Evaluation of the Nano Brewery
MBA Foundations Course
James P. McQuiston
The Nano Brewery is a very small business that has been operating for two years. The two owners have found that demand for their product has outstripped their ability to supply it. They are considering expanding their company to meet this demand. We will analyze their financial performance and evaluate broader environmental factors before providing a recommendation on company expansion.
The Nano Brewery operates in the microbrewery industry. A commonly cited definition of a microbrewery is a brewer that produces less than 10,000-15,000 barrels per year. This relatively small quantity fosters …show more content…
B., Reid, N., & Moore, M. S. (2014). The Ubiquity of Good Taste: A Spatial
Analysis of the Craft Brewing Industry in the United States. In The Geography of Beer (pp.
131-154). Springer Netherlands.
The government sets the local processes and fees associated with state liquor control boards.
State government can also set distribution laws that permit or prevent interstate distribution. This could impact growth if the marketing strategy expands beyond the local market.
Although overall economic indicators have been improving, the income disparity could affect the overall beer market. Traditionally, beer is associated and consumed by blue collar workers with less disposable income. Although the beer industry is in the mature stage of the product lifecycle, the microbrewery industry is still growing market share.
The large brewing companies have noted this and are introducing “craft beers’ of their own.
There are several recent social trends that could effect the Nano brewery. Over the past few years, awareness of gluten allergy or intolerance has become a cultural phenomenon. An increasing number of consumers will not purchase beer because of its association with hops, barley and grains. Similarly, fads such as the Atkins, low carbohydrate and Paleo diets are increasing in devotees, thereby shrinking the potential consumer base.
The brewing industry uses an enormous amount of water and energy and has a very