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Today there are over 1, 500 microbreweries operating in the United States. The MMM Ale House and Brewery owns 11 microbreweries along the West Coast. The MMM Ale House and Brewery, an Atlantic Beach based system of pubs and microbreweries (Brewpub). Each department of a company operates as a single unit, medium-size alehouse, serving fine, hand crafted, high quality, ale, and lager beers.
The companys goal is that of a multi-faceted success. Companys first responsibility is to the financial well-being of each separate brewery. It is possible to meet this goal while trying to consider four factors. First factor is the effect of our products on the well-being of our customers (and our staff).
Second, the impact that our business practices and choices should be considered and third, the high quality of attitude, fairness, understanding, and generosity between management, staff, customers, and vendors should be overlooked. Awareness of all these factors and the responsible actions that result will give our efforts a sense of purpose and meaning beyond our basic financial goals. The MMM Ale House and Brewery was incorporated in July of 1994. The founders are X and Y.
There are 5, 000 shares of common stock issued. X and Y each own 1, 000 shares and the remainder are retained by the company for future distribution. In addition, they have loaned the company $ 200, 000 of their own money for research and start-up costs. This company was originally formed as a Partnership in lieu of a Proprietorship with X and Y sharing equal responsibilities.
X is the President and Chief Operating Officer and Y is the Vice President. The general manager and brew master will report to Y. All other employees will be subordinate to the general manager. X, Y, and the stockholders will retain ownership with the possibility of offering stock to key employees if deemed appropriate. X is also the manager of another microbrewery.
Since 1977, the company has created a high-profile mainstream image for specialty brews. In 1990, the store became so popular and profitable, she decided to expand her horizons and co-own a store of her own. X brings with her a record of accomplishment of success in the micro brewing industry. Y was a co-owner of a neighborhood tavern. This tavern sold in 1989 as a very profitable business.
Y has always had an interest in micro brewing and decided this endeavor was appropriate at this time. X and Y management style is innovative in keeping with the corporate style outlined in the mission statement. A suitable site for the first restaurant was found in 1994 and lease negotiations are in the final stages. The location is on Atlantic Boulevard, just close to a dense population of the target market. After the lease was signed, there was three months of free rent for construction and in that time the balance of the start-up funds have been raised.
With that phase completed, The MMM Ale House and Brewery was open and the operations phase of the project began. Since then, the MMM Ale House and Brewery expanded and it became harder to control whole company. Although the microbrewery industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. Trends are very important and MMM Ale House and Brewery is well positioned for the current interest in trendy, casual, beach atmosphere.
As of March 15, 1999, there were 1, 528 microbreweries, brewpubs, and regional specialty breweries in North America. There are more than 2000 malt beverage brands produced in the United States, six times the number of brands produced a decade ago. U. S. and international brewers continue to produce a tremendous array of beer styles with solid niche markets continuing to develop for industry members of every size. The market is highly competitive.
If the business is meeting its projections by year two, we will start scouting for a second location and develop plans for the next unit. Our five-year goal is to exceed the maximum barrel age for a microbrewery (30, 000 barrels annually) and become a mass producer of MMM Ale and J MMM Lager worldwide with an annual profit of between $ 800, 000 and $ 2, 000, 000. The before mentioned numbers are realistic, because the microbrewery business is becoming one of the largest industries in the country. In June 1997, an article in the North Carolina Times Union noted that there were 154 microbreweries without a brewpub attached and 278 more with a brewpub. In 1993 new microbreweries opened at the rate of nearly two per week in the State of North Carolina, particularly in the beaches areas. It accounts for over $ 240 billion annually in sales and the independent microbrewery accounts for 15 % of that total.
The average American spends 15 % of his / her income on social entertainment outside the home. This number has been increasing for the past several years. According to the 1991 - 1992 North America Brewers Resource Directory, the average per-capita consumption of malt beverages was 23. 4 gallons per year in 1989 in the United States. In order for MMM Ale House and Brewery to be competitive and profitable an impressive board of directors has been assembled and represents some top professionals from the area. They are great asset to the development of the company. At the present, no outside consults have been retained, excepting the design department at Best Equipment.
Brew master and general manager as key employees already have been chosen and given incentives for performance and growth. Bowman and Deals model emerged from a systematic review of the organizational literature. It is determined that all of the organizational theories can be categorized as attending to one or more "frames." These frames are like windows through which people observe and participate in the organization: structural, human resource, political, and symbolic. The structural frame emphasizes roles, formal relationships and the systems that support them. The structural frame is the pattern of expectations and exchanges among the internal players in the organization. Some of the challenges facing management from this viewpoint includes lack of clarity vs.
lack of creativity, excessive autonomy vs. excessive interdependence, irresponsible vs. unresponsive. The examination of organization from the structural frame helps to focus on structure of organization, on its environment and is vital for implementation of new concepts. There is confusion about the Z (general manager) power of authority. He appears to have given his power away, yet some employees indicate otherwise.
In fact, there does not appear to be any real management to apply managerial leadership and direction. This kind of confusion and conflict demoralizes the apex and the middle line entirely. A common vision, mission, and active interest in the future must be demonstrated by
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