Introduction
Yuengling brewery is the oldest breweries company in America. It is the 5th largest company in the industry in America. The company has long rich history in the beer industry growing from strength to strength due to the determination, pride, discipline, tradition and innovation of the founding fathers and the current management under Dick Yuengling. His leadership and guidance has seen the company going through many challenges and success.
Question 1
However, despite the past success and solidifying markets in a number of state, the company management need to do an over hall evaluation of the whole company. The industry is changing new players are coming in and demand our beer has grown tremendously surpassing our supply. The management needs to do a SWOT analysis [strength weakness, opportunities and threats] so as to forge the way forward. Here we are looking at favorable and unfavorable conditions for the company both internal and external
The company has the long history in the industry hence it has good experience in dealing with the dynamics in the market. Some of this dynamics are sudden increase in price of raw materials due inflation, change of regulations like when beer was ban in the united state. This long experience helps the company to deal with eventualities. The company has also loyal workers who have worked in the company for more than two years. These workers have wide experience hence company doesn’t spend much on the training of news stuffs and wastage and spillages which is often caused by mistakes and accidents of new workers who have no experience. The company has strong market in a number of states e.g. Pennsylvania. The company product is mostly advertised through mouth to mouth hence doesn’t need to invest heavily on marketing and promotions.
Weakness
One of the biggest weaknesses of the company is its slow pace of expanding. The company cannot meet the demand of the market. Many customers complain they can’t get company product on the shelves. The firm is risking losing the customers to its competitors. The company’s infrastructure is worn out. Any time it might break down completely. Some of the machines are over 150 years old. There is weakness in the management company. It’s a one man show. In case unfortunate happens the company might close down.
Threats
The company is facing a fierce competition from recently launch companies which are using the modern technology and have invest more in marketing and promotions. There is also a possibility laws might change banning the use of alcohol, it has happen in the past so it can happen again. The management has relay on few individual to run the show instead of constituting a proper board of directors and regional managers to make valuable decisions. These individuals may leave the company hence affecting the operations of the company.
Opportunities
The company has not fully exploited all the markets in eastern region like Florida. The company can still try to exploit these markets more. There are wide ranges of distributors who are willing to distribute the company beer at all cost. The company should give a chance to these distributors before they give up. Some companies in the industry are not doing well hence the company can buy out this company and increase its production levels to meet the demand of the market.
Question 2
Approach to management
This is the adoption of the style by which management teams take to run the company and how decisions are made. The style should help the management the company efficiently and meet its target plans on time (Sen 49). The style should be easy and accommodate every part of the company. This theory was developed by Henri Fayol .
I would advise the company to adopt the administrative style of management. This is because this approach focuses on the efficiency of operations and human capacity. This will reduce conflict or gap in case of the unfortunate happen to the owner of the company.
Since the company is planning to expand to new markets away from the where owner is located, new breed of managers should be trained especially the owners four daughters who are expected to take over from their father when he retires in the future,
The new management should be flexible so that they can fit in easily in the upcoming markets and able to cope with change. The world of business is dynamic hence management should be ready to accommodate change when it happens (Narayana 95). The management should be able to forecast what might happen in the future and put in place proper plans. The company should be in position face any situation it comes across.
The company should invest heavily on it human capacity who are professionals and know their work well .many of the workers are very loyal and fond of the company hence it would be fair to treat them well with respect .these workers have given their all to see the company succeed. The experience workers should be promoted and given the chance to train the new comers.
Question 3
The company should set up a task force to deal with the current dilemma the company is facing. The team should come up with proposal on how the company should expand without exhausting its revenues, the set up of new management structure, how to meet the excess demand and general plans for the future. The team should made up of the following experts.
- A human resource expert. This is a person who will be involved in the restructuring of the management system. The company needs to have a proper board of governance that will be in charge of overall major decision. This decision like expanding to new markets should not be left to one person. The company also need regional and brand managers who will be in charge of old and new markets and brand manager will be checking how the various brands are performing in the market. There should a proper management structure in place to deal with day to day operations.
- The Project planning expert; who will be involved in the setting up of strategic plans. His /her main role is to come up with plans on how the company should expand and when should this happen.
- Financial expert. This will be involved in checking of the finance. He/she must check whether the company has enough funds to expand or venture into new market or if the new management structure viable and sustainable.
- Operations experts. This is a person who will check the whole operations of beer manufacturing. He /she must check whether the whole process efficient. He /she has to check whether their delays in the system and correct them may the 500,000 barrel is not 100% production per year.
- An old worker. This person will be involved in giving information of how things have been happening in the past.
- IT/engineer expert. The world is changing. The world is computerized. This expert will be involved in giving advice and ways in which various operations can be automated.
Question 4
Decision criteria
The management of the firm should approach a group decision mechanism and according to the situation. A group decision is all well thought. It makes sure all the area of the situation have checked and exhausted. As the wise say two heads are better than one.
The management should involve the workers in the decision making to avoid employees’ resistance or go slow. The employees can resist change hence results in the company making losses (Glenn 75). The workers should be given enough time to adapt to new changes and given proper guidance on how to handle change.
The company should not adopt one strategic plan to all its market. Every market is unique and should be treated as an individual identity.
Question 5
The eventual decision
The company should adopt a new administrative management style. This will make the operations of the firm run smoothly (Holdsworth 123). This will make sure the responsibility of running the company is not left to one person and there will be continuity of the company in case the owner dies or fall sick.
This decision should first start with evaluation of the whole operations of the firm. Key functions like finances, beer production, marketing, distribution, human resource, mechanical and maintenance should be identified. Experience individuals should be allocated these roles.
A proper structure with clear responsibility and channels of communications should be set up. Every person should know who to report to and what are their roles in the company. There should be a proper training on employees on how to manage their functions and relate to each other.
Works cited
Sen, Mridul. Business Management. Jaipur, India: Oxford Book Co, 2008. Internet resource.
Narayana, Reddy P, H R. Appannaiah, and B G. Sathyaprasad.Business Management: Ii. Mumbai [India: Himalaya Pub. House, 2010. Internet resource.
Glenn, James R. Ethics in Decision Making. New York: J. Wiley, 1986. Print.
Holdsworth, Robyn, Philip Ashton, Mischa Long, Jesse Griffin, John Forman, and Amie Watt. Tough at the Top: Business Management Styles. Princeton, NJ: Films for the Humanities & Sciences, 2000.
Kippenberger, Tony. Leadership Styles. Oxford, U.K: Capstone Pub, 2002. Internet resource.
