Boston Beer Analysis Essay example - 3020 Words

Matthew Schreck Management 511: Financial Decision Making Boston Beer Company April 18, 2013 Amelia Drobile Boston Beer Company History and Financial Position Boston Beer Company (SAM) is a brewery in Massachusetts most commonly known for its Samuel Adams line of â€Å"craft† beers. The Samuel Adams line of beer was introduced in 1985. Since then the company has grown to do over 580 million dollars in revenue each year. 580 million is a very small piece of the food and beverage industry but the amount of shareholder wealth they are providing is impressive. Boston Beer Company has been named one of the top publically traded businesses to watch in 2013 by Forbes. Boston Beer Company is actually part of two†¦show more content†¦Quick Ratio (MRQ) The quick ratio for Boston Beer Company is 1.33. A company’s quick ratio is an indicator of a company’s short-term liquidity. This ratio is a more conservative form of the current ratio because it does not take into account inventory of the company when determining its current assets. Boston Beer Company still has a favorable ratio well above 1.0. While their current ratio is much better with all the inventory, Boston Beer Company is still a reliable company that can pay off its short term debts if need be. Measuring Returns Primary Stakeholders Boston Beer Company has five primary stakeholders within company, Martin F. Roper (President and CEO), C. James Koch (Founder and Chairman), William F. Urich (CFO and Treasurer), John C. Geist (Vice President of Sales), and Thomas W. Lance (Vice President of Operations). Of the five of them C. James Koch holds more than 34% of the shares and is the sole holder of the class B common stock that gives him the right to appoint five of the eight members that are chosen to be on the board as seen in the following quote from the 2013 Proxy Statement. â€Å"At the Annual Meeting you will be asked to elect three Class A Directors and cast an advisory vote on executive compensation. As the sole holder of Class B Common Stock, I will elect five Class B Directors and cast a vote to ratify the selection of our independent registered public accounting firm.† (Boston Beer Company, Inc., 2013) While Koch may haveShow MoreRelatedBoston Beer Company SWOT Analysis2833 Words   |  12 Pagesï » ¿ The Boston Beer Company is currently the largest craft beer company in the United States, however, the craft beer industry is growing in an otherwise shrinking market increasing the amount of serious competition that The Boston Beer Company is facing. In order to stay on top of the industry, The Boston Beer Company needs to find new, innovative ways of being the most appealing craft beer available to the average consumer. While The Boston Beer Company offers many different varieties of seasonalRead MoreBoston Beer Case Study Analysis Essay1852 Words   |  8 PagesBoston Beer Company Case Study Analysis 1. Boston Beer’s strategy is primarily focused on growth through differentiation. The sources of its competitive advantage can be classified as a company that provides high quality beer with unique flavors, a market driven approach, and a very efficient contract brewing strategy. In terms of quality, the company created a premium beer by its selective use of ingredients and less water. Boston Beer has won honors such as being the first American beerRead More Analysis of Samuel Adams and Boston Beer Company Essay2665 Words   |  11 PagesThe Boston Beer Company and Samuel Adams have both had a long history. Since the 1870s, six generations of the Koch family have been involved with beer. In the early 1980s, the seventh generations almost turned his back on the family business. After graduating from graduate school, Jim Koch wanted to stray always for the family business and seek a career in management consulting. After a short time in the consulting business, Koch decided that he just could not ignore his destiny to create a newRead MoreBoston Beer Company case write up Essay1027 Words   |  5 Pagesï » ¿33 Ryan Koziol MGM 404 09/19/13 Boston Beer Company Analysis Boston Beer Company founded in 1984, along with many other big league giants have decisions to be made in regards to the direction they wish to take their brand. Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well- developed image uses the same brand name in a different product category. Brand extensionsRead MoreEconomic And Strategic Traits Of The Industries Companies1269 Words   |  6 Pagesthe attractiveness of an acquisition of Boston Beer Company (SAM) by Molson Coors (TAP). Analysis of industry factors such as the market size, market growth rate, competitive strategy, and diversification strategy for both companies will assist in the possibility of the acquisition. Competitive Strategy When assessing the competitive strategy of each company, it is necessary to look at each company’s product line. Boston Beer Company (SAM) markets craft beer under the brand Samuel Adams and has aRead Morebostonbeercompany1056 Words   |  5 Pagesï » ¿ Boston Beer Company Case Study (3) Avnit Bambah Shrey Raturi Executive Summary Jim Koch, President and founder of Boston Beer Company, had filed a registration with the SEC for an IPO that aimed to raise between $26 million and $34 million. The Boston Beer Company is leader in craft beer industry with market domination in the craft beer segment and perfect marketing team. The two previous IPO by competitors were very successful and stock value increasing by forty percentage by theRead MoreBoston Beer HBS Case1538 Words   |  7 Pages1--------------------------------------------------- Boston Beer, in response to consumers’ preference changes to more flavorful and bitter tasting brews, was founded in 1894. Boston Beer implements a â€Å"quality at any cost† strategy with a strong emphasis on product differentiation and implementing quality ingredients into its products. For instance, Boston Beer was the first company to employ a stamped freshness date on its bottles and ingredients are imported from around the world. Additionally, Boston Beer relies heavily on contractRead MoreSamuel Adams: The Boston Beer Company1498 Words   |  6 PagesSamuel Adams - Inventory The Boston Beer Company is the country’s largest producer of craft beer, with their flagship brand being Samuel Adams. An American Craft Brewer is defined as small, independent, and traditional. To be considered these terms, the brewery must adhere to the following guidelines: Annual production of 6 million barrels of beer or less. Less than 25% of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member whoRead MoreThe Boston Beer Company : An Overview1231 Words   |  5 PagesOutline The Boston Beer Company has had astonishing accomplishment in its move from a little scale microbrewer to an expansive scale national bottling works. All of the organization s prosperity is because of the Samuel Adams Lager product offering, which has scarcely transformed from the establishing of the organization in 1984, to the IPO in 1995, to the present day. Indeed, a great part of the claim of Samuel Adams originates from its microbrew picture and the organizer, Jim Koch s, dutyRead MoreBosten Beer Case Hints655 Words   |  3 PagesCase: Boston Beer Company Address the following questions in a 4-5 page write-up of the Boston Beer Company Case to explore the issue of Initial Public Offerings. 1) What do you think of Boston Beer’s business model relative to the traditional beer companies’ business model? Relative to Redhook and Pete’s? (Hint: consider their brewing, production, distribution, marketing strategies. How is each firm attempting to achieve its own sustainable comparative advantage in the market place