Business Case Study New Belgium Brewery Commerce Essay

There are many ways in which we can judge company whether it is the best or the worst. Different people have different positions about the company like the investor thinks like is the company good for puting do they hold a good return on their investing and people think do they hold good merchandises.

We can besides judge a company by seeing what resources they have given to the society and what protective steps they have taken in order to take attention of the environment.

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There are different inquiry that we are traveling to reply about our instance survey in Belgium Breweries. The inquiries that we are traveling to reply are

Operational Management at the New Belgium Brewing

Importance of prosecuting employees to better quality and efficiency

How they are instead powered?

Environmental Stewards


Environmental duty and sustainability

Belgium Breweries started in 1991 by Jeff Lebsech and his married woman Kim Jordon in the cellar of their house. They were declined a loan from the bank so they had to get down with limited capital. They had a end in head to go one of the taking breweries in the United States. From presenting there beer from station waggon they went on to increase their production to 436,000 barrels of its assorted labels in the twelvemonth 2006 and this addition in production helped them in increasing their distribution to 19 provinces in the twelvemonth 2008.

Question 1

How would you depict operations direction at New Belgium Brewing?

In 1991 after Jeff Lebesch was non able to acquire a loan from the bank he started a beer brewing company with his married woman Kim Jordon is the cellar of their place with merely a little capital investing. They delivered their beer in their station waggon. With the net incomes they generated their company shortly outgrew the besetment, and moved to another location in a railway terminal, and eventually in 1995 they built a province of the art usage installation which cost $ 21.5 million. They spent $ 11.5 million on a 55,000 square pes edifice, and $ 10 million on new equipment. Until 2005 NBB ‘s most effectual signifier of advertisement has been word of oral cavity. Indeed before New Belgium beers were widely distributed throughout Colorado, one spirits shop proprietor in Telluride is purported to hold offered people gas money if they would halt by and pick up New Belgium on their manner through Ft. Collins. While NBBC has non deviated from its original rules, the methods and people who operate the brewery have become more formal and professional. Production directors and continuous-improvement experts from outside the craft-brewing community have been recruited. As they reshape the fabrication patterns and place undertakings with the best returns and highest impact, they ‘re careful non to quell staff engagement.

By get downing in there cellar as a little company they were able to concentrate on the quality of the beer instead than the measure of it. New Belgium ensures that quality at the works is monitored closely. Through the procedure the quality of the inputs as they are transformed is examined. Quality confidence is a critical component of the operations direction. However it is hard and a challenge to keep a consistent merchandise. The quality of the merchandise should ne’er endure as a consequence of the size of the company. When a company is big it is more of import than of all time that the quality of the merchandise stays the same, because the merchandise is sold to more people. At New Belgium the full procedure signifier having the hops, to brewing, and bottling is monitored invariably, to see that the merchandise is at the highest quality. Even though the quality of the inputs alteration, the quality of the merchandise should non alter. They maximize productiveness by to the full using their engineering. New Belgium closely monitors the quality at the works. The new engineering will go on to be efficient, high tech, and environmentally friendly. implementing a compassionate concern theoretical account that aims to steward the resources of Earth and nurture its employees, New Belgium has besides been successful in keeping healthy financials. They like to state that they are profitable, non in malice of their societal and environmental attempts, but because of them. Sustainable production is non simply a feel-good attempt ; it ‘s a pocketbook issue for NBBC ‘s 350 workers: After one twelvemonth of employment with the company, the employees become employee-owners. All employees are considered country leaders, and everyone is responsible for guaranting that the quality remains high. The employees of New Belgium ain 43 % of the company through their “ Employee Stock Ownership Plan ” or ESOP. While giving employees ownership in the company sets the foundation for an engaged work force, the existent connexions occur beyond the Share Statements.A The ground for New Belgium ‘s success are the companies Purpose and Core Values & A ; Beliefs Coupled with the construction and support at the executive degree, employee battle is the cardinal ingredient in High Involvement Culture.A With their employees connected to the cardinal maps of the concern, They solicit thoughts from over 300 alone perspectives.A This helps the brewery to run more intelligently while acknowledging everyone ‘s alone gifts.A These are the patterns they have used to construct New Belgium ‘s typical civilization. New Belgium opens all of the books to it employs and provides fiscal developing so people can understand the concern of making business.A At monthly All-Staff meetings they review the financials, and employees have the chances to inquire inquiries and supply feedback.A Each employee makes determinations in his or her function that affects New Belgium ‘s profitableness, whether it is about a capital enlargement undertaking or go forthing a spigot running while they wash their hands.A It all adds up.A When a employee is connected to the higher intent of the company and educated on the fiscal results of their actions, they are empowered to do determinations that benefit the concern as a whole. Trusting each other with this degree of item besides helps us to experience apprehended, empowered, and finally more fulfilled. These patterns galvanize coworkers to be engaged in New Belgium, to claim the company ‘s Core Valuess and Beliefs which call them to “ honour nature at every bend of the concern ” as their own.A What is good for the environment is finally good for concern. They do n’t desire to go forth the spigot running or the visible radiations turned on because it costs money and natural resources.A A In add-on to the patterns which promote High Involvement Culture, they besides work to prosecute employees in environmental stewardship.A

The first two beers that they produced were Fat Tire, and Abbey, which are still sold today. The new edifice will have an machine-controlled, high-velocity bottling line which will increase end product to 700 bottles a minute compared to the 300 bottles a minute. The current production is at 400,000 barrels per twelvemonth, with enlargement that is expected to increase up to 800,000 barrels per twelvemonth. Since 2008, they have opened up distribution in 7 new provinces: A Georgia, North Carolina, North Dakota, Indiana, South Carolina, South Dakota, and Tennessee.A Added to their bing provinces of distribution ( Arizona, Arkansas, California, Colorado, Idaho, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, Oregon, Texas, Tennessee, Washington and Wyoming ) , New Belgium now sells beer in 26 provinces, but all of this beer is brewed in Fort Collins, Colorado. New Belgium receives legion electronic mails and phone calls everyday asking when it will be available elsewhere.

In 1995 when the Philanthropy plan was conceived, they began donating 1 dollar for every barrel of beer produced to non-profit organisations in the communities where they do business.A Since its origin, New Belgium Brewing has donated more than $ 2.5A million through our Philanthropy plan. There coworkers have besides donated many voluntary hours to non-profits organisations in the part. There coworkers are given one hr of ( paid clip off ) for every two hours they volunteer with philanthropic organisations.

Question 2

Why is it of import to prosecute employees in ownership to heighten quality and efficiency?

In today ‘s economic system, brewing all right ale and making a valued hallmark in the competitory brewing industry is a difficult undertaking to accomplish. You need to guarantee unvarying quality in the countless bottles you produce, have dedicated and hardworking staff to guarantee smooth and efficient operations, and ever look for better methods of transcending the consumers ‘ outlooks. New Belgium Brewery understands this, and came up with a simple solution that would guarantee all of these points are met. After one twelvemonth employment at New Belgium, an employee ‘s position is upgraded to employee-owner and they are rewarded with company portions.

New Belgium realized that the pros of doing their employees into proprietors were infinite. The publicity entirely insures employees coming into work motivated to make their assigned responsibilities to their full potency, and creates a more productive work environment with everyone focused on run intoing the same ends. The inducement being that if the concern does good, their wage additions. With this inducement, employees will guarantee the quality of the beer is exceeding and will endeavor to transcend criterions ; this helps keep the company ‘s vision in making higher quality brews. The employee-owner inducement plan used at New Belgium non merely gives the company a competitory border with enhanced quality but besides AIDSs in employee keeping which in bend reduces the costs of engaging and developing employees.

Now, non merely does New Belgium have difficult working, dedicated employees, they have a big work force concentrated on how to better the concern. As portion proprietors, an employee can convey up any thought on what could do the company sell more, bring forth more, or in some instances what needs to be fixed and how it could be done. It would n’t count what section you are in, if you had an advanced thought on how to assist the company, you have the ability to voice your thoughts to senior direction. For illustration, if they produce new ale with a full smooth gustatory sensation yet is somehow non selling every bit much as it should ; the selling squad could hold overlooked the fact that their ales label could be mistaken for a rough image, employees who have no cognition of selling could put up a meeting and convey visible radiation to the selling trip as the likely cause for deficiency of gross revenues.

We believe there is still one extra ground why New Belgium has made this determination. A major job companies have is making an integrated work force where the issues and concerns employees have may non be right handled. New Belgium has ensured the safety of the company ‘s concern and the felicity of employees by presenting employee-owners. It besides thwarted the possibility of added costs from employees who would hold to utilize walk-outs or brotherhood representation to be heard by their directors.

The inquiry most concerns ask is why should you give employees partial ownership? Yet New Belgium proves that it should be, why would you stultify your concern by non?

Question 3

What does instead empowered mean to you?

After reexamining the information provided by the New Belgium Brewery web site, I have come to see instead empowered as a agency of giving back to the environment B Y emphasizing preservation and including environmental duty in the strategic planning procedure. In today ‘s modern industrial society, companies who grow bigger normally do so at the cost of the environment, because in most instances as companies grow the costs related to environmental stewardship additions every bit good. On the other manus New Belgium Breweries continues to spread out at an impressive gait ; their ranking in the US Beer industry has been acquiring better and better as they age, while their growing has been in front by at least 1 % in comparing to other trade brewing companies in the industry, all the piece maintaining their C footmark at a low. This is what being instead empowered agencies.

Remark on what New Belgium Beliefs are related to being “ Environmental Stewards ” .

The New Belgium Beliefs are eight guidelines that define what “ environmental stewardship ” means to the company. More specifically in footings of what New Belgium believes it has to make as a company to considered environmental stewards. These include caring for the environment. Minimizing waste, so that the minimal sums of natural resources are prodigally used, and cut downing dependance on non environmental friendly methods of electricity, through agencies of ego bring forthing power and buying clean air current power. Conservatively utilizing the bouldery mountain H2O resources. Maximize preservation and efficiency. Increase usage of new engineerings. To do environmentalism a fun manner of making things and non the difficult or dearly-won mode of making things.

New Belgium Brewery is working towards accomplishing these guidelines through there instead empowered attempts. They have nine attempts that incorporate these guidelines. These include increasing efficiency by utilizing new engineerings such as Steinecker ‘s Merlin, which reuses the energy from the last batch in the following in the signifier of heat. They try to minimise the usage of lighting by taking advantage of three 100s and 60 yearss of sunshine and the chilling demands are satisfied through evaporative chilling instead than electricity guzzling compressors. They besides use wastewater intervention to cut down burden on environment and acquire by merchandises. This procedure besides provides them with a beginning of electricity. By doing environmental determinations merely with the consensus of the employees they guarantee that cipher feels they are being forced to make something that they do non desire to. ( New Belgium Brewery, 2010 )

In the subdivision entitled “ Alternatively Empowered Attempts ” , Choose two of the attempts and discourse how they fit into overall sustainability authorization of the company every bit outlined in the 2007 sustainability study ‘s “ Letterss from the Sustainability Director ” .

One of the most of import factors discussed in the managers missive is that though they claimed that the energy used by them is 100 % air current generated it is alternatively less than half and this will alter through their attempts[ 1 ]. The two attempts most closely linked to this authorization are the undermentioned:

On-site Energy Production

Any industry today requires a big sum of electricity to run and it is following to impossible to acquire all of it from air current generated beginnings as they are non so readily available and dearly-won. On-site Energy production would cut down the demand for electricity from outside beginnings and therefore enable the company to run into more of its energy demands from air current powered beginnings. This method of energy production reduces electricity intake by 15 %[ 2 ], therefore conveying their degree of air current powered beginnings to more than 50 % , which with farther betterments could travel higher.

Wind-Powered Electricity since 1999

An of import factor is the understanding signed with the Colorado authorities in 1998, which meant the company would be supplied as much power as possible through air current coevals even though the cost would be more. This understanding allowed the authorities to set up more air current turbines, therefore increasing the power available through air current generated beginnings, which is another measure towards the authorization provided by the manager. ( Orgolini, 2007 )

Question 4

Do you believe New Belgium ‘s focal point on environmental duty and sustainability in its production procedure is a major cost or a benefit that enhances the net incomes of the company?

The New Belgium brewery website provinces that they are “ profitable non in malice of our societal and environmental attempts but because of them ” ( New Belgium Brewery, 2010 ) ; the undermentioned paper aims to exemplify this statement by depicting how their preservation attempts have enhanced the net incomes and trade name image of the company.

New Belgium is the 3rd largest regional trade brewery with production steadily increasing since 2005 ; this success has been achieved while still maintaining sustainability and environmental duty at the head of their strategic planning procedure. New Belgium has implemented a sustainability direction system which brings a structured attack to environmental and preservation attempts. Through accurate assemblage and representation of the negative impact there fabricating procedure has on the environment New Belgium was able to aim specific countries for betterment. New Belgium brewery puts this pattern into action by puting in efficient equipment most notably there brew kettle the Steinecker Merlin ; which heats thin sheets of wort instead than the whole boiler and shops steam and vapour that ‘s allows the wort to heat at a quickened gait cut downing the sum of primary energy used. New Belgium ‘s energy preservation attempts do n’t halt at that place ; their site claims that “ the most sustainable W is the W ne’er used ” ( New Belgium Brewery, 2010 ) and they ‘ve introduced assorted enterprises that stress preservation including ; taking advantage of natural visible radiation with light tubings and light shelves, and exchanging to HVAC evaporative ice chests that use much less energy. By planing with preservation in head new Belgium has increased its efficiency and reduced the energy input needed in their fabrication procedure ; this finally translates to a positive addition to their net incomes and public image. New Belgium besides uses a closed cringle system by pumping methane gas generated from their waste intervention installation to a 292Kw co-gen engine that produces up to 15 % of their energy demands. Though the system had malfunctioned in the yesteryear a partnership with Woodward led to the installing of new controls that have led to even greater efficiency. This illustrates another facet of New Belgium ‘s committedness to environmental reasonability ; by actively seeking out support to optimise their equipment they ‘ve reduced their environmental impact and built lasting and utile dealingss with assorted concern and authorities sponsored preservation plans. This can besides be seen in New Belgium ‘s assignment of outside advisers when developing at that place SMS system. In 2010 new Belgium commissioned the building of a solar array on the top of the packaging hall, at the clip it was the largest private solar array in Colorado and displays New Belgium ‘s advanced efforts to tackle sustainable energy. The solar array presently provides over 3 % of new Belgium ‘s energy demands and will go on to far into the hereafter. In 1999 the New Belgium employee-owners voted nem con to exchange their purchased energy wholly to weave power. Though this included a 2.5cent premium on every W produced ; efficaciously cut downing the employee-owners fillip pool the consentaneous ballot showed that New Belgium ‘s attempts to cut down their C pes print had supported from everyone in the company. Even though the switch to weave power reduced net incomes in the short tally the consolidative ballot and positive effects to employee morale ( employees are happier when they feel they have a voice in their workplace ) may finally countervail the loss with increased efficiency and employee keeping. New Belgium ‘s switch to weave power besides had a ripple consequence through derived demand ; leting Fort Collins Utilities to go the first public-service corporations company in Colorado to offer wind power.

In decision New Belgium ‘s continued attempts to cut down their C pes print and deep committedness to sustainable production has been an overall benefit to the company by diminishing inputs to their fabrication procedure and bettering trade name image.


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