Hudepohl

In: Business and Management

Submitted By liesl17
Words 9359
Pages 38
Hudepohl Brewing Company
Bob Pohl, age 32, was appointed general manager of the Hudepohl Brewing Company following the unexpected death of the company’s president in March 1980. Since 1975, Pohl had managed Hudepohl’s marketing response to rapidly changing conditions in the brewing industry. The death of the president, a relative, left Pohl as the only member of the founder’s family active in the day-to-day activities of the business. Pohl was optimistic about the company’s future despite Hudepohl’s recent disappointing performance. Since 1978 the brewery had been operating at less than 40% of its one-million-barrel1 capacity, and in 1978 the company had experienced the largest operating loss in its history—$538,000. After adjusting for gains on Hudepohl’s securities portfolio and a tax loss carryback, net income for that fiscal year was $95,161, down from $268,611 in 1977. After only three months as general manager, however, Pohl was predicting improved earnings in the near future. A 7% gain in sales during the first four months of 1980 seemed to confirm his expectations. Pohl felt that by 1983 Hudepohl would achieve a 10% growth in sales.

Background on the Company
Based in Cincinnati, Ohio, Hudepohl was the twentieth largest brewery in the United States. (Financial information is presented in Exhibits 1, 2, and 3.)

Ownership and Organization
Hudepohl’s board of directors consisted of seven members, all descendants of founder Louis Hudepohl. Chairman John Hesselbrock, age 73 and the uncle of Bob Pohl, held almost total control over the board but did not take an active role in daily management decisions. The board, which made the final decision on major expenditures, was generally conservative. Pohl felt that this had been appropriate in the past, when other breweries were also conservative, but that a far more aggressive approach was necessary in every area…...

Similar Documents

Survey of Accounting

...Professor Emeritus of Accounting University of Georgia, Athens Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Survey of Accounting, Fifth Edition Carl S. Warren Vice President of Editorial, Business: Jack W. Calhoun Editor-in-Chief: Rob Dewey Executive Editor: Sharon Oblinger Developmental Editor: Tracy Newman Sr. Marketing Manager: Kristen Hurd Marketing Coordinator: Heather Mooney Sr. Content Project Manager: Martha Conway Media Editor: Brian England Sr. MarCom Manager: Libby Shipp Production Technology Analyst: Emily Gross Sr. Frontlist Buyer, Manufacturing: Doug Wilke Production Service: MPS Limited, A Macmillan Company Sr. Art Director: Stacy Jenkins Shirley Internal Designer: Patti Hudepohl Cover Designer: cmiller design Cover Image: Corbis Sr. Text Permissions Manager: Mardell Glinski Schultz ã 2011, 2009 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. For product information and technology assistance, contact us at Cengage Learning......

Words: 284972 - Pages: 1140

Hudepohl Brewing

...costs over higher production dominate the brewing industry. The industry is moving toward vertical integration with brewers growing their own grains and producing their own cans. The break-even point for capacity utilization for breweries is 80%. Hudepohl’s Current Market Situation Hudepohl Brewing has been operating at 40% of its one-million barrel capacity since 1978 and net income had decreased by 35% from the previous year. Hudepohl’s current brewing costs are competitive with the national average. The majority of Hudepohl’s sales were in the city of Cincinnati (55%) and the metropolitan area (80%). Hudepohl markets five brands of beer. Tap, Hudepohl and Burger are popular priced beers and accounted for 80% of Hudepohl’s sales in Cincinnati. Hudy Delight, the Hudepohl’s recent entrant in the light beer field accounted for most of the remaining 20%. Their premium beer, Hofbrau, accounted for less than 1%. Advertising and SGA for Hudepohl Brewing was far higher than competitors and was distributed randomly among product offerings. Resources and Capabilities Hudepohl brews, packages, and distributes beer in the Cincinnati and surrounding metropolitan areas. Hudepohl has available brewing resources of 600,000 barrels per year, 138,420 barrels per year unused fermentation, 56,132 barrels per year unused racking, and 429,358 barrels per year unused bottling capacity. Value Chain Analysis We analyzed your operations at the different phase of......

Words: 778 - Pages: 4

Professional Summary of Boston Beer Co

...respected consulting firms in the world, to follow his entrepreneurial spirit and establish The Boston Beer Company in 1984. In 1985 the company was just brewing his beer in Koch’s basement, making adjustment to each batch as needed to prefect the recipe for his sales he was making and delivering himself bar to bar in his community. A short six weeks after its public inception, Samuel Adams Boston Lager was selected “The Best Beer in America” by The Great American Beer Festival (Reuters). Production on a large scale began in Pennsylvania while simultaneously renovating an old brewery in Boston which was opened in 1988 for production by SAM. By the Mid-1990’s the company sought to expand and penetrate further markets and purchased the “Hudepohl-Schoenling Brewery” in Koch’s hometown of Cincinnati. (Boston Beer Reuters) In 1995, the company was taken public and listed on the New York Stock Exchange as class A common shares with class B common shares not being traded (Boston Beer Company 10k). While both types of shares represent ownership in the company, class A’s voting rights are very restricted leaving most of the control of the company in class B shares; all of which are owned by Jim Koch. What the Boston Beer Company did during this time was widely considered unprecedented and spurred a brewery trend of microbrewing- small production batches of beer brewed; often for local bar’s. Because they compete on such a small scale with often small portfolio of......

Words: 19150 - Pages: 77

Artificial Intelligence and Software Engineering: Status and Future Trends

...Gonzalez J. C., and Velasco J. R., "Analysis and design of multiagent systems using MAS-CommonKADS," presented at Agent Theories, Architectures, and Languages. 4th International Workshop, ATAL'97, Berlin, Germany, 1998. [39] Jennings N. R., Sycara K., and Wooldridge M., "A roadmap of agent research and development," Vivek, vol. 12, pp. 38-66, 1999. [40] Kalfoglou Y., Menzies T., Althoff K. D., and Motta E., "Meta-knowledge in systems design: panacea... or undelivered promise?," Knowledge Engineering Review, vol. 15, pp. 381-404, 2000. [41] Khoshgoftaar T. M., Software engineering with computational intelligence, vol. 731. Boston: Kluwer Academic Publishers, ISBN: 1-402-07427-1, 2003. [42] Khoshgoftaar T. M., Allen E. B., Jones W. D., and Hudepohl J. P., "Data mining of software development databases," Software Quality Journal, vol. 9, pp. 16176, 2001. [43] Last M., Kandel A., and Bunke H., Artificial Intelligence Methods in Software Testing, 2003. [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] 7 [44] Lee J., Software engineering with computational intelligence. Berlin: New York, ISBN: 3540004726 (alk. paper) LCCN: 2003-42588, 2003. [45] Lind J., Iterative software engineering for multiagent systems : the MASSIVE method, vol. 1994. Berlin: Springer, 3540421661, 2001. [46] Lucena C. J. P. d., Garcia A. F., Romanovsky A. B., Castro J., and Alencar P. S. C., Proceedings of the 2nd International Workshop on Software......

Words: 6393 - Pages: 26

Hkhk

...require it. Licensed to: CengageBrain User Managing Supply Chains: A Logistics Approach, Ninth International Edition John J. Coyle, C. John Langley Jr., Robert A. Novack, Brian J. Gibson Vice President of Editorial, Business: Jack W. Calhoun Editor-in-Chief: Joe Sabatino Senior Acquisitions Editor: Charles McCormick, Jr. Developmental Editor: Daniel Noguera Editorial Assistant: Courtney Bavaro Marketing Manager: Adam Marsh Senior Marketing Communications Manager: Libby Shipp Design Direction, Production Management, and Composition: PreMediaGlobal Media Editor: Chris Valentine Rights Acquisitions Specialist, Text and Image: Deanna Ettinger Manufacturing Planner: Ron Montgomery Senior Art Director: Stacy Shirley Cover Designer: Patti Hudepohl Cover Photo Credits: B/W Image: Big Stock Photo Color Image: Shutterstock Images/ kentoh © 2013, 2009 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, or applicable copyright law of another jurisdiction, without the prior written permission of the publisher. For permission to use material from this text or......

Words: 15556 - Pages: 63

Mba in Some Days

... services, a point of differentiation can be employee courtesy, availability, expertise, and location. Products and services can be differentiated via advertising, even if they are virtually the same. A media campaign can convince the consumer that one is better. For instance, consumers could be persuaded that Nike shoes are better than Converse because of a celebrity endorsement. Focus Using a focus strategy, a company concentrates on either a market area, a market segment, or a product. The strength of a focus strategy is derived from knowing the customer and the product category very well. Companies establish a “franchise” in the marketplace. In the beer market, dominated by titans such as Anheuser- Busch, Coors, and Miller, little Hudepohl Beer (“Hudy”) holds its own in Ohio. The giants can boast lower costs and slick marketing, but they do not enjoy the local “cult” following. Hudy pursued a loyal following over the years through local exposure and community involvement. Hudy focuses on Ohio. Competitive Tactics: Signaling Signaling is a key strategic tool. It involves letting your competitors know what’s on your mind. Combatants signal what they plan to do or what steps they will take in response to a competitor’s move. Of course, a company can also bluff. Signaling is used to prevent disastrous (and costly) price wars. Direct contact with the competition to set prices or allocate markets is illegal! There are antitrust laws that forbid this behavior. But by......

Words: 96678 - Pages: 387

Business Law

...minutes of this incident, and all this could have possibly been avoided. Therefore, I do think the school should be held for liable for negligence Case Study 2- A Simple Pledge Case 2 Incidents: • Steve Simple is a pledge in Zeta Iota Tau (ZIT) fraternity at Minor State Teachers College (MSTC) • Pledge duties is to climb the campus water tower to repaint the fraternity’s Greek letters, which had faded in the last year (the tower has been covered, virtually throughout its existence, with graffiti placed on it by students). • A tremendous thunderstorm happens the night Steve had to climb the tower • The rain made the steps slippery and a great danger of being hit by lightning when climbing the tower. • Fortified by a six-pack of Hudepohl beer ($1.89 warm at the local convenience store) • Steve made the attempt to climb the tower and, unfortunately, Steve was electrocuted halfway up the tower by a short circuit in the tower’s pumping mechanism. • The short circuit was the result of a failure to perform proper maintenance (this being deferred by MSTC so that it could pay higher faculty salaries) • Pigeons had been electrocuted (fried) in the past A simple pledge could be the last pledge. In this case, it is for Steve Simple. Steve wanted to be a part of a fraternity called Zeta Iota Tau (ZIT) fraternity at Minor State Teachers College (MSTC). I think the fraternity should be responsible for the death of Steve Simple if he were not given any rules and......

Words: 1065 - Pages: 5

Economies of Scale and Scope

...over a larger base of potential consumers. To illustrate, suppose that Anheuser-Busch places an ad in USA Today and pays Gannett (the publisher of USA Today) $10 per thousand papers sold to run this ad. Because USA Today has a daily circulation of about 2 million, the direct costs of this ad to Anheuser-Busch would be $10 Â (2,000,000/1000), or $20,000. The same day, Hudepohl, a local brewery in Cincinnati, Ohio, places an ad in the Cincinnati Enquirer (the local paper) and, let’s say, pays the same rate of $10 per thousand papers sold. The Enquirer has a daily circulation of about 200,000, so the direct cost to Hudepohl would be $10 Â (200,000/1,000), or $2,000. Finally, suppose that for both companies the cost of preparing the ad is $4,000. Let us now look at the advertising cost per potential consumer for AnheuserBusch and Hudepohl: • Anheuser-Busch advertising cost per potential consumer ¼ ($20,000 þ $4,000)/ 2,000,000 ¼ $.012 per potential consumer, or $12 per 1,000 potential consumers. 82476 c02.3d GGS 3/17/09 15:15 56 • Chapter 2 • Economies of Scale and Scope • Hudepohl advertising cost per potential consumer ¼ ($2,000 þ $4,000)/ 200,000 ¼ $.030 per potential consumer, or $30 per 1,000 potential consumers. This example illustrates the approximate difference in the cost per potential consumer between national and local advertising. The logic underlying this example illustrates why national firms, such as McDonald’s, enjoy an......

Words: 16512 - Pages: 67

Contemporarry Auditing

...Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Licensed to: iChapters User Copyright 2009 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Licensed to: iChapters User Contemporary Auditing: Real Issues and Cases, 7e Michael C. Knapp VP/Editorial Director: Jack W. Calhoun VP/Editor-in-Chief: Rob Dewey Acquisitions Editor: Matt Filmonov Developmental Editor: Heather McAuliffe Marketing Manager: Kristen Hurd Content Project Manager: Lysa Oeters Senior Media Editor: Scott Hamilton Manufacturing Coordinator: Doug Wilke Production Service: Macmillan Publishing Solutions Art Director: Stacy Shirley Internal Designer: Patti Hudepohl Cover Designer: Patrick DeVine Cover Image: Getty Images/iStock Images © 2010, 2009 South-Western, a part of Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. For product information and technology assistance, contact us at Cengage Learning Academic Resource......

Words: 20989 - Pages: 84

Case Study of Gigantic University and Minor States Teachers College

...cabinets were damaged during the barricade.  References Cited:  Cheeseman, H. (2010). Business Law (7th ed.) Upper Saddle River, NJ: Pearson Prentice Hall. Case study 2  Steve Simple is a pledge in Zeta Iota Tau (ZIT) fraternity at Minor State Teachers College (MSTC). As part of his pledge duties, he is sent to climb the campus water tower to repaint the fraternity’s Greek letters, which had faded in the last year ( the tower has been covered, virtually throughout its existence, with graffiti placed on it by students). The night Steve climbs the tower a tremendous thunderstorm is in progress, making the steps quite slippery and exposing anyone climbing the tower to a great danger of being hit by lightning. Fortified by a six-pack of Hudepohl beer ($1.89 warm at the local convenience store), Steve nonetheless decides to make the attempt. Unfortunately, Steve is electrocuted halfway up the tower by a short circuit in the tower’s pumping mechanism. The short circuit was the result of a failure to perform proper maintenance (this being deferred by MSTC so that it could pay higher faculty salaries) and was something that had happened before (although only pigeons had been fried in the past). Prepare a written essay of the potential liability of all parties in this case.  Consider the following: • Negligence • Fault • Chain of causation • Proximate cause • Assumption of risk • Contributory negligence • Comparative negligence Steve......

Words: 1307 - Pages: 6

Student

... Printed in the United States of America 1 2 3 4 5 09 08 07 06 ISBN 0-324-31907-X Web Coordinator: Karen Schaffer Sr. Manufacturing Coordinator: Sandee Milewski Production House: OffCenter Concept House Printer: Darby Printing Atlanta, GA ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, information storage and retrieval systems, or in any other manner—except as may be permitted by the license terms herein. Assistant Editor: Erin Berger Ancillary Coordinator: Erin M. Donohoe Art Director: Michelle Kunkler Production Artist: Patti Hudepohl Internal and Cover Designer: Stratton Design Cover Illustration: Tate Gallery, London/Art Resource, NY Internal Illustrator: William Low/Cobalt Illustration Services For permission to use material from this text or product, submit a request online at http://www.thomsonrights.com. For more information about our products, contact us at: Thomson Learning Academic Resource Center 1-800-423-0563 Thomson Higher Education 5191 Natorp Boulevard Mason, OH 45040 USA Preface The instructor’s material that accompanies the five versions of Mankiw’s Principles of Economics, Fourth Edition textbooks address the needs of both novice and experienced instructors. To meet the needs of these two groups, this Instructor’s Manual......

Words: 135884 - Pages: 544

Business Strategy Evolution

... 1. Grant: Chapter 8, Cost Advantage, and Chapter 9, Differentiation Advantage 2. M. Porter, Generic Competitive Strategies, (Competitive Strategy, Chapter 2) 3. M. Porter, The Value Chain and Competitive Advantage, (Competitive Advantage, Chapter 2.) Optional Reading: 1. Grant, Chapter 7 – Nature and Sources of Competitive Advantage, January 28 Thursday (PP) Case: Hudepohl Brewing Company 1. What is Hudepohl’s Strategy? How does it fit into the generic strategy typology? 2. Can you analyze Hudepohl’s value chain? Where do you think Hudepohl draws its strengths (and revenue!) from? 3. Can profits be improved by changing the mix of Hudepohl’s activities? Which activities should be candidates for expansion? 4. What policy problems and options face Bob Pohl? What are the ones he is focusing on? Do you think that he has framed the situation (and the problem he should solve!) well? Why / Why not? 5. Should Hudepohl seek to become a major player in the regional (not just Cincinnati) beer market? Why / Why not? 6. Given your readings, how would you combine the value chain analysis and the generic strategy framework to propose changes to Hudepohl’s strategy? What would your particular recommendations be? Substantiate them! February 2 Resources & Capabilities: Drivers of Business and Corporate Success Tuesday (PP) Readings: ...

Words: 5591 - Pages: 23

Business

...Hudepohl Brewing Company Summary Hudepohl Brewing Company was founded by Louis Hudepohl in Cincinnati, Ohio. Bob Pohl was appointed as the new general Manager in 1980 after the sudden death of the company’s president. The company experienced a disappointing stint during the late seventies as it was operating at less than 40% of its capacity and bore a loss of $538,000 in 1978. Even after the disappointing results, Pohl was optimistic about the future and predicted growth in the earnings and this was confirmed by a 7% growth in sales during first four months of 1980. Pohl majorly focused on changing the organizational structure of the company right after he was appointed as the general manager. U.S. Brewing Industry -Growing market increasingly supplied by fewer brewers. -Concentration of the industry - due to economies of scale in the production, distribution, and marketing of beer. -By 1978, top 10 American brewers accounted for 94% of beer sales. -Winners (1969 & 1979) - Anheuser-Busch, Miller, and Heileman. Industry Economics Raw materials purchasing - major brewing ingredients, were subject to wide fluctuations in price. * Production - reluctant in changing its methods of brewing, expensive installation. * Labor – Higher wages, Labor productivity improved. * Packaging - canning line speed increased 123% and labor requirements dropped 42%. * General and administrative expenses - Increase in the average plant’s scale, 1 million barrels (1969) to 2.5...

Words: 472 - Pages: 2

Besanko

...9, 10 and 13. You may want to ask students to think of the following questions in preparation for the case: a) What are the characteristics of rough diamonds that create challenges in sustaining a monopoly of this trade? b) Why does De Beers require different countries to pay different commission to participate in the syndicate? c) Why might diamond producers agree to participate in the syndicate as opposed to selling their output on their on? d) What forces prompt diamond producers to exit the syndicate? House of Tata, HBS 9-792-065 (see earlier chapters) Hudepohl Brewing Company HBS 9-381-092. Hudepohl is a private company. Presents the problem of how an established regional brewer can survive the onslaught of national breweries, some of which are being cross-subsidized by diversified parent companies. Requires detailed analysis of what operations are profitable and unprofitable for Hudepohl, in addition to industry and competitive analysis. This chapter can be taught with some combination of the following chapters: 2, 5, 11, and 12. You may want to ask students to think of the following questions in preparation for the case: a) How well is H doing? Is Bob Pohl’s optimism about H’s future justified? b) How have the fundamental economics of the beer business changed over the 20-30 years prior to the time of the case? Have these changes helped or hurt H? c) What are the markets that H competes in? Which are H’s strongest markets? Which are its most...

Words: 81132 - Pages: 325

Manager

... services, a point of differentiation can be employee courtesy, availability, expertise, and location. Products and services can be differentiated via advertising, even if they are virtually the same. A media campaign can convince the consumer that one is better. For instance, consumers could be persuaded that Nike shoes are better than Converse because of a celebrity endorsement. Focus Using a focus strategy, a company concentrates on either a market area, a market segment, or a product. The strength of a focus strategy is derived from knowing the customer and the product category very well. Companies establish a “franchise” in the marketplace. In the beer market, dominated by titans such as Anheuser- Busch, Coors, and Miller, little Hudepohl Beer (“Hudy”) holds its own in Ohio. The giants can boast lower costs and slick marketing, but they do not enjoy the local “cult” following. Hudy pursued a loyal following over the years through local exposure and community involvement. Hudy focuses on Ohio. Competitive Tactics: Signaling Signaling is a key strategic tool. It involves letting your competitors know what’s on your mind. Combatants signal what they plan to do or what steps they will take in response to a competitor’s move. Of course, a company can also bluff. Signaling is used to prevent disastrous (and costly) price wars. Direct contact with the competition to set prices or allocate markets is illegal! There are antitrust laws that forbid this behavior. But by......

Words: 97445 - Pages: 390

Chuggington Ready To Build v1.2 mod apk | LIVE DUNGEON! Chap 1 | The 39 Steps (Les 39 marches) sd