As Chief Operating Officer, I would entertain the idea of opening a third brewery, this would stick with the theme of maintaining its strategic focus and growing the company. Before starting this venture, first I would list the positives and negatives next to each other and then make an informative decision. When considering the expansion of a business there are many things to think about before making any decisions. Key items on my list of pros would include: shorter travel distances for distributing the product, decrease in fossil fuels, increase of jobs, expansion of the company’s capacity, increase in annual sales, and decreased competition. Key items on my list of cons would include: increase in challenges to remain on a human scale and
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Another brewery would allow the company’s capacity to expand by hundreds of thousands of barrels per year (Ferrell and Hartline, 2014, p.359). Increased production and distribution would also lead to an increase in annual sales (p 359). In the same sense, increased production and distribution would help New Belgium decrease its competition (p. 359).On the opposite side, opening the third brewery would take a lot of time, money, focus, and work. As a business expands, it becomes difficult to maintain core values and visions. The task of taking a current business model and transferring it to a new city can be challenging, however, it is necessary for a successful addition/expansion (New Belgium Brewing Company, 2014). If New Belgium opened another facility it would be increasingly difficult for the company to remain on a human scale and continue to be culturally authentic (Ferrell and Hartline, 2014, p. 359). The company would likely have to increase its corporate giving, event sponsorship, and philanthropic involvement to maintain its image of embracing citizenship in the communities it serves (p. 354 &
Another brewery would allow the company’s capacity to expand by hundreds of thousands of barrels per year (Ferrell and Hartline, 2014, p.359). Increased production and distribution would also lead to an increase in annual sales (p 359). In the same sense, increased production and distribution would help New Belgium decrease its competition (p. 359).On the opposite side, opening the third brewery would take a lot of time, money, focus, and work. As a business expands, it becomes difficult to maintain core values and visions. The task of taking a current business model and transferring it to a new city can be challenging, however, it is necessary for a successful addition/expansion (New Belgium Brewing Company, 2014). If New Belgium opened another facility it would be increasingly difficult for the company to remain on a human scale and continue to be culturally authentic (Ferrell and Hartline, 2014, p. 359). The company would likely have to increase its corporate giving, event sponsorship, and philanthropic involvement to maintain its image of embracing citizenship in the communities it serves (p. 354 &