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After learning the basics of home brewing, Ken Grossman with the will and drive in him begins brewing his own beer in five-gallon batches. As he gains popularity Chico, California, Grossman together with his accomplish Paul Camusi establish the Sierra Navada Brewing Company. Being an ethical-minded individual, Ken Grossman acts in the best interest of his client and is able to win the public trust and protect integrity. His loyalty, honesty advocacy and objectivity make his company to flourish because of the very high demand of his craft-brewed beer. From only producing five-gallon batches to the new total capacity of 800,000 barrels per year that his company now produces.
The company's sole objective is to brew the finest lagers and ales and this has been met by the traditional brewing exercise that the company undertakes. In the past few years Sierra Navada Brewing Company has met major achievement such as being ranked among the top ten beer producing companies in the United States. Due to good public relations and policies that Ken Grossman employs in his operations, the company now has 500 employees who are diligent and dedicated to their work. This has been a major strength to the company which is now ranked as the largest private craft brewery in United States.
Community relation is a key factor in establishing and maintaining a mutual relationship between the community and the company's operating environment. Ken Grossman being a goal oriented person that he is manages to consolidate his company to become a larger producer of light lager. He manages to maintain his consumers of the craft brew because of his active interest in the community's welfare and needs. In return, he gains the community's support, loyalty and goodwill. This has increased the market share over years thus spearheading the blossoming of his company. Craft beer has really gained popularity especially to the generation X group of people. This people are very loyal to their favorite brewers and you cannot find them consuming any other different brand of beer. Being an affordable luxury that it is, craft beer is likely to maintain its upward growth trend in the coming years.
Reputation management is the understanding and control of what people say and see in relation to the organizational goals and core values that a company upholds. This is an important and irrefutable factor for the advancement of an organization. Companies with good reputation are more attractive to customers, investors and suppliers because of the trust they have in it. Reputation increases company's financial performance in the fact that it reduces costs of future crisis. A company's name can be tarnished only because of bad reputation. This in turn leads to poor employee's morale because it affects attitudes, which in turn affect behavior. Craft brewing industries have a very strong reputation because of their social responsibility and sustainability. These companies normally operate from grass root levels and support the communities by purchasing fresh and local ingredients from them. The companies also support the communities by sponsoring public events and donating to charity. This has gone a long way to winning the peoples trust and loyalty to the company.
Competition is one attribute that never fails to exist in the business world. Being the highly raked craft beer brewing company that it is, Sierra Navada Brewing Company faces stiff competition from Boston Beer Company and the New Belgium Breweries. The closest competitor of Sierra Navada Brewing Company is the New Belgium Breweries. This is because it has a strong focus and participation in environmental issues which contribute a lot in establishing initiatives such as efficiency in the brewing process, proper treatment of the waste water from the company, use of methane power generator to produce on-site energy and the purchase of wind power from a program that has been established locally.
Environmental practices and policies are the factor which give or deny a company of its credibility and consumers loyalty. Sierra Navada Brewing Company mission is to be the greatest producers of the finest quality ales and beers and at the same time foster good corporate citizenship and ensure environmental accomplishments for the benefit of the community at large. Some of the major activities that the company undertakes in ensuring environmental cohesion include reducing consumption of non-renewable product, ensuring proper disposal of waste material and recycling of raw materials. The company recycles the already used vegetable oil from the restaurants in the area to produce biodiesel that is used locally at home and to power long-haul trucks. Local dairy and beef cows are usually fed with spent hops, grains and yeast. All these efforts are to mitigate environmental pollution and degradation. Ken Grossman is dedicated in preserving raw materials that are used in the production of the craft brew. His commitment to environmental programs has helped him to attract and retain very many employees to his company.
SNBC has begun a very ambitious program aimed at converting all its operations to produce solar power. The initial solar panels are placed on top of the company's parking lot where they are exposed to sunlight for very long hours hence maximizing the amount of power produced. The first four installations produce 1258kW of power. However, the company faces a major crisis when the State of California stops funding the completion of the fifth phase of the solar installation project. In order for the completion of the fifth phase of the project, SNBC will have to sign a ten-year service agreement with the company that does the installation and maintenance. The company saves a lot of money by generating its own power from the solar installation project. The excess power is sold back to the grid and this generates revenue for the company. Grossman pushes for completion of the fifth phase because of the rising cost of energy purchased from the grid which in turn will bring the realization of green energy.
Environmental preservation is the key reason as to why Grossman starts his company. The company is committed to the local community and in fostering environmental responsibility. Completion of the fifth phase of the project will help the company achieve its set goals. There is positive feedback from the consumers of the craft brew when they understand the company's environmental initiatives. Ken Grossman has other options such as investing the money in other forms of renewable energy such as geothermal energy, he can also purchase green power from external sources rather than completing the fifth phase of the solar installation project or he can use the funds to maintain the already installed solar installation in order to avoid downturns in craft beer.
In order to cub the problems and challenges that Sierra Navada Brewing Company faces, Ken Grossman should ensure that there is proper planning in the institution in order to avoid financial frustrations. Planning is the strategic process of organizing activities in the best possible way in order to mitigate harm to an institution. He should also aim at maintaining a positive reputation for the company. This always attracts investors and consumers to the company because the consumers do not perceive any risks in the products that they purchase. The company should be well armed to deal with any crisis that arises in it course of operation. Crisis management is the art of making proper decisions in order to mitigate the harm that a company faces due to some constraints in its operations. SNBC should ensure that it maintains good relationship with the community. This can be achieved by participating in community projects and environmental reforms and in return the company earns the community's loyalty, support an goodwill.