Definition of Success
Success is the creation of value – economic and social benefits and results to help individuals align with a set of values subscribed by the organization. Corporate success usually comes from a clear plan or strategy for carrying out a mission. But a process is not successful until its intended value is achieved. It can be difficult for new breweries to break into the market successfully due to high competition. But Blyth, Ontario’s Cowbell Brewing Company, has succeeded in doing just that. Cowbell has positioned itself as a growing star of Ontario in the area of destination craft brewing. This is brought by the state-of-the-art production facility, an ambitious management team, and a solid commitment to community values.
Steven Sparling, Cowbell’s CEO and Founder entered the business world originally in the propane industry. Sparling’s Propane, one of Canada’s largest propane retailers, was founded by Steven’s father. Steven took over the company’s management as his father retired and sold it to Parkland Fuel Company in 2013 (Plummer & Mark, 2020). Two years later, the family of Sparling decided to take a business initiative in Blyth to open a brewery to capitalize on craft Beer’s growing popularity. Steven’s son, Grant Sparling, participated in a brewery program in the UK in which he learned about the process of production of craft beer. Cowbell formally started production in August 2017.
Critical Issues
Current critical issues can be strategic for their immediate and long-term impact and must be resolved following the organization’s strategy. Urgent problems are usually intertwined with many business processes, organizational structures, and corporate strategies. The most critical issues are listed below and discussed in detail in the following section.
- Unprecedented business growth, strains the company’s financial capability, making it unsustainable.
- The brewery is located in a less populous area which is less strategic for the brewing facility and restaurant.
- The company is facing an uncertain future, thus making long-term business strategies become a big challenge.
Situation Analysis
Unprecedented Growth
Since its establishment in 2014, Cowbell has experienced dramatic growth and expansion. This trend is attributable to huge capital investments in brewing facilities and restaurants. For instance, during the opening of Cowbell in August 2017, Grant, Cowbell’s manager, and his team initially targeted to serve 100,000 guests within a year (Plummer & Mark, 2020). However, this target was reached in six months. Following the rapid growth of the business, this becomes a critical issue for the Cowbell management team. Despite having an ambitious and capable team, managing the pace at which the company was growing became challenging. The most difficult areas include the production of high-quality brewing products, planning how to expand into new areas, handling vast logistical demands, and recruiting highly qualified talent.
Less Strategic Location
Cowbell is situated in a region with a relatively low population. Cowbell is based in a fertile farming area known as “the empire’s breadbasket.” Its teamwork is hand in hand with local farmers, suppliers, and producers by buying their raw materials to produce their products. They ensure that all their foods are locally made by like-minded local farmers to boost their farming. Grant describes Cowbell as a “destination brewery” designed to appeal to local people and craftsmen. A traditional wooden frame-barn design, opposite modern stainless steel and glass fittings, features the 26,000-square-foot facility (Plummer & Mark, 2020). However, Blyth has several limitations that make a capital-intensive project like Cowbell less economically feasible. Blyth has a small population totaling 9892, and it had numerous limitations such as poor traffic lighting and lack of proximity to major cities such as Ontario (Plummer & Mark, 2020). The low population means less demand for its products, while the large distance to major cities is making it less accessible and appealing to its target customers, especially high-end visitors.
Uncertain Future
The company is facing an uncertain future, which makes planning, particularly setting long-term goals, challenging. Grant and his ambitious team find it difficult to secure affordable accommodation to meet the growing demand for its product. During the first years of operation, the team struggled to create effective policies and procedures that could enable Cowbell to cope with the rapid growth. This problem persists as the company struggles to find space to construct more premises to ensure adequate production and fuel growth and expansion.
Decision Criteria
The decision to use a particular method requires that several activities be undertaken first in order to arrive at that decision. The sequence of activities that lead to a decision constitutes the process of decision-making. Such a process is fundamental to every brewery company, including Cowbell brewery. Cowbell had a plan for a working farm, accommodations, and providing transport means to its customers. Buss shuttles would pick customers from cities like London to Cowbell for entertainment and drive them back (Plummer & Mark, 2020). Also, Grant had an idea of building another restaurant in Toronto. Steven started a plan to construct a unique outdoor natural amphitheater for culture, athletic events, and live music performances. This theater will accommodate approximately 15,000 customers. Steven also said, based on the situation in America, they will choose either to produce products at low cost, innovate new products, or disrupt others for the business’s survival.
Options
Cowbell has a solid and open-minded team of over 170 experts. This team consists of doers, strategic planners, and problem-solving experts. These experts assisted in managing the unexpected high-growth rate of Cowbell as of August 2017. Various skills and positive attitudes from the cowbell team have enabled the rapid company growth as said by Grant. Cowbell has seven main brewed and sold beers and various seasonal and small-scale products throughout the year. In contrast to the introduction of additional permanent product lines, Grant expects that these seven beer lines will be a primary source of growth for the firm but will increase its possibility of bringing in personalized brass and whiskey distillate future. Cowbell distributes its products within Ontario, as exports to other provinces or nations are not currently cost-effective.
Cowbell used a substantial promotion and event team to promote its products throughout Ontario to facilitate market entry. Cowbell’s beer was supplied to around 200 bars and restaurants within Ontario (Plummer & Mark, 2020). Also, the marketing of beer was based on world-class taste, commitment to the environment, and authentic stories. Clarke said they donate some cash gained from every beer to charity work, and this assists gain more consumers from competitors. Grant and the cowbell team could see high possibilities, including an event field that could accommodate 15,000 people on a 100 meters field from the central facilities (Plummer & Mark, 2020). This 111-acre property was not seen by many as productive but as only grass and gentle slopes without benefit.
Recommendations
The managing team of Cowbell is determined to maintain the company’s current momentum and continue to develop the company. It aims to expand Cowbell’s event space by building a large-scale outside amphitheater at the adjacent premises. Moreover, Cowbell is developing a “rural tourism” initiative that promotes the brewery as a place for all of us who want to explore the southwest of Ontario. This will also be done to further Cowbell’s image as the destination brewery. Finally, Cowbell has recently acquired a sizeable municipal building alongside the brewery, which plans all packaging, warehousing, and logistics functions. This will allow the company’s most popular product production capacity to be expanded.
Reference
Plummer, L., A. & Mark, K. (2020). Cowbell Brewing Co.: Building a destination brewery. Ivey Publishing. Web.