Essay about Case Study : Coors Brewing Company

931 Words Apr 21st, 2016 4 Pages
Miranda Dykes
MGMT 4513 Case Study
Coors Brewing Company Overall performance is closely linked to a company’s operations and how they meet objectives to obtain certain outcomes. The story of Coors’ performance is told in Exhibits 9-10 in the Strategic Management textbook; despite increased capacity, operating income as percent of sales declined by 11% in 1985. Even more telling would be the changes in pure operating income across the industry. In those eight years Coors declined by 14.7%, while others like Heileman increased 168% and Anheuser-Busch increased 358%. Other factors come into play like Coors having low growth in net revenue and the number barrels sold, but possibly the most influential change was Coors advertising expense, which was approximately twice their competitors in 1985, compared to almost nonexistent in 1977. A differentiated product is distinctive and perceived as such throughout an industry. Coors tried to achieve this strategy by using “pure Rocky Mountain spring water” when in reality followed a cost leadership strategy by being able to sell at a lower cost from efficiency of a single plant. This, combined with their plans to expand nationally, created several inconsistencies from in their strategy. One of Coors main problems from national expansion was the expansion itself. All other brewers analyzed in the case sold their products in all fifty states, so Coors was at a disadvantage of not doing the same but they didn’t properly utilize previous…

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