Tribe Stout Company was founded in 1980 by John Murphy, a former Brewer who was awarded for his products. This is a small family-run company composed of about twenty employees. The company is in a very touristy city of Ireland, Galway. It creates local beer sold in hotels and bars only inside the Galway area. At the end of the year, Cillian Murphy, a graduate in BA marketing at GCD will head the company. At the beginning of his job, the new CEO will face to several difficulties. There are different kinds of external and internal problems.
C. Murphy has a document describing the product manufactured by the company, its history, but also how beer is created and the costs of production. He could discover sales methods, managerial conditions under which it happens. In fact this company is composed of relatively unskilled employees. On the basis of this document we are consultant in Strategic Management will establish an appropriate strategy to the problem that will meet the new CEO. These strategies will help stabilize and improve the situation of TSC.
[...] The creation of a purchasing department would be a wise choice. This will allow the company to be financially stable. Tribe Stout Company has to procure raw materials in large quantity, the economic crisis doesn't let to buy on credit, and it will initially negotiate discounts based on quantity required. Obtaining rates will do the cost of production decreased and the product created to be more competitive in the market fragmented. Mass production will require the acquisition of specific machine to easily meet the demand. [...]
[...] This is not surprising that this sector is extremely well developed. Cillian Murphy must become aware, through our help, the ferocity of its competitors who are present on the market for centuries, like Guinness. Moreover the actual economic downturn increases the difficulty of the market. II. Environmental Scan A. Analysis of the key internal activities / departments 4p's analysis: Product Tribe Stout Company sells a traditional beer. It is a high quality product which is composed with natural ingredients from local sources only. [...]
[...] For now it must use a strategy market penetration. This strategy is the least risky of all, it is ideal for the inauguration of the young Murphy. As I said before TSC possesses a quality product. It has high production capacity; even she must improve to enable it to produce more. The market for bottled beer is rising since several years. It is crucial to maintain market share in this region to have available the resources necessary to grow the business. [...]
[...] Secondly the product must be in accordance with the taste and budget of buyers. Besides the price has not be expansive but no cheaper also, for the customer price guide him on the quality of the product. Therefore margins are getting reduced. If the buyer disagree a beer he can change easily his way of consummation. Bargaining power of suppliers Contrary to buyers, suppliers aren't powerful on this fragmented market. Beers aren't unique product so it's difficult to dictate specific prices. [...]
[...] Strategic Management: Stribe Stout Company Assignment Contents I. Introduction 2 II. Environmental Scan 3 A. Analysis of the key internal activities / departments 3 B. Analysis of the external environments 4 1. PESTEL factors 4 2. Five Forces Analysis 7 III. Strategy Formulation 9 IV. Recommended strategies 10 A. Competitive strategy 10 B. Directional Strategy 11 V. Conclusion 12 VI. [...]
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