order_209416.docx - Surname 1 Surname Professors Name Course Date Lagunitas Brewing Company Surname 2 Table of Contents Issues and Recommendation.4

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Surname 1Surname:Professor’s Name:Course:Date:Lagunitas Brewing Company
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Surname 2Table of ContentsIssues and Recommendation............................................................................................................4Issue 1..........................................................................................................................................4Issue 2..........................................................................................................................................4Issue 3..........................................................................................................................................5Recommendation.............................................................................................................................5Appendix: Industry and Competitive Analysis................................................................................5External Analysis: Analysis of the Microenvironment, Industry, and Competitors........................5A.PESTEL Analysis.................................................................................................................6Political Factors............................................................................................................................6Economic Factors.........................................................................................................................6Social Factors...............................................................................................................................6Technological Factors..................................................................................................................6Environmental Factors.................................................................................................................7Legal Factors................................................................................................................................7B.Dominant Economic Characteristics....................................................................................7Market Size and Growth Rate......................................................................................................7Scope of Competitive Rivalry......................................................................................................8Product Innovation.......................................................................................................................8Economies of Scale......................................................................................................................8Learning/ Experience Curve Effects............................................................................................9C.Five Forces Analysis (Weak/Moderate/Strong)....................................................................9Threat of New Entrants................................................................................................................9Competition from Substitutes......................................................................................................9Buyer Power...............................................................................................................................10Supplier Power...........................................................................................................................10Rivalry........................................................................................................................................10D.Drivers of Change in the Industry......................................................................................10E.Competitor Analysis...........................................................................................................11
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Surname 3Competitor Identification and Strategy......................................................................................11Key Success Factors...................................................................................................................11Weighted Competitor Strength Analysis....................................................................................12Strategic Group Map..................................................................................................................12Internal Analysis: Analysis of the Firm Itself................................................................................13A.Current Strategy..................................................................................................................13B.VRIN Analysis....................................................................................................................13Valuable......................................................................................................................................13Rare............................................................................................................................................14Inimitable...................................................................................................................................14Non-Substitutable.......................................................................................................................14C.SWOT Analysis..................................................................................................................14Strengths.....................................................................................................................................14Weaknesses................................................................................................................................15Opportunities..............................................................................................................................15Threats........................................................................................................................................15D.Financial Analysis...............................................................................................................15Current Ratio..............................................................................................................................16Gross Margin..............................................................................................................................16Quick Ratio................................................................................................................................16Works Cited...................................................................................................................................18
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Surname 4Lagunitas Brewing CompanyIssues and RecommendationIssue 1The first issue that Lagunitas Brewing Company, Inc. faces is intense competition from other craft brewers in the United States. With the maturity craft-brewing segment, various American brewers offer craft-brew-like products, such as Shock Top (Anheuser-Busch) and Blue-Moon (MillerCoors). In 2013, Lagunitas Brewing Company was position six among the domestic craft brewers and position thirteen overall among the U.S. brewers (Thompson et al. c-97). Apart from the large American brewers, the company competes with the new craft brewers that enter the market. For instance, in 2013, an estimated 1500 new breweries were under construction in the United States (Thompson et al. c-97). Similar to Lagunitas Brewing Company, many craft brewers in the country, such as New Belgium Brewing Company and Sierra Nevada are expanding their operations to meet the growing demand for craft beer. Thus, competition is a significant issue of concern for the company because it may reduce its market share and revenue.Issue 2Lagunitas Brewing Company also faces economic development issues, particularly in regards to wastewater. Excessive wastewater has been a major concern for the company over the years. As the company grows, it wastewater requirements also increase proportionately. The highlevels or organic waste in the brewing process often cause problems to the municipal treatment systems. Although the company always pretreats its wastewater to adhere to the standards of total suspended solids (TSS) and biological oxygen demand (BOD), it is still fined thousands of dollars by the city of Petaluma (Thompson et al. c-100). Similarly, the company incurs expenses
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