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EXECUTIVE SUMMARY

961 Beer was set up at a time when buildings were being destroyed and the city of Beirut,
Lebanon was in shambles. In those unfavorable political and economic conditions prevalent in
Lebanon. The founders, Hajjar and Henrik, decided to move forward with founding Lebanons
first craft brewing company the region which was the cradle of beer civilization. To focus its
target customers highly educated, middle-class city-dwellers the firm started a pub in a
strategically important location bustling nightlife scene of Beirut where it provides free samples
of its own beers and motivates customers to taste and get questions concerning the brewery
procedure. It caters to the neighborhood palate and also addresses the requirements consumers
having a powerful interest in the locally produced goods.
Now, beyond Beers capacity limitations, it is selling in February 2009. The creator is assured in
regards to the company but has to choose a strategy for the long run. Will he consolidate or
should he increase in growth? What kind of technique will permit the company to extend its
operations and to surge its customer base without ignoring the quality and the values that make
961 Beer what it is? He has to carefully draft the options available before him and evaluate each
one of them. The options have to be weighed against some criteria to arrive at sound course of
action. Upon careful deliberation of all the options and evaluating them, I recommend that Fred
shall fix another interview with Mimi and put forward the hesitations and based on her stands
about the issue take the decision.

Table of Contents

1.

Situation Analysis.....................................................................................................................4

2.

Problem Definition ..................................................................................................................4

3.

Options.....................................................................................................................................4

4.

Criteria for Evaluation..............................................................................................................5

5.

Evaluation of Options...............................................................................................................5

6.

The Recommendation...............................................................................................................6

7.

Action Plan...............................................................................................................................6

8.

Contingency Plan.....................................................................................................................6

9.

Exhibits.....................................................................................................................................6

1. Situation Analysis
961 Beer was established in 2006 in Lebanon under economic and political adverse conditions.
One of the premier craft beer businesses in the Middle East, it has developed from a home
brewer right into a hip Lebanese brand.
There were numerous issues which needed to tackle. 961 Beer had to deal with the extraordinary
unfavorable political and law & order situation. Moreover, it needs to deal with a major
international beer conglomerate and it is facing expansion issues related to the production
capacity. 961 Beer had to keep their marketing and branding activities on the toes because of the
intense competition in the beer industry.
Now, beyond Beers capacity limits, it is selling in February 2009. The creator is assured in
regards to the business but has to choose a strategy for the long run.

2. The Problem
Hajjar has to take decisions about the future of the company whether they should consolidate
production capacities despite growing demand or should they increase production capacities, if
the latter than how much shall they increase?

3. The Option
Hajjar has the following options in order to decide a particular course of action:
a. INCREASE PRODUCTION: As of February 2009, 288,000 bottles were sold annually
by the company without any doubt it was a satisfactory figure, being relatively new. 961
Beer need to focus on enhancing their production capacity because a shortage of product
might sometimes make the customer angry which will eventually lead to brand switching.
b. CONSLIDATE PRODUCTION: The element which needs to be given special focus
here is the raw material and supply cost per case. The cost per case in 2006 was around
$13.6 and the revenue per case was $10.6. The issue of exceeding cost needs to be
controlled because selling in huge quantities will eventually result in gigantic profits if
the cost structure didnt managed in an optimistic manner.
c. INCREASE PRICE: The element which needs to be given special focus here is the raw
material and supply cost per case. The cost per case in 2006 was around $13.6 and the
revenue per case was $10.6. The issue of exceeding cost needs to be controlled because
selling in huge quantities will eventually result in gigantic profits if the cost structure
didnt managed in an optimistic manner.
d. MORE INNOVATION/VARIETY:
e. OPEN MORE PUBS: Opening new pubs can be a real feasible option because people,
according to the case are appreciating this initiative by making their huge presence on it.
3

This option will increase their brand recall which will eventually result in long term
brand loyalty.
f. IMPROVED DISTRIBUTION CHANNEL:
g. EXPORT:

4. Criteria for Evaluation


The criteria that should be used to select an option are as follows:
a.
b.
c.
d.

Maintains High Quality


Focus on Innovation
Intact Brand Appeal/Loyalty
Meets Demand
e. Sustainability/Profitability
f. More Competitive
g.

5. Evaluation of Options
The above mentioned alternatives could be evaluated as follows:
a. The first alternative gives an edge to Fred in the Chinese market with the help of Mimis
creativity and expertise but carries a risk of Mimi catching the wrong side of Chinese
Government and not standing to the expectations of the local employees with her brash
and opinionated behavior.
b. The second alternative is risk free but may not help Fred to put together the best strategic
team for China and loosing on candidates like Mimi is competitors gain.
c. The third alternative gives Fred a chance to understand Mimis present perspective on the
online history and if she has calmed down her defiance; to make online presence more
government friendly thereby lessening the risk of attracting troubles. In case she has not
changed her stance, the company runs the risk of getting into a legal issue for
discrimination against a candidate based on internet information.
d. The fourth alternative allows Fred to block Mimi for competitors and use her expertise
and strategic planning to develop the China project without having the issue of
compromising online history. The down part is this option doesnt fully exploit Mimis
credentials and thus is not very relevant with the China Project.

Table I: Evaluation of Options


Maintains Focus on
High
Innovation
Quality

Intact
Brand
Appeal
4

Meets
Demand

Increasing
Profitability

Competitive

Option 1
Option 2
Option 3
Option 4
Option 5

Yes
No
Yes
Yes

No
Yes
Maybe
Maybe

Yes
No
Yes
No

No
Yes
Maybe
Maybe

6. The Recommendation
On the basis of foregoing analysis, it appears that Alternative 3 i.e. interview again to
clarify about the online baggage would probably meet all necessary criteria of evaluation
and hence is recommended.

7. Action Plan
Fred Westen should follow the following sequence of steps:
a. Fix an interview with Mimi Brewster and discuss about her online history.
b. Talk to her about her defiance against the government and see if she has changed her
stance over the issue; make her aware regarding improving the online presence in
relevance with the China Project.
c. Ask her to write positive blogs about World Trade Organisation, and her current
thoughts reflecting how she has changed over the years.
d. Let the HR team interview the candidate and if everything falls in place hire Mimi for
the project and work closely with her to revive the company.

8. Contingency Plan
The contingency plan would be to hire Mimi for strategic team and building ideas without
letting her come in contact with the Chinese Government in any wrong way.