Devils Backbone Brewing Llc An Idea Brews Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Devils Backbone Brewing Llc An Idea Brews Case Solution

Integrative analysis

After conducting the market, financial and operational analysis; it is found that the company was initiated with having good business knowledge and market knowledge, but it did not continue to monitor its production process, procurement prices, and marketing outputs . This lack of monitoring and continuous improvements led the company towards an extreme shortage of investment to meet the demand. It was the management’s responsibility to manage the procedures and continue the monitoring process.

SWOT Analysis

SWOT analysis will help DBB in internationalization and external environment. So we will see how Devils Backbone Brewing LLC can utilize its strengths and work on its weaknesses, to control the challenges. Whereas,the external environment is not in the company’s control but it can use its strength to avail the opportunities. Summarized in appendix 2.

Strength

The geographic position of the company is its essential part. DBB's geographic location is feasible and it increases the business reach to the target market.
DBB hasa diversified portfolio, and this diversification helps the company to offset the losses incurred from one product to another and it can swap the benefits as well.
The location advantage improves the company’s competitive position in the market and helps it in minimizing its costs incurrence.
DBB has a high consumer demand due to its quality and accessibility.
DBB has a huge loyal consumer base and there is a high demand for the product.
DBB has projected its consumer sales to be high in the future.

Weakness

Devils Backbone Brewing does not have financial investment for expansion.
The company is unable to meet the consumer demand.
It does not have efficient operations to control its cost.
The company is not working on the market analysis, to respond accordingly.

Opportunities

DBB can expand its business through increasing its production capacity.
DBB can opt for market competitive pricing.
The company can reduce its operational cost.
The company can go for partnerships and joint ventures.
The company can work on having a regional expansion.

Threats

Negative cash flows are threat for the company.
DBB needs proper planning and execution.
Increasing demand is a threat for the company, because such increase can negatively affect the company.

Alternatives

Ans off matrix

We have used this matrix to discuss alternatives that the company can opt for,to maintain its business strategies. This matrix is used to offer four different choices for the company(Ansoff, 1957).

Market penetration

Increase production capacity

Increasing production capacity will help DBB in meeting its consumer demand and competing efficiently in the market.
As we know that to remain in the competition; the company needs to increase its production capacity,to control the overhead cost and achieve effectiveness and efficiency.
The cost control will help the management in achieving competitive pricing and getting profit margins.
Competitive pricing and cost control will generate more sales and increase the market penetration
DBB should work on its operational cost to effectively manage the itsoverall cost.
The company can opt for partnerships and joint ventures to meet its financial requirements and it will help the company from incurring loss in future.
Joint ventures and partnerships will penetrate the existing market

Market development

DBB should invest in research and development to identify the potential changes in trends and markets. Along with that, the research and analysis should be done to analyze the current business situations.
Continuous research and development will help the managers in acquiring knowledge regarding the changing trends, cultures and consumption patterns of the consumers.
DBB has an opportunity to expand in its region through mergers and joint ventures, within the same cities and same geographic areas.
Before expansion, the company should take care of the changing consumption patterns and cultural differences.

Product development

DBB should opt for a strategic partnership for its product development.
The strategic partnership will help DBB in developing new products and having efficient procedures while investing less, with minimum risk.

Diversification

At this stage,the company needs to have mergers and joint ventures, to meet the financial requirements and to increase its production.
DBB should go for vertical diversification through new products development and make categorized groups.

Recommendations

After conducting an analysis of the company’s operations, its business strategies and market analysis; I would suggest DBB go for mergers and partnerships with small ventures in the industry. This will help Devils Backbone Brewing in generating financial support. This will allow Devils Backbone Brewing to share the resources of the company.

Devils Backbone Brewing should focus on its supply chain process, cut any irrelevant and extra costs being incurred by the company and revise its costs and suppliers. Devils Backbone Brewing should analyze the expected output of the strategies,i.e. promotional strategies output.The company should plan according to the demand of its consumers. Devils Backbone Brewing should restrict the distributors and retailers from overstocking the products. The company should opt for a joint partnership with local brewers in order to meet its financial requirements.

Conclusions

Devils Backbone Brewing was doing well in the industry until the promotional activities generated huge demand from the consumers. The company was not able meet the consumers’ demand due to the lack of capital investment and financial investments. The company needed to manage the planning process and output analysis effectively, because it was not planning effectively in the past. Ineffective planning led the company toward shaving these issues. I have suggested the company to increase the production capacity through joint ventures and mergers with local brewers. Along with that, the company should also work on the research and development of the project..................................

Devils Backbone Brewing Llc An Idea Brews Case Solution

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Devils Backbone Brewing Llc An Idea Brews Harvard Case Solution & Analysis