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Surname 1 Surname: Professor’s Name: Course: Date: Lagunitas Brewing Company
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Surname 2 Table of Contents Issues and Recommendation ............................................................................................................ 4 Issue 1 .......................................................................................................................................... 4 Issue 2 .......................................................................................................................................... 4 Issue 3 .......................................................................................................................................... 5 Recommendation ............................................................................................................................. 5 Appendix: Industry and Competitive Analysis ................................................................................ 5 External Analysis: Analysis of the Microenvironment, Industry, and Competitors ........................ 5 A. PESTEL Analysis ................................................................................................................. 6 Political Factors ............................................................................................................................ 6 Economic Factors ......................................................................................................................... 6 Social Factors ............................................................................................................................... 6 Technological Factors .................................................................................................................. 6 Environmental Factors ................................................................................................................. 7 Legal Factors ................................................................................................................................ 7 B. Dominant Economic Characteristics .................................................................................... 7 Market Size and Growth Rate ...................................................................................................... 7 Scope of Competitive Rivalry ...................................................................................................... 8 Product Innovation ....................................................................................................................... 8 Economies of Scale ...................................................................................................................... 8 Learning/ Experience Curve Effects ............................................................................................ 9 C. Five Forces Analysis (Weak/Moderate/Strong) .................................................................... 9 Threat of New Entrants ................................................................................................................ 9 Competition from Substitutes ...................................................................................................... 9 Buyer Power ............................................................................................................................... 10 Supplier Power ........................................................................................................................... 10 Rivalry ........................................................................................................................................ 10 D. Drivers of Change in the Industry ...................................................................................... 10 E. Competitor Analysis ........................................................................................................... 11
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Surname 3 Competitor Identification and Strategy ...................................................................................... 11 Key Success Factors ................................................................................................................... 11 Weighted Competitor Strength Analysis .................................................................................... 12 Strategic Group Map .................................................................................................................. 12 Internal Analysis: Analysis of the Firm Itself ................................................................................ 13 A. Current Strategy .................................................................................................................. 13 B. VRIN Analysis .................................................................................................................... 13 Valuable ...................................................................................................................................... 13 Rare ............................................................................................................................................ 14 Inimitable ................................................................................................................................... 14 Non-Substitutable ....................................................................................................................... 14 C. SWOT Analysis .................................................................................................................. 14 Strengths ..................................................................................................................................... 14 Weaknesses ................................................................................................................................ 15 Opportunities .............................................................................................................................. 15 Threats ........................................................................................................................................ 15 D. Financial Analysis ............................................................................................................... 15 Current Ratio .............................................................................................................................. 16 Gross Margin .............................................................................................................................. 16 Quick Ratio ................................................................................................................................ 16 Works Cited ................................................................................................................................... 18
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Surname 4 Lagunitas Brewing Company Issues and Recommendation Issue 1 The 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 2 Lagunitas 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 high levels 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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Surname 5 related with superfluous wastewater that cannot discharge into the sewers. In 2013, Lagunitas
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  • Spring '16
  • dennis

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