External and Internal Factors in Opening a Brewery
Bob’s Bohemian Brewery
A look into the General and Task Environments
By: Kimberly Hutchins, Michael Huber, Jason Hoy,
Emily Gauden, Erica Hoppe, and Dana Hunt
Introduction
In a world where large, corporate breweries rule the market, craft beer is created to please an audience that applauds the styles, techniques and flavors. Though craft beer can be purchased through several different outlets, the best place to thoroughly enjoy the entire experience of the specially made beer is in the brewery where it was made. The article titled, “In Lean Times, a Stout Dream” in The Wall Street Journal1 states that, despite the hard economic times and consequent consumer cutbacks, sales of craft beer, the industry 's fastest-growing segment, rose 6 percent by volume, and dollar sales jumped 10.5 percent to $6.3 billion, according to the Brewers Association. The article also states that craft beer has shown continual growth year after year in the last 10 years and data shows that U.S. craft beer sales totaled $7.6 billion in 2010. This is good news for a brewery that is considering opening soon. Using Griffin’s Model to analyze the general and task environment of this ever expanding market will help to determine if it is a good idea for a potential craft brewery, in this case Bob’s Bohemian Brewery, to be a viable business venture.
Economy
One of the first and most important aspects a potential new business needs to consider before deciding to open a location is the economy. Everyone is well aware that the current economic health of our county and state is dismal at best. According to The Bureau of Labor Statistics2, as of January 2012, the current California unemployment rate is at 10.9 percent, but the regions of San Diego, Carlsbad, and San Marcos carry a slightly lower unemployment rate of 9.3 percent. That is encouraging news if you plan on doing business in the San Diego region. Also, according to the U.S. Census Report3, the median household income between 2006
A look into the General and Task Environments
By: Kimberly Hutchins, Michael Huber, Jason Hoy,
Emily Gauden, Erica Hoppe, and Dana Hunt
Introduction
In a world where large, corporate breweries rule the market, craft beer is created to please an audience that applauds the styles, techniques and flavors. Though craft beer can be purchased through several different outlets, the best place to thoroughly enjoy the entire experience of the specially made beer is in the brewery where it was made. The article titled, “In Lean Times, a Stout Dream” in The Wall Street Journal1 states that, despite the hard economic times and consequent consumer cutbacks, sales of craft beer, the industry 's fastest-growing segment, rose 6 percent by volume, and dollar sales jumped 10.5 percent to $6.3 billion, according to the Brewers Association. The article also states that craft beer has shown continual growth year after year in the last 10 years and data shows that U.S. craft beer sales totaled $7.6 billion in 2010. This is good news for a brewery that is considering opening soon. Using Griffin’s Model to analyze the general and task environment of this ever expanding market will help to determine if it is a good idea for a potential craft brewery, in this case Bob’s Bohemian Brewery, to be a viable business venture.
Economy
One of the first and most important aspects a potential new business needs to consider before deciding to open a location is the economy. Everyone is well aware that the current economic health of our county and state is dismal at best. According to The Bureau of Labor Statistics2, as of January 2012, the current California unemployment rate is at 10.9 percent, but the regions of San Diego, Carlsbad, and San Marcos carry a slightly lower unemployment rate of 9.3 percent. That is encouraging news if you plan on doing business in the San Diego region. Also, according to the U.S. Census Report3, the median household income between 2006