...The Coors Case Balanced Scorecard By the end of 1997, Coors had finished the implementation of a three-year computer-integrated logistics (CIL) project to improve its supply chain management. Coors defined its supply chain as every activity involved in moving production from the supplier’s supplier to the customer’s customer. (Since by federal law, Coors cannot sell directly to customers. Coors customers are its distributors whose customers are retailers whose customers are consumers). Coor’s supply chain included the following processes: purchasing, research and development, engineering, brewing, conditioning, fermenting, packaging, warehouse, logistics and transportation. The CIL project was a cross-functional initiative to reengineer the business processes by which Coor’s logistics or supply chain was managed. The reengineering project improved supply chain processes and applied information technology to provide timely and accurate information to those involved in supply chain management. The project objective was to increase company profitability by reducing cycle times and operating costs and increasing customer (distributor) satisfaction. The software vendor used for this project was the German Company Systems Application & Products (SAP), which provided the financial and materials planning software modules. The SAP planning software became Coors’s load configurator software, which takes distributor demand forecasts and the production schedule and...
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...Adolph Coors in the Brewing Industry – Case Study By mid-1970, Adolph Coors Company was extraordinarily successful, posting year-to-year volume gains for the last 23 years and gaining a 16% Return on Sales at its height. However, between 1975 and 1985, performance declined greatly relative to the rest of the brewing industry. In the early 1980’s, Coors faced a key decision, whether to build a second brewery on the east coast. Would an additional brewery improve its position significantly? What else could Coors have done to improve their position? Could Coors have changed their strategy in order to take advantage of the changes in the brewing industry, or were they destined to be the victim of changes in the industry that they could neither control nor remedy? Extraordinary Success into the 1970s Coors was extremely successful prior to 1977. Key to their strategy was a set of unique, co-specialized elements: geographic focus, low-cost production, a differentiated product, and market power over their distribution customers. By managing these aspects well, Coors achieved 21.2% market share in their market, with the lowest relative amount of advertising in the industry. At the same time Coors’ low cost per barrel, at $29, was second only to Heileman Brewery. In spite of their low cost, Coors’ differentiated product allowed them to charge a premium over most of their competitors, giving Coors the highest profit margins in the industry, nearly twice that of their nearest competitor...
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...South Delaware Coors Case South Delaware Coors Larry Brownlow was just beginning to realize the problem was more complex than hethought. The problem, of course, was giving direction to Manson and Associates regarding which research should be completed by February 20, 1989, to determine market potentialof a Coors beer distributorship for a two-county area in southern Delaware. With data fromthis research, Larry would be able to estimate the feasibility of such an operation before theMarch 5 application deadline. Larry knew his decision on whether or not to apply for thedistributorship was the most important career choice he had ever faced. LARRY BROWNLOW Larry was just completing his M.B.A. and, from his standpoint, the Coors announcementof expansion into Delaware could hardly have been better timed. He had long ago decidedthe best opportunities and rewards were in smaller, self-owned businesses and not in the jungles of corporate giants. Because of a family tragedy some three years ago, Larry foundhimself in a position to consider small business opportunities such as the Coors distributorship. Approximately $500,000 was held in trust for Larry, to be dispersed when hereached age 30. Until then, Larry and his family lived on an annual trust income of about$40,000. It was on this income that Larry decided to leave his sales engineering job andreturn to graduate school for his M.B.A. У The decision to complete a graduate program and operate his own business had beeneasy...
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...Case Study: Adolph Coors Company Should Shirley Richard encourage or discourage the Coors brothers to go on “60 Minutes”. submit to an interview to booster Coors’ image. Public debate and media commentary can present new challenges for organizations that do not have a clear strategic response to those issues (Benn, Todd & Pendleton, 2010). It would be in the company’s best interest to get ahead of the negative press and defend itself against the allegations of racism, sexism, and other biases. If Coors were to refuse an interview it may look like they have something to hide or and it could to the company being judged more harshly. A company’s image in the media can make or break them. Therefore it is important for Coors to have a positive relationship with the media and feel comfortable granting them interviews in order to present the company in the best light possible. John 16:33 states, “I have said these things to you, that in me you may have peace. In the world you will have tribulation. But take heart; I have overcome the world.” The Coors brother that decides to represent Coors for the interview should be properly trained and coached in public relations and how to protect a company’s image. Proper research should be conducted prior to the interview to make sure that there are no contradictory remarks and all statements are an honest representation of the organization. False information given during an interview can further damage the company’s reputation and make...
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...history, the Coors Brewing Company (Coors) has been a regionalized brewer within the United States, specializing in high-quality beer through by virtue of its source water selection, stringent production standards, and cold filtered brewing approach. As the company expanded its distribution to new markets within the U.S. in attempt to gain market share, it made a strategic decision to maintain a majority of its brewing operations at its primary production facility in Golden, Colorado. This decision was based upon the desire to preserve its core production strengths through close family control. However, as the company desires to expand its market presence beyond the U.S. boarders with a goal of becoming the 5th largest brewer by 2008, its historic approach to management and operations provides a detriment to achieving this objective. As seen by the on-going consolidation of top brewers within the beer industry, the competition is fierce as more brewers are competing within a global market with extended product lines and decreased profit margins. Question: How did Coors operating performance change relative to its competitors between 1970 to 1985? Why ? Performance improves from 1970 to 1977: Coors was extremely successful prior to 1977. Key to their strategy was a set of unique, cost specialized elements: geographic focus, low-cost production, a differentiated product, and market power over their distribution customers. By managing these aspects well, Coors achieved 21...
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...$15,000 available for research purposes while the whole research needs $18,549.50 2. Cultural and social values Coors is very famous to the public with a good brand name. The consumption of beer products in Delaware counties is very important for decision making 3. Political and legal issues Coor’s corporate management was seen some customer to hold antiunion beliefs, and some other consumers perceived the brewery the brewery to be somewhat insensitive to minority issues 4. opportunities and threats in the environment The success of this business would depend highly on the two wholesalers in Delaware. Using aluminum can recycling equipment, Coors can attract customers who concern about protecting environment. B. Industry 1. Industry Coors brewery is the fourth-largest seller of beer in the country. They focus on the quality of their product, carrying about environment and giving people something to believe on 2. The Major competitors Competitors of Coors include existing beer and alcohol manufacturers in the country as well as foreign countries. There are a great number of substitute products available in the market. These include other beer products as well as wine, hard liquor, wine coolers, and other carbonated/malt alcohol products. It maybe has a new competitors coming into the industry but Coors has an exclusive formulation C. Organization 1. Objectives and constraints Larry’s main objective is...
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...ISSN 1940-204X COORS BALANCED SCORECARD: A DECADE OF EXPERIENCE Hugh Grove University of Denver Tom Cook University of Denver Ken Richter Coors Brewing Company IntroductIon By the end of 1997, Coors had finished the implementation of a three-year Computer Integrated Logistics (CIL) project to improve its supply chain management. Coors defined its supply chain as every activity involved in moving production from the supplier’s supplier to the customer’s customer. (Since by Federal law, Coors cannot sell directly to consumers, Coors customers are its distributors whose customers are retailers whose customers are consumers.) Coors supply chain included the following processes: purchasing, research and development, engineering, brewing, conditioning, fermenting, packaging, warehouse, logistics, and transportation. This CIL project was a cross-functional initiative to reengineer the business processes by which Coors logistics or supply chain was managed. This reengineering project improved supply chain processes and applied information technology to provide timely and accurate information to those involved in supply chain management. The project objective was to increase company profitability by reducing cycle times and operating costs and increasing customer (distributor) satisfaction. The software vendor used for this project was the German company, Systems Applications & Products (SAP), 1 that provided the financial and materials planning software modules. The SAP planning...
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...COORS MOLSON MERGER FEBRUARY 28, 2010 Table of Contents EXECUTIVE SUMMARY ii SCOPE 1 INDUSTRY 1 Top 5 Brewing Companies 1 The Beer Brewing Process 1 The Brewer to Retailer Process 3 Beer Importers 3 Beer Wholesalers 3 Beer Retailers 3 COORS 4 Marketing 4 Information Technology 4 Financial 5 MOLSON INC. 5 Marketing 5 Information Technology 5 Financial 6 MOLSON COORS MERGER 6 Four Objectives of Molson Coors 6 Goals from Molson and Coors 7 Coors Goals 7 Molson’s Goals 7 Merger: Good or Bad? 7 EXECUTIVE SUMMARY This document analyzes two world renowned brewing companies, Coors and Molson, in their achievements and efforts as individual companies in order to gain an understanding of the merger between Coors and Molson. The beer brewing industry is briefly reviewed in terms of the top five brewing companies in the world along with the information and beer brewing process flows of the industry. Marketing, information technology, and financials are elaborated upon for Coors and Molson. These three key aspects of each company are compared and contrasted in order to come to a positive decision about the merger. Finally, the merger is concluded to be a great decision for the two companies. SCOPE The merger between Coors and Molson are highlighted in this document. In order to come to a decision about the merger, the companies’ top competitors are mentioned. Information flows, as well as beer processing flows, are discussed. The two companies...
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...Coors 啤酒公司的平衡记分卡：十年经验 作者：Hugh Grove，University of Denver；Tom Cook, University of Denver; Ken Richter, Coors Brewing Company 前言 1997 年底前， Coors 完成了它历时三年的计划项目“电脑联结后勤 （Computer Integrated Logistics, CIL） ”， 以改进其供应链管理。 Coors 把所有有关其从供应商的供应者的产品， 到递送到其顾客的顾客的所有的 作业，都概括称为一条“供应链”。（因为根据联邦法律，Coors 不能直接向顾客出售其产品。Coors 的 顾客是经销商，经销商的顾客是零售商，而零售商的顾客才是消费者。）Coors 的供应链包括了下述流 程：采购、研究与开发、工艺、酿造、调理、发酵、包装、仓储、后勤和运输。 CIL项目是一个跨越若干职能的创举，目的在于再造Coors的后勤或供应链的管理流程。此一再造项 目改进了供应链的流程，并应用信息技术，向参与供应链管理的人员提供及时、正确的信息。此项目 之目的是，通过减少周转时间、降低营业成本、提高顾客（经销商）的满意程度，以增加公司盈利。 为这个项目提供软件的，是德国的 SAP(Systems Applications & Products)公司。该公司提供财务和材 料计划的软件模块。Coors 采用 SAP 出品的用于编制运载计划的软件，该软件用来预计经销商的需求、 编制生产进度计划和编制下周的发运进度计划。CIL 项目纠正了供应链中的下列几个主要问题： 1. 满足了季节性的需求， 2. 满足了因促销活动而引起的骤然增加的需求， 3. 提供了与每年推出三种新品牌相关的辅助性作业， 4. 按顾客（经销商）正常订单发货， 5. 按急件订单发货，和 在啤酒变质之前，把啤酒从生产线通过仓库配送给经销商。（Coors的产品，如系桶装的，其货架寿 1 命 为60天；如系其他包装，其货架寿命为112天。） Coors公司顾客服务部主管Matt Vail，从CIL项目开始时起，就是这个项目的负责人。他在供应链管 理方面积累了充分的经验，遂被一家专门从事与供应链有关的咨询公司聘用。1998年初，在他为Coors 工作的最后一天，他与Coors公司的质量保证部主管Ken Rider作了一次谈话。 Ken当时刚被任命负责Coors公司的新的平衡记分卡(BSC)项目。实施这个项目的最初的动机，是对 是否应该把供应链已作的改进继续保持下去，作出评估。然而，这个项目的范围却被扩大到成为一项 涵盖整个公司的BSC制度。于是，这个项目的远期目标遂变为：1）把注意力集中于持续改进上，2） 鼓励合理的冒有风险的探索和学习以提高业绩，和3）使员工明白提高生产率的机会和报酬。 Matt: 这个供应链管理项目， 确实极富挑战性、 也是回报丰硕的。 我真是不愿意离开Coors公司， 但 是那家咨询公司给了我富有吸引力的待遇，使我难以拒绝。我希望你在继续从事这个平衡记分卡项目 中，也会取得同样的正面体会。 Ken: 这个新项目，将是一项真正的挑战。我们需要把基础建在你负责的供应链项目已取得改进之 上。 Matt: 我这个项目组，读到我们的首席执行官（CEO）在他1997年致股东书中提到供应链项目的内 容，感到非常兴奋。他在致股东书中说，1997年在生产率上取得的重大成就，来自我们这个项目；通 过这个项目，使整个供应链的各个环节（包括采购、酿造、包装、运输和行政管理）的效率大为提高。...
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...Elliott Nelson South Delaware Coors Distributor * Strategic problem * Larry wants to buy a wholesale distributor of Coors * Has gone to Manson and Associates to conduct research on the plan to decide how to proceed * Given 9 different research opportunites to gain insight on the feasibility of the project * Limited funds can’t perform all studies, pick which ones are the best * Yes or no to opening plant * Cost * Issues * Cost * Which research will be most valuable * Whether the investment is worth it Back round * Larry Brownlow * MBA student, entrepreneur, looking to invest in a smaller self owned business * Trust fund of 500,000 * Research amount available 15,000 * Decide on whether to invest in the Coors distributorship limited time * Coors * Unwilling to compromise on quality * Open 1873 golden Colorado * Operating philosophy “had work, saving money, devotion to the quality of the product, caring about the environment, and giving people something to believe in.” * Requires constant refrigeration * Considered a high quality, standard beer, light and zesty taste, similar to standard beers from Miller and Budweiser. * Management seen by some to be antiunion beliefs, insensitive to minority issues, primarily unemployment and distribution * Sales depend on the efforts of two wholesalers planned for the...
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...Case 2 Coors Ceramics I. Problem Definition Coors needed a new information system that would allow the company to be more efficient in terms of managing the business. Having a new information system would allow the company to meet customer demand, have a well-organized delivery system and reduce costs. II. Review of Background Information With Coors’ old system, the company took two days to process new orders. Orders were not tracked, so the salespeople cannot determine if the shipment has been delivered on time. Due to this, the company was forced to build up inventory to meet customer demand. From this stems three main problems – not being able to meet customer satisfaction, long lead times, and high operating costs. III. Analysis of Facts/Data In the case, the company focused first on determining what the customer needs. In knowing their customer, the company was able to devise a process wherein Coors would be able to operate well. Streamlining the process within the company meant that every step in turning raw materials into the finished product would not be put to waste – everything was used in the most practical and resourceful manner. This also meant that they were able to deliver quality products to the customer on time, thereby increasing customer satisfaction. Having good information systems in place also meant that Coors management could easily pinpoint where in the process a problem lies. Decisions could be made with certainty of their impact. ...
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...South Delaware Coors, Inc. Overview Larry Brownlow has an opportunity to invest in a distributorship for Coors beer in the South Delaware area. He has a $15,000 budget for research that he can purchased from a research supplier called Manson and Associates to help him make this decision. Larry also has a $500,000 trust fund coming available to him soon and the option to borrow $400,000 from family members and an additional $400,000 line of credit with the bank. Recommendation We have concluded that it is feasible for Larry to pursue the investment of a Coors distributorship. The information we recommend purchasing are: studies A, B, C, E, F and I. good choicesThe cost of these studies totals $6,749.50, which would save $8,250.50 to use toward the initial investment. With fixed costs and the estimated amount Larry had figured for the initial investment, he would need $1,050,000. After Larry’s $500,000 of trust fund money and the additional money saved from the research budget, he would still need to borrow $541,748,50 to acquire the distributorship. We recommend that he borrow the $400,000 he has been offer from family first and the remaining $141,749.50 from the bank to avoid a larger interest payment or fees he may incur with a larger loan from the bank. He would also still have a $258,250 line of credit with the bank available if he needed it in the future. Rationale 1. When analyzing Table A it is clear that the consumption in gallons of beer per capita is much...
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...Facts 1: Larry had $500,000 in his trust that will be disbursed at the age of 30, he is turning 30 in July; the time the money would be needed for him to start his business. 2: Coors is a family operated and controlled business. Also, there is only two wholesalers in the entire state, therefore having a big market share. 3: Manson was known for its quality in data, in respect to computer modeling. Problem The major problem is that, Larry needs to figure out what kind of research is necessary to complete his marketing research under $15,000 in order to determine whether Coors beers dealership is a potential market. my recommendation The alternative with the greatest potential is for Larry to do some research on his own and pay Manson to do the other market studies to help him understand is Coors Distributorship is a potential for him. This alternatives assumes that Larry does have some time to spare and can achieve at least two or three studies on his own, based off of the studies that Manson will provide him with. With $15,000 Larry can only purchase certain studies, although he would want all the studies to help his decision. He would do studies A-C on his own. Study A would have to source from Study E. Study B can be accessed from the census bureau. Study C can be accomplished through some research on his own. The rest of the studies would cost a little bit over $14,000, which is under his allocated amount with some money left...
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...Overview Larry and his wife have agreed that the opportunity to acquire a Coors beer distributorship could not be overlooked. Larry wants to do research to see if it would be a profitable investment and has to decide which research study would be most effective to determine if the distributorship would be profitable. Recommendation 1) Analyze National and Delaware Per-Capita Beer Consumption for 1998-2002. 2) Conduct Consumer Study through focus-group interviews and a mail questionnaire. 3) Conduct a Retail Study through group interviews with six potential retailers of Coors Beer. Rationale 1) Analyze National and Delaware Per-Capita Beer Consumption for 1998-2002. Conducting Study A will show Larry if there is an existing and/or growing market within Delaware. The first step in making a determination is to find out if there is demand for the product. The study collected the national and Delaware resident consumption per capita. When comparing U.S. and Delaware consumption, based on population over age 21, Delaware scored above average by at least 3% every year from 1998-2002. Based on the data collected on Delaware, consumption based on population over age 21 has shown an upward growth trend. The population consumption has grown every year and displays growth continuity is a strong possibility. The study proves the market in Delaware is a good market to go into, because it is above average compared to the National study numbers and the market...
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...MBA5240 Coors Distributor Case September 10, 2013 Prior to presenting our POV on whether or not Larry should proceed with the purchase of the Coors distributorship in Delaware we’d like to note the following assumptions: * The $500k will be enough to actually purchase the distribution rights and fund any necessary start-up costs * After a year or two Coors can achieve the relatively same market share in DE that it has nationwide (8.9%) * While seen as a more premium and better tasting beer than segment leader Budweiser, Coors will need to enter the market at a comparable price to Budweiser (at par or a little higher than). For the sake of this case we assumed a similar price for wholesale distribution of $3.29, which could potentially be increased to better match the brands perception as a more premium offering. However, to enter this mature market pricing against the segment leader is our strategy. Leveraging the data provided, we determined the following details regarding the state of the DE beer industry along with the potential of Coors within their territory: DE Population 21+ (1990) | | Kent | 75,200 | | | Sussex | 85,300 | | | TOTAL | 160,500 | | | | | | | Delaware Consumption 21+ (1990) | | | 39.40 | gallons per year | | | 6,323,700...
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