The commitment of Sierra Nevada Brewing Company (SNBC) to sustainable and green is more than a mission and vision as it is part and parcel of their daily activities. The company has won several prestigious recognitions and awards. These include the Economic Leadership for Sustainable Practices, Environmental Awareness and Governor's Environmental, Climate Action Champion, Zero Waste Management and Green Business of the Year due to its sustainable business practices. The interesting part is that they are good stewards of their resources and their beers are famous worldwide. Amazingly, their environment sustainability entails rail shipping, vehicle charging stations, sustainable farming, organic gardening, carbon dioxide recovery, bio-fuel production, …show more content…
solar production, water conservation, recycling and composting water treatment. Also, SNBC equipped vapor condensers that use heat recovery in 1997, as well as HotRot Composting System in 2010. The company had a big market share and was ranked second largest craft brewer. SNBC is the biggest private craft brewer in the country. However, it faces competition from New Belgium brewing and Boston Beer Company. The Generation X was the specific target segment of SNBC in the craft beer market. The market share of SNBC high because it is positioned the minds of customers as a unique brand. Therefore, I recommend the creation of a strategic alliance with SNBC because it is a darling of the costumers as it embraces the environment sustainability. Sierra Nevada Brewing Introduction The Sierra Nevada Brewing Co.
(SNBC) was founded by Ken Grossman and Paul Camusi in 1979, but became operational in 1980. In addition, the company has been operational for 34 years now. The paper will discuss the integration of environmental sustainability and business operations of SNBC. According to studies and research, SNBC is committed to corporate social responsibility, especially the environment and community via environmentally friendly manufacturing processes leading to a good reputation, employee retention and attraction and profitability. The management is careful with the decisions and business operations they make regarding the environment since they affect their reputation and public …show more content…
image. Corporate citizenship, mission and vision Since its inception, the leaders and management of SNBC have shown their commitment to environment conservation and preservation. Ken Grossman stated, “We have always had the notion that we wanted to walk the talk and conserve the environment” (Casler, Gundlach, Persons & Zivnuska, 2010, p.44). However, the leaders were too busy to communicate, promote and fully implement the environment sustainability. SNBC can be credited for expressing their desire and will to become a good corporate citizen. The primary mission of Sierra Nevada Brewing Company is, “to produce the finest quality beer and ales while being a good corporate citizen and environmental steward” (Fischer & Chhatre, 2013, p.12). Likewise, SNBC realized the significance of integrating appropriate environmental values into the decisions and practices of the management. The basic components of SNBC's operations include reusing, recycling and reducing consumption of raw materials. Interestingly, the management and shareholder of SNBC realize that the success comes from a combination of quality beers (ales and lagers) and abiding by environment conservation and sustainability. Therefore, the company has remained profitable, sustainable and viable. All the materials used since the inception of the company are recyclable and environmental friendly. The founder, Ken comprehended the significance of conserving and preserving the environment while running his company. He is concerned about healthy and sustainable environment, thus intends to pass sustainable business practices to his children and the generation to come. So far so good, he has initiated recyclable environmental initiatives highlighted below. First, the company reduced water usage from the municipality by garnering water from truck washing and treating wastewater using aerobic and anaerobic treatment plant. Most interestingly, methane gas is produced from the anaerobic digestion, which is used in power generation at the local grid. Also, the spent vegetable oil is used to power trucks while spent yeast, hops and grain are used to feed the cows. Moreover, SNBC is credited for environmental commitments that have retained and attracted quality employees leading to low turnover. The company has not only focused on environmental health of the employees, but also the social health making the employees happy. The mission and vision of SNBC indicate that the organization is committed to the environment sustainably (Grossman, 2013). SNBC has been in business since 1980 to date, and they are fairing on well in terms of profitability and environment preservation and conservation. The corporate social responsibility initiatives of SNBC support their core competencies as stipulated in the mission and vision. The company has been able to reap the benefits of being a corporate responsible citizen. SNBC is a leading craft beer producer in the US, and it is not only in the business to make a profit but also to be corporate citizen. The company is committed to the environment and community at large. It has shown a commitment to the environment through recycling, reducing consumption of raw material and use of environment friendly materials among others. The company decided to go green to preserve the environment via the use of non-hazardous materials. SNBC must be acknowledged for being a corporate citizen and gearing towards being a greener company. It has led to a good reputation from the customers and ultimately higher profits in the beer industry. Market share The company has a big market share in the US and the world.
In 2008, SNBC was ranked second largest craft brewer with about700, 000 barrels of beer produced annually and approximately $100 million annual sales. As earlier pointed out, the market share of SNBC's craft beer has been experiencing a continuous increase since 2008 unlike the non-craft domestic beers that have experienced a loss of market share. The company experienced an increase in profit margin by over 7%. The increase in market share of SNBC is attributed to the good reputation the company gained via being sustainable and socially responsible compared to the big producers of beer in the US. Notably, the company responded to the needs of the customers and supported them by buying raw materials from the local community and championed for sustainable and green lifestyle. The above activity built customer loyalty since the company could respond directly to the needs of the community, thus increase in market share. The company has struggled and overcame the high cost of production to maintain an increase in market share. Besides, over 500 people have been
employed. Competitors SNBC is indisputably the biggest private craft brewer in the in the country. However, the company faces stiff competition from a private craft brewer and a publicly traded craft brewer competitor namely New Belgium brewing and Boston Beer Company respectively. As of 2012, the above competitors employed approximately 390 and 735 employees respectively. The two craft breweries competitors of SNBC emerged in 2008. They were also committed to green production and environment. For example, New Belgium engaged in environmental conservation practices similar to SNBC such as they had green building design and treated wastewater. Additionally, New Belgium used methane power generator and wind power to produce on-site energy. Besides, the company promoted the use of bicycle among its employees as a means of transport to prevent air and noise pollution. Last but not least, the New Belgium is a member of planet coalition that donates 1% of the revenue to organizations that promote environmental conservation. There was a massive consolidation of beer brewing companies into few producers during 1970’s that worried the consumers since it meant that they would be denied access to a variety of their preferred beers. Ken Grossman, a home brewer, established the SNBC to join the new craft breweries. The craft breweries were still new, and the big brewing producers despised it. However, the market share of SNBC in the craft brewers market grew rapidly as of 1900s and it is yet to lose the market share. The market share of SNBC has increased over the last eight years attracting higher margins. Retailers of the craft beer sold a variety of unique-tasting brands that had mass appeal. Besides, SNBC is credited for increased market share because it used appropriate distribution channels to introduce and retain the customers to the craft brewer niche brands. It is significant to note that the craft beers led by SNBC were the growth drivers in the beer industry. The table below shows competitive Profile Matrix showing SNBC and their two closest competitors, Belgium brewing and Boston Beer Company (Hede, Nunes & Ferreira, 2014). SNBC Belgium brewing Boston Beer Company Critical Success Factor Weight Rating Score Rating Score Rating Score Market share 0.13 4 0.52 2 0.26 2 0.26 Product brand reputation 0.05 3 0.15 3 0.15 2 0.12 Distribution channels 0.11 4 0.44 2 0.22 3 0.33 Company brand reputation 0.10 4 0.40 4 0.40 3 0.30 Target segment The Generation X (individuals born between 1965 and 1980) was a specific target segment of SNBC in the craft beer market. The SNBC's craft beer gained popularity among the Generation X because it provided them with a variety and limited distribution, thus satisfied their drinking spree, and they were willing to pay high prices. The company was successful among the Generation X craft beer customers and made consistent purchases that accounted for more than half of the sales. Consequently, the market share of SNBC increased rapidly because the Generation X customers were loyal to the craft beer brand. Thus, it set a benchmark for quality craft beer. According to the U.S. Brewers Association, SNBC maintained an upward growth trend since it competed favorably with the other beers and represented affordable luxury among the targeted segment. The target market of SNBC is a stable group. The SNBC targets adult males and females in the market by providing them with quality craft beer. However, it concentrates mostly on the men aged between 21 and 34 years old segment. Moreover, SNBC was popular in the US and North America in general because it targeted stable adults demographic population. The company should expand to other target segments such as adult women who use beer less frequently. The women should be targeted and enticed by offering them with special recipes, aromas and tastes before they become accustomed to more sophisticated craft beer. Market Positioning The market share of SNBC craft beer has kept on increasing in the last decades since their product is positioned well in the minds of customers. SNBC is a unique brand name to the craft beer customers. The craft beer customers are reminded of SNBC products just at the mention of ales and lagers they manufacture. According to research, SNBC has good brand name among its loyal, customers and cannot be replaced when it comes to craft beer. The customers consider SNBC's craft beer to be the best and their favorite, thus cannot purchase other brands of beer. Additionally, the craft beer product is positioned in the mind of consumers to represent a sense of affordable luxury (Cantwell, 2013). Business ethics and corporate citizenships are values that guide an organization. Ethics is used by SNBC to guide the management and employees to take care of the customers and the organization. Moreover, ethics refers to all ethical issues in an organization practice based on person, culture and environment. The ethics are used to guide the employees to take care of SNBC's interests. Sometimes ethics causes an ethical dilemma as in the case of SNBC. The business ethics calls for the management to be honest, responsible to all stakeholders, respectful and fair in its dealings among others. However, there comes a time when an organization decides to avoid ethical behavior because it wants to safeguard its interests. In the case of the decision to complete or not complete the solar panel array, SNBC is faced with the ethical dilemma of being considered a corporate citizen by the community if it completes the solar panel array because the local community will benefit greatly. The community will be provided with environment-friendly source of power. On the other hand, Ken Grossman will benefit if it does not complete the solar panel array because it would reduce the cost of power production and avoid the tax levied on the building materials. Therefore, the stakeholders affected by the ethical dilemma are the Ken Grossman and community. I would recommend the firm to finish the solar array as it stands to benefit in the future despite the expenses they will incur in the short run. He has already completed the four phases, and it would be wise to complete the last phase, as this will enable it to have a good reputation among the customers. Ken should not consider investing in geothermal energy or wind power that has government incentives because his company will be perceived in a bad light. Therefore, I recommend strategic alliance with SNBC (Andrews, 2010). Conclusion SNBC has shown a commitment to environment sustainability through their mission and business operations such as using environmentally friendly processes that have enabled it to gain competitive advantage over rivals.
The company launched an initiative collaborating with the “Lyft”, which will provide free rides for drunk customers [8]. This indicates the amount of dedication the company has towards its customers. It also provides tours to customers across the 12 flagship breweries in the United States [9] and would also help customers with samplers. Any company that values its customers would become a great success and Anheuser Busch has proved this again. It also values its employees making sure every one of them feels like an owner and everybody would work as considering the results to be personal [10]. All these put together has helped the ANHEUSER BUSCH to brew beers that are loved by their customers and in making it the leader of its domain of
Ferrell, O. C. (2008). “New Belgium Brewing Company(A)” in Ferrell, O. C., and Hartline, Michael D., Marketing Strategy, Fourth Edition, Mason, Ohio: Thompson Southwestern Publishing, pp. 463-470.
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