Hesha Shah
STRT 4501: Cooley Distillery
03/12/2018
"Cooley Distillery: The Independent Spirit of Ireland" is a "David and Goliath" case surrounding Cooley Distillery, which is the only independently owned Irish whiskey distiller in the world. Located in Ireland, the company has managed to survive strong competition in the oligopolistic category of Irish whiskey in the global spirits industry for 25 years. The non-listed public company has remained a niche player despite gaining a staggering reputation for quality and innovation in its offerings. One of the biggest problems faced by the company is that in all these years, Cooley Distillery has never managed to pay any dividends to its 290 shareholders and John Teeling, the founder and chairman
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Cooley's has some great strengths attributed to its traditional method of distilling Irish whiskey in prime climate, which is perfectly suited to distill quality whiskey, further complimented by their access to native materials required for this process. Cooley's competitive advantage arises from the uniqueness of his product coupled with the fact that it was "small, independent, and Irish" (Kennelly, 14). While these strengths have helped Cooley reach where it has today, distribution and mass marketing are a few of the weaknesses holding the company behind as it struggled to get its products on shelves. This can further be attributed to the vast multinational competition and few funding outlets. Due to this limitation in funding, Teeling was in a way forced to reinvest all of Cooley's profits back into the business. As mentioned before, this reinvestment led to no dividends being circulated amongst its shareholders but fortunately, this also led to a loyal base that has supported the company since its inception. Teeling believes that this patience would be rewarded with continual growth of the company. Although the company has no form of funding for its marketing efforts, Teeling has managed to make a few improvements and expansions in its facilities to boost efficiency and provide extra storage in the warehouse. With the high competition in this market, the company had to up its game. For example, providing bulk whiskey sales and private labels in supermarkets and other stores are good ways to curb competition. But even though these strategies might have helped the company in the past, it is important for Coolery to focus on adopting a new strategy that would help the company grow in the long
In 1844, the Empire Brewery was founded by Jacob Best and his sons in Milwaukee, WI. In 1860, Jacob’s son Phillip took over and renamed the brewery the Phillip Best Company. Phillip’s daughter, Maria married a steamship captain, Frederick Pabst. Captain Pabst sold his shipping interest and bought a partnership stake in the brewery. In 1872, Captain Pabst became President of the company. In 1889, he renamed the business the Pabst Brewing Company.
1.3. In order to estimate the peso discount rate, assume that the International Fisher Effect (IFE) holds. Groupe Ariel's Euro hurdle rate for a project of this type was 8%. Assume that inflation rates are expected to be 7% in Mexico and 3% in France.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must
Brand plays a key role in the beer-purchasing process, along with taste, price, special occasion,
Tootsie Roll faces a number of key issues concerning its strategy. One of such strategic issues relates to how it can maintain its marketplace success and sustain its competitive advantages, in light of (i) the company’s growth prospects in U.S. and foreign markets, (ii) intensity of the competition, and (iii) the fact that the two key leaders of the company are not getting any younger.
1. Why is Brown Forman considering buying Southern Comfort? In your answer consider the strategic motives of Brown and the arguments in favour of and against the acquisition.
This strategy of acquiring and improving upon unique brands helps the company avoid the first pitfall of utilizing a differentiation strategy as brands cannot be easily or quickly copied. However, the obsession with reputable and older, recognized brands makes this maneuvering come off as defensive. Coupled with Tootsie Roll’s lack of recent innovation both in products and marketing, as well as staying within the confectionary industry and not making attempts to experiment outside of this sector, causes the company to seem antiquated and
Provide the following discussion based on the conclusion of your test: If you conclude that there are less than sixteen (16) ounces in a bottle of soda, speculate on three (3) possible causes. Next, suggest the strategies to avoid the deficit in the future.
Estimates of fixed costs are reasonably straightforward and are given in the case (p.280), a total of $250,000 ($160,000+$90,000).
The following is an analysis of the case, Greaves Brewery: Bottle Replenishment. It details the growing beer operation of Greaves Brewery located in the Caribbean island of Trinidad. The purchasing manager for the company, Alex Benson, is uncertain about how many bottles to order from the company’s German glass supplier. His decision is complicated by the possibility of a new bottle design being introduced that would compromise his existing inventory of bottles. Additionally, he is faced with storage limitations and erratic sales, all of which are impacting his decision. He is also concerned about over ordering to avoid issues from an
Bonny Doon currently has an enviable position in the 1990’s Californian wine-producing industry. The company has successfully differentiated itself from its competition and achieved a first mover advantage in terms of selling “undervalued” wines. However, due to increased rivalry and a changing and increasingly challenging market,
Cooley is a non-listed public company with 290 shareholders and 9,098,935 shares outstanding (Kennelly, 1).
The following is an analysis of the case, Greaves Brewery: Bottle Replenishment. It details the growing beer operation of Greaves Brewery located in the Caribbean island of Trinidad. The purchasing manager for the company, Alex Benson, is uncertain about how many bottles to order from the company’s German glass supplier. His decision is complicated by the possibility of a new bottle design being introduced that would compromise his existing inventory of bottles. Additionally, he is faced with storage limitations and erratic sales, all of which are impacting his decision. He is also concerned about over ordering to avoid issues from an off year, impact from
Brown-Forman is a leading producer, marketer and importer of wines and distilled spirits. The company was the fifth-largest distiller in the United States. However, the company's success will largely due to the massive amounts of advertising expenditures on their premium brands. The company spent significantly less on low profit brands and as a result the whiskey market declined. Their response was to move into faster growing product lines to alcoholic beverages and this analysis considers a horizontal acquisition of the Southern Comfort brand.
But as the company grows, they will have to let go of this structure and culture. Even Peter wonders if this structure is suitable if the company will grow in the future. SOLUTION: By growing as a corporation in the future, the company should and will hire more and more employees, and as the personnel increases in number, the organizational structure and the culture will change.