2.2 Marketing Management and Decision Making:

In order to achieve a successful marketing response, marketing management is an important business aspect that focuses on the coordination and review of goods, costs, promotions, sales forecasts, and target market. To satisfy growing competition and the need for better sales strategies to minimize costs and raise revenues, marketing strategy has gained prominence. Therefore by evaluating goods, costs, target market size, advertisements, and revenue forecasts, it is important for us to control the market. In detail, we are going to serve the mainstream beer and locally sourced craft beer prices ranging from $5.50 to $6.50 retail and $3.50 wholesale depending on the distribution channels and brand. As predicted, the two flagship and signature beer brands, Pilsner and Bavarian Lager would consume more target market size than the other standard products. Furthermore, Pilsner, Bavarian Lager, and Light Wheat will largely rise when the summertime starts, both of them experienced over 2% increase. Besides, we decide to invest a comparatively moderate marketing cost for various advertising channels, such as local advertising, social media, and setting up a website.

2.3 Financial Management for Decision Making:

Because of the superior location and position as a high-end restaurant, but affordable for local office workers and college students, the major monthly fixed expenditures are rent, material cost and labor. As the passive expectation of the Covid-19 pandemic, the volume of customers would be relatively lower than before. However, our business strategy is to keep the growth level the same even though business shrinks this year. We take two basic approaches to increase the intrinsic value: increase the Free Cash Flow and decrease the weighted average cost of capital (WACC) at the same time. To increase the Free Cash Flow, we will consider the options such as raising the price of drinks, slightly decreasing the portion of marketing since the brand name is more mature, and entering the food delivery market to expense the target consumer. At the same time, we will cut the expense by setting up the digital payment system to cut the labor cost and adjusting the investment of the items according to the sell performance. Additionally, reducing the loan to save the interests since we have a good operating performance to generate more profits. Seeking a more beneficial interest rate loan if we plan to expand the size of the restaurant. Because the revenue of the restaurant is seasonal, we can hire the employees flexibly, hiring part-time employees during June to September, and keeping the minimum employees to meet the demand in winter.


3.0 Methodology for Applying Decision Tools per Cycles

Swot analysis:

SWOT analysis is an extremely useful decision support tool that allows us to examine both internal and external factors when making a decision. From an internal standpoint, we will take a look at our own strengths and weaknesses as a business. To evaluate external factors, we weigh the opportunities versus the threats that exist with regards to our brewpub. Below we explore each of these factors in more detail.

PESTELE is another useful decision tool and acronym for Political, Economic, Social, Technological, Environmental, Legal, and Ethical factors that may affect a business decision. The last category, Ethical, is actually a recent addition to the framework but one that is of growing importance in today’s society.

SWOT Analysis:

Strengths: One of the main strengths of our brewpub is our location. Located near the Boston Aquarium on the waterfront. we have a prime location that will see a high level of foot traffic on a daily basis. The level of foot traffic both domestic and tourist based can help provide a steady demand for our business. A second strength is our unique offering of locally sourced craft beer. While large breweries exist in Boston. there are few locations that provide the intimate craft beer experience of a brewpub such as ours. Lastly, a strength of ours is our strong marketing. Again capitalizing on our location and the high level of traffic, we plan to invest heavily in our local advertising in order to appeal to a local audience.


As with any new business there will of course be weaknesses. One of our weaknesses will be a lack of experience. While we have experience operating a service business in the current restaurant, we do not have any experience running and managing a brewpub. This is a weakness that we will need to address with retraining of employees as well as through the outside hiring of personnel with the expertise we need. Another weakness we have is that due to our small operation size, we cannot afford to produce large quantities without appropriate expected demand. The cutoff points we must rely on are determined by expected demand and limit our production flexibility which could lead to issues with meeting different levels of demand. Lastly, our wholesale production will require 200sq feet in additional space in order to implement. This additional space will drive our fixed costs and overhead up as we have to pay for an addition to the current location increasing our rent and utilities costs. We deem this to be a necessary evil however, since our wholesale business has the potential to be quite lucrative.


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