BUSI 5906A

Business Case Analysis

MEMO

[Write introductory paragraph for memo here]

961 Beer is a Leabanese brewing brand and also a beer pub which had developed into a
favourite hotspot for locals and tourists.
have to make a decision now. Consolidate or grow?
Based on the analysis of the issues, I analyze the 961 Beers situation by SWOT.
After that, I provide two alternatives and my recommendations.
[Summarize each of the following in the spaces below as part of the memo format]
1. PROBLEM: What is the main (underlying) problem/opportunity in this case?

With increasing intensive competition and the limited production capacities, what strategy should 961 Beer take
in the future? Should 961 Beer consolidate or grow?

2. ISSUES: What are all of the issues relevant to this case?

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Lebanese beer consumers are resistant to change.

Facing pressure from Almaza that not only monopolized the market but also exercised great power.
Being constrained in financial resources.
Lack capacity for production.
Supplier refused to send technicians over to Lebanon.
The pricing of the beer was challenging and required some sacrifices in order to compete with the main local
competitor.
7. Fragile security situation and political trouble.
8. Other bars and restaurant owners reluctant to sell 961 Beers.

3. ANALYSIS: Use a framework (PEST, Porter, SWOT, etc.) to analyze the issues in this case

Strenghths:Using fresh raw materials without additives and preservatives leads to greater quality.
More beer diversity with regards to tastes and added flavours.
Innovation in the form of new beer styles and types.
Offering a Lebanese Pale Ale that was marketed as the brewmasters select.
Using Lebanese resources in its production process.
Stubbornness and sheer determination.
The ability not to give up of the team.
Weaknesses:Limited capacity of production.
Technical problems.
Opportunities: Traditional ways to produce beers of 961 Beer.
The largest early customer group consisted of educated, higher income beer consumers and also addressed the
needs of consumers with a strong interest in locally produced goods.
Using online media early on to advertise beer and founding a facebook group.
The booming business of the pub.
961s brand slogan change which means 961 Beer is thirsty for change. And this attitude would be reflected in
the company culture, brand label, website, advertising slogans and its beer pub.
Threats:Lebanon is usually in political trouble that brings a fragile security situation to 961 beers. This may
tremendously decrease the frequency of visitors to the bar and also some other negative impact.
Increasing intensive competition.
The Lebanese had been accustomed to their drinking habits and had difficulties adapting to the new taste.
961 team did not explicitly segment their customers.
4. ALTERNATIVES: What solutions can you think of?

1. 961 Beer can focus on consolidating the business by researching and developing the technology and enlarge
the capacity of production in order to meet the need of customers. It will also maintain the high quality of
products and attract more potential customers.
2. 961 Beer need to grow and expand. 961 Beer can open new beer pubs to expand their business. Also,
considering the security problems, 961 Beer could expand the overseas market by launch new product based
on local appetite. At the same time, 961 Beer can also maintain the high quality and traditional brewing
ways. In this way, it can position on the premium beer.

5. RECOMMENDATIONS: What would you do? Why?

Because the political reasons, the supply resist to provide techniques to 961 Beer. I think 961 Beer can
research and develop the technology or change the supply immediately. And it should enlarge the capacity of
production in order to meet the need of customers. At the same time, new beer pubs should be opened as the
pub seems always full. In addition, 961 Beer could aim at the higher income beer customers with its high
quality of products and diversity flavours.