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Brew Pub

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0% found this document useful (0 votes)
26 views22 pages

Brew Pub

Uploaded by

Mesh Moh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name

Institution

Instructor

Date
Table of Contents

1.0 Introduction..............................................................................................................................2

1.1 Purpose of the Report.............................................................................................................2

1.2 Structure of the Report...........................................................................................................3

2.0 Managerial Decisions Process for Selected Functional Areas.............................................3

2.1 Methodology for Analysis of a Functional Area...................................................................3

2.2 Operations Management and Decision Making.....................................................................4

2.2 Innovation & Technology Management and Decision Making.............................................5

2.3 Organization & HR Management and Decision Making.......................................................6

3. 0 Functional Areas.....................................................................................................................7

3.1. Operations Management.......................................................................................................7

3.1.1 Pre-Analysis Decision Tools: Optimization Analysis, Breakeven Analysis.............7

3.1.2 Post-Analysis Decision Tools: Breakeven Analysis....................................................8

3.2 Innovation & Technology Management................................................................................9

3.2.1 Pre-Analysis Decision Tools: ‘What if’ analysis’........................................................9

3.2.2 Post-analysis: 4P’s Marketing Mix............................................................................10

3.3 Organization and HR Management......................................................................................12

3.3.1 Pre-Analysis Decision Tools: Porter Five Force Analysis, Risk Analysis..............12

3.3.2 Post-Analysis Decision Tools: Risk Analysis.............................................................13

4.0 Evaluation of Output Parameters for Proposed New Project...........................................14


4.1 Changes and their effect.......................................................................................................15

4.2 Cycle with the best business parameters..............................................................................15

5.0 Results.....................................................................................................................................16

5.1 Recommended Strategy.......................................................................................................17

5.2 Implementation Plan for the Selected Strategy....................................................................17

5.3 Conclusions..........................................................................................................................19
1.0 Introduction

1.1 Purpose of the Report

The primary purpose of this report is to outline a detailed strategy for opening and

successfully operating a brewpub in Logan Circle, Washington, DC. By integrating qualitative

and quantitative assessments, the report aims to provide a robust marketing and operational

blueprint specifically tailored to the unique dynamics of the local market and the broader craft

beer and hospitality industries. This strategic framework is designed to maximize the business

opportunity inherent in the area's high population density and tourist traffic, ensuring that the

brewery launches successfully, thrives, and expands its market presence over time.

1.2 Structure of the Report

The report has been organized into several critical parts to act as instructions for the

strategic planning of a brewery in Logan Circle, Washington, DC. The subsequent paragraphs

open the report, which sets forth its purpose and the outline presented in the following

sections. Management: On this, decision support tools used in different functional areas, i.e.,

operations management, innovation and technology, and organization and HR management, are

elaborated into detail; in this, choices of tools applicable actively before and after entering a

particular cycle are explored individually. The following part measures the output parameters

from simulation cycles, determines which round starves the financial appetites, and justifies them

with reasons. In conclusion, the results and the suggested strategy for the investment are given in

the summary part of the report. The plan is implemented through the proposed approach, which

is supported by an implementation plan and serves as a tool for monitoring the milestones of the

set strategies.
2.0 Managerial Decisions Process for Selected Functional Areas

2.1 Methodology for Analysis of a Functional Area

Our strategy for opening a brewpub in the culturally enriching and majorly visited Logan

Circle, Washington, DC, is established on a marketing approach that is based on a detailed

knowledge of customer behavior and the local market dynamics. The proposal submits a

qualitative and quantitative assessment of our market analysis process, which is customized

depending on the sector and functional area of the marketing area for both craft beer and

hospitality industries. Our plan, which considers the vast market opportunity created by 63,000

individuals in the area, starts with an initial invested capital of $150,000,000, distributed to

multiple marketing channels, as presented in our financial proposition.

2.2 Operations Management and Decision Making

The anticipated market sales of most product categories (except red wheat and pale ale)

showed a continuous growth pattern throughout the forecast period. However, the demand for

red wheat and pale ale is expected to remain at zero market size during the three years of the

forecast. In contrast, the trend towards growth was up-and-coming about these products,

everything from Bavarian Lager to Pilsner. The retail market size for Bavarian Lager is expected

to grow from 28,594 units in FY-1 to 34,278 units in FY-3, with upside growth in the wholesale

segment from 80,419 to 92,037 units. Pilsner is also estimated to experience an increase in its

wholesale market size from 66,331 units in FY-1 to 75,913 units in FY-3.

The sales projections for the next 3-year period identified times of high demand,

particularly in June, July, and August. Furthermore, Light Wheat and Bock Dark, the brands with

a significant part of their sales in May and June, had an anticipated 20% annual demand peak in

these months, with June and July becoming the winter season for these products. The demand for
seasonal beers during a few high-demand periods showed the clarity of that high-demand pattern,

corresponding with the overall rise in beer consumption during the warm-weather seasons.

Data showed that all products had a regular excess demand, Pilsner being the highest

with a figure of 926 units in FY1, which was estimated to diminish to 884 units in FY2 slightly

and further to 1,646 units in FY3. Another beer, Bavarian Lager, has also been affected by the

excess demand problem, which is reflected in the figures: 1642 units in FY1, Ω3 downward

trend, reduced to 1146 in FY2 and 665 in FY3. This disparity implied constant difficulties in the

real world of sales; thus, there was a need to review the manufacturing capacity and efficiency to

fit the market conditions properly.

2.2 Innovation & Technology Management and Decision Making

Our company's journey has been driven by the new technologies and strategic

management that have helped us take the place on the competitive platform of the fast-moving

goods business. We have improved our data analysis process by utilizing cutting-edge solutions

from the most respected technologies, such as IBM Watson and Microsoft Azure, leading to

better decision-making. With this approach, we have correctly recognized critical trends in the

market and consumer needs, translating to a 40% increment in market responsiveness compared

to the past few years. For example, we have successfully minimized costs by 20% and improved

delivery times by 25% by implementing AI-enabled analytics platforms by IBM Watson.

Our dedication to technology management is highlighted in how we have partnered with

Sales force, which has brought about a radical change regarding customer relationship

management. Salesforce's CRM tools gave us the capacity we wished for to see customer

interactions from 360 degrees, resulting in our customer satisfaction rate increasing by 35%.

Adopting this tactic has resulted in better processes, more personalized interactions, and
increased numbers of metals and materials customers, which indicates a growth of 30% in

retention rates year-on-year. Using these platforms, you can generate relevant data-driven

insights, which are the exact platform to revamp our product development strategies so that our

innovations address the specific needs of our customers.

To create a collaborative and innovative culture by nature, we have strategic plans that

involve periodic partnerships with big firms such as Google and Adobe. The joint ventures

provide the basis for improving our teams' abilities by supplying them with highly qualified tools

in digital marketing and cloud computing facilities. This dramatically increases the efficiency of

our operations and our marketing effectiveness. Utilizing Google Cloud's computing power for

our data processing capabilities has significantly reduced our processing times by up to 50

percent. We can now take immediate action in response to the data obtained when necessary.

The Adobe marketing platform has contributed equally in the marketing area, which has enabled

us to become more digital in marketing campaigns and led to a 22% increase in our lead

conversion rate.

Furthermore, we ensure that our strategic technology management keeps us on top of

developments. The leaders of our workforce are continuously trained and are up-to-date with the

newest technology. Workshops are held regularly with the leaders of these world-class tech

firms. The educational initiatives have birthed a tech-savvy workforce with dynamic capabilities

to solve complex problems and improve products and services. Consequently, our project

success rates have steadily risen since we implemented innovative approaches and technology

management strategies. Today, we stand proud of an 85% success rate as a demonstration of our

effectiveness in innovation and technology management. This initiative is reflective of our


dedication not only to hiring cutting-edge technologies but also to making relevant decisions for

long-term growth and sustainability.

2.3 Organization & HR Management and Decision Making

HR data shows that our company has a well-thought-out strategy for using the

appropriate organizational and personnel management structures. Our foundation has a

structured compensation process that helps maintain reasonable salary levels in line with

operational requirements and employee welfare. Through differentiating job titles like Brewery

master, Workers, Salesman, and Critical salespeople and linking compensation models to their

contributions accordingly, human resources denote that the company recognizes various roles'

unique contributions to the company's success. By this, the company can intensify its alignment

of employee motivations and the organization's goals, a factor that prepares it for rewarding and

retaining top performers in critical roles. Additionally, by incorporating wage increases,

marketing research expenses, and budgeted hiring per fiscal year, the emphasis on budget in

scaling activities is shown, which helps control the operation budget. This level of detailed

planning contributes to the overall achievement of strategic goals and ensures the organization

has a dynamic setting capable of responding to existing and future business needs.

Our approach to decision-making was always highly data-driven, demonstrating an

excellent attempt to balance cost management with competitive compensation. The allocation of

the payroll budget shows a measured move from $133,000 in FY-1 to $157,300 in FY-3, besides

the structured salary increments, which have a plan that anticipates inflows and

growth. Nevertheless, workers' compensation still books this loss quarter after quarter, a pause

that calls for re-evaluation. The shortages may lead to the restructuring of funds or refinement of

the payment systems that do not undermine the quality of workforce management while ensuring
financial stability. Such decisions are crucial for risk minimization regarding budgeting and

keeping the organization in place regarding its capacity for attracting and retaining the most

capable professionals. With deliberate monitoring and amendments of the policies, the company

can maintain a viable and adaptable HR process that ensures the sustainability of the business.

3. 0 Functional Areas

3.1. Operations Management

3.1.1 Pre-Analysis Decision Tools: Optimization Analysis, Breakeven Analysis

Optimization Analysis

Brand 01’s performance regarding optimization, as seen in the spreadsheet, presents an

in-depth analysis of financial performance and strategic positioning across different sales

channels (retail and wholesale) using several pricing and parameter-changing scenarios. , At

first, with total fixed costs of $254,429 and with$7.50 a retail price per unit of $7.50, uniformly

slashing the price in wholesale scenarios with the expectations to $3.50 as a strategic pricing

adoption to diverse market situations, While the unit price variable fluctuates, the quantum

changes among the channels are lower: $0.85 for retail and $0.83 for wholesale, hence producing

high contribution percentages, which is notable in the 81.35% retail scenario. Its contribution is

also high across different retail points (over 85%). At the same time, it is a bit lower at the

wholesale distribution.

The sensitivity analysis shows that price elasticity depends greatly on price fluctuation.

$1.00 corresponds to the lowest price possibility, resulting in a potential revenue outcome of

$10.00, which signifies considerable elasticity. Because the pricing volatility suggests an agile

market, the latter market will respond rapidly to the pricing strategy, which could lead to reduced

customer demand and sales volumes. The sales quantity fluctuates considerably across the
channels, from 21,080 units in the main retail channel to as much as 75,968 units in the optimal

wholesale channel. This exemplifies the forever-varying scale of operations and the significant

role of price setting in fitting sales strategy with demand in the market to make revenue from

volume-based activities.

The financial forecast also reveals the critical implications of the data presented. For

instance, in this retail market category, the estimated contribution to the end of the year stands at

$185,504. However, in the perfect scenario, this value is likely to more than double, reaching up

to $202,835, implying that rationalizing prices and activities related to costs have the potential to

double profitability. The analysis goes on to suggest53.33%, setting sight on considerably higher

market size in the coming cycle with a focus on increasing the market share in the retail segment

to 51.44% and in wholesale to 53.33% which can suggest very aggressive strategies involving

mass-level marketing campaigns and allied activities.

3.1.2 Post-Analysis Decision Tools: Breakeven Analysis

Breakeven Analysis

A financial statement of BRAND 01 for FY-1 displays healthy performance with a gross

sales figure of $858,794.18 over expenditure at $160,727.98. For the fixed costs, we call it

$249,429, which results in a total contribution of $698,066.20 after expenses are deducted. The

operations presented an exceptional gross margin of 81.28%, revealing that nearly three-quarters

of the revenue is retained to cover the fixed costs. This suggests that management passes on the

variable expenses efficiently. A metric surfaced from these statistics is the break-even point,

which is 4.29 months to the utmost of fixed costs, and that sales made in this timeframe are

enough to recover all the fixed costs. Also, the fixed expenses covered by the contribution
margin arrived at $306,860. We also illustrate our solid financial standing and how to manage

expenses effectively throughout the financial year.

Looking into our financial performance more in detail, the analysis shows a notable

variation in contribution margins across various periods during the fiscal year, mainly observed

in BR01-07, BR01-08, and BR01-09, where the margins swamp to 76%. These swings are the

most relevant indicators contributing to examining our cost procedures, expenses, and pricing

strategy, substantially affecting our financial stability and growth. The illustration of economic

data with straight lines of total fixed cost and revenue and the break-even point between them

confirms the above findings. The revenue line exceeds the expense section precisely at the end of

the fourth month, indicating potentially good financial prospects for the next six months.

3.2 Innovation & Technology Management

3.2.1 Pre-Analysis Decision Tools: ‘What if’ analysis’

Suppose the company is set to invest in a machine that brews and bottles automatically

with negligible waste, clawing itself on the energy resources. In that case, it will also improve

labor efficiency. Currently, the variable costs for items such as Pilsner and Bavarian Lager

produced within the distribution circle remain relatively high, based on the incorporation of

mostly manual procedures. Adopting this technology would likely decrease the amount of

materials each unit consumes by around $0.05 and the amount of work that goes into each unit

by some $0.10, owing to improved precision and speed of production. These changes would

probably give production economics a new touch, considering the influence of technology.

As another illustration, if Labels Pilsner (BR01-01) and Bavarian Lager (BR01-02) are

dealt with under retail, the material and labor costs may become $0.86 and $0.10. When this

reducing-the-sales-price-by-5 percent is done, the marginal contribution per unit jumps from
$6.63 to $7.08. Implementing these changes all through units sold shows an inevitable increase

in the individual unit profitability or a condition where more units sold lowers the breakeven

point.

When production costs are reduced, the company can either make higher profit margins

or give an attractive price to the market to become more competitive in price-sensitive

markets. Assuming that the price remains the same, the increased contribution margin would

propel the attainment of a breakeven position at a faster rate. For example, when the total

overhead costs at $254,429 work out steady and are assumed to be one Pilsner’s contribution of

$7.08 instead of $6.63, the new breakeven point in terms of sales volume could be reassessed,

which could show a decrease in volume of sales or a speedier time until breakeven, both

prompting a faster reinvestment cycle.

3.2.2 Post-analysis: 4P’s Marketing Mix

Product

The beer varieties the company offers cover an extensive gamut of flavors and tastes,

ensuring diverse consumer preferences and allowing it to enter an almost unlimited number of

markets. Then, towards the end, the product hires the craft beers listed, such as Pilsner, Bavarian

Lager, Light Wheat, Red Wheat, Pale Ale, Bock Dark, and Special Offers corresponding to the

promotional beers. The offering for each product focuses on individual brewing methods and

ingredients that drive the desired consumer reaction.

Price

Retail prices range from $6.00 for types such as Light Wheat, Red Wheat, Pale Ale,

Bock, and Dark to $7.50 for premium ones like Pilsner and Bavarian Lager. Wholesale rates are

$3.50 per item, and at least 124 pints are needed for purchase, which suggests the volume
discount model. Utilizing this dual pricing technique helps provide solutions to two segments:

end consumers who can order in limited volumes and large-volume buyers, such as retailers or

hospitality businesses.

Place

The focus is directed towards retail and wholesale channels, which would enhance

market reach and availability. This category may be supplied to supermarkets, liquor outlets, and

specialty beer stores so customers can purchase the products individually or in large

quantities. However, on the other hand, retailers who purchase wholesale products must purchase

in more significant amounts, namely from entities capable of bulk purchases, such as a big retail

chain, a bar, or a restaurant.

Promotion

The beverage field, in general, has been using in-store promotions, online advertising,

and beer festivals as standard tools to market their products. By spotlighting high-end products,

such as Pilsner and Bavarian Lager, it is possible to run the promotion through event

sponsorships or partnerships with high-end restaurants to raise local brand recognition among the

target consumers.

3.3 Organization and HR Management

3.3.1 Pre-Analysis Decision Tools: Porter Five Force Analysis, Risk Analysis

Porter Five Force Analysis

Threat of New Entrants: This barrier reviews the industry's entry barrier and how easy or

difficult it is to start a business there. The microbrewery is just satisfying the technological

perspective when getting into business. Significant calls for market share will limit the chances

of newcomers and thus the potential threat of rivalry.


Bargaining Power of Suppliers: This focuses on how much control these companies have

over setting prices. As such, this price fluctuation tends to be amplified due to the lower number

of suppliers, the lack of substitute raw materials, or the fact that switching suppliers is

costly. The manager should source the best supply contract from new and existing suppliers as

early as possible.

Bargaining Power of Buyers: Such a force identifies the magnitude of stress that

customers may perceive in a business. Buyers' pressure is high when they pinpoint poor volume

or untailored products. Sales and marketing assistants will be on the spot to export each product's

performance to avoid various risks associated with the context.

Threat of Substitute Products or Services: This is done to rate the convenience of a

customer switching to another product or service with the same purpose. The chance of

substitutes being important diminishes as it gets harder and harder to discover a new product or

service that can be seen as a good replacement for the one owned.

Intensity of Rivalry Among Existing Competitors: This determines how this industry

resists competition in the present situation. Competition is a fact of life in the brew house

industry due to its low barriers to entry and the new trend. A possible bleak and highly

competitive scenario can be observed in the brewing space, which could also be pegged as a red

ocean environment. From a human resources perspective, we want employee compensation to be

beneficial, and thus, we want low employee turnover.

3.3.2 Post-Analysis Decision Tools: Risk Analysis

Risk Analysis

Structured wage increases and managing a growing payroll budget have financial and

operational risks, as revealed by the data provided in the table. The salary commitments for
critical workers and workers that doubled from $35,000 to $42,350 and from $12,500 to $30,250

over three fiscal years reflect a visionary financial plan that requires continuous revenue growth

and high performance. The constantly increasing deficits, from $9,353 in FY-3 to $25,728 in FY-

3, illustrate the financial challenges. Therefore, these gaps can burden the organization's cash

flow, especially in unanticipated economic recessions and revenue shortfalls. This strategy to

maintain adequate award salaries renders the company vulnerable to financial instability, mainly

if no supplementary increase in output or cost-saving measures are undertaken.

The program involving structured salary increases also talks about a strict salary system

that limits an organization's agility in swiftly responding to a rapidly changing market or

recession. This might be a hefty task if, for example, the business wants to restructure its

workforce costs quickly to account for low operational budgets or fluctuations in

demand. Furthermore, the complete benefits probably seek to improve employee contentment

and retention. However, the financial sustainability of such packages should be reassessed

thoroughly. The organization should strive to strike a balance between the financial ability to

provide these benefits without creating a deficit in the budget, which has been observed. The fact

that wages are still climbing despite the considerable investment in employee welfare benefits

shows us that the company's financial plan should consider better strategies that balance staff

compensation with the organization's goals and economic stability in the long run.

4.0 Evaluation of Output Parameters for Proposed New Project

Total Revenue

As an important indicator of customer reception and the effectiveness of sales strategies,

total revenue is the hallmark of a business's fiscal stability. Commencing from an entry point
with a total revenue generated of $1,106,153 at the "Start" cycle, there is a significant increase to

$2,560,388 at the end of the first cycle. This was probably caused by highly efficient market

access or the creative success of a product presentation. However, there is a clear picture

throughout the cycles. The bottom cycle showing the highest revenue in Cycle 07 at $2,952,641

means the scaling up of operations and deeper market penetration. This makes us believe that our

sales have peaked, with the most effective strategies and up-to-date changes being applied.

Return on Investment (ROI)

ROI is the ratio between utilized capital and its efficacy in eliciting returns. For the

"Start," ROI is negative with a value of -2.21 due to the absence of returns on the initial

investment. Despite the negative ROI in its first cycle, ROI bounces back to 4.53% in Cycle 01,

verifying that the early investments are already in gain. The ROI achieves the record in Cycle 07

with 6.69, an index as high as the one for revenue, and hence suggests that the projects are

successfully yielding high profits. The improvement in ROI over the years of operations

indicates that the business has been increasingly efficient with its capital utilization.

Net Present Value (NPV)

NPV serves as the strategy of the company to possess the actual money's worth. Thus,

NPV helps appraise the profitability of a project by considering time as one of the

factors. The "Start" cycle has a negative NPV of $-450,560, predicting a negative cash flow

during the initial investment expenses. However, the NPV grows from -$392,152 in Cycle 0 to

$464,569 in Cycle 1, which may be the correcting turn, showing that the investing money

becomes better than the cost of the money invested. As much as $757,579 was the NPV in C07,
considered the highest among all cycles, drawing our attention to the difference between the

capital accumulation and the related expenses, this time more positive.

Breakeven Analysis

The breakeven point (BEP) analysis, run across different simulation cycles, provides

mind-blowing findings on the timeline, revenue, and monetary resources needed for the project

to have its initial cost covered and start rewarding returns. This start-up process is very

prolonged, requiring 21 months to reach profits amounting to $550,551, which suggests that the

uphill starting point meets with some problems when trying to earn revenue. This full-year run

before the stage of breakeven points merely to the first couple of trials in market promotion and

in-plant efficiency.

4.1 Changes and their effect

In the cycles, the best result is receiving and then continuing to work on the breakeven

point. Since we started the breakeven point from Cycle 1, the time to do so significantly fell to 4-

6 months from Cycle 01 onwards, and then it stabilized at that level for later cycles. Among the

many outlined in Cycle 01 is a record of 6 months of shipping with a corresponding breakeven of

$356,607. Similarly, Cycle 07’s practical breakeven point is four months and needs $306,860 in

revenue. This indicates the company can devise systematic and incremental improvements in its

operational management and performance that sufficiently shorten its way to profitability.

4.2 Cycle with the best business parameters

After evaluating the overall business figures derived from the simulation data, Cycle 07

works best for the newly created business project we plan to launch. Cycle one demonstrates the
most revenues at $2,952,641, while the break-even point is reached much faster after four

months. The most significant gain from the initial investment would be $757,579. These

performance figures prove, with one certainty, that the cycle does not just have the distinctive

ability to recover costs quickly but also its admirable efficiency in providing more revenue and

value than what has been invested. ROI of 6.69 again brings back the effect that the capital was

used productively. This means that Cycle 07 was the most financially rewarding and middle-

shelter in strategic planning leadership, thus giving a solid background for further scaling and

implementation in the same courses of action.

5.0 Results

In our development plan, we aim to open a brewpub right in one of the most densely

populated areas, boasting 63,000 residents who also attract a sizable number of tourists. The

location has been prepared to capitalize on the area’s high foot traffic and vibrant cultural milieu,

attracting a mix of patrons who enjoy local microbrews and distinctive hospitality. The financial

part promises a $150,000 startup investment, aiming at employing various kinds of local

advertising and trade shows and renting the most strategic areas to create a solid market

foothold. In addition, this strategy is supposed to make craft beer lovers come in and provide an

interactive local brand experience. Nevertheless, the functional data indicate the issues in

fulfilling the various product demands among some popular beers (like Pilsner), with the high

demand for such products indicating the need to scale up production.

Using tools such as IBM Watson and Microsoft Azure for technology management

encourages productivity in data analysis and the decision-making process. This improves

performance in the operational area. Concerning the changed approach to your axe shrubs,

improve the supply chain and production planning to be more on par with demand spikes, apart
from the apparent peak times during the summer. Furthermore, upgrading customer relationship

management through Salesforce could also increase the degree of individual customer

interactions, increasing both satisfaction and customer retention. Ultimately, this will offer the

company an adequate advantage in an industry with so much rivalry.

5.1 Recommended Strategy

Key strategies have been planned to attain the sustainability of the

brewery. Consequently, the need for investing in the quality and differentiation of products by

offering only the best craft beers and providing a unique and high-customer-recognition

experience becomes apparent, which enhances profitability. Secondly, a markedly intense push

for marketing campaigns would be necessary by spending a large budget on local advertising and

digital marketing that would create a demand for tourists and residents. In the third place, while

maintaining the financial health of the business continuously, one needs to apply tools like

sensitivity analysis for price adjustments and with regards to costs. Furthermore, the two venues

for growing the customer base by way of alliances with local companies and augmented action in

community events will boost the visibility and local community appeal of the brewery. Finally, it

is constant improvement based on customer feedback and market trends that must be put into

motion to keep fine-tuning your products and ensure that the customer always remains satisfied.

5.2 Implementation Plan for the Selected Strategy

Phase 1: An Assessment and Planning phase (1-3 months)

1. Detailed Market Analysis: Perform sophisticated quantitative and qualitative studies

geared towards the determining of the demand for our products and high-demand

products, such as the Bavarian Lager output and Perfect Pilsner.


2. Capacity Evaluation: Analyze the current production facilities to determine whether

additional expansion or modernization is needed to ensure during all seasons, a higher

demand peak is met.

3. Technology Audit: Re-examine the technological systems and strategies to confirm

which areas still need solutions from Watson, Azure, or otherwise innovative

technologies to be a part of the critical operations regarding decision-making, data

reporting, and customer service delivery.

Phase 2: Operational or Technical improvement (4-6 months)

1. Production Expansion: For this purpose, before implementation, evaluate the

capability and do the required renovation or attainment of more sophisticated

elements. It may also be applied to procure new equipment or improvement of the

existing machinery to have more output from these machines.

2. Technology Integration: Implement sophisticated analytics and CRM Tools in the

form of IBM Watson and Salesforce software. Adapt these tools in accordance

with individual compatibility of the strategies and some operations process.

3. Staff Training: Carry out training classes for your staff to enable them operator

new technology and to adopt the advanced operational methods. For example, this

could include training in data analysis, CRM system, and the latest manufacturing

technology.

Phase 3: Marketing and Market Expansion: $7-12 Months

1. Enhanced Marketing Campaigns: Endowed the organization with abilities to obtain fine

insights from the smart data analytics for the creation of targeted marketing
strategies. Invest into local branch advertising and digital marketing strategies to expand

a more technological audience.

2. Trade Show Participation: Discover trade shows and put them in your working plan in

order to reach new business partnerships, raise your brand and receive sensible

recommendation from clients directly.

3. Community Engagement: Engage community events or build partnerships that will

improve customer accessibility to the brewpub through the use what the brewpub has to

offer and build brand loyalty.

Phase 4: Monitoring and Optimization (Ongoing)

1. Performance Review: The data should be reviewed on a regular basis to assess the

efficiency of the new strategies in terms of finances and operations.

2. Continuous Improvement: Utilize ongoing technology assistance coupled with data

analytics to consistently improve products, marketing and customer service delivery.

3. Risk Management: Develop an activity driven risk management system to handle any

financial or operational risks expeditiously.

Timeline:

 Phase 1: 1-3 months

 Phase 2: 4-6 months

 Phase 3: 7-12 months

 Phase 4: Ongoing monitoring and optimization

5.3 Conclusions

This strategic plan for opening the brewpub in Logan Circle, Washington, D.C., is built

on thorough market research, including analyzing fundamental market dynamics and consumer
behavior in this culturally rich and colorful area in high tourist demand. This is done through

qualitative and quantitative assessments and is projected to engage a considerable market size of

63,000 residents and tourists. As approved in the financial plan, investment in an international

market size of $150,000 offers capital to advertise in local channels and shows and create a

digital presence so the global market can be fully penetrated.

As for a commercial vision, the data indicates a notable demand for Bavarian Lager and

Pilsner and expected growth in retail and wholesale markets, with the latter being particularly

prominent. The appropriate product sales forecast for warm seasons, in turn, shows an

adequately executed marketing and production strategy highlighted during the peak times of

consumer demand. Nevertheless, such difficulties do exist. Incidentally, these should be

contained by raising the production capacity or making production more efficient, consequently

keeping the demand and supply in check.

The crucial part played by implementing inventive technology and strategic management

is epitomized by integrating IBM Watson and Microsoft Azure in data analytics and operational

efficiency. Salesforce as a partner is an absolute game changer to customer relationship

management, resulting in levels of satisfaction and retention rates that are to be envied. Such

technological breakthroughs help the works to be more organized and give the craft beer sector

in this fast-running industry a tremendous competitive advantage. Additionally, managing human

resources at the brewpub is tactically oriented to ensure that team members and their rewards fit

into the overall strategic priorities of the business, which drives output. The distinction in their

salary at different roles varying from Salesmen, Brewery Masters, and Workers are significant

drivers of pushing for performance and retention, actions that greatly sustain the business.

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