Boston Beer Final Strategic Plan

Boston Beer Strategic Evaluation and Recommendation

Each department of a company carries some commitment or philosophy, which it follows through its vision and mission statement further into sections of objectives. After that, objectives are breakdown into goals and disseminated between the employees by providing them with job description describing their individual duties, required qualifications, responsibilities, job title, and more (David, 2003). These objectives, business process management, and strategies are designed, selected and implemented with the sole objective to enhanced productivity, while lowering overall costs, and evolving business processes. There are various types and levels of strategies, which can be implemented as per the organization’s requirements to maintain success (David, 2003).

Corporate Level Strategies

The highest form of strategic decision-making is maintained at the corporate level due to the types of actions that it involves. The corporate strategy is related to the selection of business along with the development of coordination for business portfolio. It is concerned with issues relating to corporate responsibilities such as goals and sort of integration it employed for its accomplishment. Examples of corporate level include financial performance, mergers and acquisitions, human resource management and allocation of resources (Bradley, 2017). Executive managers are responsible for the corporate level strategies and deal with strategic issues facing the corporation (Quelin, & Duhamel, 2003).

Boston beer utilizes a centralized management structure. Because every decision made in the firm has to endorse by Mr. Jim Koch. As a perfectionist, Mr. Jim Koch personally observes and amends even minor activities of the firm. He is proud of the quality his business provides through his products (Bostonbeer.com. 2017). The rest of the strategies that Boston beer can adopt at the corporate level are:

Business closure: Boston beer cannot go for the defensive strategies because all its departments are doing quite well. From personally owned brewing until the retail of the firm is doing quite well.
Business acquisition: The Company heavily relies on the suppliers for brewing its beer this will save the firm from the sustaining pressure of accurate supply.
Business startups: The Company implements diversification strategies by entering into another market. For example, presently the company is only involved in beer and cider but can enter the opening of Boston beer restaurants where they can serve their drinks along with different recipes.

Business Level Strategies

Business level strategies are less chaotic than the corporate strategy but require the same level keen attention of the organization (Peng, Wang, & Jiang, 2008). At this level, the strategy formulated determines the ways through which it can compete from each of the strategic business units. The strategies the Boston Beer can adopt here are as follows:

Cost leadership: Under this strategy, firm has to produce on the large scale and provide its products at the lowest prices. This can be accomplished by the firm, as it will allow the firm to gain market share, but in the Boston beer situation, there are already local beer holders on the market.
Differentiation: Under this strategy, firm develop some change in the features of the product. This is needful and the Boston beer already adopts it because from time to time there has been worth appreciating amendments made in the products and in its packaging for attracting the customer coming way ahead of competitors. Still, furthermore attractive innovations can also be inserted in the existing product to remain ahead, then the rest substitute product of the market.
Market focus: This strategy focus on understanding the customers, competitive advantages; and conducts survey outside the company analyzing the data to make tactical and strategical product decisions. Here firm has already managed to serve fewer than three different categories, namely tea, beer, and cider but even further small variances can be introduced for niche.

Global Strategies

When firm manages to build constant success like Boston beer has accomplished, then they can launch their products globally through crossing the boundaries (Yaprak, Xu, & Cavusgil, 2011). The following recommendations are ways Boston Beer can launch globally:

Global standardization: Boston beer can promote in any country, it wants for various different reasons. It can manufacture their product from China or Mexico minimizing production costs.
Transition strategy: Boston beer management can rely on past skills and strategies, enhance the teams, study, and gain cultural customers global support. For example, Boston beer can distribute its beer, tea, and cider by making slightly custom changes as per the country culture.
International strategy: Here the same product is sold in every market of country of the world.
Localization strategy: In this strategy Boston, beer has to sell its beer, tea, and cider as per the country local consumer preferences.

Recommendation

The Firm has been recently in healthy financial condition with positive cash flows. The firm is in a state to make a huge investment in a new direction that requires to huge cost and effort. The two strategies that fit well for maximizing the profits and strengthen the existence are:

Diversification: Starting the restaurant with the same name in the USA along with beer, tea, and cider there will be a lot more another recipe that keeps the pace of attractiveness.
Transition strategy: The firm can promote its product globally with the same name but few customized elements as per the local market and cultural preference.

Conclusion

The Boston Beer is one of the prominent beer companies in the USA market. The booming states of the industry ask for products that are more different with assortments of variety. Boston beer is so popular that it holds 20% of the market share and a restaurant investment can even maximize its earning and income. Going global also is better option due to the positive exporting image enjoyed by the firm.

References

Bradley, J. (2017). Types of Corporate Level Strategy. Retrieved from

http://smallbusiness.chron.com/types-corporate-level-strategy-60147.html

Bostonbeer.com (2017). The Boston Beer Company. Retrieved from http://www.bostonbeer.com/phoenix.zhtml?c=69432&p=irol-homeprofile

David, F. (2003). Strategic management (1st ed., pp. 130-140). Upper Saddle River, N.J.: Prentice Hall.

Peng, M., Wang, D., & Jiang, Y. (2008). An institution-based view of international business strategy: a focus on emerging economies. Retrieved from http://dx.doi.org/10.1057/palgrave.jibs.8400377

Quelin, B., & Duhamel, F. (2003). Bringing Together Strategic Outsourcing and Corporate Strategy. Retrieved from http://dx.doi.org/10.1016/s0263-2373(03)00113-0

Yaprak, A., Xu, S., & Cavusgil, E. (2011). Effective Global Strategy Implementation. Retrieved from http://dx.doi.org/10.1007/s11575-011-0071-6