes pride in distributing brewing materially at the retail and whole sale market. This means that the company can easily form ties with the small companies that sell ingrediants required to making good beer (Jackman 2013). The primary stakeholders of this company are the suppliers of beer ingredients. For a beer to be made Adventure Co. lists grains such as malt, yeast honey, cocoa and many more (Adventure Brewaries Co, 2013). This indicates that the raw materials used in production process are the key components to ensuring that there is smooth operation in the business. Without these ingredients, beer cannot be easily or effectively made. The secondary stakeholders that help in marketing and selling the brand of the company are media. Through the local and national media, the business has grown immensely over the years due to good marketing strategy (Adventure Brewaries Co, 2013). In addition, it is crucial to note that Adventure Brewing Company have a good relationship with the small business, which helps in forming ties with the community. These customer ties are important in a business field because it helps the corporation in getting a fair return from the community it is serving.
One of the ways that stakeholders can influence the destiny of Adventure Brewing Company is through maintaining good work ethic so as to maintain the labor productivity at the maximization point for producing beer kits (Jackson 2013). In addition, Adventure Brewing Company should branch out so that it can get more national media coverage as many people can identify the brand of the corporation (Jackson 2013). This will not only increase profits and boost employment levels; it will also enable the country to be more affluent in terms of reducing unemployment level.
Business plans are essential in a company so as to set goals for growth of a business. One of the business plans I would propose is to sign a long term contract with my main beer kits suppliers so as to safeguard a spot in the market. This is crucial because if the company wants to branch and expand to other places, it is important to be assured that the company’s products will be advertised and marketed. In addition, a long term contract may decrease costs in that the company can forecast on its sales such that they are consistent unlike when one does not have a contract or a brand name. Long term contracts can also mean that the company is assured that the major corporation will market the company’s products extensively such that they have a wider market. Being a monopolistic competitive market for the company, opening other branches at a national level will increase its sales and profits. Thus, stakeholders should back me up on opening other branches at the national level and drafting a long term contract with the branding corporations so as to ensure there are sales and that the company owns a piece of the pie in the market shares (Jackson 2013). One of the problems that the company has been experiencing is packaging costs are too expensive. This means that the company should negotiate with a major beer company label that will integrate the company’s products with their products. In addition, the two companies can sign contracts that Adventure Brewing Company will be responsible in ensuring that they produce enough of the product for sale. This contract will ensure that both companies have an equal tasks and expectations to meet thereby, sharing costs. In addition, through opening other business branches, the company could target the international market in that US imports more beer that it exports. This means that we can target the global beer market that has been improving over the years as a way of increasing revenue and branding our beer-kit products (Jackson 2013). I think through these business plans, the company as a whole will be at a better place in terms of economy and its societal impact around the global market.
Some of the key challenges in my business plan are convincing the distributors to sign a long term contract with the company. This is a challenge because the contract does not take into account the fact that the society is dynamic (Momoh, 2010, p.540). This means that people’s tastes and preferences change over time and that the beer market has a number of sellers. This makes the company prone to having low or high sales making it a market risk. This market risk may be beneficial in the long run in that the distribution can be certain that the company will have a sufficient supply of the product. In addition, in case of a market failure in the business plan, there will be shared market costs (Momoh, 2010, p.542). This means that the distribution brand name will enjoy both the profits and losses made in the market. This is a good deal. Another challenge that may occur is getting enough funds to open new breweries in a different state. This will be a good deal in that the company name will be plastered countrywide through expansion of breweries. The company can also face the challenge of selling few goods in that the products are durable (Momoh, 2010, p.548). This means that the market elasticity for brewery kits is elastic. However, the shareholders need to approve these projects as they will not only benefit them as a whole but also will increase the economies of scale of the company. Opening breweries in other states will also decrease transportation costs incurred by the company as they have to deliver their products countrywide to their customers.
In conclusion, primary and secondary stakeholders help in ensuring the growth of a company in terms of sale and profits. The primary stakeholders are usually the employees who maximize their labor productivity so that the company can efficiently produce. Secondary stakeholders such as the media help in marketing and advertising the company’s products through covering various events sponsored by the company. One of the key ingredients that would ensure the prosperity of the form is long terms contracts between various distribution companies that carry our products so as to ensure market safety. This is because losses and profits will be equally shared among various parties in participant of market the company’s produce.
References
“ADVENTURE BREWING CO” Let every day be an adventure!. (n.d.). Adventure Brewing Company. Retrieved November 3, 2013, from http://adventure-brewing.com/
Jackman, T. (n.d.). Explosion of beer breweries and brew pubs continues in Northern Virginia. Wasington Post. Retrieved November 3, 2013, from http://www.washingtonpost.com/blogs/local/wp/2013/05/24/explosion-of-beer-breweries-and-brew-pubs-continues-in-northern-virginia/
Love on tap: Virginia adores craft beer industry. (2012, August 21). AP Worldstream, pp. 2-15.
Momoh, A., Roy, R., & Shehab, E. (2010). Challenges In Enterprise Resource Planning Implementation: State-of-the-art. Business Process Management Journal, 16(4), 537-565.
