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Sunday, December 16, 2007

How to run a business, part XXL

This is the kind of headline that just screams out to be read; “Craft brewers becoming more business savvy.” Apparently, craft brewers, the “official” name for small, high quality beer brewers, like your local brew pubs and microbreweries, have no business sense and they suddenly just realized that. These craft brews are the fastest growing segment of the beer market, but it seems it’s just been dumb luck and pretty labels that attract ig’nernt customers. Of course, this article also describes Budweiser, Coors Lite, and Miller as premium beers. Premium has a different definition where I come from. But I digress…

It’s safe to bet that the successful craft brewers have a fair amount of business savvy. While craft brews have become popular because of their quality and variety, you don’t stay in business more than a couple of years without knowing a bit about running a business. That being said, it seems that the craft brewing industry as a whole has begun to realize what a lot of small business fail to realize (and some big ones) – it takes more than a quality product to succeed in today’s marketplace.

The article (from the Associated Press, printed in the Honolulu Star Bulletin) states that many craft brewers are starting to bring in business talent, to compliment their technical and brewing talent. Even with the market for craft brews growing, due in large part to more quality driven and adventurous consumers (drinkers?), there’s a lot of competition out there and you have to compete on more than quality. The beer industry is just like every other industry, in that quality doesn’t win business; it just lets you in the game. Once you’re in the game, you’ve got to back up your promises. Marketing and sales play an important role, but it’s Operations that pays the bills and allows you to grow and succeed.

Operations delivers. Operations delivers on the promises that are made by marketing. Producing a consistent product that meets specifications and expectations, delivering when and where the customer wants it, and doing it at a cost that earns a profit is what Operations does.

Brining in business expertise, in the marketing and sales, and finance and accounting areas, as well as in operations, is a wise move by any organization. Effective processes that allow for consistent quality and exceptional service is what operations is all about, and what every organization should strive for. Make promises, then deliver on them, and you’ll be on your way to success, and profits.


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Mical Peeter said...

Nice blog dear i have really learnt a lot from this blog thanks
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Steve said...

Thanks for reading.