Mountain Man Beer Company - Case Analysis Essay Example
Case Analysis
Mountain Man Brewing Company:
Bringing the Brand to Light
Mountain Man Brewing Company (MMBC) was founded by Guntar Prangel in 1925. He reformulated an old family brew with quality ingredients, resulting in a flavorful bitter tasting beer which was launched as the Mountain Man Lager. The brand grew to claim a respectable market share for an independent-family-owned-brewery, in whole of the East Central United States by 1960. Even today, after 80 years, the lager is a legacy brew, awarded as the Best Beer in West Virginia for many years in a row.
MMBC is still a single product company and generates over $50 million in revenue and selling over 520,000 barrels of Mountain Man Lager. All has been well thus far but now the market trends are changing rapidly.
Problem Statement
For the first time in the 80+ years MMBC has experienced a 2 percent decline in revenue, relative to the prior fiscal year. Is this a one-time occurrence or a signal shift in the overall marketplace? Businesses must act in a certain manner in order to maximize profits or run the risk of losing their place in the marketplace.
Chris Prangel, son of the President and owner of MMBC, Oscar Prangel, is to inherit the business in only five years. With differing management styles and thoughts on the direction the organization should take, this uncertainty could be potentially crippling over time.
The question of whether or not MMBC should move ahead with Chris's plan to introduce a light beer product is the one that is most pertinent to the overall direction the company will take. The ever changing marketing environment with respect to demographic, socio-cultural, and political scenario will influence management’s decision on which path to take.
SWOT Analysis: Strengths
Mountain Man Lager has established a brand with a strong loyal blue –collar clientele. This
Mountain Man Brewing Company:
Bringing the Brand to Light
Mountain Man Brewing Company (MMBC) was founded by Guntar Prangel in 1925. He reformulated an old family brew with quality ingredients, resulting in a flavorful bitter tasting beer which was launched as the Mountain Man Lager. The brand grew to claim a respectable market share for an independent-family-owned-brewery, in whole of the East Central United States by 1960. Even today, after 80 years, the lager is a legacy brew, awarded as the Best Beer in West Virginia for many years in a row.
MMBC is still a single product company and generates over $50 million in revenue and selling over 520,000 barrels of Mountain Man Lager. All has been well thus far but now the market trends are changing rapidly.
Problem Statement
For the first time in the 80+ years MMBC has experienced a 2 percent decline in revenue, relative to the prior fiscal year. Is this a one-time occurrence or a signal shift in the overall marketplace? Businesses must act in a certain manner in order to maximize profits or run the risk of losing their place in the marketplace.
Chris Prangel, son of the President and owner of MMBC, Oscar Prangel, is to inherit the business in only five years. With differing management styles and thoughts on the direction the organization should take, this uncertainty could be potentially crippling over time.
The question of whether or not MMBC should move ahead with Chris's plan to introduce a light beer product is the one that is most pertinent to the overall direction the company will take. The ever changing marketing environment with respect to demographic, socio-cultural, and political scenario will influence management’s decision on which path to take.
SWOT Analysis: Strengths
Mountain Man Lager has established a brand with a strong loyal blue –collar clientele. This