Paper Example on Economic Outlook

Introduction

It is essential to consider the assumption about the current and the future economic conditions and apply them in the planning and strategic decision making of the company. The forecasts that are made relevant to the needs of the entity and should be updated as quickly as changes in the trends occur. As the business planners for Old 97' Brewing, Mark and I will ensure we understand and utilize business the economic trends and use them in the decision-making process. Alternative economic scenarios need to be developed and advice offered about the effective tactical and strategic responses provided. We will need to ensure the business can adapt to changes in the economy and increase the contribution of the trends for the success of the organization.

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The economy of the United States is expected to grow at the rate of 2.6 percent with the inflation factor and a scale of 3% without the inflation factor (The Balance, 2018). The unemployment rate is expected to decrease which may increase the cost of labor based on the increase in demand. Based on the economic outlook the current pricing of the products will remain the same, and there is a high chance of a boom in the market (The Balance, 2018). The income levels of the target market are moderate which is a factor that has been factored in by the pricing strategies of the Old 97' Brewing.

It is necessary for the business to consider the uncertainty in the economy where despite the forecast values provided by the economist, there is a risk of a recession being experienced (Koch & Friis, 2015). Therefore, strategies must be put in place to allow the business to mitigate the chances that they may be exposed to in case of the changes in trends. Old 97' Brewing will ensure that plans are put in place to allow the business to survive in times of economic crisis.

Marketing Plan

The government has a present-day drive, and stress on broadening of the industries presents an opening for Old 97' Brewing to make a valuable input towards the achievement of the goals of the government. Having completed a market analysis of the Danville/Pittsylvania counties, there is the need for a manufacturer that focuses on the production of affordable beer that satisfies the needs of the customers. Old 97' Brewing intends at offering customers products that are of high quality. We have therefore ensured that the marketing mix is strategically put together to penetrate the market effectively and provide a competitive advantage (Menon et al., 2015).

The market segmentation will be focusing on the students and the working class in the area. Since the brewery is located within walking distance from the corporate business and the institutions in the area, it will be easier for the target customers to acquire the products. The corporate customers will be able to access the business after hours and on weekends easily. The low-income working class is aware of their image will be able to put aside the corporate image and enjoy their drinks after hours and on weekends in an area that is easily accessible in the area. The business will also appeal to local and foreign tourist thus the association of a story that explains the tradition of the city with each product offered by the industry (Menon et al., 2015). The tourist will be able to enjoy a good time at the entity with good quality craft beer at a reasonable price.

Niche marketing strategy will be used to focus on specific target markets that will ensure we can compete with the companies that have already established themselves in the market. We expect that the overall target market share will be 6% of the local market which will vary based on the products (Krommydas, 2018). The Indian Ale is expected to have a higher market share since it is unique in its taste. Since other breweries already dominate the market in the area, an aggressive marketing strategy will be applied to support the business functions.

Therefore, the approach takes into consideration the budget of the consumers by offering our products at a price that is affordable (Menon et al., 2015). Marketing activities will focus on the quality of the products and their association with the traditions of the people in the region. The marketing will be based on the strengths of the company and avoid the weaknesses of the company.

Product Design and Development Plan

The product design and development plan allow a description of the product design and its development within the context of production, marketing and the company itself.

The goal for the product development for Old 97' Brewing will be to produce a recipe for premium sale beer and create packaging for the different products. The market development goal for the entity will be to develop collateral marketing materials. The goals of Old 97' Brewing is to ensure we acquire expertise that will support the achievement of the product and market-development goals. The knowledge will be used in the areas of critical assets that offer a competitive advantage (Koch & Friis, 2015). We understand the need for the acquisition of skilled expertise in the business to ensure the product succeeds in the market.

The management will ensure that all the employees of Old 97' Brewing are aware of their duties and responsibilities in addition to guaranteeing that the necessary resources for the operations are made available. The optimum malting process will be determined and the boiling worth evaluated by the experts to provide the best flavor. The yeast amounts, fermentation and aging periods for each of the products is then determined. Once the beer is ready, it is carbonated and sold in taprooms.

Each of the products will be reviewed and checked to ensure they measure up to the standards and corrections made in the areas that are needed. The product is examined again to ensure the integrity of the prototype (Koch & Friis, 2015). The costs of each of the process will be accessed and the resources provided to allow the business to gain a competitive advantage.

Manufacturing and Operations Plan

The beer sold in the taprooms will be freshly brewed within the entity using quality technology to provide the highest quality standards. Old 97' Brewing main focus is offering high-quality craft beer at an affordable price, and thus the manufacturing process will aim at ensuring the organization achieves its objectives. To manage the operations of the company the management team will consist of mark and I. We will focus on providing the services of the company are running smoothly at all times for the satisfaction of the customers. We will also hire a team of experts in the making of the beer who will ensure the standardization of the products. A group of experts will be employed to guide the business in areas that may be performing poorly (Koch & Friis, 2015). Additionally, the supply chain of the company will be managed effectively and efficiently to support the operations of the organization.

References

Koch, C., & Friis, O. (2015). Operations strategy development in project-based production-a political process perspective. Journal of Manufacturing Technology Management, 26(4), 501-514.

Krommydas, N. (2018). Craft Brewers Predict the Biggest Beer Trends for 2018. Retrieved September 19, 2018, from https://vinepair.com/articles/craft-beer-trends-2018/

Menon, A., Bharadwaj, S. G., Adidam, P. T., & Edison, S. W. (2015). Effective Marketing Strategy-Making: Antecedents and Consequences. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference (pp. 224-224).

Springer, Cham.The Balance. (2018). US Economic Outlook for 2018 and Beyond: Experts Forecast Steady Growth. Retrieved from: https://www.thebalance.com/us-economic-outlook-3305669