Table of Contents

Organization’s Background ........................................................................................................................... 3

Part A: Strategic Analysis .............................................................................................................................. 4
External environment ................................................................................................................................... 4
PESTE ......................................................................................................................................................... 4
Porter’s Five Forces Analysis ..................................................................................................................... 5
Internal Environment .................................................................................................................................... 6
Resource Analysis...................................................................................................................................... 6
Capability Analysis .................................................................................................................................... 7
Core Competencies ................................................................................................................................... 8
Core competence 1 ................................................................................................................................... 8
It is one of distinct procedure of brewing: ............................................................................................ 8
Core Competence 2 .................................................................................................................................. 8
Current Location ................................................................................................................................... 8
Core Competence 3 .................................................................................................................................. 8
Independence: ....................................................................................................................................... 8
Core competence 4 ................................................................................................................................... 8
Coordination along the distributer: ....................................................................................................... 8
Core Competence 5 .................................................................................................................................. 8
Innovation ............................................................................................................................................. 8
SWOT Analysis & Strategy Development ...................................................................................................... 9
SWOT Analysis........................................................................................................................................... 9
Corporate-level Strategy ......................................................................................................................... 10
Part B: Discussion of strategic Analysis ....................................................................................................... 11
Evaluation of External Environment ....................................................................................................... 11
Evaluation of the Internal Environment ................................................................................................. 11
Evaluation of SWOT Analysis .................................................................................................................. 12
Evaluation of corporate level strategies ................................................................................................. 13
Evaluation of business level strategies ................................................................................................... 14
Cost Leadership: ................................................................................................................................. 14

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 Differentiation: .................................................................................................................................... 14
Focused Cost leadership: .................................................................................................................... 14
Focused Differentiation: ..................................................................................................................... 14
Utilizing an Integrated Low-Cost/Differentiation Strategy ................................................................ 14
Conclusion ................................................................................................................................................... 15
REFERENCES ................................................................................................................................................ 16

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Organization’s Background
The view from the headquarters of Brisbane Valley Brewing (BVB) said much about the journey
for this medium sized Australian brewery. Based in Brisbane’s West End, the panoramic view to
the east captured the city skyline, the Story Bridge and the streaming traffic heading north to the
Sunshine Coast. In addition, to the west CEO Ian Chant could picture the rolling hills of the
Brisbane Valley, out past Mount Coo-tha where BVB had started. That was in 1918 and the
conclusion of World War I - Ian was mindful that very soon the company would be celebrating
one hundred years of family brewing, although these days BVB was incorporated and had a
board of directors.

The Brisbane Valley Brewing f is symbol of a tradition, as it has been establish from old days
and has now earned the recognition throughout the Australia, initially by wholesale brewers,
the proprietors of the alehouses and bars who brewed beer for sale on their own sites.

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Part A: Strategic Analysis
External environment
PESTE
Political influences
 Primarily, the toll duty and excise
have great impact on the industry.
Actually, these boosted per barrel
at a certain point to 12%. Sale and
consumption of alcohol for
different age people varies in
different regions of the country.
Economic influences
The Brisbane Valley Brewing
cannot take one step without raw
materials, like cereals, is required
to brew the beer and finances have
impact on the business ,over half
of the business expenses is
dependable on them.
Socio-cultural influences
 The use of beer was boosted in
80’s and this issue gained legal
approval as well by that time. The
trend of drinking beer got
recognition as well. Moreover,
several types of drinks were
introduced to the market because
beer with high concentration were
not used by women. The Act in
1974 gave official approval to
women in order to consume beer.
The industry
environment
 Suppliers: ingredients,
packaging and raw
material suppliers

 Competitors: Indulging
in Strategic Innovation;
introducing substitutes
and new flavours
 Customers: Hoteliers,
Retail Distributors, 
Technological influences
Shelf life has increased due to
innovation in packaging and
manufacturing technologies. In
addition, it enhances storage area
and allows transport more fluids at
a similar cost. The same happen
due to the change in the container
size, which was an enormous
technological improvement.
Natural environment
With the enhancement of
Corporate Sustainability
Responsibility, has a great impact
on the industry as many factors
have considered such as not
harming the soil or environment.
A proper recycling system has
devised in regard of the cans and
bottles.
Legal conditions
In a certain Periods, the brewing
industry has walked through the
storm of legislative procedures.
There many time when the
licenses were not issued in certain
places where the firm can sell its
beverages, which prominently
hindered the sale and revenues.
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Porter’s Five Forces Analysis

Suppliers

along more global players in the

market breweries now incorporate
a level of vertical coordination,
weakening supplier power
(MarketLine, 2013). Jumps are
normally obtained from
autonomous manufacturers, with
grain for the most part purchased
from farmers. The same number of
these providers run autonomously
and on a littler scale, their impact
is weakened.

Potential entrants Industry competitors Substitutes

Potential entrants to the brewing There are a large number rivals as The focal substitutes for beer are
business may confront risky there is a strong rivalry in the other alcoholic beverages, for
boundaries to section by those brewing industry. Since the early example, wine and spirits, and
already overwhelming the market. 1920’s Australia and china now now and again non-alcoholic
The market pioneers have just has additional breweries than at drinks, for example, functional
accomplished economies of scale, any time before (Bleier et al., beverages, which can go about as
which might be a threat for new 2013). There are 19 active substitutes for low/no alcoholic
entrants. Alongside the new breweries in the country. This beer (MarketLine, 2013). A
entrants making brand incorporates the quantity of all noteworthy risk to the beer
acknowledgment, they likewise breweries both microbrew/craft brewing industry is that the
may confront major issues and premium local brewers. switching expense of replacing to
increasing such a large capital a substitute item is almost non-
expense. Government protocols of existent. To accomplish a practical
brew are also strict, and may effect upper hand in connection to
on the simplicity of market substitute items is to develop
section. In general, there is a direct Buyers customer loyalty towards brand.
probability of new entrants.
Retailers hold the possibility to negotiate
the terms on price with brew makers; it
improves the power of purchaser. The
potential for exchanging costs is not
transcendently high, which builds purchaser
power in all portions. However, as
purchasers need to accommodate consumer
and offer an extensive variety of beers, this
weakens purchaser power.
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Internal Environment
Resource Analysis
Table 1: tangible resources

Tangible Resources Description of the resources

Physical Resources Machines, plants, locations

Availability of raw material
Financial Resources Ability to generate internal funds.
Ability to raise external capital.

Technological resources Trademarks, patents, trade secrets and copyrights.

Organizational resources Integrated MIS

Control system, command and formal planning.

Table 2: Intangible Resources

Intangible Resources Description of the resources

Human resources Culture of organization

Administrative skills

Innovation resources Organized department of R&D to enhance product quality and

innovate new products
Ability to change and innovate
Reputational resources Perception of durability, product quality and reliability in
consumers
Marketing stretgies

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Capability Analysis

Table 3: Capability Analysis

Area Capability of Brisbane Valley Brewing

Corporate  Strategic control

 Multinational administration
 Acquisitions administration

Marketing  International brand management

 Building client trust
 Market research and segmentation

Human Resource  Generating the trust and loyalty of employees

Management  Development of Management

Design  New product plan ability

R&D  New product improvement capacity

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Core Competencies

Core competence 1
It is one of distinct procedure of brewing: as it utilizes characteristic maturation system and the
lager has not sanitized

Core Competence 2
Current Location: organization is often divided in numerous chunks at certain vital areas

Core Competence 3
Independence: organization might control the entire procedure, which has a great deal of
significance, extended commitment or contract to the agriculturists as it helps produce raw
material.

Core competence 4
Coordination along the distributer: Distributers often need to keep the brews refrigerated and to
wreck them following 60 days at their own particular costs on the off chance that they did not
offer it

Core Competence 5
Innovation: the firm has introduced cans, which is of two pieces, and have started the recycling
program from beer bottles and cans.

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SWOT Analysis & Strategy Development
SWOT Analysis
Table 4: SWOT analysis by using TOWS matrix
External Opportunities (O)
 Consumption of Beer is
more than the hard liquor.
 Female community has less
consumption of Beer.
 Tourism industry is growing
rapidly.
 Large quantity of raw
material is available such as
water, rice and coconut.
 Country is growing in terms
of technology.
Internal strengths (S)
 Expanded technology S2 O3
for packaging Consider global market share for
 Already has award- tourism industry and promote in
winning portfolio. hotels and tourist points
 Operating in S1 O2
restaurants and pubs, Female friendly drinks should be
through a subsidiary introduced in order to target them.
retailer. S3 O1
 Fully coordinated ERP Beer cocktail bars should be
( enterprise resource introduced in restaurants.
planning) which cover S4 O5
each and every aspect Patch up the organization exercises
PC based to receive the most
extreme in return systems and
databases.
Internal weaknesses (W) W3 O1
 Basic raw material is Begin retails deals and eliminate
been producing individual dealers.
seasonally W1 O5
 There are no retail Request gauging and arranging
stores, operations are alongside innovation to have raw
done by agents material such as rice in order to
 Financial situation is capture sale of all seasons
hindering from past W1 04
couple of years Have manages the providers for
 Lack capabilities to settled value contracts amid the off
advertise the product. season.
External threats (T)
 Presence of illegal
alcohol market is a
threat.
 Use of alcohol is most of
the time discouraged in
many people due to their
culture.
 Use and sale of liquor
face tough legislations.
 Taxes are too high on
liquor.
S1 T2
Extend the generation into new
regions, for example, energy
drinks and other carbonated
drinks with the new technology
that is effectively accessible.
S1 T4
New items, for example, non-
fermented brew to decrease the
duty pay and to capture the
nonalcoholic market.
W5 T1
Campaigns are needed to be
done in order to illustrate health
hazards regarding illegal beer
W4 T4
Stop giving the license in low
productivity areas.
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 1. Business-level Strategy

Figure 1: Business level Strategy

Competitive advantage
Lower Cost Differentiation
Cost Leadership Differentiation
Using economies of scale Using high quality material
Broad
Target

Integrated Cost Leadership/Differentiation

Competitive
Implemented
Scope

Narrow
Cost Focus Differentiation Focus
Target
Not Applied Not Applied

Corporate-level Strategy

Table 4: Corporate level Strategies

Level of diversity Type of diversity

Low-levels Related Diversification

Moderate to high-levels Related Diversification

Very high-levels Related Diversification

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Part B: Discussion of strategic Analysis
Evaluation of External Environment
A large portion of the research have brought up that the external environment of firms is
changing quickly and in the meantime this perplexing condition frames intensity of firms.
At the point when the changing external condition considered over in which lodging
firms are working, observed that internal need to create dependable procedures to work
proficiently and successfully. This stage is the way toward distinguishing and following
patterns that prompt business opportunities and threats and includes a few vital
administration choices (CHEN and WANG, 2008). Natural examining perceived as a
fundamental administrative instrument which through utilizing orderly filtering systems,
accommodation firms can distinguish openings and dangers and afterward create
effective plans. There are numerous investigations treated on the outside vital
examination directed by firms (Gasparotti, 2009).
According to the examinations, the external environment was isolated into two segments
as the full scale and miniaturized scale condition. In like manner, it appreciates that a
minute kind of course of action made as the business condition and the business condition
(Xue et al., 2008). Regardless, these thoughts insinuate a comparative ponder Scanning of
each class of the earth may give a route to the authority to pick the best possible
wellsprings of information and using information both really and non-before long.
"Regardless, the most conditions authority of the preparing firm is reluctant to attract
with common checking the most basic reason of that, overseers are worried over
information that starts from the source they use. They in like manner express stress over
their frailty precisely to dole out probabilities to the likelihood of events truly occurring
in the earth and what affect they will have on the firm (Türkay et al., 2011).

Evaluation of the Internal Environment

The internal environment of an organization consists of all the important factors, which
are necessary to the firm that has influenced significantly. The investigation of the inward
condition must answer all asset related inquiries, understand all asset administration

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 issues and speaks to the initial phase in drawing up the showcasing system (Claudiu et
al., 2011).
The internal environment as indicated by scholars is a professional workplace that is in
the firm and ordinarily has immediate and particular ramifications on the organization.
As indicated by the RBV approach, the primary concern is a firm assets and capacities
(Ding and Liu, 2011). Diminishes and Waterman made the idea of the seven S system for
examining the qualities and shortcomings of the organization. Porter presented an internal
examination technique known as esteem chain investigation (esteem chain). In spite of
the fact that there are numerous approaches to examine the inward condition, the least
difficult approach to watch and dissect the inside condition is through useful analysis
(Indris and Primiana, 2015).

Evaluation of SWOT Analysis

The SWOT analysis is a broadly utilized technique that practiced in business rehearse, as
well as in the region of regions. The examination often closes with the underlying
meaning of different elements like qualities and shortcomings, openings and dangers of
an association. This is a lacking and misdirecting comprehension of the SWOT
investigation. The SWOT examination should guide key administration to a right
technique or to its beginning stages in view of the shared correlation and assessment of
connections amongst qualities and shortcomings, openings and dangers (Helms and
Nixon, 2010). An insignificant posting of impact factors is lacking to decide basic key
places of an association. Thusly, we looked for an approach to set up a valid association's
key position based on SWOT. We think we found an intriguing method for assessing
SWOT investigations, on which we might want to educate the expert open (Valentin,
2005).
Evidently, there is no expert production committed to vital administration and arranging,
which would not specify the SWOT analysis. Keřkovský demonstrates its correct
attributes this way: "SWOT investigation is an important wellspring of data while
planning methodology. The thing is that the essential rationale of a system proposition
depends on its exceptionally nature." The examination generally depicted as an
instrument for the conclusion of qualities and shortcomings, openings and dangers of an
association. The depiction frequently supplemented with an illustrative plan of a social

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 SWOT network. The network both impels to the decision of a suitable key bearing and
attracts thoughtfulness regarding the flow of inward and outer condition, which is
exceptionally profitable with respect to the utilization of the examination to vital
purposes. In any case, the direction is all the more promoting focused and it is faulty
whether it is pertinent even outside the business circle (Chang and Huang, 2006).

Evaluation of corporate level strategies

Corporate level strategy is an establishment for organizations activities, forms and the
manners by which its different organizations cooperate to accomplish specific objectives.
Researchers and directors perceive distinctive levels of methodology for associations.
One of the separations depends on administration structure of the association, and
partitions corporate system on two levels: corporate technique and specialty unit
procedure. As a rule, some may feel that business and corporate measurements are the
same. Nevertheless, when partitioned into methodologies, there is a distinction. As per
Goold et al. (1996) corporate-level system manages two primary inquiries: a) what
organizations should the organization contend in; b) how headquarter ought to deal with
the quantity of specialty units. The corporate procedure is a fundamental thing that joins
diverse specialty units into the one association. Goold et al. (1996) contended that best
utilization of corporate methodology might be found in portfolio administration. It is the
procedure when organizations build up their expansion through acquisitions. The point of
the organization, while performing enhancement, is to include investor's esteem (Ansoff
and McDonnell, 1988).
The exploration on corporate system has begun in 1950's and till these days rose to vital
administration teach. At one of the principal works identified with corporate
methodology, Chandler (1962) featured the need of organizing diverse parts of
administration under one, all-shrouded procedure. Previously, the distinctive elements of
administration had low level of coordination and have been isolated regularly. Likewise,
he focused on the significance of time at technique definition, by introducing system as a
long haul pointed activity. He accompanied idea, that long haul-facilitated procedure
ought to be a beginning stage for improvement organization structure, characterizing
heading and focal point of their activities. By his words: "the structure takes after
procedure". Igor Ansoff (1965) based on Chandler's works and created technique

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 framework, which likewise found in writing under the name "item/showcase
development grid". The network speaks to the decisions, which organization may choose
with a specific end goal to development, and among them: item advancement systems,
advertise infiltration methodologies, even and vertical mix and broadening procedures
(Ansoff and McDonnell, 1988).

Evaluation of business level strategies

Four nonexclusive systems are there in order to enable firms to construct a competitive
advantage from industry rivals. Firms may also intend to capture an engaged or an
expensive slot in market.

Cost Leadership:
Organizations go after a wide client in view of cost. Cost depends on inside effectiveness
in order to possess an edge, which, would support better than expected cost and revenues
from customers and ensuring that customers would be going to buy the product from this
company.

Differentiation:
Customers are given high value in order to gain their attention, products are designed in
such a way that whether they are not low cost customers would buy it in any way
possible.

Focused Cost leadership:

Organizations contend on cost, as well as select a little fragment of the market to give
products and ventures to them.

Focused Differentiation:
Organizations contend on separation, as well as select a little section of the market to give
products and ventures

Utilizing an Integrated Low-Cost/Differentiation Strategy

This new system is a strong tool to compete globally. Firms that use this methodology
may see change in their capacity to:

 Adaptability to ecological changes.

 Learn new aptitudes and innovations

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  More viably use center capabilities crosswise over specialty units and product
lines, which should empower the firm to deliver the best quality in lowest possible
cost.

Conclusion
According to the above discussion, it is apparent that Brisbane Valley Brewing is has made its
mark in the Australian corporate area and the mixed drinks industry. Brisbane Valley Brewing
has courageously taken a few key choices in the course of recent years. As to key heading,
Brisbane Valley Brewing can make great utilization of their interests in innovation and
foundation to expand their item contributions, for example, lager mixed drinks and non-hard
lager. Likewise, other prescribed techniques connected over the time of five years recommended.
This would interest an expanded number of buyers, while requiring insignificant further
speculations. Such moves would not just expand the extent of their objective market, yet in
addition aid speedier recuperation of the present speculations, after which the organization can
appreciate the expanded benefits

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