University of The People
MBA Business Administration
BUS 5117-01 Strategic Decision Making and Management
Written Assignment – Unit 4
July 13, 2022
Case Question
After reading the case “Wellington Brewery,” reflect on the challenges of the organization. Build
a value chain of the organization’s activities and identify the strongest and weakest link. Then,
based on the information in the case, perform a SWOT analysis. Make sure that there are at least
three strengths, weaknesses, opportunities, and threats each. Finally, based on your analysis of
the value chain and SWOT, explain what is the most important strategic challenge or opportunity
facing the firm and how it could be implemented.
Value Chain
A value chain is a tool developed to help firms to identify areas where competitive advantage
could be achieved (Kennedy, 2002). The value chain is a combination of several stages where
value is added at each phase. It consists of nine steps divided into two broad categories namely
primary activities and support activities. Primary activities are the main activities that directly
add to the products and services. Secondary activities are activities that aid the smooth
functioning of primary activities (Kumar & Rajeev, 2016). The most common method used to
analyze the current status and external opportunities and threats in the SWOT analysis.
Case Background
Wellington Brewery is an independently owned microbrewery famous for producing craft beers.
It is the first bar to produce English-style beer in North America. Currently, it is managed by
Brent Davies after he took over from Doug Dawkins who suddenly passed away, and Michael
Stirrup who retired. The company is well known for its original products including Special Pale
Ale, County Brown Ale, and Arkell Best Bitter. Furthermore, the company produces innovative
blends such as Chocolate Milk Stout, Helle's Lager, and Dissolved Splendor. The company sells
, its products through LCBO and Beer Stores in cans, bottles, and growlers. Furthermore, it started
an online store where customers could buy and experience their iconic craft beers.
Challenges at Wellington Brewery
There are several limitations and weaknesses that Wellington can improve. The company
produces original craft beer which may be an iconic feature but it also puts a limitation on
product variety. They are forced to target a specific market. Hence, their products should
maintain high quality and reasonable prices as more competitors join the market. Additionally,
they use PET bottles which are recyclable but not favorable when considering environmental
sustainability.
As more countries and consumers look for companies that prioritize environmentally friendly
products the company may need to look for alternative options. As the company grows bigger
and wants to enter new markets like Asia or Africa the company distribution network will be
extended to its limit. The current capabilities need to be upgraded to manage the new load. This
also requires the human resource than can support the firm to reach its limit. Hence, the firm
needs to work on professional development through training and improve employee retention
(Kennedy, 2002).
Wellington Brewery Value Chain
The firm's value chain consists of primary activities including inbound logistics, operations
outbound logistics, marketing & sales, and service (Kumar & Rajeev, 2016). The primary
activities are presented below.
Inbound logistics- Raw materials include yeast, Barley or malt, Hops, and other ingredients
Operations - Beer brewing, packaging, and waste management)
Outbound logistics - Production distribution, delivery, and product inventory.
Marketing and sales - Driven by an experienced sales team.
Service - Sponsors charity events, gives back to the community, offers warehouse space, and
offers sign-up for newsletters
MBA Business Administration
BUS 5117-01 Strategic Decision Making and Management
Written Assignment – Unit 4
July 13, 2022
Case Question
After reading the case “Wellington Brewery,” reflect on the challenges of the organization. Build
a value chain of the organization’s activities and identify the strongest and weakest link. Then,
based on the information in the case, perform a SWOT analysis. Make sure that there are at least
three strengths, weaknesses, opportunities, and threats each. Finally, based on your analysis of
the value chain and SWOT, explain what is the most important strategic challenge or opportunity
facing the firm and how it could be implemented.
Value Chain
A value chain is a tool developed to help firms to identify areas where competitive advantage
could be achieved (Kennedy, 2002). The value chain is a combination of several stages where
value is added at each phase. It consists of nine steps divided into two broad categories namely
primary activities and support activities. Primary activities are the main activities that directly
add to the products and services. Secondary activities are activities that aid the smooth
functioning of primary activities (Kumar & Rajeev, 2016). The most common method used to
analyze the current status and external opportunities and threats in the SWOT analysis.
Case Background
Wellington Brewery is an independently owned microbrewery famous for producing craft beers.
It is the first bar to produce English-style beer in North America. Currently, it is managed by
Brent Davies after he took over from Doug Dawkins who suddenly passed away, and Michael
Stirrup who retired. The company is well known for its original products including Special Pale
Ale, County Brown Ale, and Arkell Best Bitter. Furthermore, the company produces innovative
blends such as Chocolate Milk Stout, Helle's Lager, and Dissolved Splendor. The company sells
, its products through LCBO and Beer Stores in cans, bottles, and growlers. Furthermore, it started
an online store where customers could buy and experience their iconic craft beers.
Challenges at Wellington Brewery
There are several limitations and weaknesses that Wellington can improve. The company
produces original craft beer which may be an iconic feature but it also puts a limitation on
product variety. They are forced to target a specific market. Hence, their products should
maintain high quality and reasonable prices as more competitors join the market. Additionally,
they use PET bottles which are recyclable but not favorable when considering environmental
sustainability.
As more countries and consumers look for companies that prioritize environmentally friendly
products the company may need to look for alternative options. As the company grows bigger
and wants to enter new markets like Asia or Africa the company distribution network will be
extended to its limit. The current capabilities need to be upgraded to manage the new load. This
also requires the human resource than can support the firm to reach its limit. Hence, the firm
needs to work on professional development through training and improve employee retention
(Kennedy, 2002).
Wellington Brewery Value Chain
The firm's value chain consists of primary activities including inbound logistics, operations
outbound logistics, marketing & sales, and service (Kumar & Rajeev, 2016). The primary
activities are presented below.
Inbound logistics- Raw materials include yeast, Barley or malt, Hops, and other ingredients
Operations - Beer brewing, packaging, and waste management)
Outbound logistics - Production distribution, delivery, and product inventory.
Marketing and sales - Driven by an experienced sales team.
Service - Sponsors charity events, gives back to the community, offers warehouse space, and
offers sign-up for newsletters
