One Lone Wolf Business Study

The company has 30 employees who make 15000 hectoliters of beer per year. The premium beer that is produced in small batches is sold across many regions like Alberta, BC, and Saskatchewan. One lone has been facing various challenges and key issues in many business areas. One of the key problems that the aforementioned company faced is related to supply chain management practices which practices faced serious issues of inadequate supply of raw materials, poor waste management, and lack of a definite and comprehensive production plan, stocking, re-ordering, inventory management, and packaging and distribution of products to the customers. In light of the serious issues that the company faced for example unsold stock, inability to meet customer orders in a timely manner, poor inventory management, and competition from the many small craft beer companies there was need for urgent attention.

Also, most of the packaging bottles were procured from Condor Packaging Limited and this brewery company could sign a year-long contract for the same. However, the lead time for the delivery of these packaging materials was long and therefore was doomed to bringing delays. Raw material sourcing. The company made purchases of agricultural products from various farmers. While this was good for the company to obtain the sizeable agricultural inputs it needed, it can be argued that it was also detrimental to the company. In addition to this, it lacked a proper way of tracking kegs for recycling and refilling. This was a cost in disguise to the company. In the case, it is evident that rarely used recycled kegs bottles as they has no proper ways they could track them.

Strategic issues A key strategic issue involved managerial decision making. This is a critical issue as it affects the running of business operations and the potential of a company to achieve its strategic goals. This is critical to the success of any company in the brewery industry. Secondly, the company sometimes experiences challenges in making timely delivery to customers. This has affected the sales volume significantly. Thirdly, due to the low advertisement and promotional efforts, the company experiences unsold stock of the specialty seasonal beer lines. Also, there is poor raw material planning. Secondly, Dennis can create unique craft beer as he is presented as being an artist in making creative craft beer. Thirdly, the inability of large breweries to make an entry in small-scale craft beer production, also it is increasingly becoming impossible to make a duplication of the craft brewed flavor.

Finally, thanks to AGLC, an in-house retail store can be established in Alberta. Threats To begin with, there is a 70% increase in micro-breweries in Canada. Secondly, the industry is highly regulated and there are heavy alcohol-related taxes are coming up. Finally, the unorganized warehouse has raised concerns due to poor inventory management, improper storage of beer, and shipping of the wrong combination of products. Quantitative Analysis Revenue breakdown. A keen analysis of the case reveals that on average the raw material purchases are 40% of the total revenue, cost of labor 9% of revenue, and tax related to alcohol are 30% of revenue. Packaging trend of the industry. The most popular method of packaging is the canning where beer is canned. Thirdly, the company must embark on a rigorous promotional campaign.

This will be important in increasing the sales volume and hence reducing the current volume of unsold stock that company usually experiences. Additionally, One Lone Wolf should procure agricultural products from one farmer as this may reduce the chances of getting poor quality of inputs and hence the quality of beer may be improved. Further, Reinhardt should be actively involved in the critical management decision of the company and should also employ his said creative skills in beer crafting in improving the situation of the company and increasing the customer base. Finally the company should make efforts that are purposed at reducing costs. The main agenda of the meeting will be to agree and sign an agreement on the need to embrace these findings with the aim of addressing the current issues that are facing the company.