Brooklyn Brewery Case Study Help
Internal Analysis:
VRIO Analysis
The resources exhibited by Brooklyn mainly include good:organizational culture, brand reputation, HR management, innovation and creativity, and an efficient product manufacturing capability. The decline in sales due to issues in the effective management of the supply chainand distribution of other brand products; the financial resource of the organization is not considered valuable and rare. Additionally, the competitive advantage of the organization is the taste of Brooklyn Lager which is considered as the best taste product among all the other 69 craft beer products. This competitive advantage is considered as a sustainable resource. But, the organization lacks competency in research and development and marketing strategies.
Alternatives:
Considering the issues faced by Brooklyn, the alternative strategies regardless of the current business plan are as follows:
Social media advertising: Social media advertising is primarily based on the perception of bringing improvement in brand awareness through the use of social media platforms,which include:Instagram, Twitter, and Facebook. (Holt, 2016 )
Building warehouses: Although it requires initial high investment it will significantly resolve the issue regarding the poor management of the supply chain, high transportation and shipping cost. Thus, it will lower the increased shipping cost and will bring improvement in customer satisfaction serving as a long-term competitive advantage for Brooklyn.
Offer loyalty program to customers: It will significantly attract a large customer base and offering discounts will allow the organization to beengaged with its customers and will improve the satisfaction level of the customers through the services provided.
Decision Criteria:
The decision criteria of all the three alternatives discussed above are primarily based on the following factors:
Profitability | Competitive advantage | Cost | Delivery time | Cash flow | Customer Satisfaction | Total Score | |
Alternative 1 | 7 | 6 | 8 | 5 | 6 | 6 | 38 |
Alternative 2 | 8 | 9 | 8 | 9 | 9 | 9 | 52 |
Alternative 3 | 7 | 6 | 7 | 5 | 7 | 7 | 39 |
Recommendation:
Based on the analysis of each alternative throughthe decision criteria matrix, alternative 2 is recommended to be implemented due to the fact that it is considered to provide the organization with the effective management of the processes and efficient delivery time of the products. This will surely allow the organization in gaining a competitive advantage through improvement in cash flow and customer satisfaction as the long-term advantage for the organization management. (Andrei Hagiu, 2020)
Implementation Plan:
Who:
The senior executives of the organization Eric and Robin Ottaway will be responsible to build warehouses in the states. This is based on the reason that both of the senior executives tend to be responsible for the management of business operations.
What:
The alternative strategic approach that is needed to be implemented based on the study analysis primarily includes the building warehouses in order to improve the delivery time of the product and decrease the transportation cost.
When:
The building of the warehouse will be started after the evaluation of the higher transportation cost making it costly for the organization to increase the product prices as compared to its market competitors.
Where:
The building of warehouses will be initially in the places where transportation and shipping cost is higher,such as: in Texas,which poses a challenge to the organizational management in the effective management of the supply chain and on-time product delivery in order to satisfy the customers..........................
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