Project: Molson Beer The case solution
Section 6: Operational plan
6.1 Background
The reason behind introducing this product is to extend the sustainability of the brewing products by developing carbon-neutral clean beer. Our vision is to sustain these products in different countries and gain the best of the customer’s attention and gratification.
6.2 Location
Our product is manufactured and headquartered in Montenegro. After the production, we plan to export these products from Amsterdam to Austria and Germany. The reason behind this locality is because these products would have a greater demand in certain countries as these countries are already producing beers but they are not as carbon neutral as we want to establish. So this will have a great impact over the market and will also increase the market value and consumption rate.
6.3 Members
We divided our staff into four sustainable categories;
One is the production department that comprises a total of 50+ members. These members were strictly trained to follow all the safety precautions and to perform appropriately.
Another department is the delivery department; this department is responsible for delivering the brews within the country.
The third department is the export department; this department is responsible for exporting the beers through Amsterdam to Austria and Germany.
Fourth is the marketing department; this department is responsible to cater and market the products through different methodologies.
6.4 Regulations
Every country has different legal regulations. To export the product we make sure to focus on the confined amount of quantity and fulfill all the regulations that need to look after.
For example; Germany has established the purity law 500 years ago, which states that the beer must contain only three ingredients that are: hops, water, and malt. Germany excluded the usage of wheat in making beer as wheat is the most common ingredient in making bread etc. This means that to export our product we need to look forward to all the necessary rules and regulations of that country to avoid any future hassle. Our goal is to establish products that are easily acceptable and appreciable by Germany and Austria.
6.5 Licensing
Licensing is very important in the selling of your products. An off-licensee permit is required to sell beer in different countries. Each country is associated with a different licensing technique. We have been permitted to take proper licenses for our products before selling them.
6.6 Resources
The resources that we needed to make our product as carbon neutral clean beers are:
| Grain | The grain is used for the malting process which metabolizes the natural grain (sugars) followed by the germination process. This is mainly used for Aroma, color, and fermentation process. |
| Hops | Hops provide the beer flavors, aroma, and a required bitterness which is mainly used to balance the sweetness of the malt. |
| Yeast | Yeast is the major ingredient. It consumes the sugar derived from malted grain and excretes ethyl alcohol and carbon dioxide in return. |
| Water | The beer consists of 95% of water. The varying effects of mineral content in water will have different effects on the taste of beer. |
6.7 Prescience
Our mission is to make carbon-neutral clean and gluten-free beers. The mineral content in the water has a great effect on the overall taste of the beer. Our goal is to make the beer from germinated corn grains as it has a low alcohol content. The beer made from germinated corn grains has low alcohol contents and higher resources of vitamins and amino acids which make them rich and natural. (Mervine, 2018)
On the other hand, to make gluten-free beer; it is very important to use the least fraction of malt obtained from cereals that do not contain gluten, including: quinoa, amaranth, sorghum, maize, and rice.
Another goal that we were working for so long is to roll out glass beer bottles that have reduced the carbon emissions associated with the production, by up to 90%.
6.8 Quality control
- The concentration of oxygen in beer has a lot to do with its taste, shelf life and quality. We make sure to use the instruments that strictly forbid and manage the oxygen level through the production of the beer. The lower the oxygen level, the higher will be the shelf life and quality.
- Analyze water characteristics and % of mineral content weekly.
- Understanding the specifications of all the ingredients according to the customer’s requirements and health is very important.(Lachenmeier, 2005)
6.9 Marketing and Embellishing
Marketing is the key factor in expanding and embellishing any product to make them worthy and known in the market. Our goal is to provide the constituent's training to our marketing staff after every new week and to market our product through different platforms such as social media, E-commerce, brochures and web channels, etc. (Nelson, 2005)
Section 7: Financial plan
FINANCIAL PLAN
The financial objective is to start a company and generate cash flows for it.
- To increase profitability of company and widen the profit margins.
- Higher returns on invested capital.
- Make the company successful
SALES FORECAST
Sales is assumed to increase by 2% in the first year on monthly basis.
Initial sales units are 10,000 in first month
Price of the product is assumed to be 8
COGS is assumed to be 5
In the 2nd and 3rd year sales is assumed to increase by 10% and 12%
Price is increased to 10
RISKS:
Every company faces certain risk in the start and even after the success. Some of the common risks that companies have to face are fluctuations in stock prices and currency effects.
Credit Risk:
This refers to default risk which arises from borrowing money. For a startup funds are needed. So company have to make sure how much money should be borrowed so that no penalties need to be paid in future.
Operational Risk:
After the Molson beer company starts risks related to operations would be faced which includes legal, operational and HR related issues. Failure from any of these factors can impact the company’s financials.
So, to mitigate such risk company have to properly plan its operation before starting and after that these procedures should be checked up on routine basis.........................
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